While a property rental business may seem cut and dried, there are actually numerous niches in which you can specialize in order to boost your business and your profit. Regardless of what type of business in which you may be involved, it is important to figure out your target customer. The landlord business is no different. Just as other businesses need to determine whom they will market to, so do you.
With that said, it is important to point out that while you can develop a niche, you cannot discriminate regarding to whom you will lease. For example, you cannot make leasing decisions on factors such as family status, gender, religion, ethnicity, etc. Doing so is against the law and can land you in serious legal trouble. Even so, you can add certain amenities to your properties and focus your market and your policies so that they will be more appealing to certain types of tenants.
Suppose you would like to cater to more high-end tenants. In order to do that, you need to make sure that your rental properties stand out from others on the market. This can be done by installing high-end appliances, lovely landscaping, wood floors, a top-notch security system, etc. By adding premium amenities to your properties, you will be able to target higher-end tenants and command higher rents.
As previously mentioned, you cannot base your leasing decisions on gender. It is no secret that women tend to make most of the housing decisions in families. Additionally, single women are increasingly in the market to rent. In order to ensure that your properties are more appealing to women, you can focus on providing good security and safe parking areas. Consider installing additional exterior lighting. High-end kitchens and spacious bathrooms also tend to appeal to women. Using VerticalRent’s free vacancy advertising feature is great for showing off these high-end features with high-res photos artfully displayed on your free ads. Plus, you’ll attract higher end applicants when they see the ‘Verticalrent Trusted Landlord’ seal, in that they won’t feel as if their applying to a scammer.
If you are interested in attracting professionals and executives, there are a few areas on which you can focus. The key element to consider when marketing to professionals is luxury. Consider offering high-speed wireless Internet, upgraded security systems, a fitness center, swimming pool, etc.
Regardless of your specific niche, most landlords are interested in attracting stable, reliable, long-term tenants. Each time a tenant moves out, it costs you money. Attracting tenants who will stay and pay their rent on time is simply a good business practice. Among the best ways to do so is by broadening your pet policy. Many landlords are hesitant to do this for obvious reasons, namely the potential for damage. The reason that this strategy works so well for attracting long-term tenants is that there are so few rental properties that allow pets, particularly large dogs. As a result, tenants with pets are often desperate to locate rental properties that will accept their pets, as well. In order to take advantage of a pet policy, such tenants are often willing to sign long-term leases and pay an additional premium. I loosened my pet policy at a property I own in Pennsylvania and was able to keep stable and reliable tenants in that house for nearly 5 years – never once late on rent!
Finally, think about what you would want in a rental property and be sure to advertise the amenities that you offer. Applicants are very cautious today when applying for rental vacancies. You need to give them options for scheduling a showing at the property and then apply to the property. With VerticalRent, we offer you a streamlined way to advertise the property and then collect applications, credit reports, criminal, and eviction reports.