Posts Tagged ‘renters’
How Craigslist Helps Real Estate Investors
Craigslist attracts over 10 million unique daily visitors, making it one of the most popular websites in the country. Its ad structure is city-specific, allowing you access to extremely relevant traffic. For these reasons, Craigslist is a powerful asset for real estate investors. Here are four ways Craigslist can help your real estate business today:
Sell a house. When you list a property in the “Real Estate for Sale” category, you’ll reach a vast market of real estate buyers. Make sure you list the house in the city closest to where it is located, even if you live and work in a different city. For example, if you listed your property in the city you work from, but it was located in a nearby city, very few of the Craigslist users who saw the ad would be interested. Make it as relevant as possible by listing it in the city section where it is located.
Build a buyers list. Even when you have a likely buyer lined up for your property, it can be smart to leave the ad up a little longer. This allows you to build a list of people who are interested in that specific type of property, which you can find properties for and contact in the future.
Find workers. If you have a fixer-upper that needs specialized work, Craigslist is a great way to find workers. You can look through the “Skilled Trade” category and find the specific craftsman for the job. Another option is to post an ad explaining exactly what you’re looking for and then let interested workers contact you.
Find renters. Whether you have a home, condo, apartment or trailer for rent, Craigslist can help you find the right renters. Just make sure that you are specific in your ads and that you post them in the correct category.
Renters
This may be earth-shattering information, but a key aspect of owning rental units is having renters. Without renters, you have no cash flow. And since some rental units have higher turnover rates, it’s important to have an updated renters list that you can reference when a property becomes available. Real estate experts rely on their renters list in order to prevent going too long with an unoccupied property.
First of all, it’s important to protect yourself. When a new renter signs the agreement, include a request for at least 90 days notice – and a requirement of at least 30 days – from when they expect to vacate the property. This gives you time to find new renters. When you find out a renter is leaving, a good, updated renters list makes finding a replacement easy.
So how do you find new renters? It’s through focused marketing. Brainstorm what details about your properties will appeal to potential renters. Focus on the reputation of the building and the neighborhood, added value of a specific property like washer/dryer hookups or a dishwasher, unique features like covered parking, and convenience – general location, nearby parks, etc. Depending on current market trends, you may want to consider offering reduced rent, free rent for the first month, free cable, reduced security deposit, or something else.
If your properties have high turnover rates, use low-cost, ongoing advertisements – like online ads or generic flyers – to build up potential renters. For units with lower turnover rates, you will want to take out an ad in the local paper or list it at housing offices. These ads should include details about the specific property.
Regardless of the property type, anytime someone expresses interest in a property, get their information and add them to your renters list. Keep detailed notes about what sort of things they’re looking for in a property – number of bedrooms, community clubhouse, etc. And then when a property becomes available that they may be interested in, give them a call and let them know.
If it’s been a few months, you may want to give some of the people on your list a call anyway to see if they’re still looking. If they are, give them an update on what you have available. If they aren’t, you can remove them from your list. It’s important to keep your renters list constantly updated.
Then, when someone does express interest in a specific property, there are several ways to protect yourself and make sure they will make good tenants:
- Have them fill out an application
- Follow the Fair Housing Act
- Get proof of identity
- Do a background check (only with permission)
- Do a credit check (only with permission)
- Contact previous landlord
- Contact character references
- Meet personally with the tenants
- Be clear and upfront about agreement, in order to legally protect yourself
- Provide a written code of conduct
By following these guidelines, you’ll have an effective renters list and rarely have an empty property.
