How Can Landlords Navigate Through A Tenant’s Market?
Like many other marketplaces, the real estate market endures its fair share of ups and downs. In some seasons the market favours landlords and in others it favours tenants. In other words, sometimes the tide shifts in favour of tenants and at other times landlords. AirBnBs, for example, have converted many real estate markets into tenant markets.
Landlords sometimes find themselves stuck or overwhelmed when the tide shifts towards tenants. But this needs not to be the case. There are some shrewd moves that can help landlords surf the tide smoothly as markets swing in favour of tenants. These include making strategic moves to secure the most desirable tenants and engaging the services of property management platforms such as Rentdesk.
Do the Research
From the outset, the savvy landlord needs to be armed with the right kind of information. This includes noticing the signs that the market is about to shift in favour of tenants. Landlords should also remain up-to-date with the happenings in the areas in which their property is located. Are tenants moving away (especially to hunker down with extended family during the pandemic)? Or are they being enticed by Airbnb’s that have now started offering long term rental options? Has the area had a general decline or increase in desirability? All of these factors will affect how much work you have to do to keep your property earning.
Price Strategically
The price attached to your property is a key element in ensuring that your property continues to earn during tenant markets. A price that is way above the standard in the zone will drive prospective tenants away. But you can’t drop your price so low that your investment becomes a liability. It is a delicate balance that must be attained through cautious planning. Don’t worry too much about being locked into low rent. If the tide shifts back into your favour, you can always adjust your price when the lease period expires.
Grab the Attention of Your Ideal Tennant
A good property marketing strategy goes a long way when it comes to securing the ideal tenant. This is where an effective advertising platform comes into the picture. Rent management platforms are excellent avenues for reaching your target tenant profile. The right rental platform will have a client base that reflects the tenant profile you wish to target.
Professionally captured images (and videos) that show the property are ideal (especially during the pandemic) as they allow prospective tenants to get a look at the space without having to travel to the location physically. Avoid amateur videos and images as they tend to be unflattering and sometimes fail to show up the property’s advantages.
Vet Prospective Tenants Strategically
Of course, you’ll have a certain profile in mind when you consider your ideal tenant. Naturally, chief among these will be the tenant’s capacity to finance the lease or rent. Avoid rushing into a lease agreement too quickly when you meet a prospective tenant that fits the bill. Ensure that the tenants you consider are not at risk of becoming unemployed or otherwise unable to meet their financial obligations. Never forego references from previous landlords and current employers.
Maintain Your Rental Property
Ensure that the property is well-maintained. It is counterproductive to have a beautifully promoted space that is unsightly or hazard-prone in reality. You will attract prospective tenants but lose them when they view the space. On the other hand, if your property is in good condition, you stand a greater chance of turning interest into an actual signed lease agreement.
In a tenant’s market, you will be competing with several other rental units for the same tenant pool. So if you can afford to add a few perks and amenities that will put you ahead of the competition, why not go for it? Just ensure that you don’t spend your way into debt. Whatever you spend on renovations and enhancements should be recoverable in the short or long term.
Enlist Expert Advice and Input
Even if you are armed with all the latest information, nothing really substitutes for expert advice. Professional property managers can provide you with sound advice when it comes to the current state of the market and how you can navigate it successfully. These experts can help you arrive at the ideal price, make the right changes to your property and grab the attention of the type of tenants you seek.
A tenant’s market can be pretty tough to navigate, but with services like those provided by Rentdesk landlords can secure favourable outcomes for their real estate investments.
