Although home-ownership is still portrayed as part of the “American Dream”, per an article from the Pew Research Center that analyzed census data from 2016, (http://www.pewresearch.org/fact-tank/2017/07/19/more-u-s-households-are-renting-than-at-any-point-in-50-years/) 36.6 percent of people in the United States that claimed head of household are renters, which is the highest percentage since 1965. This makes the relationship between the Landlord and the Tenant very important.
For those who have follow DNA Financial closely, you know that one of our main vehicles of choice in wealth building is real estate. We have been property managers for over 20 years and have specialized in working with lower income tenants. Because so many people of all backgrounds now consider renting as their best option, it is imperative that the Landlord and the Tenant must have be able to work together so both sides get what they need out of the partnership.
Let’s start with the tenant. What do most tenants look for when they want to rent an apartment or property? If you are looking to become a Landlord by purchasing and renting investment properties, or even if you have done this for years, the items listed below can lead to attracting a good renter to your property.
A safe neighborhood or environment
The cost for rent and what is included with the monthly payment
Size and floor plan of the property / apartment
How well the property / apartment has been maintained
Amenities close to the area
Proximity to the freeways and major streets
Schools in the area
What are the move in terms for the property / apartment
One Idea to enhance the marketing of your property is to create a packet with the property specs and amenities, the area school listings, crime statistics, move in terms and the rental application.
Also, an efficient way to conduct property viewings is to hold an open house, rather than showing the property individually each time someone calls. By funneling everything into one day and time, you will have more than enough applicants to make a good decision.
Now for a Landlord, this is what many of us look for when choosing a tenant.
Finances to support paying the rent, which should ideally be no more than a third of your monthly income.
The number of people that are moving in with you?
Whether there are any pets coming with you?
What does the previous landlord have to say about your rental history and home upkeep?
What does your credit report say about how you pay your bills, particularly your rent and car payments?
Do you make your rental payments on time, or are they delayed every month
Can you be trusted to do the right things once you move in?
A Tenant is looking for a good place to stay and call home for a while. The Tenant wants to be sure that if a Landlord says that they will fix something, it will definitely get fixed. If it takes a while for something to get fixed, is the tenant OK with that as long as the promise is kept? For Landlords, this is a business and business dealings are not truly personal, but about making a profit. You have to be able to sometimes see the person before the profit, which is not easy to do.
For the Tenant Landlord relationship, the rubber meets the road when you show you can trust each other. As with everything, good communication is the key. Landlords are more willing to work with tenants who pay timely and likewise, a tenant who has a good relationship with the landlord tends to maintain the property upkeep and make the Landlord aware of issues with the property as they happen and not when they are at the catastrophic stage. Maintaining a professional, yet open line of communication between the Landlord and the Tenant makes the ability to work together much easier.
Founded in 2015, DNA Financial Services LLC has pledged to Educate, Empower and Equip the financial DNA of its’ clients now and for generations to come. The company offers a number of financial services designed to bridge the gap in wealth building education while aiding and advocating for the financial literacy of people from all walks of life.
DEBT IS NOT IN YOUR DNA! TM