San Mateo sits within the San Francisco Bay Area, making the city a big draw for working professionals, college students, and families.
If you own property in the city, you have a real opportunity to generate rental income quickly. However, you can't do it without a solid rental leasing strategy.
This process doesn't start with the lease contract. It begins with the property search phase. When buying properties, you must consider any factors a prospective renter would prioritize when renting a home.
Let's continue this process in the post below.
Identify Your Target Tenant
When building a portfolio, think about your ideal tenant.
How much does this ideal tenant earn per year? What are the long-term living goals for this tenant? What is their industry, age, and past rental history?
You can use data analytics and market research to create a detailed profile.
Build your portfolio or property strategy around this profile so that you can fill vacancies with low-risk, responsible tenants; ideally, you want tenants who stay long-term so that you can save money on tenant placement marketing. This strategy will drastically improve your ROI.
When drawing up the terms of your lease contract, make sure you're designing them with your ideal tenant in mind.
Your terms should be clear, outlining instructions for garbage collection, water services, monthly payment solutions, and move-out processes. You'll also need legal stipulations for evictions, arbitration, and rules for breaking a lease.
Attracting Tenants With Property Marketing
Once you have a property (and contract) that matches the needs of your target market, the next step is the marketing phase. Remember, this phase starts with a thorough property inspection to reveal any needed repairs, replacements, or upgrades.
Perform any necessary remodeling or installation to cater to your market. For example, you may learn that your target audience wants SMART home systems with WIFI-controlled HVAC and security systems.
You're now ready to take professional photos for your rental listings. Feature plenty of images to help facilitate a real estate experience online. You can also produce video tours and upload them onto YouTube.
When you're producing a lot of media, make sure you have a hub for this content. You'll need a professional website for your home rental business; this includes contact information and digital copies of leases. You want a tenant who understands and follows lease terms to avoid costly conflicts and possible property damage.
Plan For Rental Leasing Renewals
Don't make the mistake of putting off your lease renewal strategy. You should be crafting lease contracts and renewal strategies side-by-side.
Consider the impact of incentives for your best tenants. This point echoes the importance of consistent feedback. Ask them what they like about their current living experience and what improvements they would make; consider these points when creating a lease renewal strategy for retention.
Take a Complete Approach
When you break down the rental leasing process, you'll discover its connection to marketing, the property buying stage, tenant procurement, and more elements. Let this guide be the start of a new conversion.
Five Star Property Management wants to discuss your future goals for rental real estate. Book an appointment to learn more about our team.
