September 23, 2024 • 48 mins
Do you ever think about what you can do to draw tenants to your rental property? Like, how can you stand out from all the other properties on the market?
This week on the podcast we are talking all about what the tenants want and look for when searching for their next home.
Much like the adding value podcast we did a few weeks ago, but this is from the tenant’s perspective, not the landlords.
There are several features that do not cost much, if anything at all, that rental property owners can implement to make their investment more appealing (and thus, more profitable) over their competitors.
From location, budget, digitalization, and physical amenities renters are looking for, we are covering it all on this episode of the Your Landlord Resource Podcast.
LINKS
👉 Episode 23: Tips on Marketing Your Rental, Part 1
👉Episode 24: Tips on Marketing Your Rental, Part 2
👉 Kwikset Smart Key: Re-Key Set
👉 Episode 61: Fair Housing and Emotional Support Animals (ESA’s)
👉 Episode 36: ESA Insights and Pet Rules
👉 Episode 77: Adding Value to Your Rental Property for Appeal and Profitability
👉 Episode 34: Our Lease and Addendum Breakdown Part 3
👉 Choice Home Warranty: Never Pay for Covered Home Repairs Again.
👉Suncast Storage: 22 cu ft, 2X2X6 Vertical Shed
👉TurboTenant, A landlords one stop shop for tenant management(for FREE)
👉Avail Landlord Property Management Software
👉EZ Landlord Forms Now Has a Rent Collection Feature!
Connect with Us:
🌎 Visit our website
📧 Subscribe to our newsletter.
👆Click HERE for our FREE Landlord Forms and Doc’s
🤳Text Us: 650-489-4447. We love questions and love letters!
📩Email us at: Stacie@YourLandlordResource.com, Kevin@YourLandlordResource.com
✔️Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Stacie (00:00):
The mentality of, if it ain't broke, don't fix it, is
(00:03):
not what tenants prefer.
When your unit is updated, itwill feel more luxurious to
their tenant.
They want to feel good aboutwhere they live, and you can
charge more when your units havesuch things as updated
appliances.
And listen, you don't want themwalking in during a viewing and
asking if there's a plan for newappliances.
(00:24):
This says to them that they haveto ask for stuff and that you
are not the landlord with theforethought to create a space
for them to enjoy in advance.
Tenants want a landlord who iswilling to put an effort into
their units.
And whether that happens withrepairs, or maintenance and
upkeep of the unit, or securitycameras, or a pet run, or nice
(00:46):
but easy to care forlandscaping, or even new
appliances, they want you tocreate a space for them that
makes them feel like you careabout the property and them as a
tenant.
Welcome to your landlordresource podcast many moons ago.
(01:07):
When I started as a landlord, Iwas as green as it gets.
I may have had my real estatelicense, but I lack confidence
in the hands on experienceneeded when it came to dealing
with tenants, leases,maintenance, and bookkeeping.
After many failed attempts, fastforward to today.
Kevin and I have doubled ourdoors and created an organized,
professionally operated rentalproperty business.
(01:28):
Want to go from overwhelmed toconfident?
If you're an ambitious landlordor maybe one in the making, join
us as we provide strategies andteach actionable steps to help
you reach your goals and thelifestyle you desire.
All while building a streamlinedand profitable rental property
business.
This is your landlord resourcepodcast.
(01:52):
Hey there landlords, thanks so much for listening to
the Your Landlord ResourcePodcast.
I am your host Stacie Casella,and I'm here with my co host my
business partner my snugglebuddy Kevin Kilroy.
Kevin (02:06):
Geez.
Really?
Snuggle buddy?
Okay, we need to work on yourintro, Stace.
Stacie (02:15):
I don't know where that came from.
I was trying to be spontaneousand apparently it was an epic
fail.
All right, duly noted.
Do not call Kevin my snugglebuddy on air.
Kevin (02:25):
Thank you.
Okay, I say we get on with theshow.
Stacie (02:30):
Yeah, why don't you tell them what we're here to talk
about today?
Kevin (02:34):
That I can do.
All right, you guys, we're hereto discuss the main features,
and I think there's eight ofthem, that tenants want most
when looking for their nextrental.
And several of these items areones we've discussed in previous
episodes.
But today we are presenting themfrom the view of the tenant and
why they are important to them.
(02:55):
Many of these features haveadditional factors, aka
amenities, that can beimplemented fairly easily, some
at actually no cost to you atall.
And some will take some time andforethought, but we wanted to
discuss those too because if youare planning on doing any
renovations or updates theywould be good amenities to add
to increase the value of yourrental and essentially your
(03:17):
profit.
Stacie (03:18):
Yeah, so we wanted to come on here mostly to discuss
these features to help you allminimize your vacancies.
And to be honest, where tenantscreening is super important, so
is knowing what amenitiesrenters want when they're
looking for their next home.
There have been surveysconducted that show that renters
(03:40):
are pretty specific about whatimpacts their decision about
what they want in a rental.
And here's a tip for you.
If your property has any ofthese most desired features,
please make sure that youmention them in your marketing
ads and your listings.
All right, let's start with theobvious and that's going to be
price.
I mean, it's no secret thatpeople want a good deal, right?
(04:03):
80% of renters say that therental amount is important to
them when they're searching fora new home, which duh, many have
a budget that they probablyfollow.
Smart tenants will heed what theexperts say and not spend more
than 30% of their gross incomeon housing related expenses.
(04:24):
So, those expenses would berent, security deposit, renter's
insurance premiums, pet rent,storage, and any administrative
fees that a landlord mightcharge.
The factors on how much peopleare willing to spend on those
housing related expenses areone, location.
(04:44):
So, some areas are just moreexpensive than others.
In California, which isnotorious for high rents,
tenants will share the cost torent with roommates to reduce
their rent and keep in theirbudget.
Incomes are supposed to behigher here as well.
And where I do realize they tryto keep up with the cost of
living, our kids, who are doingpretty well, cannot afford to
(05:07):
rent without a roommate, atleast not here in the Bay Area.
And New York is another one.
Kevin (05:12):
Okay, a quick sideline.
A couple of years ago, kidnumber two was living at home,
saving money after graduatingfrom college.
And I still remember the daywhen he walked into the living
room and asked if he could talkto us.
I mean, he was so nervous andfrankly, kind of so were we.
But he basically announced thathe was going to move to Idaho
where his two closest buddiesfrom college were.
(05:35):
And at the time, the cost ofliving there was, and you know,
really for the most part stillis, lower than California.
And the long and short of it isthat when he interviewed for the
company he ultimately ended upworking for, they matched his
California salary.
I mean that is like getting apretty good raise.
I mean that income with thelower cost of living allowed him
(05:58):
to continue to save his moneyand he ended up buying his first
home only six months later.
Stacie (06:05):
Yeah, which is a good segue for discussing remote
workers, right?
They are notorious for moving tolower cost areas, but they earn
a higher income from out ofstate or even out of the
country.
Obviously, rents in lowerquality neighborhoods, let's say
C and D areas, are going to belower than more desirable areas,
(06:25):
you know, like the A and Bneighborhoods.
So tenants may have to live inthose C and D areas to be able
to afford staying in theirbudget.
Kevin (06:35):
Another factor that determines where someone can
afford is, again, duh, income.
If they don't earn a lot, theycan't spend a lot.
The more they make, the betterthe unit and amenities they can
afford.
Again, just because they makegood money doesn't always mean
they want to spend a ton of iton rent.
I mean, we have plenty oftenants who make as much money
(06:57):
as we do, or maybe more, andcertainly can afford to live in
the brand new fancy apartmentsaround the corner from our
complex, with all the fancyamenities like a pool, a rooftop
patio, a mailroom, parking, gym.
But they choose to live in ourunits because maybe they want to
save money, or those amenitiesjust aren't that important to
(07:18):
them.
And FYI, only two of thoseamenities I just mentioned are
part of the main featurestenants are looking for in their
rental that we'll be discussingtoday.
So another factor that willaffect how much a tenant can
afford is debt.
If someone has a lot of debt topay they might want to spend
(07:39):
less on housing to be able topay those debts.
And that could be their owndecision because they need the
income to pay their bills.
Or it could be that, and we hopethis is true, that no landlord
will approve their rentalapplication based on the high
amount of debt showing fromtheir credit report and the
income they earn.
(07:59):
And that forces them to find ahome with a lower cost rent so
they can qualify for the unit.
Debt is another situation wherea tenant may choose to live with
someone else who can contributeto the rent.
Dual incomes or even moreroommates means that they can
afford a higher rent so they cansave, pay off debt, or I guess
(08:20):
do more fun stuff like travel.
And the last thing that affectshow much tenants are willing to
spend on rent are amenitiesoffered with the rental that
will save them money elsewhere.
So, if your unit regardless ifit's a multi family or single
family home, offers a tenantsuch things as storage for all
their stuff or maybe a washerand dryer so they don't have to
(08:42):
haul their laundry to thelaundry mat and waste a few
hours waiting on it.
Or a patio or outdoor spacewhere they can entertain at home
instead of going out.
Or maybe even a gym so theydon't have to buy a membership
elsewhere.
Tenants are willing to pay ahigher rent to live there.
And I know, before you ask how asingle family home would have a
(09:02):
gym, think about condos andhomes in HOAs.
They often have gym spaces forresidents.
Any of these amenities increasesthe perceived value of what they
are paying rent for.
Stacie (09:15):
All right, so the next feature that tenants are looking
for is location.
I mean, you always hear thephrase location, location,
location, right?
Location is not only about thephysical location of your
rental.
It also includes the proximityto desired amenities that
tenants are looking for.
Now, depending on their age,location can be an important
(09:38):
factor in whether someone rentsfrom you.
Can you control your location?
Not really.
So when you're looking to buy aproperty, check out the
neighborhood to see what thearea can offer your tenants, and
what you can include when youmarket your property.
Young professionals want to bein the heart of the action.
Living in a well connected andaccessible city or town makes
(10:01):
life more convenient and allowsthem to feel like a part of the
community, even if they don'thave permanent roots.
Some factors that tenants lookfor with relation to location
would be walkability.
Many landlords have seen a biguptick in the desire for outdoor
space ever since the pandemic.
