Appealing Features for Real Estate Investors to Include in Rentals
In an increasingly competitive rental market, what are tenants looking for in a rental home? Location is always an important factor, but what other factors are they considering? As you work to grow and expand your rental property portfolio, it is important to have a good understanding of what tenants want and what you can do to make your rental property stand out in your market. Nothing will stall the growth of your portfolio more than not being able to keep your properties tenanted. Having a property sit vacant for months at a time will eat away at your profits and cost you money in the long run. That is what makes it so critical that your properties are appealing to today’s renters.
To give you a better understanding of what renters want, we’ll explore four features that you can include with your rental property that will help you attract high quality tenants. These four features are relatively simple additions that can make a big impact on keeping your rental property tenanted and continue to produce a strong monthly cash flow.
1) Internet and TV Connection
The first thing you can do to make your rental property more appealing is to have the home already wired with an internet and TV connection. This may seem like a simple addition, but it can make a big difference for potential tenants because it is one less thing they have to account for when looking for a place to rent. Since a tenant may only live at your property for a year, depending on the terms of the lease, it also makes sense for you as the investor to keep your property pre-wired to avoid changing services each time you have a new tenant.
2) Smart Home Technology
Another changing factor in the housing market is the rise of smart home technology. Companies such as Nest and Ring have created new and efficient ways to monitor both energy and security. Smart refrigerators can store your grocery lists and alert you when you’re low on certain foods. This new technology is affordable and can easily be controlled from devices like your smartphone. This can save both you and your tenants money each month all while adding a stylish, modern look to your home. With technology being an ever changing industry, it’s always a good idea to keep your home modern and in line with the market trends.
Furnishing appliances such as washer, dryer units and refrigerators is another selling point you can make to any potential tenant. With many of these renters looking to rent for one to two years while saving for their own home, or simply enjoying the flexibility that renting provides, these appliances are an unnecessary expense to them. By eliminating this expense and the hassle of moving these units, you can provide your tenants with quality appliances at no cost to them.
4) Utility Services
Finally, you can include utility services such as power, water, and trash pick-up. These utilities can vary on price depending on the time of year and usage, but they shouldn’t take too much out of your monthly cash flow. If you decide to pay these utilities for your tenants, you will be able to charge a higher rent while still being competitive in your market. As with the other features you should consider with your rental property, this is a convenience that you would provide to your tenants and would help make your property more appealing to any potential tenants.
Owning a rental property portfolio is a great way to build wealth from the monthly passive cash-flow that each property produces. With the rental market continuing to rise, it presents a great opportunity for investors like yourself. To ensure that you’re able to build a strong, profitable portfolio, you’ll need to find the right tenants to rent out your properties to. By including these four features in your rentals, you will be able to attract the right tenants that you’ll need to continue growing your portfolio.
Lima One Capital is the nation’s premier lender for real estate investors. We make it easy to finance all of your fix-and-flip projects, rental properties, and multifamily investments. We lend across the country in 41 states and the District of Columbia. We take great pride in being a part of the process as real estate investors pursue their entrepreneurial goals. If you would like to learn more about our Rental loan programs and how they can benefit you as an investor, click here.