Why Isn’t My Property Renting? - Explore 8 Of The Most Important Factors Affecting Your Rental’s True Potential.
In the fast-paced world of real estate, a rental property that sits vacant should be worrisome for property owners. A vacant property isn’t generating revenue, it’s a target for squatters and if a pipe bursts, you might not find out until a few days later! When faced with the frustration of a property that just won’t rent, it's crucial to pinpoint the underlying reasons. From pricing strategies to the quality of marketing efforts, several factors can influence the attractiveness of your rental unit to potential tenants. Let's delve into these factors to better understand why your property might be struggling to find renters:
Here are 8 ways to improve your chances at securing a qualified tenant for your property:
Pricing a rental properly, using accurate comparable data, is the # 1 reason a property might rent or sit vacant.
1. Pricing.
The most common reason that a property isn’t renting is usually due to pricing. Overpricing can deter potential tenants, while underpricing might raise questions about the property's quality or authenticity. Your property manager should conduct extensive market research to determine the average rental rates in your area and adjust your pricing strategy accordingly. Realicore Real Estate Group uses several reliable data sources to generate comparable rental property data such as https://www.rentcast.io/, https://www.rentometer.com/, and the MLS or Multiple Listing Service. The MLS is considered by many to be the most reliable source of rental comparable information as real estate agents must follow stringent rules when entering sales or leasing data into the system or they may face severe penalties. There are many factors to consider when pricing a property for lease, so you may need to be flexible with your rental pricing if the property is sitting vacant for too long. There are some aspects of a property that you can’t change, such as location, and your only remedy is to reflect any property deficiencies via reduced pricing.
These two photos of the same home show the extremes of good lighting vs. bad lighting, blurry vs. focused, properly edited vs no editing.
2. Pictures and Video.
In today's digital age, visually appealing photographs are essential for attracting renters online. More than ever, tenants are doing all of their research up front before they will commit to calling an agent or property manager to schedule a walkthrough. Low-quality or unflattering pictures can significantly impact a property's perceived value. Invest in professional photography or ensure that your own photos are well-lit, clear, and showcase the property's best features. If your property has unique features such as fruit trees, spectacular views, or a nice pool, make sure to include additional photos showcasing your property’s unique features. With AI (Artificial Intelligence), HDR capabilities and easy to use editing applications, good photos can even be taken on newer iPhones or androids. The more elaborate the property, the more likely you will want to include video walkthroughs, virtual 3D walkthroughs and maybe even some aerial drone shots. When you have quality pictures or video showcasing your property’s best features, potential tenants will be ready to sign a lease before they even view the property in person!
Marketing isn’t a one and done operation. A good marketing strategy is adjusted by considering tenant feedback as well as many other factors.
3. Marketing.
Effective marketing is key to reaching a broad audience of potential renters. A good real estate agent will utilize various channels such as online listing platforms, social media, their own website and even local advertising to promote your property. Although physical signs can be a part of your marketing strategy, you may be unintentionally “notifying” scammers or squatters that your property is vacant. When designing your marketing strategy, you should craft a compelling description that highlights the property’s unique selling points ensuring you are appealing to your target demographic. If your listing description is missing relevant keywords, potential tenants may skip over your listing altogether when they are filtering through listings online. Effective marketing strategy also includes reviewing potential tenant feedback of the property, how many views your property is getting and how many views you are converting to showings. By reviewing that data, you can adjust your marketing strategy to best showcase the property to your target audience. David Friedman from Realicore has a degree in Marketing from CSUSB which is how he expertly comes up with a unique marketing strategy for each property.
A home’s location is really difficult to change unless you have some heavy duty rolling pins at your disposal.
4. Location.
Fortunately or unfortunately, the location of your property plays a significant role in its desirability. Factors such as proximity to amenities, schools, public transportation, and job opportunities can greatly influence renters' decisions. One block can make the difference between being in a highly desirable school district or not. You may have a beautiful house with plenty of desirable amenities, but your next door neighbor is a chicken farm (A smaller pool of potential renters are going to be okay with the smell vs. having convenient access to fresh organic eggs). Since you cannot change your property’s location, you must do your best to highlight the convenient access to nearby amenities that your property does have. Pricing your rental properly correctly against the competition is really the only tool you have to rent out a property that isn’t in a desirable location.
Potential tenants have an entire world of listings at their fingertips. What will make them choose your rental property over another?
5. Competition.
At any one time, there is a fluctuating pool of buyers and renters looking to find a property that matches their wants and needs. It is important for you to analyze the competition in your area to understand how your property stacks up against similar rentals. Consider factors such as amenities, square footage, and overall condition. Differentiate your property by offering unique features or amenities that set it apart from others on the market. If you have two properties that are virtually the same other than a view of the ocean from one of them, the one with the ocean view is more likely to rent for a higher price to someone who values that view more. Looking at what is currently available on the market will help you or your property manager dial in your asking price.
Having a professional setting in which you can call back renters and provide them with thorough answers to the information they are seeking, will provide them with a positive first impression.
6. Responsiveness to Potential Renters.
Timely and effective communication with potential renters is essential. Promptly respond to inquiries, schedule property viewings quickly, and address any concerns or questions the potential tenant may have. A lack of responsiveness can signal disinterest or raise doubts about the professionalism of the landlord or property manager. On the other hand, if your rental property is in an area with high demand or a lot of unqualified applicants, you may want to create some “hoops” for potential tenants to jump through. I don’t mean literal hoops, but prequalifying potential tenants over the phone can save everyone a lot of time. Asking simple questions up front such as asking about the potential tenant’s credit score or income will tell you if they meet your criteria without wasting an hour showing the property to an unqualified tenant. That being said, following up with leads is a numbers game. Calling back quickly and politely asking qualifying questions is more likely to lead to good results.
An especially strong smell could be off-putting to any potential renters.
7. Smell.
While good professional pictures can get a potential tenant in the door, bad smells will have them running out. Often overlooked but crucial, the scent of a property can leave a lasting impression on potential renters. Lingering odors from pets, smoke, or cooking can be off-putting and may deter prospective tenants. Ensure that the property is clean, well-ventilated, and free from any unpleasant smells before showing it to potential renters. Baking fresh cookies, an old trick used to entice buyers, is just as applicable to leasing out your property. These days a nice smelling plug-in or even a quick spray of Febreze before a showing can make a world of a difference. We recommend to all of our landlord clients and property managers to keep an easy to use fresh scent on hand before any showings.
8. The Quality of Your Property Management Company.
If you've enlisted the services of a property manager, their competence and dedication can significantly impact the rental process. You should evaluate their performance in terms of tenant screening, property maintenance, rent collection, and resolving tenant issues. A property management company’s online reviews can help you to make the right choice, but you should still interview several property management companies to see who might be the right fit for you. A proactive and reliable property manager can streamline the rental process and enhance tenant satisfaction. We find that many landlords don’t treat their tenants as if they are their customers. Most good tenants do not have the standards of living in a palace, but they do want a safe, clean and well-operating place to live in. A good property management company will help find balance between saving a landlord’s money and keeping a tenant happy. A happy tenant will almost always stay longer, will pay more rent and will also take better care of your property. If you are looking for a competent, professional and affordable property management company, please contact us to schedule a consultation.
