Are you struggling to find reliable, responsible tenants? If so, you should seriously consider ways of making the deal sweeter, such as incentivizing your tenants.
You see, your Tampa rental property may seem attractive. However, that doesn’t make you immune to landing problem tenants every once in a while. Also, there is always the risk of high competition, as well as environmental annoyances such as construction projects, that may drive tenants away.
So, what are you to do when the cards seem to be stacked against you? Well, there is still some hope left. You could, for instance, consider offering a discount to alleviate the nightmare of having a vacant rental unit. After all, filling a vacancy may be well worth the extra expense.
The following are 7 tips to help you land good tenants during hard times.
Tip #1: Lower your fees.
Do you charge excessive, additional costs? If so, lowering them could make all the difference. So, go over your
lease agreement and check whether you’re charging raised costs that may be driving tenants away.
For example, waiving your fees for parking or laundry can seem negligible, but would be well worth it. Another fee you could consider waiving is the application fee for credit and
background checks.
Remember, tenants won’t rent with you if they feel like they can get a better deal elsewhere. The lost income would be minimal relative to having no rental income every month. But before going this route, make sure that the potential tenant is qualified. Of course, you can do this by screening them.
Tip #2: Discount the rates.
This can be an attractive proposition to tenants. But first, make sure you evaluate your expenses. Check the competition and the rates they are offering. Next, calculate the costs of offering discounted rates against those of an extended vacancy, ensuring your property still remains profitable.
Alternatively, consider offering discounts in exchange for convenience. If a tenant can pay rent consistently every month, consider offering them a reduction for making your life as a landlord life a bit easier.
Tip #3: Consider sacrificing an entire month’s rent.
This may seem ridiculous, at first glance. After all, which landlord would give up an entire month’s rent? But if you consider the money you are losing with a vacant unit, the lost income could be worthwhile.
Because, with a vacant unit, there will be certain costs you’ll still be responsible for paying even with no tenant currently residing there. Such costs include insurance, utilities, taxes, and mortgage – if you don’t own your property outright.
Tip #4: Offer new tenants a warm welcome.
Do you have any tenants that have recently signed a lease with you? If so, consider welcoming them into your building with a
gift basket. Doing so can be a great start to building a solid relationship with the tenant.
If a tenant feels closer to you, chances are that they are likely to renew their lease once it ends. And best of all, putting together a gift doesn’t have to cost you an arm and a leg. Possible options include gift cards to the movie theatre or local restaurants.
Tip #5: Consider upgrading your rental.
This can also be a powerful incentive to prospective tenants. Upgrading your property not only makes your rental more attractive to wannabe tenants, but it also creates more value to you. Just be careful not to go crazy with the upgrades. Choose those that offer the best return for investment.
The following are some upgrades to consider:
- Update the bathroom. You can add new light fixtures, and upgrade the vanity.
- Give your walls a fresh coat of paint. Something as simple as repainting tired walls can go a long way in revitalizing the look of your home. Remember, though, when choosing a color of your rental property, simple is best.
- Convert underutilized space into additional space.
Check the home office, family room, or bedroom? Does it have underutilized space? If so, convert it unto bonus square footage.
- Upgrade your kitchen. Does your kitchen look like it has seen better days? If so, consider upgrading it. Swap dated appliances for new ones. Add some new hardware to the cabinetry. Also, consider upgrading the countertop.
- Go with energy-efficient appliances. “Kitchens sell homes” – this is a phrase that you may have heard before, but in this case, they also rent them. Mismatched and old-fashioned appliances are attention-grabbing, but not in a good way. To save tenants from the eyesore, consider investing in matching and
energy-efficient appliances.
- Boost the curb appeal.
How the exterior of your home looks can make or break your re-renting efforts. So, make sure it looks attractive to prospective tenants. Mow the lawn, power wash the patio, trim hedges, and fix driveway cracks.
Tip #6: Consider creating more flexible terms.
Renting out your investment property can be a huge commitment, and having strict policies can become scary to potential tenants. Relaxing the terms of the agreement can help you
make your tenants feel secure in deciding to sign with you.
Some of the flexible terms you can consider having include:
- Allow pets in your rental property. In the U.S., the majority of tenants are pet owners.
Allowing pets can prove enticing to animal lovers searching for a home that allows their furry friends.
- Allow tenants to decorate the apartment. This is sure to lure over some tenants.
- Add an early lease termination clause to the lease agreement. This can give tenants a degree of freedom that your competitors might not be offering.
Tip #7: Opt for short-term leases.
This is something that can allow your tenant a bit of flexibility. This may be particularly suitable if you are trying to find a tenant during an off-season.
A vacant rental unit is every Tampa landlord’s worst nightmare. Luckily, with these 7 tips, vacancies will be a thing of the past. It’s all just a matter of analyzing your costs versus the benefits.
If you have any inquiries regarding the content of this post or other areas of property management, contact Advantage Realty Services today.
