How to Attract Amazing Tenants to Your Investment Property

Many people who get into the investment property business struggle to find good tenants. As an investment property owner, appealing to renters is one of the most important aspects of your job. You need to find people who will pay rent on time and treat your property with care. 

You may have already bought a property and are looking to rent it out either right away or when it’s safer to do so, given our current situation with the pandemic. Or perhaps you’re considering a rental as your next investment and are not sure where to begin. In either case, here are some effective things you can do to attract top-notch tenants.

Consider Short-Term Rentals

Remember, you don’t have to rent your home out to long-term tenants. You can make quite a lot of money—if not more—by renting out your property as a vacation home. Not only can you earn a good amount of income from bookings, you won’t have to maintain the rental all on your own. You can hire a property manager to deal with the monthly management of your home, including collecting rent, making repairs, and dealing with issues that arise.

Put Careful Thought into Your Property Location

Whether you’re trying to attract tenants or vacation-goers, put careful consideration into location before buying or building a home. Consider the target market you want to attract. Locations near schools and parks will appeal to families, while properties close to a university or the city’s downtown core will attract millennials. You may be able to make more money off a rental in an area of town that attracts young, educated people, so look for property in trendy neighborhoods.

You should also consider the affluence of the neighborhood. Listen Money Matters recommends paying attention to the median income and the percentage of employed people in the area. Find out how long properties in the neighborhood sit empty between tenants. You may face more frequent turnarounds by renting to people under 35 since this age group moves around the most. Families, on the other hand, tend to stay in one place for a long time.

Make Some Upgrades

Once you’ve purchased a property or if your home is being built from a scratch, think about doing some simple upgrades to set your house apart from your competitors. Before implementing your design ideas, consider your target market once again. Different groups of people look for different things in a home. For example, millennials like to see energy-efficient appliances, open floor plans, minimal décor, and natural features like reclaimed wood floors. On the other hand, families with young kids want low-maintenance floors, plenty of storage space, and a secure backyard.

That said, all rentals can benefit from updated appliances, extra storage space, hard floors, and a fresh coat of paint. Granite counters and ceramic tiles are always in high demand. If your budget has room for some renovations, consider adding more windows or knocking down a couple walls to brighten and open up the space. Adding an outdoor lounge space is also an excellent idea, particularly in regions where the weather is warm year-round.

Market Your Rental Effectively

Your rental property is a business, so you need to market it like a product you’re trying to sell. Before doing any marketing, Landlordology recommends giving the home a thorough cleaning, taking lots of good pictures, and recording a video walk-through of the space. Then, list your property using numerous different resources, from newspaper ads and yard signs to online platforms like Craigslist and Facebook. Put effort into writing your rental listing description. You’ll be able to attract more eager renters by painting a picture of their life in your home instead of simply listing features. This goes for vacation rentals as well!

When you take the time to research and determine exactly what audience you want to attract to your rental property, appealing to potential tenants becomes much easier. Make sure your location, home modifications, design upgrades, and marketing efforts fit the demographics you’ve chosen, whether that’s young tourists or local families. Most importantly, remember to screen your renters so you can protect your valuable investment from unreliable tenants.