Excel at Owning Rental Properties by Creating a Niche
By: Adam VanBuskirk | Posted: 10th May 2006
Owning rental properties is a profitable business and or investment the rentals are properly managed. But what happens when the local rental market is a renter's market, meaning that the supply of properties for rent exceeds the number of people looking to rent a property. Whether a landlord's rental properties are already making lofty profits or are stuck in the market just explained above, the following paragraphs explain how they can create a niche in the rental market and watch their bottom line increase.
A niche, in the context of this article, is the creation of a specific advantage that allows a property owner to gain a competitive advantage over their competition. By creating a niche, the property owner will make their rental properties stand out among the rest, thus getting them new tenants quicker, while prolonging their stay. The niche that I feel is the easiest to create yet the most prevailing to possess is the niche of transforming a property into a home for the tenant rather than a temporary residence. The list below explains how to get started on building a competitive advantage in rental property investing.
1.) Allow pets - Many, many landlords do NOT allow pets to vacant their properties. In my opinion, this is a huge mistake! People have pets for one reason; they want them to be a part of their family. When allowing pets, one will often get single people who do not have children; rather they consider their pets their children. Older single people often have plenty of cash but are afraid to make the commitment to purchase a home and stay in one area. If most landlords in one's area allow pets, they can still create a niche by allowing pets with no extra deposit.
2.) Provide a washer and dryer - People hate going to the laundry mat. It costs money, it takes time, and they're often dirty and populated with less-than-attractive people. Buy a washer and dryer for the property, and by spending a few hundred dollars, the landlord can raise the rent by $25.00 a month and have the washer and dryer paid for within a year or two, plus they have gained a huge advantage over the competition.
3.) Allow kids - Many landlords do allow kids in their properties, but at the same time one would not believe how many don't. A property owner should be encouraging families to live in their homes, not discouraging them. It is much harder for a family to pack up and leave than a single person. Keep this in mind, as families tend to stay longer than singles.
4.) Get a shed or garage and let the tenants mow their own lawn - People don't like to be hassled or have their privacy invaded by a landlord outside their window mowing every week. Get them a lawn mower that they can store at the property, and let them mow their own grass and do their own lawn work. This makes them feel like the owners of the property and saves the owner the time of having to mow the lawn (or pay someone to do it).
5.) Off-street parking - No one likes to have their car side-swiped on the road or vandalized at night. By providing off-street parking such as driveways, garages, and well-lit parking lots, the tenant is given a sense of security about their vehicle.
Although the above list is simple and fairly obvious, many landlords fail to see the true vision that it creates. By taking the above factors into consideration, a landlord can develop a strong niche in their market and attract tenants that view their property more as a home than an apartment/rental.
The author is the founder and owner of LandLordDocuments.com
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Tags: money, bottom line, mistake, profitable business, paragraphs, niche, s market, competitive advantage, washer and dryer, landlord, pets, property owner, rental property, landlords, renter, rental properties, properties for rent