How to Attract Great Tenants!

The success or failure of your real estate investments depends on your ability to consistently attract and retain great tenants.

Investment properties can be a fantastic way to generate passive income but without Great Tenants who pay reliably and take care of your property that revenue and ROI will disappear.

Therefore, to attract Great Tenants you need a great property or a property that has the criteria Great Tenants are looking for. A recent survey from “Bigger Pockets” investment blog identified these 10 elements as the most sought after by Great Tenants:

1. School Quality
2. Safety
3. Turnkey
4. Close to large employers
5. Close to Public Transit
6. Upgrades & Updates
7. Appliances
8. Age of Building
9. Neighbourhood Quality
10. Rent Inclusions & Price

No matter what the budget or category you are shopping for, use these points to compare and contrast the available listing for your investment.

School Quality:

The proximity to good schools cannot be underestimated. Great Tenants with school-age children will prioritize this factor. Know what schools catch basin a potential property is in and use one of the many online resources to rank those schools. Also, don’t forget about alternative private schools.

Safety:

Whether you rent or own, Home is Home. Everyone needs to feel safe in their family home. Great Tenants will pay more for a home and neighbourhood that feels safe and secure. Look into neighbourhood crime statistics and other demographic metrics before committing to an income property.

Turnkey:

Moving is hard work and stressful. If you offer a move-in ready property that is fresh and clean you will get higher quality applicants that will respect your property.

Close to Large Employers:

Cut the Commute! If your property is close to employment centres you will find potential tenants will pay more to be there!

Close to Public Transit:

This one needs little explanation. Close proximity and easy access to various public transportation alternatives is valuable to many potential tenants.

Upgrades & Updates:

Make your rental property stand out with strategic upgrades. Not only will you attract the attention of high-quality tenants willing to pay more for finer finishes, but the tenants will appreciate the quality of the home and take care of it in return.

Appliances:

The Kitchen is the heart of the home and often where the most family time is spent. Newer, clean appliances will give potential tenants the green light to proceed. The past the basic two; fridge and stove. Consider accessory appliances such s dishwasher, built-in microwave and beverage fridge. Luxury amenities will attract Luxury Tenants.

Age of Building:

Even “Charming” well maintained older buildings can have shortcomings. For example, are there adequate mechanical systems providing heating, cooling and water supply to accommodate today’s lifestyles? If it is a multi-residential building is there an elevator? Older buildings can mean old hassles for everyone.

Neighbourhood Quality: 

This one could be called Lifestyle Quality. The more available amenities in a given neighbourhood helps support a happier lifestyle. Think of parks and trails, scenic opportunities, community centres and attractions. The more the neighbourhood has to offer the more your potential tenants will want to be there!

Rent Inclusions & Price:

Pricing your property for lease must be done with great thought. If it is priced too high you will severely impact the pool of potential tenants. If you discount your rates you may get “discount” tenants. Pricing strategy should take into consideration up to date market rates and reflect the amenities and superior characteristics your property offers. for best results consult a real estate professional.

By: Troy Challe