As a property owner, one of your responsibilities is to track and leverage data metrics.
There are many data points to consider from tenant acquisition costs to marketing conversion rates. Understanding these metrics will help you identify opportunities and areas of improvement.
Successful tenant placement, for example, depends on a strong understanding of tenant turnover rates, acquisition, and marketing metrics.
For example, if you already have a rental portfolio, analyze your tenant turnover rate. A rise in this metric directly impacts your profits, leading to a lower return on investment.
The good news is you can turn this problem around.
Learn how to craft a better tenant procurement strategy.
What Are You Looking For In a Tenant?
You should approach tenant procurement like customer acquisition. Write down a list of traits in an ideal tenant, and turn this information into a tenant profile.
This profile will help craft strong marketing campaigns, making it easier to create (and meet) objectives. It will prevent bad apples from moving into your units or even applying altogether.
A strong tenant profile would also pass a rigorous background check. Include tenant screening data points in your profile so that only the most financially responsible apply. The same philosophy applies to rental history; you want a tenant who has a strong record of good landlord-tenant relations.
Optimize Your Marketing Strategy
Integrate tenant profile data points into your marketing material.
Be clear about what you're looking for in a tenant. Highlight expectations like on-time rent and clean background checks in your rental listing copy. If you're allowing pets, include the pet deposit amount and size (and type) limits for pets.
Consider the expectations tenants have for you, as well. This point is crucial.
You need appealing real estate photos that attract these ideal tenants. You can't achieve this without quality property maintenance. A property manager is essential for this step.
Property Maintenance and Tenant Placement
A property manager will start with a rental inspection. This step will reveal every feature that needs repairing or replacing.
Invest in excellent curb appeal. Driveway paving, lawn care, front door replacements, and exterior painting fall under this category. These improvements will make for better listing photos.
Improve Your Tenant Screening Process
A property management company will also handle all aspects of tenant screening; they'll even call past references to confirm leads' landlord-tenant relations track records.
Managers also analyze bank documents, pay stubs, investments, and other financial information to confirm financial responsibility.
Property managers review actual information databases rather than rely on online background check services. Online services often mine information from unreliable sources like social media. A property management company can retrieve accurate past addresses, birth dates, and contact information.
Verifying a lead's current employment and government ID is also critical for the tenant screening process.
Find High-Quality Tenants
Avoid the high costs of continuous tenant turnover. Create a tenant placement strategy that leverages great marketing, maintenance, and screening.
Talk to a property manager about your goals for investing!
PMI First SA Properties has a team of experienced property managers waiting to make your rental as successful as possible.
Contact us to learn more.
