Vacancy is expensive; this is something we all know and preach to each other as real estate investors, property managers, and landlords. If you’re working with a property that has been vacant for a while, you’re probably more than ready to get it onto the rental market and bring in consistent and recurring income.
Let’s not rush it.
Of course you want to move quickly, your earnings and investment goals demand it. But, it’s important to enter the market in a way that’s smart and likely to immediately attract some excellent tenants to your property.
Today, we’re using our expertise as San Diego property managers to talk about how to successfully convert your vacant property into a profitable rental.
It’s time to shift from empty and expensive to occupied and optimized.
Evaluate Your Property’s Rental Potential
Instead of listing your property on the rental market and hoping for the best, start by assessing your property. Is it ready to be rented, or are there some maintenance issues that need to be taken care of and upgrades that could benefit the home’s appeal?
Potential renters are drawn to amenities, great locations, and well-maintained spaces. Here are three key questions to ask before renting out your vacant property:
- Is the property in good condition? The San Diego rental market is competitive, and tenants are getting smarter. They have high expectations for what they want in a rental home. You’ll be smart to address any repairs and updates first, especially for older homes. It has to be in rent-ready condition before you begin looking for residents.
- Does the neighborhood appeal to well-qualified renters? Location has always been important, whether we’re talking about buying and selling or renting out a property. Maybe you have rented this house out before, or maybe it’s a unit you’ve lived in yourself. Either way, it’s important to understand how the location of the property will help or hurt its chances of being rented for top dollar and by great tenants. Proximity to shopping districts, schools, parks, or beaches adds to your property’s value.
- Does it comply with all habitability standards? San Diego rental properties need to meet specific safety and regulatory requirements, so it’s smart to review local laws ahead of time. There are a number of rental laws that you’ll need to be familiar with before you put a property on the rental market.
Here’s a good idea: Have a rental property agent or San Diego property management company help you with inspections and assessments. Our expertise can save time and avoid costly oversights. We’ll be able to tell you right away whether you’re ready to rent out this home or whether a bit more attention to detail is needed.
Upgrade Your Property to Attract High Rental Values and Qualified Renters
An appealing rental space is going to bring in better tenants and higher rents. Be willing to make some upgrades and improvements before you rent out this property. If it’s been vacant for a while, there are likely signs of age and deterioration. Give it a new look so that tenants feel like they’re walking into a home that’s fresh and ready to live in. Here are some of the updates we always recommend:
- Modern Enhancements
Consider stainless steel appliances in the kitchen. Make sure there’s in-unit laundry. Be willing to invest in things like smart home technology and energy-efficient lighting. If you’re renting out a single-family home, consider a video doorbell outside. If you’re renting out a multifamily property, make sure the common areas are comfortable and easily accessed. LED light bulbs will attract the right kind of attention. Smart thermostats and keyless entry systems are attention-grabbing and show off your property’s modern aesthetic.
- Eye-Catching Curb Appeal
Curb appeal creates a first impression, and if you’re going to put a vacant property out for rent, you have to give prospective renters a good first impression. Freshly painted exteriors are a great idea, and if your paint is in good shape, maybe just do a thorough pressure wash of the property. Make sure the landscaping is well-maintained and simple. Tenants don’t want to worry about spending all of their free time keeping up with the lawn and garden. Give them a reason to like what they’re looking at without making them fear it comes with a lot of labor.
- Comfortable Interiors
The outside of the home creates an immediate connection. You want to keep that positive energy flowing throughout the entire rental space. Make sure it looks and smells good before you begin showings. Neutral color palettes are important for universal appeal. Make sure the paint is in good condition. High-quality flooring that is both durable and aesthetically pleasing will help you rent your property out successfully.
Remember, these improvements add perceived value, enabling you to charge a competitive rental rate.
Setting the Right Rental Price
If you have not listed a rental property for a while, you might be surprised at where rents currently are. This is an expensive market, and you’ll like make a lot of money on your property if it’s in a desirable location and looks good inside and out.
How do you know where to set your rent?
Pricing can make or break your rental investment. Set a price that’s too high, and potential renters may move elsewhere. Set it too low, and you’ll leave money on the table. Here’s how to determine the perfect rent for your San Diego rental property:
- Research the Market
Compare similar properties in your neighborhood. Websites like Zillow and Rent.com can provide valuable benchmarks, but don’t settle for what you find there. Dig into some more reliable data, like the analytics we can provide as San Diego property management experts. You need to know what similar properties are renting for, and how your own rental may be worth more or less.
- Factor in Unique Amenities
Your property may have some unique amenities that will help it stand out in a crowded market. It might also impact pricing. When you’re attaching a rental value, consider elements like ocean views, parking spaces, or updated interiors.
Find Qualified San Diego Tenants
Once your property is ready for the rental market, the next step is attracting reliable tenants. You’ll need a good marketing strategy, and an understanding of what makes a good tenant. As property managers, we’re always looking for residents who can pay rent on time, help take care of the property, follow the lease terms, and communicate with us openly. These are the qualities that contribute to a pleasant rental experience for everyone, and a profitable rental experience for you.
As you begin to seek out the best possible tenants for your property, consider these important marketing and screening strategies:
- Create a Compelling Listing
Invest in professional photos and write a clear description that showcases the property’s strengths. It’s important to grab a tenant’s attention right away. They’re all online, scrolling through one rental ad after another. What’s going to make them notice yours? Fantastic photos. Concise descriptions. An understanding of rental amount, security deposit, and location details. Share your listing on all the popular rental sites, and leverage social media to create a larger audience.
- Screen Prospective Renters
As you begin to attract interest based on your listing, it’s essential to provide applications, establish rental criteria, and screen tenants consistently and objectively. Verify income, check references, and run background checks to minimize risks. Make sure you’re following all fair housing laws.
Once you have screened your applications and found a well-qualified resident, you’ll need to discuss the lease agreement. Share all expectations ahead of the move-in date so everyone is on the same page. This will help you have a rental experience that’s free of conflicts and disputes.
Work with a San Diego Property Management Company
Leasing, managing, and maintaining a rental property can be time-consuming. If you’re working to rent out a property that has been vacant for a while, it may be a bit of a shock to realize how much is involved in keeping it in good condition, responding to tenant needs, collecting rent, and tracking all of the income and expenses associated with that investment.
If you’re juggling multiple investments, there’s even more of a demand on your time and resources.
Working with an experienced San Diego property management company can streamline every step of the process and leave you with more time and less stress. We provide professional marketing, which allows us to highlight your property’s charm and secure well-qualified tenants quickly. We have reliable maintenance partners, who can provide quick repairs and upkeep, protecting your investment. We’ll collect rent on time, take care of the tenant relationship, and make sure every detail is taken care of expertly and effectively.
Many smart investors will tell you that partnering with a San Diego property management company is the key to maximizing their financial returns while freeing up personal time.
Let’s take a look at your vacant property and turn it into a profitable San Diego rental. Contact us at Chase Pacific Property Management & Real Estate Services.