Check out these top rental features that attract good tenants.
Remember, success or failure of your rental investments depends on attracting and retaining good tenants.
High-quality tenants mean your success as a landlord.
No matter if you got a great deal on the property or projected great cash flow. Your Return on Investment (ROI) depends on your tenants. If they pay on time, maintain the property, and continue renting for many years, you should succeed.
Another thing to remember. The quality of the property you purchase determines the quality of your tenants.
So, what do good tenants look for?
A recent Bigger Pockets survey showed the 10 top high-priority features that quality tenants seek.
Follow this checklist of what excellent tenants look for in order of priority:
- School Quality;
- Safety and Security;
- Ready to Move In Condition;
- Close to Work;
- Strategic Upgrades;
- Includes Appliances;
- Quality of the Neighborhood;
- Accessing Transportation and Basics;
- Age of the Property; and
Yes, just 10 things that good tenants look for listed above. Let’s explore each one.
Top Rental Features Attract Good Tenants
1. School Quality
According to the recent Bigger Pockets survey:
86% of the cream of the crop tenants interviewed listed the quality of schools as most important.
Now, bear in mind that single tenants with no children in the foreseeable future won’t list this as a high priority. But, single parents and families want a quality education for their children.
Buying rental investments near not so good schools limits your ability to attract single parents and families with school-aged children.
Another fact to consider, most of the time school quality indicates neighborhood quality.
Therefore, purchase rental properties near high-performing schools.
2. Safety and Security
Everyone wants to feel safe at home and walking the neighborhood.
One of the main reasons why renters choose a home over an apartment is safety for their family.
Thus, you need to research local crime data to locate properties in low crime areas.
The safer the neighborhood, the more desirable the property.
In addition, install security features like an alarm service or motion detection outdoor lighting. Consider these as cost-effective ways to make your tenants feel safe and secure at home.
3. Ready to Move In Condition
The ability to move right into an apartment or a house attracts good tenants.
Renting out properties not ready for a quick move-in (requires paint, cleaning, flooring, etc.) attracts less desirable tenants.
Good tenants plan to take care of the house or unit. They hold high standards of maintenance and cleanliness.
No one likes annoying and disruptive repairs in units or common areas. Seeing everything in tip-top shape and not crying out for fixes leaves a good first impression with prospective tenants.
Providing a move-in ready home tells prospective tenants that you share the same standards.
4. Close To Work
Proximity to employment means a lot to good tenants. No one likes long commutes to and from work. Offering a wonderful move-in home near great schools to a good tenant who must commute an hour or more to work every day won’t appeal to them.
When you look at potential properties, think about your target tenants.
Saving them commute time increases the desirability of your rentals.
5. Strategic Upgrades
Too many inexperienced rental investors think their properties need to be just “good enough” for renters. Thus, they purchase rentals with cheap appearances and rent them to mediocre tenants. Resulting in a run-of-the-mill ROI.
Don’t do this!
Instead, buy units and homes with strategic upgrades which attract excellent tenants. For instance, granite counters, hardwood flooring, stainless appliances, a covered patio, etc.
Even if you buy a fixer-upper, install these types of strategic upgrades to increase the quality of your tenants.
Remember, it’s the little details which make a house feel like a home. This feeling converts into longer staying tenants.
6. Includes Appliances
Think of the costs tenants incur when leasing your units or homes. They pay the first month’s rent and a security deposit. If you don’t provide a washer & dryer and a refrigerator, they end up buying them which increases their upfront costs.
Tenants do not want the hassle of buying costly appliances they may not need in their future rentals.
Make their decision to rent easier by providing these essential appliances.
New appliances attract tenants. It means less likelihood of their breaking down at the worst times and coordinating repairs. Going to a local laundromat takes time and adds costs to tenants.
Tenants willing to pay a little more each month for a property with all necessary appliances increases their quality.
7. Quality of the Neighborhood
The quality of a neighborhood determines lifestyle quality.
Think about where you live. Did the neighborhood amenities help to convince you to move there?
Since its all about lifestyle quality, great tenants often pay more and overlook less desirable aspects of a property located in a desirable neighborhood.
Purchase properties in neighborhoods filled with amenities like bike and running trails, parks, community pools, a gym, tennis courts, etc. Consider the type of lifestyle excellent tenants want to live in.
You might not find properties in neighborhoods providing all the amenities. However, the more amenities the better.
8. Accessing Transportation and Basics
The ability to access several modes of transportation determines whether the commute to work and shopping becomes long or short.
Basic nearby necessities like restaurants, grocery stores, and shopping centers shape one’s lifestyle.
The quality of one’s lifestyle affected by the length of commute times, and the ease to access parks, pools, and access main highways and park & ride public transportation.
Do your rentals provide basic services and transportation within easy reach?
9. Age of the Property
Tenants and their investors do not like hassles. The age of the property often determines how much future trouble occurs. Wear and tear and constant maintenance create irritations. No one wants this.
Try to purchase newer properties. Many experts point to a rule of thumb:
Less than 10 years and no more than 15 years old.
Prospective tenants like units and houses with newer electrical, plumbing, and HVAC systems because they won’t break down.
Your investment becomes a business decision. Not only for you, but for your tenants, as well.
Your main concern involves balancing the relationship between the purchase price and the rents you charge. On the other hand, your tenants only worry about the rent.
You need to strike a balance between the purchase price and the ROI determined by how much good tenants will pay.
Too high rent limits your tenant pool.
Too low reduces the quality of the renters.
Bonus: A Cooperative Landlord
Besides the above top rental features that attract good tenants, consider this:
High-quality tenants appreciate a cooperative landlord.
Tenants want their landlord to maintain the property and appliances. Additionally, to fix things quickly and make emergency repairs.
Above all, a courteous landlord who respects their rights as tenants and treats them cordially.
Landlords find their position stressful and time-consuming. Most people simply do not have the personality to become cordial and cooperative landlords.
If you fall into this category, don’t worry.
Hire Us as your property management company and we will help advise you on what “Top Rental Features Attract Good Tenants”.
We save you time and money by dealing with all the hassles landlords go through.
For instance, we:
- Conduct tenant screening by checking applicants’ backgrounds;
- Do credit checks;
- Check criminal records;
- Collect rents;
- Coordinate maintenance and repairs;
- Provide regular reports so you know the status of every rental;
- Conduct regular inspections;
- Evict bad tenants when necessary; and
- Advertise for new tenants.
Steven Rich, MBA – Guest Blogger
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