Real estate investment is not all about cap rate, NOI and cash flow. While these are important calculations to master in order to become a successful investor, your success will also depend on a practical approach to your rental business. You need to come up with implementable strategies to keep the NOI and cash flow up. To achieve this objective, you need to reduce vacancy rate as much as possible.
How you show properties to prospective tenants is one such practical approach that you need to develop and master since it can have a great deal of impact on your success in filling vacancies fast.
Let’s discuss in brief methods and tricks you can use when showing properties to prospective tenants:
Try to create a sense of competition among rental applicants
After advertising the property, you will likely receive multiple rental applications for a vacancy. To ensure that you fill the vacancy quickly and achieve your rental targets, you need to create a sense of competition among prospective tenants. Try to show properties in small groups. You can also fix showing appoints in close proximity, so when a prospective tenant leaves the property, another comes in. It will create a sense of urgency among tenants. They will be more inclined towards accepting your terms and conditions with regard to rent, security deposit and rental policies outlined in the agreement.
It’s very important that you make a good impression on prospective tenants. You should behave professionally and be fully prepared when you take a tenant to a property. You should carry with you printouts with all details related to the property including square footage, the number of bedrooms and bathrooms, amenities and other features and give them to tenants so that they can take them home. These printouts can also explain various rental policies with regard to pets, visitors, smocking and other such terms and conditions.
You should also have a sign-in sheet where tenants enter their contact information including email addresses and phone numbers. The sheet makes it easier for you to follow up with the applicants later.
You should also have rental applications ready in case some of the tenants want to get the leasing process started on the spot.
Follow the laws
You should always follow property management laws when showing a property to prospective tenants. If the property or a unit in it is already occupied, make sure you have sought permission from the occupying tenant or served mandatory notices. Flouting these laws can land you in trouble.
If you are planning to own income generating real estate, it is important to give a great deal of thought to how you are going to reduce the vacancy rate. It can make or break your success as an investor.