Approximately 44 million people in the U.S. rent their homes. This figure comprises over a third of the household share in the country.
With so much demand for rentals, landlords need a reliable tenant placement process that streamlines renters into units. However, this process must also deliver good ROI percentages for real estate portfolios to remain profitable.
Tenant matching services shouldn't be approached separately. Rather, they should be part of the entire rental management strategy.
Learn how to find a tenant quickly and efficiently to maximize your profits.
Define the Ideal Tenant
It helps to have a solid understanding of your ideal tenant market before crafting a placement strategy. There's no substitute for an excellent tenant.
The ideal tenant saves you money on the following tasks:
- Annual rental property marketing
- Tenant screening services
- Property damage
- Conflict resolution
- Legal fees
- Eviction services
- Application processing
A property management company can help you define this ideal tenant with the help of market research and tenant screening.
Expert tenant placement uses a range of tools to confirm:
- Identity
- Annual income and assets
- Employment
- Past rental history
- Landlord-tenant relations
- Current address
- Contact information
A property manager will also call previous landlords and talk to them directly about their experiences with an applicant. They'll also contact any rental references listed on the application.
The above process is also known as tenant screening.
Attract Tenants With Marketing
Think of the entire tenant search process as a marketing strategy. A well-crafted marketing plan will naturally filter out ineligible applicants while appealing to those who meet the ideal tenant criteria.
Be honest in your marketing approach. Make sure the rental unit is honestly represented in real estate listing photos and descriptions. The rental condition must reflect the listing price accurately.
Your pricing strategy must comply with state pricing regulations while also remaining competitive to generate a profit. If you're dealing with a long renter's market, consider price negotiations if the applicant fits the ideal tenant profile. It may be worth the long-term ROI.
Work with a property management company that leverages real estate software to publish (and monitor) your listing on multiple rental sites. You don't want a single promising application to slip through the cracks.
Open houses are still very much a part of the real estate marketing process. A property manager will inspect your rental first for any repairs or upgrades. The ladder goes a long way in attracting ideal tenants and lease renewals.
Tenant Placement and Lease Renewals
The most profitable tenant placement strategies don't cease after a tenant is procured. Property managers should immediately transition to the lease renewal phase. This strategy requires consistent communication, fast and reliable maintenance, feedback, and lease administration.
Consider offering lease renewal incentives like a discount on the first month's rent or free kitchen upgrades. Some landlords give toasters and new appliances to long-term tenants.
Procure the Best Tenants
Don't risk your tenant placement strategy. Find tenants with excellent track records to match. Hire an experienced property manager who knows how to identify and attract tenants with high ROI potential.
Chambers Theory is a unique, data-driven real estate solution developed for growth mindsets. If you're a property owner or investor focused on profit optimization, you've found the right partner.
Contact us today to learn more about our process.
