Attracting a good tenant

[Ben Leybovich]

How to attract responsible tenants seems to be a recurring topic in forums. In hopes that this helps people, here are a few thought:

I have been a landlord for 7 sears, and over time I have come to the realization that the manager’s ability to place “good / responsible” tenants is a function of the property itself. If the property has wrong amenities or is in the wrong location, there is nothing that can be done management-wise to attract good tenants. You could have a brand spanking new remodeled Taj Maha on your handsl, but if it’s not what “good” tenants want then you will be left with the crowd that you don’t want.

In Anytown USA one could buy an entire block for a smile and a handshake, but why? We want to own the type of property which is going to attract the type of responsible tenant whom we will enjoy doing business with - this is how we stay sane in this business. It all starts with the property you own!

Having said this, all of us need to analyze our marketplace to determine what it is that these wonderful tenants want and how much they are willing to pay for it. We want tenants who will call you when something breaks; tenants who are going to be clean and respectful; tenants who are going to plant flowers and trim lawn; tenants who are going to think if it as their home and not just a rental. What do they want in a property? Figure this out and let it become the center block of your product search.

Thus, if management is too hard then chances are that the properties you currently own attract the wrong crowd…What other explanation is there? You’ve checked credit – that’s not it. Income – no. Criminal history – no. Must be the property itself that is not attracting the right kind of tenant.

Hope this helps some of you.

[Bill Gulley]

I don't see a question, a mini blog in the forum but that's okay, but you're right. Hope it doesn't take 7 years to figure that out, LOL. The best rental is a property in an area of non-rentals. You'll find that better tenants have a sence of community among property owners, where there is pride of ownership or living where they do.

Well maintained, attractive rentals in good locations should be the game plan.

I've been around long enough to know that buying something just because it seems like a deal and will cash flow isn't the big picture, there is much more to having a successful landlording business than a bunch of properties in the long run. Cheap properties get less desirable tenants that will cause the owner to work alot harder for the same dollar. It's better, IMO to have 5 150K properties than 20 32K properties, all things considered. Generally, less maintenance, less management efforts, fewer collection problems, less vacancy and better appriciation.

I'm not suggesting having all executive rentals, but nicer middle income properties with current amenities and good locations.