Amenities Help Landlords Attract Tenants
Rental property owners face an ongoing need to attract desirable tenants. But what happens if signs and newspaper ads pull in a lot of prospects who opt not to become tenants living in the home?
The obvious answer is to lower the rent until someone takes an interest in the property. But this obvious answer isn’t necessarily the only answer. A potentially better option might be to upgrade the property to make it more appealing to prospective tenants and better able to compete in the rental marketplace.
Granted, new amenities can be costly to add and maintain, which is one good reason why many owners are loath to load up on such extras. Yet, some amenities cost very little or can justify a higher rent that will pay back the owner’s investment within an acceptable amount of time.
Here are some examples from least to most costly:
Security. Many tenants are concerned about security even if the property is located in a low-crime area. Security needn’t mean a monitored alarm system, unless such amenities are common on rental properties in the area. Rather, secure heavy-duty locks on doors and windows and a reasonably attractive fence or locked gate can be viewed as a plus by the tenant and potentially a smart investment for the owner.
Storage. Some houses contain small or odd areas that can be converted into storage space with the addition of a built-in cabinet or shelves. Storage space may not be a decisive factor for a prospective tenant, but it’s always welcome and can enable the tenant to make good use of an otherwise awkward space. The cost to the owner is usually minimal.
Bicycle rack. A permanent metal rack where bikes can be easily accessed and securely locked up can be an attractive amenity, especially if the property is large enough for a family or is located near a college or university and doesn’t have a parking garage that’s large enough to accommodate both cars and bicycles.
Carport. A more expensive amenity to add is a carport, which might cost around $1,500 and may require a building permit. If similar properties in the neighborhood have a garage or a carport, the addition of covering parking can be a good investment that might be recouped in the ability to attract a larger pool of prospective tenants or increase the monthly rent.
Appliances. Other higher-cost amenities include a clothes washer and dryer and dishwasher. These appliances are tremendous water hogs; however, laundry machines offer tenants convenience and could be worth consideration if they are a standard amenity in the area. A stacked washer-and-dryer unit might cost $700 to $800, though used machines can be bought for less. A $30-$40 hike in the monthly rent would recoup the cost of the machines in about two years.
To select amenities, research the market to find out what sorts of amenities are offered at comparable rental properties. Ask prospective tenants what amenities they would need or want to rent the property, and ask other owners about their experiences, both good and bad, with different amenities. Consider the costs and calculate the likely pay-back period.
One more tip: Newspaper ads that list many amenities can be very expensive, but online ads can include much more information and even photos of the amenities, often at a significantly lower cost.
Copyright 2006. Marcie Geffner. All rights reserved. No part of this article may be used or reproduced in any manner whatsoever without written permission of the author.
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