Many people consider real estate a great investment; find a great deal, buy it and then find wonderful tenants who stay and basically pay the mortgage for you. And with the current state of real estate, now is a great time to take advantage of the wonderful deals available. It all starts with buying an investment property in the right location. And then you can start your search for those terrific long-term tenants. Here are some tips to help you along the way:
1 – As you start your search for the property itself, make sure you work closely with your real estate agent to find an area that is attractive to renters. There is no point in buying that “fantastic steal” if it’s an undesirable location, as you would only have a tough time renting it out in the long run.
2 – Once you’ve bought your investment property, start thinking about who would be the “perfect” renter. This isn’t about income, career or cleaning habits. This means that you take a good look at the home you just bought and brainstorm on who would just love to live there. If you own a two bedroom townhouse in a small, older community then perhaps the townhouse would be perfect for a retired couple.
Or perhaps a professional who values peaceful surroundings would find herself happily at home in the townhouse. Did you pick up a two-story five bedroom home? Then a family with kids may be your best bet. Knowing who will make a nice match for the property may help make your marketing a little more targeted. And getting that tenant who “matches” will mean a longer term tenant. The tenant who feels out of place, can’t stand the area or doesn’t “fit” the property, will make a run for it as soon as the lease is up.
3 – If the property needs a little facelift, look around and see what you can do. A renter likes to feel like she’s walking into a well-kept and cared for home. No one likes to look around and see potential problems down the road. That means leaky faucets should be fixed, along with any other maintenance on the home. But don’t stop there. Is the look of the lighting fixtures a little dated? Did the seller rip the ceiling fans out, leaving gaping holes in each of the bedrooms? With just a few new pieces, you can make a property look all shiny and new. And renters, especially the good ones, notice things like this.
4- You can always use a real estate agent who handles rental properties to help you find a tenant. You can also hire a property management company. They can help you find a tenant. But you can also take matters into your own hands. Talk to some of the neighbors – they might know someone who has been looking to live in the area. Post information and pictures of the property on your local online classified ad sites, such as Craigslist.
5 – Once you find a prospective renter, be pro-active and make sure to check references. A good reference from their last landlord is worth its weight in gold. And if they have those good references and you have a good feeling then you can go the extra mile. Remember those decor updates the home needs? If you hold off until you find the right tenant, you can ask for her preference. Maybe she likes light wood ceiling fans instead of white. Maybe she’d love to have energy efficient light bulbs in all those new fixtures. Since you were already planning on updating, it doesn’t hurt to please your new tenant, assuming she doesn’t have crazy or ultra expensive tastes in decor.
6 – Love your tenants and want to entice them to stay longer? There are several things you can do. Think about giving them a discount on a future month of rent. Provide some sort of incentive to stay longer, such as a free professional house cleaning after they’ve renewed their lease. If the property has a lot of landscaping, hire a landscaper to get the yard looking in tip-top shape each year.
7 – Make sure you stay in contact with your tenants and ask them if they’ve encountered any problems or issues. And listen to them! Act immediately when an issue arises. Tenants love a responsive landlord who stays on top of any problems.
For any landlord, finding a reliable long-term tenant is the goal. And you can implement steps as the landlord to make finding that tenant (and keeping her) a reality!
Volker Weiss – Maui Realtor(R/S) specialist focusing on Homes in Wailea. Make your vacation last forever, check out Wailea Real Estate. For immediate help call VW directly at 888.572.6888
[tags]Wailea, Homes, Real Estate, Hawaii, Renters, Landlord, Tenant, Property[/tags]
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