(10:22):
57% of renters valued a walkableneighborhood when searching for
their next rental unit.
They want to be able to walk tosocial spots, so they don't have
to deal with driving and parkingor even paying sometimes
ridiculous prices for an Uber.
For big cities, being nearpublic transportation is a huge
(10:42):
plus.
If your tenant can walk a shortdistance to public transit, then
that might be important for themto know about.
For our Sacramento units, TheMidtown location is about a mile
and a half from downtown.
It's all flat and really easy towalk.
It's also close to all the funand fancy restaurants, the
Golden One basketball arena andentertainment hub, as well as a
(11:05):
park with a baseball field,basketball courts, and weekend
outdoor yoga.
For a single family home that wehelp a family member with, about
15 minutes away from our home,it's marketed that it's two
miles from the following.
A main public transportation hubthat can get you pretty much
anywhere in the Bay Area, a hugemedical campus, highly rated
(11:27):
schools, and a highly desiredarea with amazing shops and
restaurants.
Now, you know, we get that twomiles is not an easy walk, but
with bikes, you know, especiallythose new electric ones, and the
bus that runs a quarter milefrom their rental, if they don't
drive, they can easily reachwhatever they need in a very
short amount of time.
(11:47):
But, also know that being neargrocery stores, restaurants,
parks, gyms, and entertainmentfacilities is a huge plus.
For single family homes, maybethe location is not walkable to
those amenities at all.
But maybe your target market ismore a family who would be
looking at walkability to goodschools, or a walking or running
(12:09):
paths, or maybe even a dog park.
We did a two part series,episodes 23 and 24 on tips for
marketing your rental property,and we're going to link those in
the show notes for you.
Kevin (12:21):
Yeah, and where walkability is one thing tenants
like, for those that don't minddriving, understanding the
commute to their employment orwherever they need to go on a
regular basis is a factor aswell.
56% of renters surveyed saidtheir commute to work or school
was highly important.
It was 58% back in 2018, so thedesire to be close to work or
(12:44):
school has remained fairlyconsistent.
Again, know what is locatedaround your rental.
If near public transportation ornear the freeways or highways,
people like to know if theirdrive to work is easy or not.
Having your rental near largeemployers is also a plus.
So, think universities,corporate offices, government
(13:05):
facilities, let's, uh, militarybases, healthcare facilities.
Or maybe large warehousedistribution centers or
manufacturing facilities are ahuge plus.
And where yeah, it's nice tohave less wear and tear on a
unit, you want tenants to beable to enjoy your rental unit
and not just sleep in it becausethey have a two hour or more
(13:26):
round trip commute to get towork.
Which really is not uncommonhere in the Bay Area.
I mean many people work here inthe bay and live over an hour
away.
We know some who will commutethree hours a day.
Now this is not uncommon forfirefighters is you know they
usually work 24 and sometimes 48hour shifts and then they're off
(13:47):
for several days before havingto race back to work.
Our nephew just got hired as afirefighter and is looking to
buy a house a couple hours awayand then commute to his shifts.
One because he wants to live ina more rural community, which is
very difficult to find here inthe Bay Area but mostly because
that is where he can afford.
(14:08):
Now we know he's buying a home,but it's still the same concept
for renters and goes back tolocation, price and the
amenities are lifestyle hewants.
A good friend of ours is in theplumber's union and a good buddy
of his can experience commutesometimes three hours a day.
Again, he's older and tookadvantage of the low interest
(14:29):
rates way back when and bought abeautiful home to eventually
retire to up in the SacramentoValley somewhere.
But until that retirement daycomes, he is choosing to commute
back and forth so that somedayhe can enjoy a home where the
price and location wereavailable.
And I know I kind of went off ona tangent there, but I just
(14:50):
wanted you all to know thatcommute times are important, but
to some price and location aremore so.
Alright, the last factor tenantsconsider when deciding on the
location of their next home isthat they want a safe
environment.
And yeah, this does seemobvious, but some who cannot
afford to live in betterneighborhoods will have to
(15:11):
consider living in ones wherethey might be taking a chance on
safety.
Regardless, having a safe andsecure place to live is also
vitally important to tenants.
Now, we like B level propertiesthat are typically in safer
neighborhoods.
And sometimes we see C or C pluslevel that is right on the
border of a B level and might bemore desirable and considered
(15:34):
safer.
So beyond the physical locationand the safety statistics for
the area, there are stepslandlords and property managers
can take to make their unitsfeel more secure for tenants.
One would be adding floodlightsand other outdoor lighting to
parking and walkway areas.
Sensor lights that automaticallycome on and then go off after a
(15:55):
minute or so, are a huge plus.
And this is especiallyappreciated by your neighbors
who don't want to feel likethey're living next to a
football stadium that's lit upfor a night game every single
night.
Another thing we can all do tomake our units feel more secure
is to install security camerasaround public entrances.
(16:16):
there are some issues withsecurity cameras and rentals, so
you'll want to make sure they'reonly facing common areas around
entry doors and walkways.
Some cities actually haveordinances about using security
cameras, so make sure you followthe law as well.
And another thing, which we areshocked at how many landlords do
not do this, is changing locksor entry codes after every move
(16:41):
out.
And yes, where we personallyhave not experienced it, we
actually do know others who havehad an old tenant come back and
try their key or code to gainentry to the rental property.
I mean, That's nuts.
Some said they forgot somethingon the top shelf of the kitchen
cabinet when they moved andwanted to see if it was still
there.
(17:01):
And creepy enough, one said theywanted to see how the new tenant
arranged their furniture.
Stacie (17:06):
Okay.
That's just weird.
Kevin (17:09):
I mean, people can be very unpredictable.
So please change out your locksevery time.
And before you groan and say,Oh, but it's so expensive to
chain the lock or call alocksmith out It is not if you
use Quickset locks.
There are kits you can buy andit's like five or seven bucks
and they have a new set of keysand they have the special tool
(17:32):
needed, I mean, I swear, evenfor me, it takes a couple
minutes to swap out and changethe locks.
We will link the kit in the shownotes so you can see what it
entails.
So these are just a couple ofthings landlords can and should
do to make sure their rentalsfeel safer.
Stacie (17:50):
And if a tenant feels safe and secure where they live,
they'll not only be willing topay more, but likely they're
going to stay longer too.
All right, so Kevin finished outthe discussion on location.
Now I want to move into oneamenity that a lot of tenants
want as an option.
And that is the opportunity tohave a pet.
(18:11):
Since the pandemic, the numberof renters with a pet has
increased dramatically.
In 2018, it was 46% of runnersreported having one pet.
And now, that number is over60%.
That is a huge number of renterswho need to have a landlord with
pet friendly policies.
(18:33):
Dogs seem to be more popularthan cats, but not, not by much.
Now, there are pros and cons toallowing pets.
So the pros would be happiertenants, less turnover, because
it's hard to find good rentalsthat allow them.
And depending on the state andlocal laws that surround your
rental, you may be able tocharge pet rent and fees, which
(18:55):
will increase your income.
And the cons to allowing petsare that they can be a noise
nuisance if they have a dog thatbarks a lot.
Or even a loud bird that squawksall day.
We have found with other rentalsthat we manage that once you
have a pet in the unit, it'shard to clean it well enough
that it won't affect anotherincoming tenant that might have
(19:18):
pet allergies.
Damage is another issue.
They can ruin your property ifthey are not properly cared for.
And it's hard to prove that thepet caused that damage, to say
something like floors, unlessthey're the first tenant in
after installation and they'rebrand new.
Dogs chew and they scratch doorsand cats spray walls and they
(19:41):
tear up carpet.
And we know many landlords whohave removed their pet policy
after having a really bad andexpensive experience.
That$50 a month is not worth itwhen you have to spend way more
to clean and repair the unitproperly after someone and their
pet moves out.
(20:01):
And you know, we do not allowpets in Sacramento.
They are not set up toaccommodate pets at all.
They'll get trashed.
We have carpet in the bedroomsand older, not water resistant
plank flooring.
And none of our units haveprivate outdoor space, although
for the most part they arepretty soundproof.
(20:23):
In Idaho, we bought the complexwith tenants who already had
pets, so we kind of had to rollwith it.
But that complex is situatedamong 24 other fourplexes and
there is a dog area for thetenants to go and socialize and
potty their dogs.
That's kind of a good benefit tohave there.
So let's talk about some thingsthat you can do so that allowing
(20:47):
pets won't be so worrisome.
If you have the space, create adesignated pet area outside your
rental property.
My cousin owns a single familyhome rental and installed a pet
run along the side of the homefor dogs to be able to either
stay out there full time or staythere when the owner's away.
(21:09):
And it has a fabric awning forshade and gravel for the potty
area and I think she has fakegrass or turf out there too.
This has significantly cut downon the pet wear and tear inside
their rental.
Apartment owners could do thesame, but obviously not for pets
to stay in permanently.
But if you have the room to setup a, like, little mini dog park
(21:31):
or at least somewhere for themto go potty so that they don't
use your lawn or common spacethat other tenants are using,
that really is helpful.
Maybe provide some poop bags anda special lidded garbage can
where they can go and dispose ofthe poop.
Check your neighborhood to seeif there's a dog park close by.
In Sacramento, we have one rightaround the corner, which if we
(21:53):
allowed pets is what we wouldencourage our tenants to use.
And another thing you can do isscreen the pets.
You can vet pets just like youdo your applicants.
You can speak with theveterinarian and you can speak
with the previous landlordsabout their behavior.
You can spend time with the petso that you can see what kind of
(22:13):
control that the applicant orthe tenant has with them.
Accepting pets and having auseful outdoor space for them is
a great way to increase yourtenant pool and you may be able
to charge more in rent.
Some other not so cost effectiveways to combat issues are to
update your units so they aresomewhat pet proof.
(22:33):
And I hate to say it, but theseupgrades would benefit tenants
with children as well.
But carpets are horrible forpets, and a lot of that new
luxury vinyl flooring is prettywaterproof.
So consider swapping out carpetfor durable, waterproof, and
easy to clean flooring.
Soundproofing units during aremodel is a really good idea,
(22:55):
so that barking dogs won't be anuisance.
And if you have a single familyhome rental, good fencing is
important so dogs can't escape.
I guess that would work for, forkids too.
