Rental Renovation Strategy

[Brian Buckley]

I’m currently under contract for a two family property in a south Buffalo, NY neighborhood. The property is livable, but my thoughts are to renovate the units to be comparable to that of a rental in the more demand neighborhoods, and then list the property under market value to create a high volume of interest. While I currently can’t compete with the trendier neighborhoods in terms of area amenities, I can control the overall amenities within the property. Has anyone had experience trying to draw a pool of tenants away from current in demand neighborhoods by creating similar property amenities, yet a lower rental price point? Thanks in advance!

[Denice S.]

Hi Brian,

I've had success attracting renters from elmwood/Allentown to my properties outside of that area, but only when it's a vastly different property...such as leaving their small apartment for my whole house @ similar rent.  

Over the years, I have found that 'trendy neighborhood' renters are in those neighborhoods because they can afford them and truly enjoy the walkability factor (which s.buffalo cannot offer).  Getting them to leave their current 2-unit situation for yours in s.buffalo even at a reduced rent is highly unlikely.

The good news is that there are plenty of great applicants in s.buffalo.  Simply make your units clean, fresh and modern. Use grays and whites for paint.  Make sure fixtures and thresholds are silver-tone and matching. Keep flooring easy to maintain and neutral.  

Price slightly below market and you'll get a great pool with the added bonus of applicants who might stay a really long time because they have roots in s.buffalo.