This may be one of the most asked questions we get at every training event we host.
As you know if you are a regular reader to this blog, my team is on a mission to acquire, hold and rent as many properties as we possibly can. We believe that creating cash flow through rental properties is absolutely the correct strategy right now. We teach how to detect the emerging markets where the best values with the most potential exist.
But how do you find good tenants? Great question.
Obviously we work with our property managers, mentoring them on how to find, interview and retain great tenants. But here are a couple of solid strategies we use to ensure that we are looking in the right pool to attract excellent tenants:
1. Look for real estate investment properties near strong, vibrant downtown commercial corridors. If the nearby businesses are thriving, you’re in great shape. If the businesses are boarded up or the majority of the businesses are vacant, then think twice before investing in the property.
2. What is the infrastructure of the community? ‘A-quality’ tenants want clean and vibrant parks, highly-rated medical facilities and nearby police and fire departments.
3. Good schools. Even if your tenant doesn’t have school-age children, living in a community with good schools enhances property values and makes tenants feel better.
4. Whether your property is near a bus line, train line or interstate, it has to have access to transportation.
5. A high ratio of owner occupants to rentals. If you’re going to own an investment property in a community you want it surrounded by people who own their homes, not other renters. It’s much easier to depend on owner occupants to keep their properties up than other landlords.
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