Finding a high-quality Tenant begins with effective marketing of your rental listing.
What do we mean by effective marketing?
It’s the process of attracting your ideal Tenant. Anyone can post a Listing on Facebook and Kijiji, but there’s a process involved in creating a high-quality Listing that will attract the right Tenant, not just any Tenant.
Our 10-step guide to Marketing your Rental Listing
1. Prepare the Property
You want your rental unit to be appealing to potential Tenants and stand out from other rental listings on the market. Always remember that the quality of the property determines the quality of the Tenant.
In the interior, ensure the property is thoroughly cleaned and any necessary maintenance or repairs are completed. On the exterior, cut the grass and remove any unnecessary clutter (e.g. recycle or garbage bins). Strive to improve the curb appeal, to make a good first impression in your photos and during Showings.
If you have an existing Tenant living in the property, there is only so much that you can do. If they have given proper notice to vacate, they are obligated to cooperate with the listing/showing process. However, that doesn’t mean that they will necessarily keep the rental unit in the condition that you expect for Showings, nor are they obligated to (they have a right to quiet enjoyment).
The best course of action with existing Tenants would be to ask them politely to help you out, by keeping their unit clean and decluttered. During showings, inform the candidate that the unit will professionally cleaned and list the repairs and upgrades that will be completed before they move in. The rental unit may not show well with a Tenant living there, but potential applicants may look past that if they know that it will be in good condition when they take possession.
2. Professional Photography
Hire a professional photographer to take high-quality photos. Good lighting and angles can make a significant difference in how attractive the property appears in listings.
Professional photos will help you to stand out in the crowd compared to competing rental listings in the area. A good set of professional photos will cost approximately $150.00, but you’ll have them on hand for future listings.
3. Set a Competitive Rental Rate
Research similar properties in the area to understand the going rental rates. Online platforms like Facebook Marketplace, Realtor.ca and Kijiji.ca can provide insights into local market conditions.
Be realistic in your expectations. Rental rates are market-driven, not cost-driven. This means that rental rates are determined by the characteristics of the local market, not your monthly carrying cost of the property.
At a basic level, the rental rate must be comparable to similar units available for rent in your market.
You must also consider affordability. What can Tenants realistically afford to pay for rent in your area? Consider their lifestyle and other expenses they are juggling, such as: Utilities, fuel, groceries, car payments, etc?
Determining a correct rental rate is not an exact science. It’s more like an educated guess. The key is to be aware of the feedback you’re receiving and adjust accordingly. For example, if the rental rate is too high, there will be very little interest in the property. You should try reducing the price to stimulate traffic on your listing.
4. Create a Compelling Listing
Write a detailed description highlighting the property’s features, amenities, and any unique aspects. Include information on nearby schools, public transport, shopping centers, and other local amenities.
Also include details about what information the candidate needs to provide as part of the application process. For example, we require ‘recent proof of income, a recent Credit Report and Photo ID’.
Avoid application requirements that are unreasonable or could be seen as discriminatory or illegal. Do some research ahead of time, to ensure that you comply with Ontario Laws.
5. Advertise Online
Once you’ve created a compelling listing and obtained a great set of photos, it’s time to put it all together and create your rental Ads.
Today, it’s easier than ever to reach your ideal Tenant candidates. Most of the advertising options are free of charge and reach a large audience depending on where you’re located. There are also a couple of paid-advertising options, that can achieve a larger targeted reach.
What are some of the best advertising platforms?
- Facebook Marketplace
- Local Facebook rental pages
- Kijiji.ca
- Rentals.ca and similar platforms
There are also a few platforms that provide a wider reach, but come with a cost:
- Realtor.ca (MLS) – usually will need a Realtor to list the property for you. Commissions are as high as One Month’s Rent.
- Rhenti.com – this platform syndicates your ads across many rental platforms at a reasonable cost.
6. Spread the word within your network
Inform friends, family, and colleagues that you have a rental property available. Personal referrals can be very effective. You likely know someone that knows someone that’s looking for a place.
7. Signage on the Property
If the property is located on a high-traffic street, then a high-quality sign is a great way to raise awareness about your listing. Reach out to a local sign shop to have a simple yet professional sign made for you. The cost is minimal and will look much more professional that a hand-written one.
8. Monitor Response Rates
Once your Ads are posted, you should start to receive enquiries immediately. The amount of traffic that you receive is a good indicator of how well you are positioned in the market. If you only receive a trickle of interest, then your rental rate might be a little high or you might need to expand your reach with paid advertising. Monitor the traffic for one to two weeks, then adjust accordingly.
9. Respond quickly and in a professional manner
Finding a great Tenant is a competitive game. Every other Landlord wants them, so you need to move fast to get them before they do.
Your response should be polite and professional, more like business communication as opposed to chatting with a friend. In the early stages, avoid phone calls and stick with written communication with the candidate, at least until you meet them for a Showing.
One important note: You must avoid getting sucked into the drama in someone’s life. You’ll have people send you long explanations about their situation, which can be a red flag. Some of their stories can be heartbreaking and you will naturally want to help. But you must remember that the drama is usually a pattern in that person’s life and will eventually affect you and your rental business. Best course of action is to not respond and move on.
10. Start your Tenant Screening process
The moment that you connect with a potential candidate is the moment that your Tenant Screening process starts.
You can learn more about our process for effectively screening and selecting a potential Tenant HERE.
Conclusion
Attracting the right Tenant for your property begins with creating a high-quality Listing that will set you apart from the competition. It does take extra effort and some expense, but the quality of your Listing will have a direct impact on the quality of your applicants.
