What rents faster?
“You never get a second chance to make a good first impression” – Will Rogers
The leasing season is upon us.
Last week I attended an educational program on leasing by the Greater Boston Real Estate Board’s Rental Housing Association. There were a variety of professionals from the multifamily rental industry. Some were like me who have companies managing a portfolio of residential rental condos, apartments, and single family homes and others were employees of larger companies that manage large multifamily complexes.
Part of the format was for each table to discuss a challenge in our industry and brainstorm ways to handle it. One of the themes throughout was how to lease units quickly or how to improve the number of lease renewals. Here are some ideas that were generated:
- “Make sure your property’s landscaping, mowing, and flowers are all picture perfect, that in itself will give a great drive-by impression.”
- Some mentioned making sure your “golden path” is pristine. This is the main route people take through the community to see the amenities and the model unit.
- “Lease renewal starts at move-in.”
- Replace older appliances/refresh units to retain residents – “A $600 fridge is less expensive than a $3000 turnover!”
Have you ever wanted top rents but not been willing to make the investment to get them? What needs to be done? In my experience many of the items that hold a unit back from renting quickly or leases not being renewed are fixable with some investment in curb appeal, interior improvements, or simple maintenance. The reason they don’t get done regularly: budget.
Budgeting beyond your income projection is critical if you are going to successfully own rental properties. Adding in estimates for unanticipated maintenance and recurring expenses such as insurance and property taxes is part of it. Estimates for turn overs (painting, floors, and sometimes appliances) should be included as well as capital expenditures for exterior painting, roofs, and decks.
Feel free to contact our office if you want to talk more about developing a budget for your property.