While it might not be that you have the most luxurious set of properties to rent, it can often be that with a little effort and consideration, you are able to upgrade the kind of tenant you attract. Of course, we’re not suggesting that you should discriminate on who you have in your properties. You shouldn’t be forced to approve a tenant and should be able to deny them no questions asked, but you need to be extremely clear that discrimination is not part of it. But you can ‘filter’ who you wish to let in. For example, it might be that you only wish to let to pensioners, because they cause little trouble and always pay their rent on time. It might be that you only deal to students because of the thick university presence in the area.
An ‘upgrade’ of client from landlord to landlord might look a little different in its practicality. It might not necessarily be simply raising the rent. However, for this article, we are going to try and help you achieve the tenant you wish for by upgrading your processes and optimizing your home assets. We think that will always have the best effect no matter what you hope to achieve.
So let’s try and achieve it:
It’s often the case that improving your apartments or properties will give you more reason to charge higher rents, or to offer a more direct filtering of your tenants. But simply adding more decorative items or a nicer bed mattress might not go all the way, as decorations could be considered subjectively tasteful, and a mattress might not warrant higher costs. But the facilities can be important to implement. Not only will they help your tenants feel looked after, but will raise the profile of your apartments highly, and will give letting agents much more to sell your properties on.
For example, it might be that you implement washing machines and dryers in every apartment. You might install security systems to ensure that they are protected. You may install double glazing windows compared to the singular panes you have kept thus far. It might also be that you decide to book out a certain area of a parking space outside, allowing for access. Tenants often care about the quality of the facilities they have access to, and this will give you more scope to attract the kinds of tenants you wish to bring closer.
Expand Your Portfolio
A landlord is only as good as the care they provide, but also the quality of the properties they have to offer. It might be that wishing to expand your portfolio through the use of an excellent real estate website could help you jump on opportunities to expand your growth, and potentially help you make more revenue through implementation. While it’s more and more possible that you’ll get into the letting business through inheriting property, it’s also essential to invest in more if you hope to grow and steward more and more real estate. Of course, you might not wish to simply own half of the city nor is that going to be feasible, but a few properties here and there, and maybe one abroad? That sounds worthwhile to us. Sometimes, you may even have the chance to invest in an apartment complex, greatly expanding your tenant housing potential and giving you more of a chance of professionally refining a larger living experience for those you allow into your homes.
Not all landlords will wish to expand their portfolio, but it must always be considered an option. This way, they can ensure that should the chance arises, they have the potential to move into new markets. But of course, if heading international, they must refer to the right paperwork, understand the new clauses that might bind them, and how to appeal to tenants from abroad. Of course, one of the great things about housing is that it’s similar to the food business, much like everyone needs to eat, everyone will need somewhere to stay.
Sometimes you have everything set, and it’s not a case of simply acquiring those with higher income, but preventing the bad tenants from getting in. If you fail to vet your tenants appropriately, sooner or later you will come across someone who fails to pay their rent on time, and generally gives you more headaches than you would like to deal with. This is where you might find yourself cursing your past actions, and wishing you had applied yourself a little more.
For new landlords, ensuring this vetting process goes well is essential. Choosing a letting agents that has a good track record for this is important. Running a credit check is the first step. Do they have a history of paying their bills as they are given? Do they have copies of their pay stubs or invoices? What is their job security like? Can they provide references? How long have they been employed in that chosen field? Have they lived in a nearby area, and might there be another letting agent or landlord who is willing to offer their verified attention?
It might also be that on their credit report are evictions, civil judgements or evidence of them being bankrupt. Of course, it’s important to consider what this all means to you. Perhaps an applicant was evicted when 22, but now they are 40 and have a history of paying rent on time since then. Using all of this information to enhance your nuanced opinion will help, no matter what you decide.
After all, often the tenants you choose for your buildings can have impacts on the other tenants you house. For example, if you own a small building with a few apartments, and those other apartments are currently let to those enjoying their pensions, it’s unlikely that bringing in young students that are prone to party will mesh well with the social atmosphere. Vetting is the first step to preventing issues.
With these tips, you’re sure to upgrade the quality of your tenants appropriately.
About the author
Matt Angerer is the Founder and President of VerticalRent. He enjoys writing on a variety of topics that help Landlords, Property Managers, and Renters across America. He is particularly interested in helping renters understand their local marketplace, pick the best places to live, and find an awesome roommate. Since 2011, VerticalRent has grown to service over 100,000 landlords and renters across America.