Renting Your Home in Oakland and Macomb County
You have worked hard to obtain an investment property. You have gone through the “legal” legwork. You have done everything right to make the home “move-in ready.” Now it is time to get a renter in the home! Here are some topics you may want to consider
What does your pool of prospective tenants look like?
- The ratio of tenants to vacant rental properties is crucial information for a property owner to know. That data will allow you to assess the proper fair market value your property carries as a rental. Depending on the ratio, you may be able to charge a higher rent in order to maximize gain or may even want to consider charging a lower rent to avoid costs of letting your property sit vacant.
What is a qualified tenant willing to pay in order to rent out your investment property?
- Having a market analysis done on your property will allow you to know what a prospective tenant is likely to pay to rent out your property. There is value in pricing your home correctly right out of the gate. Prospective tenants are not likely to call you and negotiate for price. If they think it is too high, it is likely that they will just look at the next available property. If your property is listed too high above market value, you will miss out on a large pool of prospective tenants. If your property is listed too low below market value, you will miss out on potential gain. If interested, call Real Property Management Silverstone at 586-992-6419 for a free market analysis of your property.
How are you going to find that tenant?
- There are over 100 websites that a prospective tenant can find a rental. Real Property Management Silverstone is present on these websites. It is easier for a tenant to find you than the other way around. Advertising ideas include multi-list services, online websites, or print.
How is the prospective tenant going to gather the information he or she needs in order to make a decision about your property?
- Someone is interested in your property. It is likely that they will try to contact someone in order to inquire about that property. It is important that someone is available to not only field that phone call but be prepared to answer specific questions about that property, and answer them correctly.
If the tenant wants to see your property in person, how will you manage those appointments?
- Prospective tenants are on a timeline. It is likely their current lease is about to expire, or multiple people are interested in the property. Each prospective tenant wants to see the property as soon as he or she possibly can. In addition, you want as many people to come through your property as possible in order to increase the likelihood that it gets sold. If you have constraints on your time, you can hold the house open for several hours in the evening or weekends. You can also leave a lock box on vacant properties so that prospective tenants with real estate agents can look at the house without you being physically present. In addition, you could also hire a property management company who has a leasing agent available to show all of your properties whenever someone is interested.
How long are you willing to let your property sit vacant on the market?
- On average, a vacant property loses $53.00 a day. Over the course of one month’s time, your vacant property can lose upwards of $1,500.00 – $2,000.00 dollars. You must consider what costs you can bare each day your property sits vacant and balance that out with the importance of finding the right tenant. While the cost of letting your property sit vacant is substantial, you want to make sure that you are able to find a tenant who will stay throughout the duration of the lease so you do not have to go through the entire process more than you have to.
What provisions will you require in the lease agreement?
- It is important to plan ahead. Try to figure out which appliances will be staying, how much it will cost you to make the property move-in ready, factor in cleaning fees, pet fees, whether pets will be allowed, utilities, utility transfers, and any and all other clauses you find important and consistent with seeing your property grow in value.
What means of communication will you keep with your tenant once he or she occupies the property?
- The tenant has moved in and is excited about his or her new place. It’s best for everyone if the tenant remains happy. How do you develop and maintain a rapport with the tenant? Real Property Management Silverstone strives to maintain a cordial, friendly and accommodating relationship with your tenants and relieves the property manager of that all-important duty.
Bonus Tip: Security Deposits
When determining security deposit amounts make sure you understand you’re legal duties with regard to maximum amounts. The state of Michigan limits the amount of security deposit you can charge for your rental property to cover damages from a renter. Real Property Management Silverstone can help you determine market rental rates in Michigan and appropriate deposit amounts.