Homes are a massive investment. Especially if you have bought the home or the building with the sole intention of giving it out on lease or rent, however, not all homes are cash grabs, and there are more than a few examples we can think of off the top of our heads. While real estate has always been profitable, it requires patience, attention, and sometimes, the heart to take a loss for future progress. So, where does this all tie up to why your homes aren’t being rented or leased? To understand why a home isn’t being rented and leased, you must first get into a tenant’s head. Tenants want certain things from a property; if even one of those is missing, they will move on to the next property in a heartbeat. Here are some of those reasons:
It’s easy to jack up the rent of a building to recuperate the amount you spend on it as soon as possible and start making profits. While we get the appeal of doing so, it’s not the best choice. When giving out a property on lease, the first important question that potential tenants ask is: How much? An expensive property will have a higher rent, but it will also take longer to find tenants. This is because people are always looking for affordable places; if your place doesn’t fit that description, you’re in hot water. The best way to ensure quick renting is by keeping the price at par or lower than similar properties in the area.
Another extremely important factor is the location of the property. It becomes a deal-breaker for most families if your home or apartment is too far from basic amenities like schools, hospitals, parks, and markets. In this day and age, when time has become more valuable than money, people are not willing to commute long hours to get basic things done. Therefore, the closer your property is to these places, the better your chance of renting it out quickly.
The condition of the property:
This one’s a no-brainer. No matter how great the location or how low the rent is, if your property is in bad shape, tenants will steer clear of it. Before putting your property up for lease, make sure that all repairs have been made and that it looks presentable enough for people to want to live there. Reports suggest that almost 60% of tenants who walk away from property do so because of its poor condition.
You suck at marketing:
In today’s age, everything is marketing. The success of your homes will be determined by a simple question, can you get into the head of prospective tenants? If you cannot, then you won’t find much joy in the real estate market. Marketing your home is not as simple as putting up a ‘For Rent sign on the front lawn. You must take good pictures, post them on relevant platforms, and use the right words to describe your property. Only then will you be able to attract potential tenants.
Missing the market peak:
Every once in a while, the real estate market enters a market peak. This means that the prices of properties are at an all-time high, and people are looking to buy or lease places. Making deals during the market peak is crucial for any homeowner. However, many homeowners tend to wait it out, thinking that the market will only continue to grow. This is a huge mistake because the market can turn for the worse anytime, and you might end up selling or renting your property at a loss.
Working with the wrong buyers:
Sometimes, you are not to blame. There are different categories of buyers who are looking to rent a space. There may be students who want cheap and affordable places, streamers and content creators, jobs professionals, and the list goes on and on. You need to identify the category of buyers who would want your kind of property. Once you have done that, you need to market your property in a way that speaks to them. Only then will you be able to find tenants for your homes.
Your staging is non-existent:
Staging means making your property look like a home rather than an empty space. This is done by adding furniture, paintings, and other things to make it look lived. Many landlords make the mistake of thinking that tenants will be able to see the property’s potential and stage it themselves. However, this is seldom the case. Most people cannot visualize an empty room as anything other than that. Staging is important because it allows potential tenants to see what the property could be rather than what it currently is.
You’re not flexible:
Being inflexible is one of the worst things you can do when trying to rent out your property. You need to be willing to negotiate on things like price, move-in date, length of lease, etc. If you’re not, you will have a hard time finding tenants. Remember, the goal is to find someone willing to pay rent and take care of your property. Being inflexible will only make it harder for you to do that.
The bottom line is that there are a lot of factors that go into renting out your property. If you’re not careful, you might make costly mistakes. However, as long as you’re aware of the potential pitfalls, you should be able to avoid them and find tenants for your homes. Just be sure to do your research, stay flexible, and market your property properly, and you’ll be just fine.