Listing Your Property for Rent
You’ve purchased an investment property and you’re ready to list for rent! Whether you’ve been through the process before or it’s your first time, the listing process and finding the right tenants can be a source of stress. Let’s talk through some of the tips for listing your property to set your rental up for success.
The listing is what attracts tenants to the property and without an outstanding listing, you’re not going to attract the tenants you desire. Prior to ever posting a unit for rent there are steps to take before advertising. Let’s take a look at what will set your listing up to attract only the best tenants:
Professional pictures
Iphone pictures are a major no-no…I don’t care how good you think you are at taking photos on your iphone, spend the $200 and get professional pictures, I promise it makes all the difference! You’ll have the photos forever and can reuse each time you need to list for rent in the future.
If you have tenants currently living in the unit, reach out and see if they are willing to have the place tidied up and clean before photos are taken.
If you have a vacant unit, consider staging the property to give an even better vision for prospective tenants. Staging can come at a price tag upwards of $1500+ but the investment can be worth it for higher rents and quality tenants. There are also options like virtual staging that can be beneficial and a bit easier on your pocketbook.
WHAT PRICE TO LIST AT
Determining the price to list your rental is critical to your ability to rent out faster and get the most for your property. Many times owners want to list above what the market demands in hopes they can earn more for their unit. However, you need to consider the cost of having a vacant unit for 1 month compared to the minor price difference of one to two hundred more per month. It is typically in your best interest to get a tenant in sooner and have less vacancy than to list too high and have vacancy for 30-60 days. Pricing right is critical.
So, how do I make sure I price right? I use two methods to determine the optimal listing price for a unit…
First, is Rent-o-meter. This is a useful website that will help you estimate rents in any area for comparable properties. The site offers free services or you can pay to upgrade and get more detailed insights. For early investors, the free version works just fine. I use the average rate as a good starting place and I take into consideration what my property has that is unusual or might not be as common in the area - for example, a lot of properties in Minneapolis have only on-street parking and covered parking comes at a premium. I offer covered parking included with the rental, so I know I can increase rent slightly because of this.
After I have come up with my initial rental rate based on the information from rent-o-meter, I jump over to Zillow and search for listings near my property. I want to verify the information Rent-o-meter provided and I like to see what my competition is in the area. If I notice that all the listings available are similar quality and offerings but they have been listed for over 30 days, I might consider listing lower than I expected to gain interest in prospective tenants quickly. On the other hand, I might notice that there are few to no listings of similar quality and offerings in the area and that I can safely list at my ideal price with little competition.
Lastly, don’t forget to consider the season. Just like the housing market, rental market ebbs and flows with the seasons, especially in Minnesota where winters are brutal. If you’re listing May - August, you can likely list at your optimal price or a little above. If you’re listing between September - April, you’d be better off to list slightly under to gain traction faster.
If you do choose to list above market rates, consider giving it only 3-4 days, if you don’t have a good number of showings or interested applicants by then, you can consider lowering. I would caution against leaving it listed too high for over a week.
LISTING DESCRIPTION
An enticing listing description is an important factor to your overall process and will help save you time answering questions. A good description will weed out prospective leads that are automatically not going to be a fit and bring in tenants that you want to spend time with answering questions and walking through the property. A few things to consider when writing your listing description:
Describe all the great parts about the property, hardwood floors, natural light, new appliances, any and all updates that have been made in recent years - but let’s remember to be honest!
Share what restaurants, grocery stores, or bars are within walking distance or nearby
Add how close the nearest option for public transportation is
Don’t forget to add important details like weather the unit has a dishwasher and in unit washer/dryer or if it’s shared or not provided at all
Add the utility information - what is covered by the landlord and what will the tenant be responsible for? If you know what the average monthly costs for utlities, adding that to the description is helpful
Describe what type of parking is offered and if it comes at an additional cost
What are the rules? Are pets allowed? Non-smoking?
Describe your screening criteria - credit score, income requirements, and even maximum number of people allowed to live in the unit will help people determine if they should consider the unit.
Lastly, add the cost to apply if you have one - $30-$75 is a common application fee range but this may be determined by the service you choose to collect applications.
Be sure to check your state and local requirements for listings - some states require you add specific information about your rental criteria on all rental property listings.
Check out our current listings at West Edge Investments if you need inspiration for your own listing description!
advertising
You’re ready to list! There are tons of avenues to list your unit for rent and my recommendation is to list it on multiple sites. A few of my favorites are:
Your Local MLS (multiple listing service) - you need to work with a Realtor to list on the MLS, but if you have a trusted agent who works with rentals, it can be worth your time and agent fee to hire one. Some agents will manage the entire process for you, so you can sit back and collect rent once your unit is leased!
Zillow Group - Zillow Group includes Zillow, Hot Pads, and Trulia this is our #1 place to find quality tenants and quickly. If you’d like, you can also use their service for applications, background, and credit checks.
Apartments.com
Zumper
Realtor.com
Don’t forget to share on your own social media as well! Get the word out about your rental and let your friends and family spread the word.
Need more help renting your unit? We offer personalized consulting to help you get the most out of your investment. Click the link below and let’s connect!
