Contributed by Kym E. Booke
A rental property is a wonderful investment and a great way to supplement your income... if it's rented. A rental that stays empty for long periods can weigh on your bank account and your life. A vacant rental is scary, and you may be tempted to slash the rent to draw in tenants, but this isn't always the best solution.
Increase Interest in Your Property without Lowering Rental Price
There can be several reasons why your property isn't renting. Is the market flooded with rentals and driving down the price? Are there nicer properties available for less money than you are charging?
Before you lower your price, consider making a few adjustments.
- Up the Curb Appeal
If the front of your home is a mess of weeds, chipped paint, and rusting car parts, potential renters may not make it inside. A new coat of paint and a day spent clearing trash and gardening can increase your homes “rentability.”
- Make Them Feel Safe
Whether it's a family with small children or a young single woman, your tenants want to feel like their home is a sanctuary, and they'll pay a higher price for it. Installing a home security system alleviates anxiety and supports a higher rental cost. Plus, homes with a security system are three times less likely to be broken into.
- Make It Sparkle
If a potential renter leaves feeling like they have to burn their clothes, they aren't coming back. It can be relatively inexpensive to have your property professionally cleaned (or even cheaper if your friends are willing to work for pizza). Carpets should be cleaned, windows clear, and countertops spotless. The cleaner it is, the more inviting it is.
- Stage the Property
Many people see a space or a room furnished with bean bag chairs and can't see beyond the reality to the potential of the home. Though it requires a higher upfront investment, home staging can make the difference in the imaginations of your potential renters. You can hire a company to stage your property (and rent the furniture from) to create a living space that has potential tenants clamouring to apply.
- Upgrade Fixtures and Appliances
Renters are looking to get the best home for their money, and small changes or added luxury amenities can go a long way towards creating that home. Consider changing out older ceiling fans, bathroom and kitchen faucets, lighting fixtures, and if possible, kitchen appliances.
- Offer Extra Services
Consider providing add-ons to the lease such as house cleaning or landscaping services. In exchange for a longer term contract, you can negotiate a lower price from independent landscapers or cleaning companies and then collect a fee as the contractor.
- Consider home sharing
If you've done all the possible upgrades and your property still isn't renting, it may be time to try home sharing in the meantime. The company connects people that are looking for temporary housing (even as little as a few days) with people that have space.
While this can add up to a nice chunk of change, you do run a risk of property damage by renting to strangers. Check with your state and local laws before considering this option as it is illegal in several areas.
While an empty rental can seem daunting, there are many avenues to explore before lowering your rent to attract tenants. Instead, improve the quality of your home (and your renter) while maintaining your desired income.
Kym E. Booke, a CNE designated REALTOR in Las Vegas, helps individuals buy and sell homes in Summerlin, Henderson, and throughout the Las Vegas Valley.