So if you're planning on doingany renovations, you might
consider paying a little bitmore to add finishings that can
handle pets easier.
Kevin (23:17):
And let me just say that Stacie and I have had pets all
our lives.
I mean, we've grown up withdogs, cats, whatever.
So we do get it.
It only took one bad experiencefor us to not allow pets in any
of our units again.
Stacie (23:32):
Yeah.
Well, we actually, we reallynever allowed pets in the first
place, but we've had severaltenants who snuck them in and
you guys, we've heard all theexcuses.
It's my friend's cat, I'mwatching it for a week while
they're on vacation.
Or the lease didn't say no pets.
Yes, it did right here, and youinitialed the page to
acknowledge it.
(23:52):
And the best one was when theybring in a pet and say it's an
ESA.
And then we have to tell themthat regardless of if it's an
ESA that has to be approved inadvance.
So the pet, or should we say,ESA has to go until you go
through the proper process.
And when we tell them what thatprocess is, they never do it and
(24:13):
they just end up moving out whentheir lease is up.
And you guys we've done a coupleepisodes on pets and ESAs, we
will link them in the show notesso you can check them out.
Kevin (24:23):
Okay, so we've gone over price and affordability, the
factors that tenants considerwith regards to location of the
rental, safety and pets, so nowlet's delve into the interior
space and what physicalamenities tenants are looking
for in the actual rental itself.
So think about it.
This is where the tenant makesyour unit their home and
(24:47):
hopefully for a long time.
First up, having the preferrednumber of bedrooms was a high
priority for 68% of renters.
And my guess is these would befamilies that need additional
space.
And whether that need is forextra bedrooms or a bonus room
for an office, people arewanting more places to spread
(25:07):
out.
Some want a large open conceptarea where they can put a desk
to work from home or managehousehold bills, or maybe even
having space for a play area forthe kids.
Now, we discussed ways toincrease bedrooms in Episode 77,
where we discussed adding value.
If you want to check it out, wewill link it in the show notes.
(25:29):
But, the gist of it is this,especially those who work
remotely, renters needadditional space.
And the layout of the rentalunit is important to about half
of renters.
Stacie (25:41):
I will say that it seems that the whole open concept home
is apparently not as popular asit was about 10 years ago.
Maybe the pandemic had somethingto do with that.
Kevin (25:52):
Oh, I think that was a definite factor, but from what
we're reading people still likethe open concept area for the
kitchen but might want aseparate space where they can
steal away for some quiet time.
Stacie (26:04):
Yeah, and you guys, we've joked about this before,
but we are HGTV junkies, and weare seeing more separation of
rooms.
Like Kevin said, a majority ofpeople still want the kitchen
and the living space open, butthey do want closed off or
separate space for an office ora TV room.
And we are seeing more peoplewanting separate dining space
(26:25):
away from that open conceptarea.
I mean, my guess would be thatfamilies want a place to eat
away from distractions like TVand toys.
Kevin (26:35):
Now, our home is not exactly open concept where the
kitchen is open to the livingroom.
But we do have a pretty niceopen kitchen area and it can get
loud in there when we haveguests.
Stacie (26:46):
Yeah, because that's where everybody wants to be.
Kevin (26:49):
Always
Stacie (26:51):
All right Let's move on.
Updated appliances are anotherthing that tenants want to see
in a rental unit.
If your units are still sportingappliances that are from 10 to
15 years ago you might want toconsider upgrading to newer more
modern ones.
The mentality of, if it ain'tbroke, don't fix it, is not what
(27:11):
tenants prefer.
When your unit is updated, itwill feel more luxurious to
their tenant.
They want to feel good aboutwhere they live, and you can
charge more when your units havesuch things as updated
appliances.
And listen, you don't want themwalking in during a viewing and
asking if there's a plan for newappliances.
(27:32):
This says to them that they haveto ask for stuff and that you
are not the landlord with theforethought to create a space
for them to enjoy in advance.
Tenants want a landlord who iswilling to put an effort into
their units.
And whether that happens withrepairs, or maintenance and
upkeep of the unit, or securitycameras, or a pet run, or nice
(27:54):
but easy to care forlandscaping, or even new
appliances, they want you tocreate a space for them that
makes them feel like you careabout the property and them as a
tenant.
Several years ago, we decided toupgrade our appliances.
And not because they didn'twork, they all worked fine, but
just by swapping out those whitestoves, dishwashers, microwaves,
(28:18):
and refrigerators in every unit,it made those units look so much
nicer.
And we didn't do it all at once,we did it one unit at a time as
tenants moved out or renewed.
We did that, we offered himsometimes as incentives as well.
And depending on the sales hint,President's day, Memorial day,
(28:39):
and Labor day are great times tobuy.
But depending on the sales, wewere able to get bundled
appliances.
So that would be all theappliances from the same
manufacturer for anywhere from$1800 I think$2500 is what we
had to pay for the last unit.
Appliances from the samemanufacturer are important if
(29:01):
your kitchen is open and youreye can see all of them in one
shot, because the color of thestainless steel, the accents,
like the black knobs, thehandles, or any digital readouts
are all going to match.
So, the handle on the stove, thehandle on the dishwasher, and
the handles on the refrigeratormatch and the digital components
(29:23):
on the stove, the microwave, andthe dishwasher all are the same
color and brightness.
And this might seem extreme tosome of you guys, but it really
makes a huge difference to thedesign and the look that you
get.
And please be smart.
Do not go with really off brandor really expensive ones.
GE, Frigidaire, and Samsung aresome of the brands that we have
(29:46):
done really well with so far.
Kevin (29:48):
Yeah, I mean, upgrading the stove, dishwasher, and
fridge, maybe just the faceliftyour rental property needs to
close tenants quickly.
And take in a bit more inrevenue too.
So think about that.
And appliances really aren'thard to swap out.
We always like to shop local,but I will say we get our best
deals through RC Willey.
(30:09):
We have an account there andi've used the same rep for years
and he really knows what weprefer.
And we're able to get ourdeliveries quickly.
Plus we can opt for deliveryonly or have them install the
appliances if we wanted to pay alittle more.
And the big bonus is they willtake away the old appliances,
which is huge for us.
(30:32):
All right, let's move on toanother amenity tenants really
love, and that is a washer anddryer.
This is one thing that allows usto stand out from the rest of
our competition.
And for us makes a hugedifference on our applicant
pool, because we can charge morefor the amenities we offer.
Being able to do laundry at yourhome is a major convenience, one
(30:54):
that can easily bring in$50 ormore a month in rent revenue.
For many, especially rentersthat are families, not having a
washer and dryer can be acomplete deal breaker for them.
In our multi family properties,we include washers and dryers in
all the units.
In the sixplex, which is arenovated Victorian building,
(31:16):
the previous owner removed hallcloset space, which all backed
up conveniently to a bathroom orkitchen, and he installed
stackable units.
They don't use up a lot of spaceand not one tenant has wished
they had closet space instead.
Now in Idaho, the units werebuilt with a closet to house
side by side washer and dryerswith storage space above.
(31:40):
In many single family homerentals that we either manage or
used to own, some included thewasher and dryer as an amenity,
some just listed that thehookups were available, and that
the tenant had to provide theirown.
A couple of owners we know willprovide the units but have a
stipulation in their lease thatthe use care and maintenance of
(32:00):
the washer and dryer falls tothe tenant to handle.
One thing you can consider ifyou don't want to deal with
repairs of appliances is to geta home warranty.
It can cover just appliances oreven HVAC and water heaters too,
and will be priced depending onhow much coverage you want.
Now we like and have used ChoiceHome Warranty before.
(32:23):
We'll link them in the shownotes if you'd like to check
them out.
Stacie (32:27):
And the one thing I want to say about washers and dryers
is that this is one thing thatwe look for when we're buying
rentals as well.
We want to make sure that theyeither have them already or have
a place where we can incorporatethem in.
That's how important they are tohave and to get that upper edge,
especially when you're buyingolder or aged multifamily rental
(32:48):
properties.
Pretty much all the new buildsnow are incorporating washers
and dryers in their units.
All right.
The next amenity is storagespace.
And this is especially importantfor multifamily units and even
some older single family homeswhere extra closets or storage
space is a big challenge.
Whether you create ways foradditional storage within your
(33:12):
unit or provide a place onproperty for tenants to rent
space, everyone likes the optionfor more space to store stuff.
Most tenants have more thingsthan can fit in a typical rental
property.
So having a storage shed or adesignated basement space or an
attic can be a major draw forthose folks.
(33:34):
If you already have storagespace in your rental property,
but haven't highlighted itbefore, add it to your marketing
next time for a boost.
If you're lacking space foradditional storage, look around
and see where you can easilyincorporate some.
We have seen landlords createspace under stairways of a
single family home that didn'thave a garage.
(33:54):
And for multifamily properties,landlords can easily build
storage lockers in theirbasement or put up waterproof
lockers in a secure placeoutside, which is what we did in
Sacramento.
We had a tenant who was anoutdoorsman and needed space for
all his camping and hiking andski gear that was taken up space
in his apartment.
(34:15):
So we bought a couple of theirtwo by two by like seven feet
tall waterproof storage lockersand secured them in the back of
the building.
I think they cost like$200 bucksand we rented it back to the
tenant for$25 a month, which hewas thrilled and more than
willing to pay.
It paid for itself and is just alittle extra income that we now
(34:38):
have zero maintenance to do for.
I think the ones we bought weremade by Suncast.
We will look and see if we canlink the one we used in the show
notes if you want to check itout.
Kevin (34:49):
Okay, let me take the next one, which is parking.
And this is definitely somethingwe have struggled with in
Sacramento, as we have noparking available at all, just
street parking.
More than half the workforcecommutes to work, likely more.
So, if you have parking or a wayto offer parking, even if the
tenant has to pay for it, thisis a huge perk for tenants.
(35:11):
When we go to Sacramento, like Isaid, it's only street parking.
And on weekends and in evenings,it's really hard to find a place
to park.
We just went by there on aSunday recently and had to
double park while Stacie ran upand did a quick inspection after
a roommate moved out.
And I think we've mentioned thisbefore, but we used to have an
(35:32):
empty lot behind us where theowner, who owned the building
next to us, rented it to a localauto shop to park cars that
needed work.
