If you ask any former landlord to identify the worst part about owning rental properties, their answer is likely to be dealing with bad tenants. The wrong tenants are enough to run many people out of the business. Finding the right renters for your property is so important that it can determine success or failure for most landlords. Good renters allow you to make accurate estimates about your projected cash flow and receive the optimal return on your investment. Bad renters cost you time and money. You can never accurately predict future revenue when there is inconsistency in the quality of your tenants.
The condition of your property
Before you purchase any property, you must give some consideration to the tenants you are most likely to attract. If you want to work with top-quality renters, you need to purchase investment properties that will be appealing to them. Many investors just go bargain hunting for investment properties and plan to do a better job of maintaining occupancy than the previous owner. If the property is available for a bargain basement price, it is probably because it has difficulty getting good renters.
What attracts good renters
Renters look for the same things that home buyers want when they look for a home. It might be your property, but it is the renter’s home. The top priority for renting families is good schools. Many renters with school-aged children will not even consider a rental that is not located in their preferred school district. Before purchasing an investment property, make sure it is in a desirable school district
Crime statistics
There is no way to predict what will take place in the future. Past statistics are not always an accurate predictor of an area’s safety. However, good renters are informed people who do their homework and research areas before they move. You should be aware of the same information they will be researching.
Location, location, location
Properties located near employment centers and entertainment will always be in demand. People do not want to have to drive an hour to and from their job in heavy traffic. Then, after working hard all day and fighting traffic all the way home, they have to drive almost as far to see a movie and have a nice meal. Look for investment properties in developed areas with adequate shopping and health centers nearby.
Appliances and upgrades
These renters incur a lot of expenses when they move from one place to another. In addition to a security deposit and the first month’s rent, they also have moving expenses. You can make your property much more appealing by including all necessary appliances so the renter does not have to purchase them upfront. Most people would rather pay a higher monthly rent than pay a large amount out-of-pocket at one time.
