Once you’ve acquired property and done all the necessary updates and renovations, you must partake in the most crucial aspect of a real estate investment which involves finding the right tenants.
The right tenants are those who pay rent promptly, take care of the property to avoid damages, and participate in the maintenance of the property by alerting you of any repairs that are needed. Not to mention, when you have a tenant, you mitigate the risks associated with vacant rentals.
It’s particularly difficult for first-time landlords to secure such a tenant as they lack experience and industry insights. The journey to finding good tenants boils down to two main steps, marketing the property and screening prospects.
This piece is dedicated to informing you of the measures used by pros to find the best tenants for their properties.
Marketing Tips
Install Yard Signs
After completing the necessary repairs and upgrades, you are ready to put the property on the market. You need to let the people passing by know that the property is up for rent so a simple “for rent” sign with your contact information could be helpful. This method is inexpensive and helps to garner more attention.
Post the Property on Online Real Estate Listing Sites
The digital era has eased the means of marketing your property to massive audiences. Common listing sites include Craigslist, Zillow, Postlests, and Trulia. When embracing this marketing method, keep in mind that in order for your listing to be effective, you need to write good ad copy and include quality photos of the rental.
Explore Your Contacts
You may not have to search afar and wide to find your tenant. The finest tool for networking is social media. With only one click on Facebook, Twitter, or Instagram, you may reach all your followers and encourage them to share the information with anyone they know as well.
Put Up Fliers
A large percentage of prospective tenants interested in renting the property are likely already living in or near the neighborhood where your property is located. Hence, it’s wise to come up with marketing strategies that target the locals. You can post fliers in local stores and shops and mount signs in various high-traffic areas.
Host an Open House
Prospects in the real estate market believe that paying a visit to the space is the best way to see if a rental is going to meet their needs. Therefore it’s a good idea to host an open house.
Although this technique works best with new buildings, you can devise a plan to reach an agreement with the current tenants if yours is already occupied. There are several techniques you can apply when negotiating to hold property showings before the current tenant has moved out.
Advertise in Newspapers
Although the popularity of newspapers has decreased over time, it’s still desirable to publish an ad. Many newspaper subscribers still like reading the weekend edition, particularly the classified section. This could be an especially good option if you’re targeting an older demographic of renters.
Network Through Word-of-mouth
Everyone with whom you’ve done business should receive at least an email regarding the property. You never know who might be looking for a place to rent. You can mention it in passing noting that you have a property available for rent and kindly ask people to spread the word.
Tenant Screening
One bad tenant can negatively influence your real estate investment. Dealing with problematic tenants is not only time-consuming and aggravating, but it can also become quite costly. You can prevent dealing with a troublesome tenant by performing due diligence upfront hence saving on time and money.
The following methods have proved viable in getting the most fabulous tenants possible:
- Create an application form to get information about employment, income, and rental history.
- Run a credit check on the prospect. Get their social security number and date of birth, and social security number to complete this action. Also, ensure to obtain consent and signed authorization by the tenant.
- Request income verification by making it mandatory for all prospective tenants to provide the most recent pay stubs. You may even request W2s and bank statements for further verification.
- Confirm the details given by calling their references, usually previous landlords and current employers. They can give you more information about a prospective tenant.
Once you have confirmed all the details, finish by having the tenant commit formally. Proof of commitment can be done by signing the lease agreement and receiving the security deposit. Reminder, when conducting a tenant screening ensure that your screening questions and process adhere to the terms of the Fair Housing Act.
Closing Thoughts
It’s imperative that you find a qualified tenant to rent your space so that you can start enjoying passive income and help maximize your ROI. In order to achieve their goal, apply intensive marketing strategies and a thorough tenant screening. If you find this daunting, you can also engage the services of a professional management company.
Outsourcing property management services is the most incredible way to avoid any hassles associated with property ownership thus allowing you to enjoy the benefits of your investment. Property owners in Boise Metro Area should consult Realty Management Associates.
Our property management firm guarantees that we have clear procedures and application requirements in place. This, together with our tenant screening procedure, ensures that your Boise property is occupied by dependable, responsible, and trustworthy tenants.