4 Reasons Why Your Property Hasn’t Been Rented and Learn the Secret to Monetizing Your Property
People prefer to rent homes rather than purchase them because it is more practical and suited for their life goals. It's ideal to rent, especially if they’re only planning to stay temporarily in the area. Leasing out your home or property is a lucrative business because people are always on the lookout for a property they can rent at a good deal.
However, you may not be able to rent out your property immediately, and it may go stale, which results in a loss of time and money in maintenance. Here are the reasons why they don't rent your property, and some helpful tips you can implement to monetize your property effectively.
One of the main reasons why someone would shy away from your property is the high price. Even with a good location and otherwise great amenities, your property may remain vacant because it is too expensive. Price is a significant factor, especially when potential tenants see other similar properties in the neighborhood at a much lower price.
Another main reason why people won't rent your property is the high mandatory security deposit. You charge a certain amount, also called a security deposit, before renting out your properties to safeguard it from possible damages. A highly-priced security deposit can discourage prospective tenants from renting your property and start considering other options.
A three-month security deposit may be considered too expensive. At least a month or two’s worth of security deposit sounds more reasonable and would increase your chances of having your property rented soon. Aside from that, an overly priced rental property can cause you to lose out on money on bills and maintenance, with no tenants giving you returns.
The Secret to Monetization 1: Competitive Pricing
Price your unit competitively. You have to check your neighboring properties to make sure that you're not too expensive. Also, you can have your real estate appraised by a leasing professional.
Reason 2: Inefficient Marketing Techniques
Sometimes, the wrong marketing strategies may be the simple cause as to why it’s taking so long for your property to be rented out. The two usual marketing mistakes that are affecting your advertising performance include:
1. Attracting the wrong tenants
You are attracting incorrect tenants through inefficient listings. Attracting the wrong kind of tenants is a waste of time for both parties involved. Not putting enough screening requirements on your listing is the main reason for attracting wrong prospects. When you write down all the pre-qualifications, you can speed up the renting process and attract the right clients.
To avoid this problem, make sure to include all the tenant qualifications in your listing.
Here are some of them:
State the amount of security deposit and monthly rent
Mention how many persons are allowed to occupy the unit
IInclude whether or not pets are allowed
Whether or not children are allowed
Visiting hours and curfew, if applicable
Inefficient marketing may also be caused by an unattractive listing that causes prospective tenants to skip looking at your property. Blurry and poorly taken photos, spelling, and grammatical mistakes might signal a red flag to prospective tenants.
The Secret to Monetization 2: Make an excellent online profile
Put in the effort into creating appealing listings by adding well-photographed shots of your property and having a well-written description to attract higher-quality tenants. Many prospective tenants like searching online to find new places to stay, apart from the traditional word-of-mouth.
Thus, creating an attractive property profile online is an excellent way to attract more clients.
Use high-quality photos. A high-quality photo of your property will catch the attention of prospective tenants since it is the first thing they will notice in online real estate platforms. Take advantage of this feature by taking well-lit, high-resolution photos of your property. Make sure to capture various angles of your property and highlight it’s best features. You may even hire a professional photographer for best results.
Write engaging content. A well-written description of your listing adds credibility to your online property profile, thus attracting more and higher-quality prospective tenants. Apart from correctly listing the price, area size, and location of your property, you may also add other details such as amenities and establishments such as nearby banks, convenience stores, gyms, schools, and restaurants. Make sure to check your spelling and grammar as well, since a poorly written profile description might sound like a scam and be considered a red flag. You can also hire a professional wordsmith for this purpose.
Renting out your property is good business that, when done right, gives you a natural source of income. Optimize your business by correctly identifying issues that keep your property from being rented out fast, and follow these simple marketing strategies to save time and attract you to the right prospective tenants.
Reason 3: Current Tenants
If you are currently renting out multiple units, then your current tenants may also influence how prospective tenants feel about your properties. Many prospective tenants are turned off by loud, noisy, filthy, and potentially troublesome neighbors. If you currently have tenants like these, it will surely raise alarms concerning the safety and privacy of your property.
You can avoid this issue by enforcing strict policies for all your tenants, such as curfews, prohibiting loud music, and proper handling of the trash. You may even increase the value of the premises by installing video surveillance and security personnel to ward off theft and other criminals in the premises.
The Secret to Monetization 3: Strictly Screen Your Tenants
Your other tenants reflect the standards of your property. One of the many possible solutions is to have a strict tenant screening process. Make sure that the tenants have the requirements like police clearance and payslips so they can afford to pay rent. You can also require post-dated cheques.
Screening your tenants is advantageous because of the following reasons:
1. Your potential tenants won't get discouraged by the quality of the people living there
2. You can prevent possible security and safety issues that might occur later on when you don't screen your occupants thoroughly
3. You know that the people renting your units can pay rent
Reason 4: Undesirable Features
Unattractiveness is one of the biggest reason why your property doesn't do well in the market. These undesirable features that are often difficult to change, so you don't think about them as deal-breakers. However, potential tenants may look at them as hindrances.
Here are some of the possible factors:
Being in an undesirable location
Having too many stairs
Not enough bathrooms
Small room sizes
Unappealing exterior and interior
The Secret to Monetization 4: Make the Property Presentable
You must make your property presentable, especially if you want to stand out among your competitors. Apart from price and location, appearance is an essential factor prospective tenants look for when choosing a place to rent. Gain an edge over your competitors by sprucing up your property and keeping it in top shape.
Here are some of the ways to make your property presentable:
Repair any issues that can turn off prospective clients, such as leaky faucets, poor lighting, and broken furniture
Always check for possible problems every six months to maintain facilities and keep things running smoothly
Repaint interiors to keep the area looking fresh and pleasing to the eye
Grow plants to make for better air quality and ventilation in the area.
If you want to do a booming renting business, then you might have to invest significantly to improve and renovate your properties to attract more tenants. You can't change your location, but you can make improvements to your unit.
If you’re ready to list your unit or property, you can do it on reliable websites like us at Real Estate Listings PH.