The lot was rather large, sothey would allow us to park
there when we came up, but notfor our tenants.
That lot was sold, and they putup four new townhouses, so it's
kind of a bummer we've lost thatparking space, but we do like
(35:54):
how it's added new units to ourarea.
But many of the new buildingsaround us are renting for
hundreds, if not thousands morethan us.
And they offer parking, theyhave pools, doormen, a mail
room, gyms, patios, I mean, thelist goes on.
Which leaves the rest of us topark on the street.
But getting back to parking,here is why it's important for
(36:15):
many tenants.
It is an added convenience andcan make a tenant's day to day
life easier if they don't haveto circle around the block or
deal with parking on a busyroad.
For multifamily parking lots,there can be parking for more
than just one vehicle, coveredparking to help in extreme
weather conditions, and ofcourse, handicapped parking for
(36:36):
the disabled.
And if a multifamily owner wantsto, they can charge more for
preferred parking spaces.
So there's that.
It is also perceived as saferwhen rentals include parking.
Again, for single family homes,tenants don't have to worry
about taking kids out of the caron a busy road.
For a multi family unit parking,like in a lot, often there is
(36:59):
ample lighting at night andsometimes maybe even security
cameras.
They can also be gated sothere's no worry about outside
people getting access totenants' cars.
And it's also an amenity that'sright up there with washers and
dryers.
It's something that is notnecessarily needed, but the
convenience of having it reallyboosts tenant satisfaction and
(37:21):
lowers the turnover rate.
You see, tenants don't like tomove.
They want to stay in your unit,so do whatever you can to help
them continue renewing theirleases.
Stacie (37:32):
Yeah, parking is a really nice feature to have when
you have it.
And again, if you have it,advertise it.
So sometimes people searchingfor a rental will adjust the
filter online to only show themproperties that have parking
available.
Same with washers and dryers.
So make sure that your marketingincludes it, even if it seems
(37:52):
obvious.
Alright, we have two morefeatures that tenants are
looking for and I'm happy totake this next one and that's
that tenants want units that areclean.
They say it's a big put off whenthey walk through a unit that
has ladders and paint cans andtools laying around because they
can't visualize how they cantake that space and make it into
(38:15):
their home.
So our advice is do not showyour units until they're
completely clean and ready torent.
When a unit is really clean, itshows pride in your business.
It will also show a new tenanthow you expect that unit to be
returned back to you.
I will cover this briefly, butwhen someone moves out, and we
(38:38):
do not have any big updates todo, we will take all of the plug
and switch plate covers off, andtoss them in the sink, spray
them with a cleaner that has adegreasing agent in it, or even
just sometimes plain old Dawndish soap, and we soak them for
a little bit while we prep tospot paint the unit.
Now, depending on how long theyhave been in there, we can
(38:58):
usually just take one of thosesmall rollers and paint where we
see some scuffs and dirt, likearound the switches and in the
hallways.
We touch up the trim as neededtoo.
Then we go and we put thoseplate covers back on and they
look like new.
And yeah, we could go and buynew ones for about 30 bucks, but
for less time, because I don'thave to go get those covers, I
(39:20):
get the same results.
If they're broken or something,then yeah, we replace them, but
you would be amazed at what adifference those clean cover
plates can make.
We go over every single surfacein that unit to make sure it's
clean.
We check all the appliances, theshelving and the cabinets, all
the light fixtures are wipeddown, windows, screens, blinds.
(39:43):
We pull out the washer and dryerand the refrigerator and we
vacuum all the dust up behindit.
We check the smoke and carbonmonoxide detectors and no matter
when they were changed last, wealways change the batteries.
Even in the thermostat.
And we replaced the air filtertoo.
We oiled wood cabinets, wetightened the handles in the
(40:04):
pulls, and we changed the lockson the entrances.
And you guys, this process cantake both of us the better part
of a day, sometimes two if wefind more needs to be cleaned
than expected.
And I'm telling you, our unitsare spotless when we hand them
over to a new tenant.
And I will also tell you thatnearly every single person that
(40:24):
walks through the door mentionsit to us.
You know, we are proud to offera super clean place.
Most landlords do not take thistime to clean, but then they get
pissed when their tenant movesout and leaves it dirty.
And then they try to deduct fromtheir security deposit.
They still don't clean the unitand do this process all over
(40:44):
again.
And this is not the way that wewant to operate our business.
We clearly communicate how wecare for our properties just by
showing them that clean unit.
Did we always do this?
No way.
It took trial and error andsomeone that we looked up to to
explain how when you take pridein your units that pride will be
(41:06):
seen and hopefully transferredto the tenant.
And of course you have to becareful who you rent to but I'm
not getting into that today.
Kevin (41:15):
I will tell you that every single property that the
kids move into during college, Imean they were all disgusting.
Stacie (41:22):
Yeah, it was gross.
Kevin (41:23):
Most all of his parents were in there cleaning and
pretty disappointed that theselandlords would just paint over
switch plates.
They wouldn't clean baseboardsand they'd paint over all the
lint from the previous person.
Bathrooms, oh, geez I mean didnot look like they had ever been
cleaned.
And of course the kids reallydidn't care.
They were just excited to havetheir independence and I'm
(41:46):
pretty sure those rentals wereonly cleaned when us parents
showed up for a visit and not,not that well to begin with.
Stacie (41:53):
Well, I did warn the kids, I'm coming out, it better
be clean.
Kevin (41:57):
And yeah, we hired cleaning people to go in there
and clean every once in a while.
Had those kids gone in and foundthe place clean to start with,
they might have had some respectfor the place.
Maybe not
Stacie (42:09):
Hey a property's moving condition is important to every
tenant no matter how much theypay in rent.
And meeting expectations is theeasiest way to satisfy your
tenants.
Just remember that firstimpressions are key to creating
urgency and the desire to livethere.
Kevin (42:28):
Which is exactly what your goal is, to get someone in
there who doesn't want to loseout on renting your unit.
Okay, and last but not least,tenants do like online rent
payment options.
Demand for online rent paymentsystems has steadily grown over
the last few years.
In spring 2019, 57% of renterssaid they'd prefer to pay rent
(42:51):
online.
the summer of 2022, thatpercentage had increased to 68%,
yet only 56% of renters reportedhaving the ability to pay rent
online at the time.
This is a modern conveniencethat most tenants are after.
You can pay for pretty muchanything you want online these
days and tenants feel rent is nodifferent.
(43:13):
Asking people to write checksand place them in the mail is
outdated and less efficient foreveryone.
And there are plenty of onlinerent tools available, many of
them free, for landlords tocollect rent electronically and
move away from the traditionalquote unquote checks in the mail
method.
I will tell you our kids thatrange from 24 to 29 do not write
(43:37):
any checks.
I mean, maybe once a year ifthat.
So who can you use to processyour online rents?
Here are some companies that welike.
Some we work with, others wejust know are highly rated.
We will link them in the shownotes for you to check them out
if you like.
Well, you know we loveTurboTenant, and the best part
(43:58):
is that for the basic coverage,which does include rent
payments, TurboTenant is free.
Avail is another one that has alimited package, which includes
free rent payments.
EZ Landlord isn't necessarilyfree, but if you already have a
paid account, either monthly,annually, or the lifetime one,
and get access to all theirstate specific leases and
(44:20):
landlord forms, then their newrent payment service is now
available at no additionalcharge.
And one thing we want to sayabout EZ Landlord is that they
have shared with us a specialcode to get 15% off your first
purchase.
That includes their annual rateor their one time lifetime fee.
Which I think would save yousomewhere in the ballpark of$60
(44:42):
on lifetime state specificleases, forms, and now rent
collection.
The code is STACIE15, that'sSTACIE with an I E, and then the
number 15.
Stacie (44:54):
Yeah, I mean that lifetime fee is a killer deal.
I think it's like$399 forlifetime access to everything
they offer.
And that 15% off brings it downto about$340.
If you consider each lease is$29bucks, and I'm not sure if that
includes addendums or not thatyou need to add.
(45:16):
Um, and then you also haveaccess when you pay the fee to
all the forms that you need foryour tenants to put in things
like the different accommodationrequests, security deposit,
distribution forms, all that.
And now they have rentcollection.
I mean, I'm pretty excited aboutit.
And for anyone who does not needfancy landlord software, but you
want to offer rent collection EZLandlord is a really good
(45:38):
option.
Kevin (45:39):
Yeah, I mean I think we use what we're up to about a
dozen extra addendums in ourlease now?
Stacie (45:44):
Yeah, at least.
Kevin (45:46):
And I didn't realize EZ Landlord Forms had added the
feature.
That's actually pretty cool.
Okay, there are a few otherlandlord management software
companies like RentReady,DoorLoop, and Hemlane, and they
all charge a monthly fee to usetheir services, but are noted in
the top 10 for landlordsoftware, and they all have rent
collection options to use.
(46:07):
If you happen to haveQuickBooks, you can invoice
tenants and have them payelectronically, but that ACH
deposit to you does include a 1percent fee from the amount
deducted.
So it's hardly free, but if youwanted to, you could tack that
fee on to the invoice so youcould get reimbursed.
But just make sure they sign andagree to that fee in the lease
(46:29):
or an addendum.
We will link all of thosecompanies in the show notes if
you'd like to learn more aboutthem.
Stacie (46:35):
Yeah.
I want to just say real quicklythat QuickBooks, yeah, they
charge a 1 percent fee, but itcaps out at$15.
So if you do charge higherrents, you don't have to worry
about it.
And the last thing I want to sayabout this episode is that like
everyone else, tenants want thebest bang for their buck.
So think of ways that you canmake life easier and potentially
(46:57):
you may be able to charge themfor that convenience offered.
In Sacramento, we're in a realsweet spot.
We are not high, high end thathave, like Kevin said, the
doormen in the mail rooms,parking garages, or gym, but
we're not the lower end whereunits are not updated, offer
little amenities either.
We have updated, clean unitswith a few amenities tenants
(47:21):
want, and we're located in arelatively safe part of town
that's on a quiet street.
And you can bet that yes, we domake sure that all of our
marketing states are bestfeatures.
So we can draw the bestapplicants to view our units.
