Do You Know How Tenants Choose Their Next Home?

Knowing how prospective tenants set about looking for their next new home can make a huge difference in how you market your properties. In turn, having this information can make it easier for you to market your properties and keep them occupied. While not all tenants follow these “rules”, the clear majority does. The thought process goes along the lines of; location, actual rent, number of bedrooms, number of bathrooms, amount of security deposit, and finally amenities.

For Most,It’s All About Location

Why is location such an important issue that it ranks as number one on the list? Tenants want to be close to work, the right schools, access to shopping, parks, and the right type of neighborhood. Something to keep in mind as you look for more rental properties to invest in.

Monthly Rent

You might think that by keeping your rents at the upper end of the scale would help to ensure you always get better tenants. However, there is no evidence to support this myth. You will be far better off if you keep your rents within fair market value range. This will give a much larger pool of potential tenants to draw from, making it much easier to fill your vacancy and keep the money flowing.

Number of Rooms

The number of rooms and in particular bedrooms is also a very important consideration for most people. However, you need to be very careful in how you list the various rooms. For example, while a tenant may choose to use the den as an extra bedroom, you cannot list it as such. The simple fact is that a room without a closet is not a bedroom. Any additions or adds-on must have all the proper permits in place or you cannot include them in your listing.

Number of Bathrooms

There is nothing wrong with a house that has only one bathroom. But, more and more, people are looking for homes with two bathrooms, especially those with a master bathroom. However, a sink and toilet off the master bedroom does not mean the home has two bathrooms. Be realistic in how you list your properties, you will have far more success in finding the best tenants. Also, be sure your bathrooms are fully updated as today’s tenants want the latest in low-flow, high pressure showers, tankless water heaters, and toilets.

The Security Deposit

Every tenant knows they will be expected to pay a security deposit, it goes without saying. But how much you charge is what makes the difference. Most tenants feel that asking for one month’s rent is sufficient and most landlords agree. Those that exceed a month’s rent typically do so because they include a pet deposit or because the tenant has a poor credit history. Keep in mind however that California law prohibits you from charging more than double the rent for a security deposit on an unfurnished rental and no more than three times the rent for a furnished unit. Ask yourself what you would be looking for in a rental unit if you were in the market for one? At the same time, be thinking about what makes your home stand out from the rest of the rental home in the neighborhood. This will help you to more successfully market your rental homes and keep them occupied.