With rental markets easing in many parts of Canada, investors cannot assume they’ll easily find a great tenant and the rental income will keep rolling in.
Perhaps that’s true for some, but most investors need to work a little harder to find good and loyal tenants who’ll respect the property.
A rental house or apartment that stands empty for even two or three weeks can put a hole in the budget, especially if you are one of the country’s “mom and pop” investors. You want to avoid that scenario as much as possible.
Finding a top-quality property manager is the first step to success. They will help you set the rent, choose the tenants and then look after maintenance issues and any other problems that might arise with the property. They charge around 5%-12% of the rental income. (Our agency would be delighted to assist you.)
However, it doesn’t do any harm to understand the fundamentals of property management to ensure you know what you’re paying for.
Also, it’s worth appreciating the perspective of prospective tenants, who can spend countless hours trying to find their next home.
Here are six ideas to attract good tenants:
General approach – Ensure your rental listing has all the information tenants need to make an informed decision. Prospective tenants usually rule out properties that have vague descriptions, or descriptions that are over the top.
Be specific – Make clear the number of bedrooms and bathrooms, as well as the size of the property. A floor plan will give you an additional edge. Some property managers will recommend a 3D tour for prestige rentals. Also, avoid vague terms, like “junior bedroom”.
Property features – Highlight the best features of your rental, as this will help maximise the rental potential. Point out if the property has hardwood floors, good natural light or a modern kitchen. Most renters will have their own “must-have” list, so don’t be afraid to create an exhaustive list. Additional items might be air-conditioning, in-unit laundry, ample storage and private outdoor space.
The rules – Disclose any policies that could be a deal-breaker for a renter. These may relate to the length of the lease you’re offering, noise regulations, the maximum number of people who can live in the property, or parking restrictions.
List all costs – Be crystal clear on the monthly rent, security deposit and any one-time fees. Questions often arise about how the utilities are paid for, so share this information, too.
Snap happy – Make the listing complete with high-quality photography of the house or apartment. You can’t post too many photos! They should be a true reflection of the property. Experienced renters know all about the unethical bait-and-switch technique designed to pull them into different properties.