How to attract tenants to your
rental property. When you buy rental properties, you can attract all
sorts of tenants. Some can be terrors who set you back by the amount of money
required for reconstruction of the rental unit. That kind of tenant will have to be evicted.
On the other hand, you can have
dozens of incredible tenants who pay rent on time, take great care of the
property, and help you build wealth and financial freedom in a spectacular way.
It is one thing to attract tenants
to your rental property; it’s another to find more of the great tenants and
fewer of the bad ones?
Attract Tenants to Your Rental Property
Your Business is a Sales Funnel. You want to get a lot of leads coming in, knowing that only a few will ever buy from you. For example, 1,000 people might see an ad for a pair of socks in the newspaper, but only a few dozen of those will go to the store, and maybe just a couple will buy a pair of socks. That’s a sales funnel, and it’s found in almost every industry — including landlords. So how do you do this? You need to have an advertising system that’s going to bring you qualified leads. This could be Craigslist, Zillow, Postlets, the newspaper, a sign in the yard, a post on Facebook — or, if you are like us, you could do ALL of these. The more marketing you do for tenants, the higher the chance you have of finding that needle in a haystack.
Set High Standards. In Brandon Turner’s rental
business, he has carefully defined
the standards that state who he is willing to rent to — and who he is not. This
list is written on his website, printed on every piece of marketing material he
puts out, and verbally told to every prospective tenant over the phone.
His standards are simple:
tenant must earn 3 times the monthly rent from documentable income sources.
tenant may not have any prior evictions.
tenant may not have any felonies.
tenant must have a 600+ credit score.
tenant must have excellent references from past landlords.
Rental Business Depends on Your Screening. Screening
is the process of verifying that the tenant meets all your minimum standards
that we discussed in step two.
First, call their place of employment
to make sure they earn three times the monthly rent.
Next, check with past landlords to make
sure they’ve been a good tenant in the past. The kind of tenant they’ve
been is the kind of tenant they’ll be. This is one of the essential steps in
the screening process, and the #1 most often ignored by landlords learning how
to find tenants — to the peril of many landlords.
Finally, run a background and credit check
on the tenant. There are numerous resources you can use to do this, such as
RentPrep.com, MySmartMove.com, or one of the hundreds of similar companies
Look for past evictions, judgments,
felonies, and other indications that the tenant might be a troublemaker in the
Train and manage effectively. In order to find incredible renters who will take care of
your property, pay on time, and help you build great passive income you need to
train your new tenant to be world-class. Most tenants want to be great, but
many just don’t know how. It’s your job as the landlord to train them to be so.
Train up your tenant in the same way you would train up a child: Establish
rules, make them known, and instill consequences for breaking those rules.
investors, we are in business to make a modest profit on any deal. However, we
can help homeowners out of just about any situation, no matter what!
There are no fees, upfront costs, commissions, or anything else.
We offer the simple truth about your home and how we can help you sell it
us a ring. We would love to help you understand the process and to answer all
of your questions. You can reach us at 402 999.0577.