So those are the features thattenants are looking for when
(47:42):
they're trying to find theirnext home to rent.
We hope that you enjoyed thisepisode and at least got one
good little tidbit ofinformation out of it.
If so, would you do us a favorand leave us a kind review of
the podcast so other landlordscan find us too.
If you want to hear more, followor subscribe to the podcast so
(48:03):
each week the episodes aredownloaded right to your
favorite podcast platform.
And hey you guys, we'd love tostay in contact with you.
In the show notes, you can findlinks to all the free downloads
that we offer, ways to sign upfor our free weekly newsletter,
and the waitlist to our upcomingcourse on tenant screening.
(48:24):
There's also links to our socialmedia accounts, which are on
Instagram, Facebook, andYouTube.
And we share very informativeand detailed tips and tricks for
landlords.
So check those out.
I think that's about it.
But, thanks again, and untilnext time, you've got this,
landlords!
The mentality of, if it ain't broke, don't fix it, is
(00:03):
not what tenants prefer.
When your unit is updated, itwill feel more luxurious to
their tenant.
They want to feel good aboutwhere they live, and you can
charge more when your units havesuch things as updated
appliances.
And listen, you don't want themwalking in during a viewing and
asking if there's a plan for newappliances.
(00:24):
This says to them that they haveto ask for stuff and that you
are not the landlord with theforethought to create a space
for them to enjoy in advance.
Tenants want a landlord who iswilling to put an effort into
their units.
And whether that happens withrepairs, or maintenance and
upkeep of the unit, or securitycameras, or a pet run, or nice
(00:46):
but easy to care forlandscaping, or even new
appliances, they want you tocreate a space for them that
makes them feel like you careabout the property and them as a
tenant.
Welcome to your landlordresource podcast many moons ago.
(01:07):
When I started as a landlord, Iwas as green as it gets.
I may have had my real estatelicense, but I lack confidence
in the hands on experienceneeded when it came to dealing
with tenants, leases,maintenance, and bookkeeping.
After many failed attempts, fastforward to today.
Kevin and I have doubled ourdoors and created an organized,
professionally operated rentalproperty business.
(01:28):
Want to go from overwhelmed toconfident?
If you're an ambitious landlordor maybe one in the making, join
us as we provide strategies andteach actionable steps to help
you reach your goals and thelifestyle you desire.
All while building a streamlinedand profitable rental property
business.
This is your landlord resourcepodcast.
(01:52):
Hey there landlords, thanks so much for listening to
the Your Landlord ResourcePodcast.
I am your host Stacie Casella,and I'm here with my co host my
business partner my snugglebuddy Kevin Kilroy.
Kevin (02:06):
Geez.
Really?
Snuggle buddy?
Okay, we need to work on yourintro, Stace.
Stacie (02:15):
I don't know where that came from.
I was trying to be spontaneousand apparently it was an epic
fail.
All right, duly noted.
Do not call Kevin my snugglebuddy on air.
Kevin (02:25):
Thank you.
Okay, I say we get on with theshow.
Stacie (02:30):
Yeah, why don't you tell them what we're here to talk
about today?
Kevin (02:34):
That I can do.
All right, you guys, we're hereto discuss the main features,
and I think there's eight ofthem, that tenants want most
when looking for their nextrental.
And several of these items areones we've discussed in previous
episodes.
But today we are presenting themfrom the view of the tenant and
why they are important to them.
(02:55):
Many of these features haveadditional factors, aka
amenities, that can beimplemented fairly easily, some
at actually no cost to you atall.
And some will take some time andforethought, but we wanted to
discuss those too because if youare planning on doing any
renovations or updates theywould be good amenities to add
to increase the value of yourrental and essentially your
(03:17):
profit.
Stacie (03:18):
Yeah, so we wanted to come on here mostly to discuss
these features to help you allminimize your vacancies.
And to be honest, where tenantscreening is super important, so
is knowing what amenitiesrenters want when they're
looking for their next home.
There have been surveysconducted that show that renters
(03:40):
are pretty specific about whatimpacts their decision about
what they want in a rental.
And here's a tip for you.
If your property has any ofthese most desired features,
please make sure that youmention them in your marketing
ads and your listings.
All right, let's start with theobvious and that's going to be
price.
I mean, it's no secret thatpeople want a good deal, right?
(04:03):
80% of renters say that therental amount is important to
them when they're searching fora new home, which duh, many have
a budget that they probablyfollow.
Smart tenants will heed what theexperts say and not spend more
than 30% of their gross incomeon housing related expenses.
(04:24):
So, those expenses would berent, security deposit, renter's
insurance premiums, pet rent,storage, and any administrative
fees that a landlord mightcharge.
The factors on how much peopleare willing to spend on those
housing related expenses areone, location.
(04:44):
So, some areas are just moreexpensive than others.
In California, which isnotorious for high rents,
tenants will share the cost torent with roommates to reduce
their rent and keep in theirbudget.
Incomes are supposed to behigher here as well.
And where I do realize they tryto keep up with the cost of
living, our kids, who are doingpretty well, cannot afford to
(05:07):
rent without a roommate, atleast not here in the Bay Area.
And New York is another one.
Kevin (05:12):
Okay, a quick sideline.
A couple of years ago, kidnumber two was living at home,
saving money after graduatingfrom college.
And I still remember the daywhen he walked into the living
room and asked if he could talkto us.
I mean, he was so nervous andfrankly, kind of so were we.
But he basically announced thathe was going to move to Idaho
where his two closest buddiesfrom college were.
(05:35):
And at the time, the cost ofliving there was, and you know,
really for the most part stillis, lower than California.
And the long and short of it isthat when he interviewed for the
company he ultimately ended upworking for, they matched his
California salary.
I mean that is like getting apretty good raise.
I mean that income with thelower cost of living allowed him
(05:58):
to continue to save his moneyand he ended up buying his first
home only six months later.
Stacie (06:05):
Yeah, which is a good segue for discussing remote
workers, right?
They are notorious for moving tolower cost areas, but they earn
a higher income from out ofstate or even out of the
country.
Obviously, rents in lowerquality neighborhoods, let's say
C and D areas, are going to belower than more desirable areas,
(06:25):
you know, like the A and Bneighborhoods.
So tenants may have to live inthose C and D areas to be able
to afford staying in theirbudget.
Kevin (06:35):
Another factor that determines where someone can
afford is, again, duh, income.
If they don't earn a lot, theycan't spend a lot.
The more they make, the betterthe unit and amenities they can
afford.
Again, just because they makegood money doesn't always mean
they want to spend a ton of iton rent.
I mean, we have plenty oftenants who make as much money
(06:57):
as we do, or maybe more, andcertainly can afford to live in
the brand new fancy apartmentsaround the corner from our
complex, with all the fancyamenities like a pool, a rooftop
patio, a mailroom, parking, gym.
But they choose to live in ourunits because maybe they want to
save money, or those amenitiesjust aren't that important to
(07:18):
them.
And FYI, only two of thoseamenities I just mentioned are
part of the main featurestenants are looking for in their
rental that we'll be discussingtoday.
So another factor that willaffect how much a tenant can
afford is debt.
If someone has a lot of debt topay they might want to spend
(07:39):
less on housing to be able topay those debts.
And that could be their owndecision because they need the
income to pay their bills.
Or it could be that, and we hopethis is true, that no landlord
will approve their rentalapplication based on the high
amount of debt showing fromtheir credit report and the
income they earn.
(07:59):
And that forces them to find ahome with a lower cost rent so
they can qualify for the unit.
Debt is another situation wherea tenant may choose to live with
someone else who can contributeto the rent.
Dual incomes or even moreroommates means that they can
afford a higher rent so they cansave, pay off debt, or I guess
(08:20):
do more fun stuff like travel.
And the last thing that affectshow much tenants are willing to
spend on rent are amenitiesoffered with the rental that
will save them money elsewhere.
So, if your unit regardless ifit's a multi family or single
family home, offers a tenantsuch things as storage for all
their stuff or maybe a washerand dryer so they don't have to
(08:42):
haul their laundry to thelaundry mat and waste a few
hours waiting on it.
Or a patio or outdoor spacewhere they can entertain at home
instead of going out.
Or maybe even a gym so theydon't have to buy a membership
elsewhere.
Tenants are willing to pay ahigher rent to live there.
And I know, before you ask how asingle family home would have a
(09:02):
gym, think about condos andhomes in HOAs.
They often have gym spaces forresidents.
Any of these amenities increasesthe perceived value of what they
are paying rent for.
Stacie (09:15):
All right, so the next feature that tenants are looking
for is location.
I mean, you always hear thephrase location, location,
location, right?
Location is not only about thephysical location of your
rental.
It also includes the proximityto desired amenities that
tenants are looking for.
Now, depending on their age,location can be an important
(09:38):
factor in whether someone rentsfrom you.
Can you control your location?
Not really.
So when you're looking to buy aproperty, check out the
neighborhood to see what thearea can offer your tenants, and
what you can include when youmarket your property.
Young professionals want to bein the heart of the action.
Living in a well connected andaccessible city or town makes
(10:01):
life more convenient and allowsthem to feel like a part of the
community, even if they don'thave permanent roots.
Some factors that tenants lookfor with relation to location
would be walkability.
Many landlords have seen a biguptick in the desire for outdoor
space ever since the pandemic.
(10:22):
57% of renters valued a walkableneighborhood when searching for
their next rental unit.
They want to be able to walk tosocial spots, so they don't have
to deal with driving and parkingor even paying sometimes
ridiculous prices for an Uber.
For big cities, being nearpublic transportation is a huge
(10:42):
plus.
If your tenant can walk a shortdistance to public transit, then
that might be important for themto know about.
For our Sacramento units, TheMidtown location is about a mile
and a half from downtown.
It's all flat and really easy towalk.
It's also close to all the funand fancy restaurants, the
Golden One basketball arena andentertainment hub, as well as a
(11:05):
park with a baseball field,basketball courts, and weekend
outdoor yoga.
For a single family home that wehelp a family member with, about
15 minutes away from our home,it's marketed that it's two
miles from the following.
A main public transportation hubthat can get you pretty much
anywhere in the Bay Area, a hugemedical campus, highly rated
(11:27):
schools, and a highly desiredarea with amazing shops and
restaurants.
