So you’ve purchased your first investment property, it is tenant-ready and you’re going to advertise the property for lease. You quickly realise you’re now a landlord and you have to select the best tenants that will look after your bricks and mortar. You ask yourself questions like ‘what if they don’t maintain it well?’ or ‘is it better to have families or single people in the property?’
Tip 1. Target Advertising At The Demographics Of A Suburb
Effective real estate advertising is targeted at certain groups of people. For instance, a For Lease advert that’s focused at young families typically promotes a property with plenty of living space and a back yard, great local schools, shops and community amenities. This type of targeted advert has a much higher rate of success compared to an advert for a one-bedroom apartment in the city that’s targeting families.
This plays a part when selecting what type of property to buy in what suburb. Take for instance the suburb of Williams Landing in the outer Western Suburbs of Melbourne; houses built in this area are 3 to 4 bedroom family homes with back yards. The majority of potential tenants looking to live in this area would be family people. Hence, it would be wise to buy the common property of the area as you’re advertising to the largest group of people. Purchasing an apartment in this area could increase property vacancy time and capital growth rates as the demand for this type of property is low.
Tip 2. Think about what the location has to offer.
Tenants look at what a suburb has to offer as they are taking into consideration the life style on offer. For instance, a rental property in the South-Eastern Suburb of Black Rock offers access to Port Phillip Bay, great beaches, public transport, main roads that lead to a quick commute to the city.
This is also why location plays a key role in your investment decision. When re-selling, the property smart investors will pay more for the property as the suburb’s features will attract many tenants and always have low vacancy rates.
A good property manager will base their marketing efforts around what the suburb has to offer.
Tip 3. Maintaining Your Property
Wear and tear happens to every product you purchase, property is no different. Keeping up to date with your exterior and interior maintenance can insure tenants stay in a property long term. In my experience as an agent, I’ve encountered great landlords that look after their investments, as a result, they’ve retained the same tenant for over 20 years.
What kind of maintenance? Making sure appliances are in working order, doors, locks, window coverings are operating, carpet is in reasonable condition and walls are clean. A garden should also be neat and clean.
As a landlord, the level of care I’ve put into a property is displayed though the presentation and working order of the property, tenants recognise and appreciate this in a landlord.
Tip 4. Keep Rent Low & Watch It Go!
Charging a reasonable rent is one of the biggest factors that will generate tenant enquiry. High tenant enquiry turns into many lease applications; this gives the landlord an opportunity of choosing tenants with the best suitability to the property and most importantly, give you a great tenant quickly.
Advertising a high rent can increase your vacancy rate, this leads to financial pressure and poor decisions when selecting tenants.
There is nothing more unsettling for a tenant then being evicted from a property you’re leasing because of the property being up for sale or landlords moving in. For-lease advertising needs to reflect landlords that are long-term investors that have no intention of evicting tenants.
Furthermore, the intangible benefit of tenants having long-term security can make the property feel like a respectable home for the tenant.
Tip 6. Get A Professional To Represent You.
Using a real estate leasing consultant can increase your chance of attracting the right tenants by:
– Processional marketing campaign.
– In-depth tenant reference checks.
– Up to date with current legislation.
Tenants can relax and feel at home when a professional relationship between the landlord and tenant is established through a real estate agency.
The 6 tips of attracting tenants to your investment property all work around selecting the right investment at the point of purchase. A buyer’s advocate from Wise Real Estate Advice can help. Contact us for a free consultation on how a buyer’s agent can take the stress out of buying and owning a real estate investment.