Renting properties is the new heat in real estate Pakistan. The property market of today’s world is booming with rental properties. Renting is both mutually easy and convenient amongst the two concerned parties. The landlord enjoys monthly (or however so is contracted) installment of rent money which adds up as a form of passive income without much active effort; whereas the tenant can enjoy a more convenient and easier location that suites their lifestyle of work needs better.
The demand of rentals is growing and this is a trend which is here to stay. Every so often you would hear about a person who moved into a property as they came to this city to study, or for a job opportunity; moreover people might want to upscale their properties and move to bigger and better neighborhoods etc. these practices are all too common in the fast and action based world of the present day. Renting will continue to provide benefits as a source of investment.
This article is for those who have made the decision to start their own rental property to make great use of the passive income. Today we will particularly focus on how can one find suitable tenants for their rental property.
Know your demands:
The best prerequisite to finding the right kind of tenants for your rental property is to define what you want form them. You might be looking for a family, or a single person, a student or an entrepreneur as a tenant on your property. Furthermore on the landlord’s end; it is quite common to want a short term or a long term tenant.
Knowing the demand is the first step to ensure that you get a tenant that fits the criteria you are looking for. Just like any other facet of
Screening and background checks:
This has to be one of the most important steps for anyone who wants a good and suitable tenant on their rental property. Unfortunately not everyone would fit the criteria that you set forth in your application processes. Some or many people depending upon their situation might swap in a lie or two to get through the screening process. Furthermore there are many fraudulent tenants on the market who take advantage of absence of a strong screening process by the landlord.
One should always run a background check and gather useful information on the id and whereabouts of a person. Getting to meet the tenant in person before they move in or letting them fill out a carefully planned questionnaire to help you provide information on them; will be a very important part of the process.
Pay attention to your advertisement:
To get the message across the real estate market, one needs to pay great attention to where and what kind of add they are posting to advertise the vacancy of the property.
There are many ways in which people can advertise to spread awareness about their rental real estate having a vacancy that needs to be filled. Let us explain the most modern technique of property advertisement first. With the rapid digitalization of the world’s systems it is obvious that digital marketing and advertisement have become the primary and easily accessible source of marketing for many individuals on the market. Almost everyone has a handheld device with internet connection which makes the audience of an advertisement expand exponentially as compared to traditional media.
There are multiple online forums and websites that one can avail to advertise their rental property. There should be special focus on the requirements and demands you need to be fulfilled by the tenant; so that only your desired and target audience can contact you through this add. Try to make sure you explain your own property well and enlist the requirements that you need the tenant to fall on to be considered as a viable future tenant. Enlisting the demands is a very important factor to find ideal tenants as it automatically filters out most of the people who are not your target demographic while finding a tenant.
Print media might be deemed old fashioned or outdated however it cannot be ignored that print media is still regarded as one of the most important forms of communication and marketing throughout the word. Whether it be books, flyers, banners, newspapers, magazines all take shape through print media and have a significant amount of audience that consumes them. Taking your rental property advertisement to such media can also be greatly helpful to find the right tenants.
Many daily newspapers have a dedicated column or a few pages that enlist local advertisements. This is a great opportunity for one to reach out to their target audience. Printing out an eye catching banner to put up as a property for rent sign can also be a smart investment if you want to take the route of investing in print media.
Taking help of a real estate agent:
Real estate agents are one of the highly regarded professionals that work in the real estate industry. These are professionals that help finalize deals or manage property businesses. Hiring a real estate agent will have your work completely cut out for you. Reputable and honest real estate agents are a great utility to those who can afford them or might want their help. These agents are packed with potentially years of experience and most importantly; a deep knowledge of the real estate market which makes them an amazing asset to have by your side.
Real estate agents are able to pin point exactly what your demands are. This is due to them having to deal with hundreds of clients and having the understanding of local’s needs and demands for rentals in the area. When you hire a real estate agent and put forth your demands; the process of finding the best possible tenant would be completely their responsibility. Real estate agents will use their own clients looking for rent that might be eligible or ask around in their professional networks to see if a person might be interested and fulfilling the criteria that you have given about this rental property.
Especially for people who have full time jobs or want to spend more time in their social life and family time; should always hire experienced real estate agents if they want to take the burden of all this extra work off.
What to do when you are unable to find eligible tenants?
Sometimes people will struggle quite a lot to find the tenants that fit the criteria and agreements. This will not only have a landlord wasting time in advertising and hiring agents but will ultimately lead them disappointed and rather confused. If you are such a case; consider the following:
Try to recheck if the rent you are charging is appropriate to the market standards or not. Often times landlords will over estimate the actual worth and value of their property and will overcharge rent for a subpar property. This will put them in a situation where they cannot find any tenants that agree on the rent amount.
Try to make the property more attractive if you cannot find tenants that fit your criteria. Try to renovate or even make small improvements. See for smarter choices you can opt for. Perhaps the walls might need to be painted, the water, electrical outlets might not be working property. Replace the rusted taps, door knobs and ix squeaky doors. Many times when a potential tenant visits the property before moving in; such small wear and tear can be a turn off for many people. That is why improving the property might get you the tenants you need.
Revise and reconsider your demands. Try not to be outrageous. After all the success of a rental property is through a satisfied tenant. You can only earn passive income as long as a person resides in the property. Recheck what your demands are; try to be a bit more flexible. Ask yourself; do you really need all of these conditions met? Or are your demands too unrealistic? Revising and improving the list of demands and requirements might open up the channel of a lot more people. A good landlord should always put the tenant’s comfort and needs first.
Often reflecting on the property and its surroundings itself is a great reflection of why you cannot get the tenants on the terms and conditions your have put forth. A property that is in a neighborhood having many reputable higher grade educational institutions might attract families or students more than other people. Similarly a posh neighborhood will probably not seem suitable for a student. If possible try to demand a tenant that can easily fit into the class and demographic of the property’s surroundings.
The practice of renting property is ever growing in real estate Pakistan. finding good tenants is a need of every landlord. It can be achieved by clarity in communication and advertisements furthermore revising your own demands and methods might be the breakthrough a person needs to find the right tenants. We hope that our article was knowledgeable for you.