Now, you know, we get that twomiles is not an easy walk, but
with bikes, you know, especiallythose new electric ones, and the
bus that runs a quarter milefrom their rental, if they don't
drive, they can easily reachwhatever they need in a very
short amount of time.
(11:47):
But, also know that being neargrocery stores, restaurants,
parks, gyms, and entertainmentfacilities is a huge plus.
For single family homes, maybethe location is not walkable to
those amenities at all.
But maybe your target market ismore a family who would be
looking at walkability to goodschools, or a walking or running
(12:09):
paths, or maybe even a dog park.
We did a two part series,episodes 23 and 24 on tips for
marketing your rental property,and we're going to link those in
the show notes for you.
Kevin (12:21):
Yeah, and where walkability is one thing tenants
like, for those that don't minddriving, understanding the
commute to their employment orwherever they need to go on a
regular basis is a factor aswell.
56% of renters surveyed saidtheir commute to work or school
was highly important.
It was 58% back in 2018, so thedesire to be close to work or
(12:44):
school has remained fairlyconsistent.
Again, know what is locatedaround your rental.
If near public transportation ornear the freeways or highways,
people like to know if theirdrive to work is easy or not.
Having your rental near largeemployers is also a plus.
So, think universities,corporate offices, government
(13:05):
facilities, let's, uh, militarybases, healthcare facilities.
Or maybe large warehousedistribution centers or
manufacturing facilities are ahuge plus.
And where yeah, it's nice tohave less wear and tear on a
unit, you want tenants to beable to enjoy your rental unit
and not just sleep in it becausethey have a two hour or more
(13:26):
round trip commute to get towork.
Which really is not uncommonhere in the Bay Area.
I mean many people work here inthe bay and live over an hour
away.
We know some who will commutethree hours a day.
Now this is not uncommon forfirefighters is you know they
usually work 24 and sometimes 48hour shifts and then they're off
(13:47):
for several days before havingto race back to work.
Our nephew just got hired as afirefighter and is looking to
buy a house a couple hours awayand then commute to his shifts.
One because he wants to live ina more rural community, which is
very difficult to find here inthe Bay Area but mostly because
that is where he can afford.
(14:08):
Now we know he's buying a home,but it's still the same concept
for renters and goes back tolocation, price and the
amenities are lifestyle hewants.
A good friend of ours is in theplumber's union and a good buddy
of his can experience commutesometimes three hours a day.
Again, he's older and tookadvantage of the low interest
(14:29):
rates way back when and bought abeautiful home to eventually
retire to up in the SacramentoValley somewhere.
But until that retirement daycomes, he is choosing to commute
back and forth so that somedayhe can enjoy a home where the
price and location wereavailable.
And I know I kind of went off ona tangent there, but I just
(14:50):
wanted you all to know thatcommute times are important, but
to some price and location aremore so.
Alright, the last factor tenantsconsider when deciding on the
location of their next home isthat they want a safe
environment.
And yeah, this does seemobvious, but some who cannot
afford to live in betterneighborhoods will have to
(15:11):
consider living in ones wherethey might be taking a chance on
safety.
Regardless, having a safe andsecure place to live is also
vitally important to tenants.
Now, we like B level propertiesthat are typically in safer
neighborhoods.
And sometimes we see C or C pluslevel that is right on the
border of a B level and might bemore desirable and considered
(15:34):
safer.
So beyond the physical locationand the safety statistics for
the area, there are stepslandlords and property managers
can take to make their unitsfeel more secure for tenants.
One would be adding floodlightsand other outdoor lighting to
parking and walkway areas.
Sensor lights that automaticallycome on and then go off after a
(15:55):
minute or so, are a huge plus.
And this is especiallyappreciated by your neighbors
who don't want to feel likethey're living next to a
football stadium that's lit upfor a night game every single
night.
Another thing we can all do tomake our units feel more secure
is to install security camerasaround public entrances.
(16:16):
there are some issues withsecurity cameras and rentals, so
you'll want to make sure they'reonly facing common areas around
entry doors and walkways.
Some cities actually haveordinances about using security
cameras, so make sure you followthe law as well.
And another thing, which we areshocked at how many landlords do
not do this, is changing locksor entry codes after every move
(16:41):
out.
And yes, where we personallyhave not experienced it, we
actually do know others who havehad an old tenant come back and
try their key or code to gainentry to the rental property.
I mean, That's nuts.
Some said they forgot somethingon the top shelf of the kitchen
cabinet when they moved andwanted to see if it was still
there.
(17:01):
And creepy enough, one said theywanted to see how the new tenant
arranged their furniture.
Stacie (17:06):
Okay.
That's just weird.
Kevin (17:09):
I mean, people can be very unpredictable.
So please change out your locksevery time.
And before you groan and say,Oh, but it's so expensive to
chain the lock or call alocksmith out It is not if you
use Quickset locks.
There are kits you can buy andit's like five or seven bucks
and they have a new set of keysand they have the special tool
(17:32):
needed, I mean, I swear, evenfor me, it takes a couple
minutes to swap out and changethe locks.
We will link the kit in the shownotes so you can see what it
entails.
So these are just a couple ofthings landlords can and should
do to make sure their rentalsfeel safer.
Stacie (17:50):
And if a tenant feels safe and secure where they live,
they'll not only be willing topay more, but likely they're
going to stay longer too.
All right, so Kevin finished outthe discussion on location.
Now I want to move into oneamenity that a lot of tenants
want as an option.
And that is the opportunity tohave a pet.
(18:11):
Since the pandemic, the numberof renters with a pet has
increased dramatically.
In 2018, it was 46% of runnersreported having one pet.
And now, that number is over60%.
That is a huge number of renterswho need to have a landlord with
pet friendly policies.
(18:33):
Dogs seem to be more popularthan cats, but not, not by much.
Now, there are pros and cons toallowing pets.
So the pros would be happiertenants, less turnover, because
it's hard to find good rentalsthat allow them.
And depending on the state andlocal laws that surround your
rental, you may be able tocharge pet rent and fees, which
(18:55):
will increase your income.
And the cons to allowing petsare that they can be a noise
nuisance if they have a dog thatbarks a lot.
Or even a loud bird that squawksall day.
We have found with other rentalsthat we manage that once you
have a pet in the unit, it'shard to clean it well enough
that it won't affect anotherincoming tenant that might have
(19:18):
pet allergies.
Damage is another issue.
They can ruin your property ifthey are not properly cared for.
And it's hard to prove that thepet caused that damage, to say
something like floors, unlessthey're the first tenant in
after installation and they'rebrand new.
Dogs chew and they scratch doorsand cats spray walls and they
(19:41):
tear up carpet.
And we know many landlords whohave removed their pet policy
after having a really bad andexpensive experience.
That$50 a month is not worth itwhen you have to spend way more
to clean and repair the unitproperly after someone and their
pet moves out.
(20:01):
And you know, we do not allowpets in Sacramento.
They are not set up toaccommodate pets at all.
They'll get trashed.
We have carpet in the bedroomsand older, not water resistant
plank flooring.
And none of our units haveprivate outdoor space, although
for the most part they arepretty soundproof.
(20:23):
In Idaho, we bought the complexwith tenants who already had
pets, so we kind of had to rollwith it.
But that complex is situatedamong 24 other fourplexes and
there is a dog area for thetenants to go and socialize and
potty their dogs.
That's kind of a good benefit tohave there.
So let's talk about some thingsthat you can do so that allowing
(20:47):
pets won't be so worrisome.
If you have the space, create adesignated pet area outside your
rental property.
My cousin owns a single familyhome rental and installed a pet
run along the side of the homefor dogs to be able to either
stay out there full time or staythere when the owner's away.
(21:09):
And it has a fabric awning forshade and gravel for the potty
area and I think she has fakegrass or turf out there too.
This has significantly cut downon the pet wear and tear inside
their rental.
Apartment owners could do thesame, but obviously not for pets
to stay in permanently.
But if you have the room to setup a, like, little mini dog park
(21:31):
or at least somewhere for themto go potty so that they don't
use your lawn or common spacethat other tenants are using,
that really is helpful.
Maybe provide some poop bags anda special lidded garbage can
where they can go and dispose ofthe poop.
Check your neighborhood to seeif there's a dog park close by.
In Sacramento, we have one rightaround the corner, which if we
(21:53):
allowed pets is what we wouldencourage our tenants to use.
And another thing you can do isscreen the pets.
You can vet pets just like youdo your applicants.
You can speak with theveterinarian and you can speak
with the previous landlordsabout their behavior.
You can spend time with the petso that you can see what kind of
(22:13):
control that the applicant orthe tenant has with them.
Accepting pets and having auseful outdoor space for them is
a great way to increase yourtenant pool and you may be able
to charge more in rent.
Some other not so cost effectiveways to combat issues are to
update your units so they aresomewhat pet proof.
(22:33):
And I hate to say it, but theseupgrades would benefit tenants
with children as well.
But carpets are horrible forpets, and a lot of that new
luxury vinyl flooring is prettywaterproof.
So consider swapping out carpetfor durable, waterproof, and
easy to clean flooring.
Soundproofing units during aremodel is a really good idea,
(22:55):
so that barking dogs won't be anuisance.
And if you have a single familyhome rental, good fencing is
important so dogs can't escape.
I guess that would work for, forkids too.
So if you're planning on doingany renovations, you might
consider paying a little bitmore to add finishings that can
handle pets easier.
Kevin (23:17):
And let me just say that Stacie and I have had pets all
our lives.
I mean, we've grown up withdogs, cats, whatever.
So we do get it.
It only took one bad experiencefor us to not allow pets in any
of our units again.
Stacie (23:32):
Yeah.
Well, we actually, we reallynever allowed pets in the first
place, but we've had severaltenants who snuck them in and
you guys, we've heard all theexcuses.
It's my friend's cat, I'mwatching it for a week while
they're on vacation.
Or the lease didn't say no pets.
Yes, it did right here, and youinitialed the page to
acknowledge it.
(23:52):
And the best one was when theybring in a pet and say it's an
ESA.
And then we have to tell themthat regardless of if it's an
ESA that has to be approved inadvance.
