The phrase, "it's just a rental," doesn't work for me.
Granted, I'm likely a bit biased since I work only in leasing homes and condos here in Marin County and probably take hearing the phrase a little more seriously than many folks, but still, I couldn't disagree more. My partners and I often deal in higher end rentals and are accustomed to the pricing and consideration that goes into the rental market, yet those unfamiliar with the Marin housing market would be surprised at how often we'll see a $7,000 a month home in, say, Tiburon, with an aging electric stove and poorly sealed single pane windows. Now, in a strong rental market like we've seen in the past four years or so this home would likely have rented quickly anyway due simply to a magic formula of supply and demand (with a dash of great schools and easy San Francisco commute). Thus, many Marin landlords grew accustomed to thinking, "it's just a rental," and sometimes put off replacing stoves, window seals, maybe skipping painting etc. Well, no more.
Here's the bottom line, landlords. It's not just a rental. It's a home. And quality tenants require quality homes. Just as if you were selling the property, you must make sure that the property is appealing for your relocating executives or growing families. Because you are still selling a product, and housing happens to be a product many people are quite concerned with.
Now there's an art to showing and selling rental properties. It's not rocket science, but consistency and attention to detail are important to properly highlight the attractive features about your property while properly disclosing the negatives. As a specialized leasing agent here in Marin County, of course I'd rather you list the property with me and my associates, but if you'd like to handle the leasing of your income property yourself, here are a couple pointers (especially for the novice!).
First, it is important to understand that curb appeal can be just as important to tenants as it would be to buyers. Prospective tenants are put off by properties which seem to be dilapidated on the exterior. In order to attract good tenants, you need to make sure that your property is inviting and shows the care that you have put into it. A few new flowers and/or plants in front and a simple powerwashing can go a long way. The better quality you present your condo or home, the better quality tenant you are likely to attract.
Interior first impressions are important. Repair issues should always be addressed prior to bringing a property to market. Touch up your walls, refinish your floors, re-caulk the tubs, upgrade your appliances: do as much as you can as quickly as you can. It's just not ideal to show a property which is still in the process of being repaired or renovated--there is paint, dirt, nails, etc hanging around and most folks just can't look past that. Work quickly to bring the property up to par and then begin marketing and showing so as to present the best possible first impression and highest value. (Here's one area where working with a leasing team that is well connected can help speed up the process--we can rent a property before it even comes to market when we know what's coming up!)
You should also make sure the property is extremely clean. This is the easiest part of owning an income property, yet over and over again we see properties that have not even had a once over! There is nothing worse than a filthy property and, put simply, there is no excuse for it. If you have carpet, be sure it's clean. Ideally, it is best to have the carpet professionally cleaned after one tenant departs and before you show the property to the next prospective tenant. Be sure to allow plenty of time for the carpet to dry before you actually show the property to anyone (dirt can stick when wet). De-grease the stove. Have the windows cleaned. Rake the leaves. Don't skimp on cleanliness: dirty properties attract lower quality tenants.
When showing your property, plan ahead. If the temperature outside is quite cold or hot, be sure to stop by the property in advance to set the temperature inside so it will be comfortable. Generally, if the temperature is uncomfortable there is a good chance that most prospective tenants will not stay around long enough to see the best features of the property. I notice this myself when I'm touring relocation clients and visting other agents' properties. My client and I will tend to gravitate towards and linger in the cozy, warm homes in the winter and the comfortable homes in the summer. Temperature is a small detail but can make a difference on lingering impressions.
In addition, you will need to make sure that you turn on the lights before you show the property. This is particularly important if you are showing the property while it's raining or at night. If the property is not well lit, prospective tenants may wonder if you are trying to hide something. Or the house may seem dark. Or dirty. The few dollars you will spend on having all of the lights on during showings is worth it for the better impression. And while we're on the subject of lighting, let's make sure all the light bulbs work. Working light bulbs may not seal a deal, but a house with many burnt out bulbs can sure kill one.
Before you show the property, especially if this is your first time, take the time to make sure you know the best points of the property. Sit down and think about what originally drew you to purchase the home. Do not hesitate to show off the exterior and the grounds of the property. If there is some interesting feature outside (organic veggie garden, view of the bridge, custom dog run, etc), make sure you show it off. Talk about the schools, the great neighborhood, the weather patterns, the commute. The key is to give prospective tenants an idea of what it is like to actually live there. There is no need to oversell, however, a mistake I see many landlords make who show the homes themselves. Tenants viewing the property do not need to hear how long it took you remodel the garage or caulk the tubs yourself. They do not need to know about the re-arranged wiring from the second bedroom to the office or how to work the alarm system. Too many details and too hard a sell makes the property (and it's owner!) seem desperate. Give tenants a high-level overview: think bullet point presentation rather than thesis paper.
Finally, make sure you are prepared. When you show a property, make sure that you have a rental application on hand, maybe even a copy of the lease you use. You also need to make sure that you have decided on terms such as security deposit amounts, pet deposits and lease terms. Who will cover the gardening? Pool maintenance? Have you thought about requiring tenant insurance?
Once you have presented a clean, cared-for home that is appropriately priced, aggressively marketed and properly shown, you should be able to attract that ideal tenant to take care of your investment. Because it's not just a rental.
