How do I achieve success in getting my property rented?
One of the first and most important lessons we learned when starting in property management is that vacant real estate isn’t a very good investment. You need to fill those vacancies and keep them filled with tenants who pay on time. Of course, renting your property and retaining your tenants doesn’t just magically happen; it requires a plan and a lot of work. But you want to work smart and not just hard, so that’s why we walk you through some of the best practices for preparing your rental units, setting your rents, attracting qualified prospects, and closing the sale.
In order to be a successful property manager, you need to follow certain steps. In our blog posts, we seek to cover the highlights of what to do — from getting your property ready for tenants to getting prospects to sign on the dotted line.
Getting your property rented involves five distinct parts:
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- Prepare your Property:
If you are interested in more information, contact us for assistance in your preparation process. We can show you the best way to determine what to upgrade and renovate in order to meet the needs of your target market of prospective renters. In addition, we can explain how to ensure your property’s curb appeal, or its exterior appearance, makes your potential new tenants want to see the inside of it and not keep driving to the next property on their list
Before you can rent your property, you have to make sure it’s ready for a tenant to move in. However, you can’t simply put a For Rent sign up and expect to rent to the first caller. You need to spend some time properly preparing the property. And by “some time” I mean a lot. Use caution when companies offer to renovate your fixer-upper because you can prepare your property yourself. Just remember to focus on the inside as well as the outside. - Know how much to charge: In such cases, overestimating the market value of your rental unit becomes very easy, because you have so much personally invested. But your prospects aren’t likely to be impressed that you laid the tile. Instead, they’ll quickly point out that the color of the carpet doesn’t match their furniture, but if you lower the rent $300 per month, they’ll consider taking the unit off your hands, almost as if they’re doing you a favor. You may be able to structure some mutually beneficial rental concessions, but don’t be a pushover. In addition to setting the rent, you need to make the following decisions before a tenant moves in:
The amount of the security deposit: Setting security deposits is a function of not only market conditions but also limitations on the amount you can charge and whether that amount’s fully refundable. These restrictions are determined by your state laws
The type of rental contract: Another important decision that has lasting consequences is deciding whether a lease or month-to-month rental agreement is best for your property. Such conclusions are often reached after conducting a market survey and understanding the pros and cons of each type of contract.
- Marketing- Gaining the Interest of Potential Prospects: A successful property manager needs to understand the role of marketing in creating demand and meeting the needs of local renters. Fortunately, your marketing and advertising possibilities have increased dramatically with the availability of the Internet and social media. You can develop a fantastic web campaign with digital photos, technical specifications, and floor plans, while following Fair Housing Laws. Or… you can save time and potential headaches by considering Virtue Residential. Our targeted marketing plan includes multiple strategies to drastically improve the amount of interest in your property.
- Turn Prospect Interest into Property Visits: Although the ways to attract potential tenants are endless, the fundamentals of getting them to visit your rental property are centered around your ability to answer their questions on the phone. You need to understand how to qualify your prospects both for what you want in a stable, long-term resident, and what they need in order to call your rental property their “home” for years. Converting your e-mails or phone calls to actual property visits is the next essential step to creating maximum interest in your rental unit. At Virtue Residential, we streamline this process to ensure the maximum amount of potential clients are provided the essential information they need to make a decision.
- Pick Your Tenants: What seems to be a fairly straightforward process can actually be tricky due to the various limitations on the questions you can ask and the information you can request from interested applicants. We assert that the same procedure is used for everyone so that it complies with Fair Housing laws. In addition, we verify each prospect’s rental application in order to ensure the best fit for your property. Virtue Residential makes sure to decide the best tenants based on objective criteria, and then properly communicates your decision to both the approved tenant and the unsuccessful applicants.
- Prepare your Property:
Sources: Real Estate Manager, R. Griswold, 978-0-470-29329-4