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The excitement of owning your first investment property can overwhelm you. Getting your property ready to rent is frustrating, but you can look forward to the rewards that will come with a positive cashflow. Before you start cashing checks, you need to have a long-term tenant that can supply you with a monthy rent payment. While every tenant has different needs, there are some basic things a successful investment property has inside. When you know what tenants want before signing a lease, you will be prepared to avoid many of the issues that can throw a wrench into owning an investment property. Tenants are the heart and soul of your passive income.
What Tenants Want Before Signing a Lease
Location of your investment property is important, but you can't always secure the best location for every property that you own. Someone searching for lease availabilities knows that many properties in ideal locations are already taken. There are common things that are expected from modern renters making the switch from apartments and condos to actual houses.
• Modern Furniture
• Vibrant Paint Colors
• Completely Furnished Kitchen
• Two or More Bedrooms
• Central Air Conditioning
• Natural Light
• Adequate Parking
• Affordable Rent
• Friendly Neighbors
While some of the things in this list seem basic, they can be the deciding factor for a tenant to sign a long-term lease. Keeping your property rented for extended periods of time is what will eventually grow your wealth. If you have revolving tenants, the expense of advertising vacancies, fixing damage and doing background checks on new tenants can start to add up. Combine that with the fact that your investment property sits unrented and you will understand the importance of hitting your mark with a long-term tenant.
How to Get Tenants to Sign a Long-Term Lease
Limit the amount of a deposit that is required for a tentant interested in a long-term lease. Many times the deal breaker comes down to money. If you are charging market rent, a tenant might feel that he or she is not getting any type of break besides the vacancy of the property. In states like Florida, there is no limitation on what a landlord can charge for a security deposit. By reducing the security deposit to one month rent or half a month's rent, a tenant will be more likely to sign the agreement. Never let a few extra dollars kill your deal.
Remain open to negotiations. It is your investment property, but a tenant will always communicate his or her dislikes if you stay open to positive negotiations. People that feel secure are more likely to sign a long-term agreement because their best interests are coverered. You don't always have to buy new appliances, posh furniture or upgrade the exterior to make a tenant happy. Open communication could be the deciding factor for a tenant that is offered a long-term lease agreement. Regardless if you manage a property or use a property management company, the same tactics can be used to help secure your investment property success.