Surefire Ways to Increase the Desirability of Your Rental
Vamping up the marketability of houses for rent in Kona Hawaii, or in any area, can be difficult. As more and more millenials are choosing to rent houses instead of buying, demand for rental properties is steadily increasing. But so is the competition. The number of property managers has increased as financially savvy individuals recognize that buy and hold properties are a low-risk, high-reward, long-term investment. And an increasing number of rental properties means greater competition for yours.
So, what can you do to set your investments apart from the rest and attract stellar tenants? Below we explore a few of the amenities and advantages that tenants seek in houses for rent in Kona Hawaii and elsewhere. Purchasing a property that has these elements is a surefire way to reap greater ROI while making for happy tenants.
Monthly Rent
The monthly rental rate is, of course, one of the primary determinants of whether or not your rental property compliments a prospective tenant’s financial capacity. He or she must determine whether the monthly rental rate that you stipulate is worth it. Prospective renters will primarily concern themselves with whether or not their personal income and budget permit the expenditure. But they will also be critically concerned with whether or not they are receiving their money’s worth from your property.
As an investor, your ultimate prerogative is to make a profit on houses for rent in Kona Hawaii. Your rental rate must exceed your mortgage by a margin that also accounts for the potential for unexpected expenses, like property maintenance and legal affairs. But you also want to ensure that your rental rate is fair. Setting an astronomical rate won’t make you more money if it deters all of your prospective renters. Don’t take advantage of your tenants. Vie to be one of the ethically inclined property investors that chooses to invest not only for personal gain, but also for the wellbeing and contentment of his or her own tenants. Doing so can go a long way in attracting and securing good tenants, by extension preventing turnover and stabilizing your cash flow.
Location
Location, location, location; it’s important for many reasons. A tenant’s primary concern will likely be the proximity of your rental property to his or her family, friends, and place of work. But there are several other features of your property’s location that will impact its attractiveness to prospective tenants.
The quality of the neighborhood is likely to be a significant concern, particularly for families with children. Crime-ridden, socioeconomically depressed areas are unattractive to reliable tenants. Before purchasing a buy and hold property, research the crime rates of the area in which it is located. You may find that looks are deceiving. Even if your property is in a safe area, always take precautionary measures to secure your home.
Local education is another locational element important to families with children. High quality public education within a ten-minute drive is important for working parents with school-age children. If you live in a busy metropolitan or downtown area, or if your tenants do not have a vehicle, access to safe public transportation will be critical as well. Again, do your research before buying!
Amenities and Furnishings
It is likely that some prospective tenants of houses for rent in Kona Hawaii may not have a large nest egg. If they did, they might be more inclined to purchase a home themselves! If your tenants are living month-to-month, they probably don’t have extra money for furnishings and appliances. This will be especially true in the first month, when your tenants have to pay a security deposit in addition to the first month’s rent.
Ensuring that your property is equipped with a refrigerator, washer, dryer, stove, toaster, and other basic amenities can make your property a lot more attractive to middle-class renters. Furnishing the home with basic, inexpensive furniture will also add a lot of value. In adequately equipping your home, you will save your renters a lot of money and hassle. You will also be able to increase your monthly rental rate. Thus, in the long term, investing in basic amenities and furnishings can markedly increase your cash flow.
Condition
Tenants are looking for houses for rent in Kona Hawaii and elsewhere that are in good condition. This goes without saying, of course, but “good condition” is not always evident on the surface. A visually pristine home will surely attract renters. However, once they discover mold, insects, and malfunctioning plumbing, you will be faced with rapid turnover and legal troubles. Do your tenants and yourself a favor by investing in measures to ensure that your rental is in good condition.
If you want good tenants, avoid purchasing starter homes spoofed up with inexpensive finishes. These might make a home look okay, but they don’t add good quality, and they definitely don’t attract upscale tenants. If you are truly holding your property for the long-term—that is, if you will hold it ten years or longer—it may be worth it to invest in quality upgrades. Hard wood floors, granite countertops, good paint jobs, and stainless steel appliances will attract tenants looking to host events and invite family over.