The Top 10 Rental Features that attract great tenants
Now that I have your attention, let me shed some light on long-term real estate investing…
The success of your real-estate investment depends on 2 main things:
- Value escalation i.e. choosing the right property for investment, which will escalate in value as time goes by.
- Rental return: Your ability to consistently attract and retain great tenants fairly early.
As you may have already figured it out; these 2 factors work hand-in-hand when it comes to return on investment!
‘Without great tenants who pay rent on time and take care of your property, the equity, cash flow, and returns all evaporate into thin air.’
How do you find great tenants for your investment property?
You have US, but a simple answer to this BIG question is:
‘The quality of the asset you buy determines the quality of the tenant you are likely to get.’
You need to understand what excellent tenants look for when searching for the right property, to know which would be the best investment property for you.
What do excellent tenants look for in a rental property?
A lens you can use to screen properties, attract exceptional tenants, and enjoy higher returns on your real estate investments:
1.Easy access to schools:
About 85% of the potential tenants we get for landlords look at the quality of schools zoned to the neighbourhood the property as a primary deciding factor. Schools are a crucial factor to families and single parents with school-aged children. Moreover, school quality is a great predictor of neighborhood quality — something all great tenants seek (even those without children).
Safety is a basic human need and a powerful determinant for excellent tenants. In developing countries like Kenya this factor is a crucial one for potential tenants. Even though this may not be a fool-proof plan, research crime statistics and only purchase properties in neighborhoods regarded as “safe”.
3. Move-in Ready:
Your target tenant shares the same values as you. A ready to move-in property means the property is very well-maintained, clean and any renovations & fixtures needed are already in place. These are the standards you need to communicate to your tenant through your property. The condition of the property will attract the same type of tenants.
4. Proximity to employment:
No one likes the hustle & bustle of commuting! You can have all the above qualities in your property, but it won’t matter if the potential tenant has to drive far out in traffic to work each day. So proximity to major roads & employment hubs are very important to great tenants. As you look at potential properties, use what is called a “persona-driven approach” to think about where your target tenants are more likely to work and how close the property is to that area.
5. Appliances included:
The fewer the initial expenses of moving in, the easier leasing your property could prove. Your potential desirable tenant has many expenses to bear initially - They have to pay the security deposit plus the first month's rent. If your property comes with appliances, this will decrease the upfront cost for the prospective tenant. More often than not, these tenants would not mind paying a little bit extra for a property that seems cost-effective.
6. Neighbourhood Quality:
Neighborhood quality = lifestyle quality = Quality tenant.
Neighbourhood amenities like hospitals, restaurants, gyms, lakes, community centres etc play a major role in decision making for the desirable tenant. Having basic services within reach is key!
Let’s get it right – investors and tenants both do not like hassle!
If you purchase an old property, it will have older systems that break-down often, inconveniencing both you and your tenant. A good rule of thumb is purchase newer properties i.e. no older than 10 years.
8. Rent & Price:
The deal breaker!
Your tenant is concerned about the rent, and you are concerned about the rental returns you receive and the price you pay for the property.
Make sure the projected rent is an optimal with the current rental market, thereby not limiting your tenant pool and attracting the type of quality tenant you wish to have.
Our team at Dunhill Consulting Ltd are here to assist you to find the right investment property & prospective tenant! Our professional team of experts make your experience in the real estate industry cost-effective and hassle-free!