So the pet, or should we say,ESA has to go until you go
through the proper process.
And when we tell them what thatprocess is, they never do it and
(24:13):
they just end up moving out whentheir lease is up.
And you guys we've done a coupleepisodes on pets and ESAs, we
will link them in the show notesso you can check them out.
Kevin (24:23):
Okay, so we've gone over price and affordability, the
factors that tenants considerwith regards to location of the
rental, safety and pets, so nowlet's delve into the interior
space and what physicalamenities tenants are looking
for in the actual rental itself.
So think about it.
This is where the tenant makesyour unit their home and
(24:47):
hopefully for a long time.
First up, having the preferrednumber of bedrooms was a high
priority for 68% of renters.
And my guess is these would befamilies that need additional
space.
And whether that need is forextra bedrooms or a bonus room
for an office, people arewanting more places to spread
(25:07):
out.
Some want a large open conceptarea where they can put a desk
to work from home or managehousehold bills, or maybe even
having space for a play area forthe kids.
Now, we discussed ways toincrease bedrooms in Episode 77,
where we discussed adding value.
If you want to check it out, wewill link it in the show notes.
(25:29):
But, the gist of it is this,especially those who work
remotely, renters needadditional space.
And the layout of the rentalunit is important to about half
of renters.
Stacie (25:41):
I will say that it seems that the whole open concept home
is apparently not as popular asit was about 10 years ago.
Maybe the pandemic had somethingto do with that.
Kevin (25:52):
Oh, I think that was a definite factor, but from what
we're reading people still likethe open concept area for the
kitchen but might want aseparate space where they can
steal away for some quiet time.
Stacie (26:04):
Yeah, and you guys, we've joked about this before,
but we are HGTV junkies, and weare seeing more separation of
rooms.
Like Kevin said, a majority ofpeople still want the kitchen
and the living space open, butthey do want closed off or
separate space for an office ora TV room.
And we are seeing more peoplewanting separate dining space
(26:25):
away from that open conceptarea.
I mean, my guess would be thatfamilies want a place to eat
away from distractions like TVand toys.
Kevin (26:35):
Now, our home is not exactly open concept where the
kitchen is open to the livingroom.
But we do have a pretty niceopen kitchen area and it can get
loud in there when we haveguests.
Stacie (26:46):
Yeah, because that's where everybody wants to be.
Kevin (26:49):
Always
Stacie (26:51):
All right Let's move on.
Updated appliances are anotherthing that tenants want to see
in a rental unit.
If your units are still sportingappliances that are from 10 to
15 years ago you might want toconsider upgrading to newer more
modern ones.
The mentality of, if it ain'tbroke, don't fix it, is not what
(27:11):
tenants prefer.
When your unit is updated, itwill feel more luxurious to
their tenant.
They want to feel good aboutwhere they live, and you can
charge more when your units havesuch things as updated
appliances.
And listen, you don't want themwalking in during a viewing and
asking if there's a plan for newappliances.
(27:32):
This says to them that they haveto ask for stuff and that you
are not the landlord with theforethought to create a space
for them to enjoy in advance.
Tenants want a landlord who iswilling to put an effort into
their units.
And whether that happens withrepairs, or maintenance and
upkeep of the unit, or securitycameras, or a pet run, or nice
(27:54):
but easy to care forlandscaping, or even new
appliances, they want you tocreate a space for them that
makes them feel like you careabout the property and them as a
tenant.
Several years ago, we decided toupgrade our appliances.
And not because they didn'twork, they all worked fine, but
just by swapping out those whitestoves, dishwashers, microwaves,
(28:18):
and refrigerators in every unit,it made those units look so much
nicer.
And we didn't do it all at once,we did it one unit at a time as
tenants moved out or renewed.
We did that, we offered himsometimes as incentives as well.
And depending on the sales hint,President's day, Memorial day,
(28:39):
and Labor day are great times tobuy.
But depending on the sales, wewere able to get bundled
appliances.
So that would be all theappliances from the same
manufacturer for anywhere from$1800 I think$2500 is what we
had to pay for the last unit.
Appliances from the samemanufacturer are important if
(29:01):
your kitchen is open and youreye can see all of them in one
shot, because the color of thestainless steel, the accents,
like the black knobs, thehandles, or any digital readouts
are all going to match.
So, the handle on the stove, thehandle on the dishwasher, and
the handles on the refrigeratormatch and the digital components
(29:23):
on the stove, the microwave, andthe dishwasher all are the same
color and brightness.
And this might seem extreme tosome of you guys, but it really
makes a huge difference to thedesign and the look that you
get.
And please be smart.
Do not go with really off brandor really expensive ones.
GE, Frigidaire, and Samsung aresome of the brands that we have
(29:46):
done really well with so far.
Kevin (29:48):
Yeah, I mean, upgrading the stove, dishwasher, and
fridge, maybe just the faceliftyour rental property needs to
close tenants quickly.
And take in a bit more inrevenue too.
So think about that.
And appliances really aren'thard to swap out.
We always like to shop local,but I will say we get our best
deals through RC Willey.
(30:09):
We have an account there andi've used the same rep for years
and he really knows what weprefer.
And we're able to get ourdeliveries quickly.
Plus we can opt for deliveryonly or have them install the
appliances if we wanted to pay alittle more.
And the big bonus is they willtake away the old appliances,
which is huge for us.
(30:32):
All right, let's move on toanother amenity tenants really
love, and that is a washer anddryer.
This is one thing that allows usto stand out from the rest of
our competition.
And for us makes a hugedifference on our applicant
pool, because we can charge morefor the amenities we offer.
Being able to do laundry at yourhome is a major convenience, one
(30:54):
that can easily bring in$50 ormore a month in rent revenue.
For many, especially rentersthat are families, not having a
washer and dryer can be acomplete deal breaker for them.
In our multi family properties,we include washers and dryers in
all the units.
In the sixplex, which is arenovated Victorian building,
(31:16):
the previous owner removed hallcloset space, which all backed
up conveniently to a bathroom orkitchen, and he installed
stackable units.
They don't use up a lot of spaceand not one tenant has wished
they had closet space instead.
Now in Idaho, the units werebuilt with a closet to house
side by side washer and dryerswith storage space above.
(31:40):
In many single family homerentals that we either manage or
used to own, some included thewasher and dryer as an amenity,
some just listed that thehookups were available, and that
the tenant had to provide theirown.
A couple of owners we know willprovide the units but have a
stipulation in their lease thatthe use care and maintenance of
(32:00):
the washer and dryer falls tothe tenant to handle.
One thing you can consider ifyou don't want to deal with
repairs of appliances is to geta home warranty.
It can cover just appliances oreven HVAC and water heaters too,
and will be priced depending onhow much coverage you want.
Now we like and have used ChoiceHome Warranty before.
(32:23):
We'll link them in the shownotes if you'd like to check
them out.
Stacie (32:27):
And the one thing I want to say about washers and dryers
is that this is one thing thatwe look for when we're buying
rentals as well.
We want to make sure that theyeither have them already or have
a place where we can incorporatethem in.
That's how important they are tohave and to get that upper edge,
especially when you're buyingolder or aged multifamily rental
(32:48):
properties.
Pretty much all the new buildsnow are incorporating washers
and dryers in their units.
All right.
The next amenity is storagespace.
And this is especially importantfor multifamily units and even
some older single family homeswhere extra closets or storage
space is a big challenge.
Whether you create ways foradditional storage within your
(33:12):
unit or provide a place onproperty for tenants to rent
space, everyone likes the optionfor more space to store stuff.
Most tenants have more thingsthan can fit in a typical rental
property.
So having a storage shed or adesignated basement space or an
attic can be a major draw forthose folks.
(33:34):
If you already have storagespace in your rental property,
but haven't highlighted itbefore, add it to your marketing
next time for a boost.
If you're lacking space foradditional storage, look around
and see where you can easilyincorporate some.
We have seen landlords createspace under stairways of a
single family home that didn'thave a garage.
(33:54):
And for multifamily properties,landlords can easily build
storage lockers in theirbasement or put up waterproof
lockers in a secure placeoutside, which is what we did in
Sacramento.
We had a tenant who was anoutdoorsman and needed space for
all his camping and hiking andski gear that was taken up space
in his apartment.
(34:15):
So we bought a couple of theirtwo by two by like seven feet
tall waterproof storage lockersand secured them in the back of
the building.
I think they cost like$200 bucksand we rented it back to the
tenant for$25 a month, which hewas thrilled and more than
willing to pay.
It paid for itself and is just alittle extra income that we now
(34:38):
have zero maintenance to do for.
I think the ones we bought weremade by Suncast.
We will look and see if we canlink the one we used in the show
notes if you want to check itout.
Kevin (34:49):
Okay, let me take the next one, which is parking.
And this is definitely somethingwe have struggled with in
Sacramento, as we have noparking available at all, just
street parking.
More than half the workforcecommutes to work, likely more.
So, if you have parking or a wayto offer parking, even if the
tenant has to pay for it, thisis a huge perk for tenants.
(35:11):
When we go to Sacramento, like Isaid, it's only street parking.
And on weekends and in evenings,it's really hard to find a place
to park.
We just went by there on aSunday recently and had to
double park while Stacie ran upand did a quick inspection after
a roommate moved out.
And I think we've mentioned thisbefore, but we used to have an
(35:32):
empty lot behind us where theowner, who owned the building
next to us, rented it to a localauto shop to park cars that
needed work.
The lot was rather large, sothey would allow us to park
there when we came up, but notfor our tenants.
That lot was sold, and they putup four new townhouses, so it's
kind of a bummer we've lost thatparking space, but we do like
(35:54):
how it's added new units to ourarea.
But many of the new buildingsaround us are renting for
hundreds, if not thousands morethan us.
And they offer parking, theyhave pools, doormen, a mail
room, gyms, patios, I mean, thelist goes on.
Which leaves the rest of us topark on the street.
But getting back to parking,here is why it's important for
(36:15):
many tenants.
It is an added convenience andcan make a tenant's day to day
life easier if they don't haveto circle around the block or
deal with parking on a busyroad.
For multifamily parking lots,there can be parking for more
than just one vehicle, coveredparking to help in extreme
weather conditions, and ofcourse, handicapped parking for
(36:36):
the disabled.
