Wednesday, January 8, 2020

5 Rental Features to Attract High Quality & Responsible Tenants

The success or failure of your real estate investments is highly dependent on your power to consistently attract and keep responsible tenants. How exactly do you find great tenants for your property? First of all, the quality of your property determines the quality of the tenant you are likely to attract.

Thus, if you want to attract excellent tenants to your property, you should focus on creating an excellent asset to advertise. High quality tenants tend to look for certain qualities and features. Here are the top 5 rental features which tend to attract high quality and responsible tenants:

1.    Nearby School Quality

The quality of schools zoned to the property was the primary deciding factor for the majority of high quality tenants recently surveyed. Schools are enormously important to families and single parents with school-aged children. Likewise, school quality is the best predictor of neighborhood quality, which is something all impressive tenants pursue. To ensure your properties attract only high quality tenants, only purchase properties zoned to high-performing, sought-after school systems. 

2.    Safety

Safety is a powerful motivator for high quality tenants seeking housing. In fact, one of the central reasons why prospective tenants are willing to pay more to lease a home (instead of an apartment), is to provide themselves and their family with a safe and secure home environment. Always research crime statistics and only purchase homes in safe neighborhoods.

3.    Move-in Ready Condition

The condition of the property, and more specifically the ability for prospective tenants to move in right away, is very important if you are seeking high quality tenants. Renting a property that is not yet move-in ready (requires new flooring, cleaning, paint), is not likely to attract high quality tenants. Your desired tenant plans to take care of your property and has elevated standards of sanitation and maintenance. If you provide a move-in ready home, you are proving through your actions that you share those identical standards.

4.    Proximity to Employment 

Commuting is not an ideal experience, and a big time waster. Thus, proximity to employment centers and buildings is highly important to excellent tenants. While looking at prospective properties, think about where your target tenants are likely to work and how close the property is to those areas.

5.    Neighborhood Quality

Neighborhood quality is a high indicator of lifestyle quality. Quality tenants care deeply about neighborhood quality. Thus, look for highly desired neighborhoods which would provide your tenants with a high-class lifestyle. 

Next Recession in 2020? What Should You Know?

Economists and analysts know that the country has experienced economic growth for almost a decade. Thus, they also know that a recession may be approaching soon. A recent report published by Zillow Research brought to light a survey in which they interviewed economists, investment strategists and market analysts how they felt about the current housing market. That report revealed the possible timing of the next recession, and the majority of experts expected the next recession to begin in 2020. This survey confirms recent statements published by economists in the Wall Street Journal: 

“The economic expansion that began in mid-2009 and already ranks as the second-longest in American history most likely will end in 2020 as the Federal Reserve raises interest rates to cool off an overheating economy, according to forecasters surveyed.”

What should you know and how this affect the real estate market? First of all, a recession does not equal a housing crisis. A recession is defined as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. A recession essentially means the economy has slowed down significantly. However, it does not mean we are experiencing another housing crisis. Although the housing crash of 2008 caused the last recession, during the previous five recessions home actually values appreciated.

According to economic experts, the top three probable triggers for the next economic recession are monetary policy, a stock market correction, and trade policy. 
A housing market correction was ranked ninth in probability. Those same experts also projected that home values would continue to appreciate in 2019, 2020, 2021 and 2022.  
Others agree that housing will not be impacted like it was a decade ago. If a recession occurs, it is unlikely to be caused by housing-related activity, and consequently the housing sector should be one of the leading sources to come out of the recession.
Essentially, a recession is probably less than two years away. However, a housing crisis is not. 

How to Find a Good Real Estate Agent

If you are in the market to purchase a home or sell a real estate property, having a proficient and experienced agent is key. It can sometimes be overwhelming to choose a real estate agent, however we have made the process easier for you. Consider the following tips to choose a quality and knowledgeable real estate agent. 

1.    Ask friends/family for referrals

One of the simplest ways to find a quality real estate agent is to ask trusted friends and family members for a referral, and inquire why they recommend that particular agent. This will provide you with detailed information, which can be used to determine whether a specific real estate agent is suited to help reach your real estate needs and desires.

2.    Read online reviews/testimonials 

The internet is a great place to discover information regarding specific real estate agents. Many real estate agents share client testimonials on their website, while others share them on social media platforms. To ensure you have the full picture of a real estate agent, conduct an online search for all user-submitted reviews and feedback. 

3.    Look for a real estate agent experienced in your particular neighborhood

Specific neighborhood knowledge is a valuable asset. The more a real estate agent knows about an area, the better. Your real estate agent should be highly knowledgeable about the specific area you’re selling or buying in to ensure your goals are met efficiently and effectively.

4.    Interview multiple agents 

Once you have a collection of potential real estate agents, conduct interviews to narrow in on the specifics of each. By interviewing each real estate agent, you will achieve a broader understanding of your needs, and which agent is best suited to satisfy your needs. It’s critical you find a real estate agent who aligns with your personal goals and preferences to guarantee a smooth and positive experience.