Finding a suitable tenant to rent vacant rooms or property can be a frustrating and trying experience for landlords. You might employ some of the various approaches to problem solving and still wind up with tenants who are derelict in their payments and disrespectful to your property or your neighbors.
We’ve noticed that many landlords make the same common mistakes when it comes to attracting potential renters. So, if you’re left wondering, “What’s the deal?”, ask yourself if you qualify for any of these six reasons why most landlords have trouble finding good tenants.
Rent is Too High
Working with millennials can be difficult. However, some landlords list the property at excessive or unreasonable rates compared to other analogous rental spaces in that area. While it is understandable that you want to make money on your rental, even an extra hundred dollars above the average rate of a room of comparable size could drive away potentially awesome renters from applying for the unit.
You thin out your tenant selection pool by creating a price barrier. If people see that number online and compare it to prices in the area, they may not even think it's worth checking out the property in person. So, when it comes down to it, a prompt and respectful tenant would be more beneficial than a bad tenant who is paying an extra $1,200 on the year. Also, filling the room at a cheaper rate could be more cost-effective than losing an entire month's worth of rent with that room sitting empty.
They Do Not Meet Them for In-Person Walkthroughs
It is essential that you meet any potential renters in-person to show them the property. Having a healthy conversation and spending some time to get to know them can give you signs whether or not they are respectful, well-rounded individuals.
By paying attention to their outfit, car, social bearing, and conversational manner, you can pick up subtle cues as to their trustworthiness. Walkthroughs are an easy and quick way to begin establishing a relationship or basis of trust with potential renters.
They Neglect to Perform a Background Check
The difference between a good and lousy tenant are stark. Now, sometimes there is just no way of knowing until it is too late; however, more often than not, there are plenty of missed red flags leading up to the train wreck.
Even if your initial, in-person impression of potential renters is a positive one, it is foolish to allow someone into your property without utilizing tenant screening services. Trans Union’s SmartMove enables landlords to perform a comprehensive overview of a potential renter's credit reports, criminal background, income estimate, and eviction records.
Security Deposit is Too High
Similar to high rents, a security deposit that is multiple months’ worth of rent could turn away potentially fantastic tenants. A tenant with less cash flow on hand could still be more respectful to your property and prompt in their payments than someone who has no problem paying the deposit.
You should have a security deposit to incentivize renters to treat your property with respect, but you would be smart to keep it to an amount that does not automatically disqualify the majority of prospective tenants.
Property is in a Bad Location
Whether it is in a bad neighborhood, off a busy street, close to a freeway, or far from public transit, a location could be the deciding factor in many rental decisions. That said, this is one of those factors you can not do a whole lot about. So, if you are in a bad location, then you better have solid pricing or enticing amenities.
The Property Needs Work
If you are not receiving enough interest in your property, perhaps it is not as nice as you think it is, or the amenities are lacking. Maybe a renovation is necessary. A property or rental could be disqualified in the minds of potential renters due to undesirable features such as:
Dated Apartment
While some do not mind, many renters care if the cabinetry, interior design, or appliances are old. They might want newer kitchens, bathrooms, or a specific type of flooring.
No Washer or Dryer
Very few people want to deal with the hassle of washing their clothes at a laundry mat. If your property does not have onsite laundry or laundry within the unit, you may turn off a huge swath of potential renters.
Not Enough Bathrooms
Most renters want more bathrooms than there are bedrooms. No one wants to have guests over, especially if it's overnight, and then have the only available bathroom be in the host's bedroom.
Not Enough Storage Space
People need places to store their things. A rental with little storage space such as closets or cabinets can turn off renters who need a place for all of their stuff.
Small Rooms
Bedrooms, living rooms, or kitchens that feel cramped. Small rooms can dissuade someone from renting a great unit since it simply would not be a good fit for all of their things.
If your property checks any of these negative boxes, create an action item list targeting improvements you can make that fall within your budget.
Conclusion
A bad tenant could be more trouble than they are worth. Because of this, you should do everything in your power to make sure you are attracting your ideal tenants. If you look at this list and see that these are not the issues with your rental property, then perhaps look into a service that pairs renters with tenants.