Let me begin this blog by quoting the basic principle of long term real estate investing: The success or failure of your real estate investments depends on your ability to consistently attract and retain great tenants. In the end it doesn't matter how much you spent on your rental investment, or what your projected return of investment are.... Without great tenants that respect your property your equity quickly and let me emphasize QUICKLY disappear into thin air. So the question that usually follows that statement is.... Well how do I find great tenants for my investment property? Simple. The quality of the asset you invest on determines exactly the type of individuals you attract... Therefore, if you want to attract excellent tenants for your property, you should first purchase an investment property that holds these 10 rental features all respectable tenants look for.
1. School Quality- The quality of schools zoned to the property is the primary deciding factor for over 85% of great tenants. Schools are extremely important to tenants with school-aged children and even tenants without children. School quality is a great predictor for neighborhood quality-something that every great tenant desires. Happy neighborhood, happy life am I right?
2. Safety- Safety is a given am I correct? As humans, we desire the need to feel safe in our own environment. Therefore, research crime statistics for the area you're looking to invest in..
3. Move-In Ready Condition- The condition of the property and the access to move in when desired is a great way to ensure you're attracting great tenants. Yes, you can always rent out a property that needs new siding, new flooring, and a fresh coat of paint but I can promise you... That is a quick way to attract some not-so-flattering tenants. Your target tenant plans to take care of your property and has high standards of cleanliness and maintenance. If you can provide just that, you're communicating that you share the same standards.
4. Proximity to employment- Let's be honest no like enjoys a long commute. So proximity to employment areas is very important to great tenants. When shopping for a real estate investment focus on where your target tenants are likely to work, and how close your property is to that area.
5. Upgrades- Many inexperienced first time investors believe that "it just has to be good enough to rent" but by doing that is a sure way to attract mediocre tenants. When purchasing a property, focus on strategic upgrades that move that needle for great tenants: hardwood flooring, stainless appliances, covered patios.
6. Appliances Included- When tenants are introduced to your property, they are often met with the hefty first months rent/security deposit/pet deposits, and so on. If your property does not already come with appliances they will then have to turn around and go purchase those things as well. Remove some of the tension by providing those appliances on the front end. Most tenants will not mind paying a little extra a month for included appliances.
7- Neighborhood quality- Think about the neighborhood you're currently living in... Didn't those neighborhood amenities play a major part into why you ended up where you are? Wouldn't your life be different with bike trails, community pools, golf courses, and so on? Great tenants care drastically for neighborhood quality. A neighborhood doesn't have to have all of those amenities but the more the merrier.
8- Access to Basics- When purchasing your property take into consideration the access to basic necessities such as grocery stores, pharmacies, and so on.
9- Age- Here is one thing you are sure to have in common with your tenants.. Neither of you like the hassle. When buying a property the main factor that determines how much hassle you both will deal with, is the age of the property itself. Older properties more commonly host older HVAC systems, plumbing, and electrical. What does that mean? The likelihood of it breaking is much more common, inconveniencing both you and the tenant. Purchase newer properties instead.
10- Rent and Price- Last but certainly not least... Your investment property is as much as a business decision to you as it is to your tenant. When choosing a rent price for your property make sure the projected rent isn't so high that it limits your tenant pool but so low it lowers the quality.
I hope you enjoyed this blog and found some things to be useful when deciding on an investment property. If you have any additional comments/concerns/questions contact me at (252)-564-8875, or by email at AlFriedman@SunRealtyNC.com