And if a multifamily owner wantsto, they can charge more for
preferred parking spaces.
So there's that.
It is also perceived as saferwhen rentals include parking.
Again, for single family homes,tenants don't have to worry
about taking kids out of the caron a busy road.
For a multi family unit parking,like in a lot, often there is
(36:59):
ample lighting at night andsometimes maybe even security
cameras.
They can also be gated sothere's no worry about outside
people getting access totenants' cars.
And it's also an amenity that'sright up there with washers and
dryers.
It's something that is notnecessarily needed, but the
convenience of having it reallyboosts tenant satisfaction and
(37:21):
lowers the turnover rate.
You see, tenants don't like tomove.
They want to stay in your unit,so do whatever you can to help
them continue renewing theirleases.
Stacie (37:32):
Yeah, parking is a really nice feature to have when
you have it.
And again, if you have it,advertise it.
So sometimes people searchingfor a rental will adjust the
filter online to only show themproperties that have parking
available.
Same with washers and dryers.
So make sure that your marketingincludes it, even if it seems
(37:52):
obvious.
Alright, we have two morefeatures that tenants are
looking for and I'm happy totake this next one and that's
that tenants want units that areclean.
They say it's a big put off whenthey walk through a unit that
has ladders and paint cans andtools laying around because they
can't visualize how they cantake that space and make it into
(38:15):
their home.
So our advice is do not showyour units until they're
completely clean and ready torent.
When a unit is really clean, itshows pride in your business.
It will also show a new tenanthow you expect that unit to be
returned back to you.
I will cover this briefly, butwhen someone moves out, and we
(38:38):
do not have any big updates todo, we will take all of the plug
and switch plate covers off, andtoss them in the sink, spray
them with a cleaner that has adegreasing agent in it, or even
just sometimes plain old Dawndish soap, and we soak them for
a little bit while we prep tospot paint the unit.
Now, depending on how long theyhave been in there, we can
(38:58):
usually just take one of thosesmall rollers and paint where we
see some scuffs and dirt, likearound the switches and in the
hallways.
We touch up the trim as neededtoo.
Then we go and we put thoseplate covers back on and they
look like new.
And yeah, we could go and buynew ones for about 30 bucks, but
for less time, because I don'thave to go get those covers, I
(39:20):
get the same results.
If they're broken or something,then yeah, we replace them, but
you would be amazed at what adifference those clean cover
plates can make.
We go over every single surfacein that unit to make sure it's
clean.
We check all the appliances, theshelving and the cabinets, all
the light fixtures are wipeddown, windows, screens, blinds.
(39:43):
We pull out the washer and dryerand the refrigerator and we
vacuum all the dust up behindit.
We check the smoke and carbonmonoxide detectors and no matter
when they were changed last, wealways change the batteries.
Even in the thermostat.
And we replaced the air filtertoo.
We oiled wood cabinets, wetightened the handles in the
(40:04):
pulls, and we changed the lockson the entrances.
And you guys, this process cantake both of us the better part
of a day, sometimes two if wefind more needs to be cleaned
than expected.
And I'm telling you, our unitsare spotless when we hand them
over to a new tenant.
And I will also tell you thatnearly every single person that
(40:24):
walks through the door mentionsit to us.
You know, we are proud to offera super clean place.
Most landlords do not take thistime to clean, but then they get
pissed when their tenant movesout and leaves it dirty.
And then they try to deduct fromtheir security deposit.
They still don't clean the unitand do this process all over
(40:44):
again.
And this is not the way that wewant to operate our business.
We clearly communicate how wecare for our properties just by
showing them that clean unit.
Did we always do this?
No way.
It took trial and error andsomeone that we looked up to to
explain how when you take pridein your units that pride will be
(41:06):
seen and hopefully transferredto the tenant.
And of course you have to becareful who you rent to but I'm
not getting into that today.
Kevin (41:15):
I will tell you that every single property that the
kids move into during college, Imean they were all disgusting.
Stacie (41:22):
Yeah, it was gross.
Kevin (41:23):
Most all of his parents were in there cleaning and
pretty disappointed that theselandlords would just paint over
switch plates.
They wouldn't clean baseboardsand they'd paint over all the
lint from the previous person.
Bathrooms, oh, geez I mean didnot look like they had ever been
cleaned.
And of course the kids reallydidn't care.
They were just excited to havetheir independence and I'm
(41:46):
pretty sure those rentals wereonly cleaned when us parents
showed up for a visit and not,not that well to begin with.
Stacie (41:53):
Well, I did warn the kids, I'm coming out, it better
be clean.
Kevin (41:57):
And yeah, we hired cleaning people to go in there
and clean every once in a while.
Had those kids gone in and foundthe place clean to start with,
they might have had some respectfor the place.
Maybe not
Stacie (42:09):
Hey a property's moving condition is important to every
tenant no matter how much theypay in rent.
And meeting expectations is theeasiest way to satisfy your
tenants.
Just remember that firstimpressions are key to creating
urgency and the desire to livethere.
Kevin (42:28):
Which is exactly what your goal is, to get someone in
there who doesn't want to loseout on renting your unit.
Okay, and last but not least,tenants do like online rent
payment options.
Demand for online rent paymentsystems has steadily grown over
the last few years.
In spring 2019, 57% of renterssaid they'd prefer to pay rent
(42:51):
online.
the summer of 2022, thatpercentage had increased to 68%,
yet only 56% of renters reportedhaving the ability to pay rent
online at the time.
This is a modern conveniencethat most tenants are after.
You can pay for pretty muchanything you want online these
days and tenants feel rent is nodifferent.
(43:13):
Asking people to write checksand place them in the mail is
outdated and less efficient foreveryone.
And there are plenty of onlinerent tools available, many of
them free, for landlords tocollect rent electronically and
move away from the traditionalquote unquote checks in the mail
method.
I will tell you our kids thatrange from 24 to 29 do not write
(43:37):
any checks.
I mean, maybe once a year ifthat.
So who can you use to processyour online rents?
Here are some companies that welike.
Some we work with, others wejust know are highly rated.
We will link them in the shownotes for you to check them out
if you like.
Well, you know we loveTurboTenant, and the best part
(43:58):
is that for the basic coverage,which does include rent
payments, TurboTenant is free.
Avail is another one that has alimited package, which includes
free rent payments.
EZ Landlord isn't necessarilyfree, but if you already have a
paid account, either monthly,annually, or the lifetime one,
and get access to all theirstate specific leases and
(44:20):
landlord forms, then their newrent payment service is now
available at no additionalcharge.
And one thing we want to sayabout EZ Landlord is that they
have shared with us a specialcode to get 15% off your first
purchase.
That includes their annual rateor their one time lifetime fee.
Which I think would save yousomewhere in the ballpark of$60
(44:42):
on lifetime state specificleases, forms, and now rent
collection.
The code is STACIE15, that'sSTACIE with an I E, and then the
number 15.
Stacie (44:54):
Yeah, I mean that lifetime fee is a killer deal.
I think it's like$399 forlifetime access to everything
they offer.
And that 15% off brings it downto about$340.
If you consider each lease is$29bucks, and I'm not sure if that
includes addendums or not thatyou need to add.
(45:16):
Um, and then you also haveaccess when you pay the fee to
all the forms that you need foryour tenants to put in things
like the different accommodationrequests, security deposit,
distribution forms, all that.
And now they have rentcollection.
I mean, I'm pretty excited aboutit.
And for anyone who does not needfancy landlord software, but you
want to offer rent collection EZLandlord is a really good
(45:38):
option.
Kevin (45:39):
Yeah, I mean I think we use what we're up to about a
dozen extra addendums in ourlease now?
Stacie (45:44):
Yeah, at least.
Kevin (45:46):
And I didn't realize EZ Landlord Forms had added the
feature.
That's actually pretty cool.
Okay, there are a few otherlandlord management software
companies like RentReady,DoorLoop, and Hemlane, and they
all charge a monthly fee to usetheir services, but are noted in
the top 10 for landlordsoftware, and they all have rent
collection options to use.
(46:07):
If you happen to haveQuickBooks, you can invoice
tenants and have them payelectronically, but that ACH
deposit to you does include a 1percent fee from the amount
deducted.
So it's hardly free, but if youwanted to, you could tack that
fee on to the invoice so youcould get reimbursed.
But just make sure they sign andagree to that fee in the lease
(46:29):
or an addendum.
We will link all of thosecompanies in the show notes if
you'd like to learn more aboutthem.
Stacie (46:35):
Yeah.
I want to just say real quicklythat QuickBooks, yeah, they
charge a 1 percent fee, but itcaps out at$15.
So if you do charge higherrents, you don't have to worry
about it.
And the last thing I want to sayabout this episode is that like
everyone else, tenants want thebest bang for their buck.
So think of ways that you canmake life easier and potentially
(46:57):
you may be able to charge themfor that convenience offered.
In Sacramento, we're in a realsweet spot.
We are not high, high end thathave, like Kevin said, the
doormen in the mail rooms,parking garages, or gym, but
we're not the lower end whereunits are not updated, offer
little amenities either.
We have updated, clean unitswith a few amenities tenants
(47:21):
want, and we're located in arelatively safe part of town
that's on a quiet street.
And you can bet that yes, we domake sure that all of our
marketing states are bestfeatures.
So we can draw the bestapplicants to view our units.
So those are the features thattenants are looking for when
(47:42):
they're trying to find theirnext home to rent.
We hope that you enjoyed thisepisode and at least got one
good little tidbit ofinformation out of it.
If so, would you do us a favorand leave us a kind review of
the podcast so other landlordscan find us too.
If you want to hear more, followor subscribe to the podcast so
(48:03):
each week the episodes aredownloaded right to your
favorite podcast platform.
And hey you guys, we'd love tostay in contact with you.
In the show notes, you can findlinks to all the free downloads
that we offer, ways to sign upfor our free weekly newsletter,
and the waitlist to our upcomingcourse on tenant screening.
(48:24):
There's also links to our socialmedia accounts, which are on
Instagram, Facebook, andYouTube.
And we share very informativeand detailed tips and tricks for
landlords.
So check those out.
I think that's about it.
But, thanks again, and untilnext time, you've got this,
landlords!
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