Staging your investment property for a great rental return on investment
GUEST OBSERVATION
Although property investment remains very active well into 2014, this does not mean each and every investor is guaranteed success. Once you have found or developed the perfect property, the next step may be to attract and rent it out to quality, reliable tenants as opposed to selling it straight away for a profit.
Needless to say, a property that is well presented will attract tenants who will care for it as if it were their own. And this is where home staging goes a long way to ensure appropriate presentation of your property.
Finding the right tenant is not difficult if you determine your target market, create a good impression and screen candidates.
Furnishing and styling a house, or rather staging it, was once only used to sell off new developments. Today, an increasing number of savvy property investors are using it to showcase a property’s strong points to good quality prospective tenants.
Attracting the right type of tenants is essential to maximising your property investment. In addition, if you intend to sell an investment property, having top quality tenants ensures that property is even more appealing to buy for other investors.
Finding the right tenant is not difficult if you determine your target market, create a good first impression and screen prospective candidates appropriately.
Step one – Determine the right type of tenant for your property
It is crucial you understand the location of your property, who is living in the area and who wants to live there.
In order to do this, ask your local expert agent. Look at the schools, transport and other services in the area to try and determine your potential tenant profile.
Are they likely to be young professional couples or families with kids?
Knowing who the renter is and making your place the one that ticks all or at least most of the boxes will mean you will find the right tenant faster.
Step two – Stage your property to make a great impression
The type of tenants who take care of their rental will most likely look for a property that's in great condition to begin with. So take the time to ensure your property is in top shape before listing it for lease.
In addition you want the right people to connect emotionally with your property.
So, create a space where a prospective tenant can see them selves and they can imagine and aspire to the lifestyle that the property affords.
Staging a property that is for rent is even more important in the sense that people need to know what they can do to the place that is not permanent.
You want the right people to connect emotionally with your property.
After all their instinct would be to make the space shine and homely, and a perfect spot for them to spend their time. When renting this needs to be done without making huge or permanent changes.
Most of all in pre-sale or rental market property styling, there is the trend to focus on styling for a lifestyle. So if a property has a great outdoor space, don’t leave anything up to the imagination. Style the space to show people how they can use it and enjoy it!
Step three – Finding the right tenant for your property
If you are not confident in finding tenants on your own, sign up an experienced, reputable property manager. Your time is money so the expertise a property manager brings can be very valuable.
So do your research and find out:
- Who manages most of the properties in the area
- How often they inspect your property
- Their mode and frequency of communication and feedback with you
Finally, whilst a high quality presentation is no guarantee of a high quality tenant, there is no doubt it gives you the best possible chance of achieving a higher rent, quicker and a higher quality tenant.
Staging your house will attract the tenant you want to be in your house. Your success as an investor depends on the type of tenant you have living on your property.
Naomi Findlay is the award winning founder of the International Institute of Home Staging (IIHS) and SILK Home Staging & Styling. She is also the author of a bestselling book, Ignite Your Property Mojo.