How to Impress Renters and Start Earning from
Your Investment Property
More households in America are renting now than any other time in the last 50 years. Currently, close to 43 million people live in rented homes, with the largest demographic being those who are 35 years old or younger, according to the US Census Bureau. So whether you own property or are looking to get into the rental market, now is the perfect time to find a tenant for your amazing property.
While the rental market is booming, it is also becoming competitive. With greater options, renters get more freedom to choose and bargain. But there are a few things you as the property owner can do to impress renters and perform better than your competition.
Make Your Property Look Pleasing
Photographs: The first interaction potential renters will have with your property is through photographs. Always upload high-resolution images to renting websites and forums where you list your property. Also, include images of all rooms and facilities to give renters a complete picture of your property.
Curb Appeal: Take a few notes from the perspective of house hunting. Have great landscaping of your front lawn to make a strong first impression. Go a step further and illuminate your walkway with some lights. Additionally, according to Zillow, houses with front doors painted black fetch higher values compared to other colors. Every small detail counts to give you an edge over your competitors!
Paint: Painting is one of the most affordable and easiest ways to give your property a fresh look. It also provides great ROI, and can be used as a factor to convince potential buyers as they value a recently renovated property higher than one which is old.
Provide Tenants What They Need
Kitchen Appliances: Provide all the basic amenities a tenant needs, such as – microwaves, refrigerator, stove, plates, glasses, and utensils. Yes, these will involve a bit of investment on your end, however, see it as a one-time investment whose returns you will get for years to come. Additionally, properties with appliances earn more rent than those that do not.
Basic Furniture: You don’t need to furnish the full house, however basic furniture such as a wardrobe, a dresser, and a bed frame can make you stand out from the competition. Especially for short-term renters, having furniture will make your property more appealing.
Be Strategic in the Market
You as the property owner or potential owner need to decide the type of tenants you want to cater to. Ask yourself, “What kind of tenants would I want to lease my property to?” The answer to this will have an effect on everything else such as – the type of property you should own, its location, rent, and the amenities you should provide.
For example, if you answer, “I want to rent my property to families for the long term,” it’s ideal that you own a family-size home which is located near good schools. In this case, you might not need to invest in providing furniture as your tenants will bring their own.
Conversely, your target market could be tourists or work professionals to whom you want to give short term leases. You can seek to own an apartment in or close to a city center and provide tenants with appliances, furniture and market your property as “move-in ready.” The better you cater your property to your tenant’s needs, the more offers you will get.
As an owner, it’s often wise to establish a Limited Liability Company (LLC) of your investment property. For one thing, as MillionAcres notes, it opens up the potential for purchasing property through the LLC. Also, an LLC will help to safeguard your personal assets and yourself from any liability claims. If a tenant gets seriously injured on your property, without an LLC they can directly sue you for the damages, however, with an LLC, the litigation falls on the company.
Establishing an LLC has various administrative and legal requirements which can be met by lawyers. As an example, New Jersey requires all LLCs to have a registered agent. However, formation services consisting of a team of experts can function as an affordable alternative. Knowledge is power: look for registered agent NJ assistance online and practice due diligence before choosing a service.
The success of a rental property lies in the hands of its owner. It is important to be strategic, knowledgeable about your competition, and cater to the needs of your potential tenants in order to ensure your investment is profitable.
Are you ready to find the perfect New Jersey property? Connect with real estate expert Emil Ratti today!
Article Submitted (September 2021) By: