Drawing tenants to an investment property

June 30, 2011

 

Some homeowners may decide it's worthwhile financially to buy a home and rent it out to tenants. Property investment can be lucrative under the best of circumstances, but it could be a challenge to draw qualified tenants to a new rental property for someone who has never owned a rental property before. However, there are a few ways prospective property investors can make their rental home an ideal spot for 

potential tenants.

 

 

Before the tenant searching process can even begin, homeowners should pick a property that presents the best chance for a strong return on their investment, reports RISMedia. The best way to ensure that is to buy a home in an ideal location. Most renters today are looking for apartments or homes situated close to transportation services, entertainment, shopping destinations and public services. While it may 

be difficult to find a location that satisfies all of those needs, an experienced real estate agent could connect a property investor with a unit that's strong enough to appeal to a wide range of tenants, according to RISMedia.

 

 

Assuming they've purchased a property in an ideal location, investors' next step involves preparing the spot for showing, according to the National Association of Realtors (NAR). Inexperienced property investors may want to consider a home that's as close to ready as possible and avoid major renovation work. Once the home is suitable for tenants, it's important to clean it before showing it to applicants, NAR reports. A single piece of trash may be enough to sour a tenant on moving in, so 

it's important that any units be free of dirty or stained carpets, dust, debris or fixtures that don't work. Curb appeal is especially important, NAR reports, and homeowners should ensure the building is as attractive on the outside as it is indoors.

 

 

Once the property is cleaned and coiffed, it's time to show prospective tenants why they should consider moving in, NAR reports. Marketing materials that provide tenants with each room's dimensions can help them visualize how their furniture would fit, while visuals can be used to showcase a unit's energy efficiency, its proximity to nearby services or other benefits, according to NAR. Whether they are handling these 

matters themselves or hiring a property manager to cover it, NAR reports it's important that property owners take advantage of as many tools as possible to appeal to prospective tenants.