The Detroit rental market is booming, which is great news for investors. However, it also means that you’ll need to deal with a competitive market when you’re trying to attract quality tenants to your property. Despite the challenges that arise in this situation, the right market strategies can effectively showcase your rental property and set it apart from the competition. In this guide, you’ll learn how to appeal to quality tenants in a competitive market.
What to Look For in a Tenant
To attract quality tenants to your property, you must first know what to look for. If you select the wrong tenant, you may eventually be tasked with fixing extensive damage and collecting rent payments from a person who’s unwilling to pay.
In most cases, a tenant who doesn’t pay immediately will eventually do so. There are times, however, when a tenant decides not to pay or engages in behavior that requires an eviction. When this happens, you must contend with sudden tenant turnover. You can avoid these hassles altogether by choosing the right tenants from the beginning.
Bad tenant behavior threatens the safety of the other renters as well as the value of your investment. Keep in mind that eviction-related expenses can amount to thousands of dollars. The entire process can take weeks. When you hire a reputable property management company like Upside Investments, we’ll handle the tenant-screening process for you. However, you should still know what to look for in a tenant. The characteristics of a quality tenant include the following:
- Clean eviction record
- No criminal convictions that are relevant to them being a good tenant
- Strong credit history
- Respectful behavior
- Honesty
- Stable employment and income
Organized people also make great tenants. However, it’s not always easy to discover if people are organized in their everyday lives. If you find prospective tenants to be uninterested and unprepared, consider looking elsewhere.
An organized tenant will be prepared when they first arrive at your office. They’ll have all the documentation they need when they apply, which should expedite the leasing process. If you have questions, an organized tenant will respond quickly. When a person has strong organizational skills, they’re more likely to comply with your rental requirements.
How to Attract Quality Tenants in a Competitive Market
To attract quality tenants when the market is competitive, you must know how to make your property more appealing than the competition. By bringing in quality tenants, you should notice a drop in vacancy rates and an increase in timely payments.
Create a Compelling Description of Your Property
When a potential tenant finds a listing of your property on a website, they should be intrigued to learn more immediately after reading its description. An effective description properly highlights the amenities, features, and advantages of living there. Use active language that tells a story and paints a clear picture of the experience people can have when living in your rental. Focus on the best selling points of the rental home or apartment, which can include modern appliances or large floor plans.
Provide Incentives and Competitive Pricing
A significant factor in the decisions that tenants make is the rental price. Research the Detroit market to make sure your rent rates are fair and competitive. The long-term viability of your property can be damaged if you underprice or overprice your units. When the price is set too low, it might be difficult for you to maintain a strong cash flow. If prices are too high, your units could remain vacant for weeks or months.
Consider providing incentives as well. From referrals and rewards to discounts, providing value to potential tenants increases the likelihood that they will apply to your property. For example, you could provide a gift card when renters renew or offer a discount on a month of rent for tenants who sign lengthy leases.
Take Advantage of Tenant Referrals
The best marketing involves word-of-mouth referrals for your property. Encourage tenants to refer their family or friends to your property. As mentioned before, offer incentives for referrals that lead to new tenants. Highlight positive reviews on your social media pages or website as well.
Perform Targeted Advertising
Once you determine what makes a quality tenant, it should be easier for you to implement targeted online advertising. With the right approach, you can get your marketing materials to the specific demographics you’re trying to reach. Use Google Ads and similar platforms to perform targeted advertising.
Regularly Improve and Maintain Your Property
Everyone wants to live in units that are comfortable, quiet, and clean. To attract quality tenants, you must repair your property and keep it well-maintained. It’s also a good idea to invest in renovations and upgrades that will increase the property’s value. The best upgrades include smart devices and energy-efficient appliances. Tenants might also be more interested in your property if you offer shared community amenities, which can include everything from a pool to a gym.
Use Social Media and Online Rental Platforms
Promote your rental property on the most popular social media platforms. You should have profiles on all major platforms, which include LinkedIn, Facebook, X, and Instagram. Share content that you know people will engage with. For example, virtual tours and property highlights would likely be appealing to people who are looking for the right rental unit. Make sure you list your property with the best online rental platforms as well.
Obtain Professional Videography and Photography
Before people tour your rental, they’ll likely see it on your website or a popular listing platform. Use high-quality visuals to properly display your rental and effectively capture its best characteristics. Every image or video of your property should be well-lit and clear. All the marketing materials you make can be enhanced with stunning imagery.
Marketing a Detroit rental isn’t challenging if you know what quality tenants are looking for. Once you develop an appealing property description, take great photos, and set reasonable price points, you should notice an uptick in the quality of the tenants who apply. If you need help acquiring new properties for your portfolio, Call Upside Investments today to discuss your goals and find properties that align with them.
