Finding good tenants in Chicago is the number one job of property managers; if not done right, you'll end up with huge vacancy losses or, worse yet, bad tenants. So, how do you get the right tenant to view your property? I'll talk about screening criteria in other posts, but make sure you have your screening criteria fully determined before putting up your first ad. Cook County has a ton of fair housing laws that, if not followed when trying to find the best tenants, can cause you to end up in hot water. The easiest way to find great tenants is hiring one of Chicago's premier property management companies to do it for you. If you would like to discuss our smart marketing plan for clients that own buildings in some of the hardest to manage areas such as Englewood, South Shore, Woodlawn, Calumet City and other Chicagoland neighborhoods throughout the area, we would love to talk to you here at Chicago Style Management; however, if you are a property owner that is just looking to try and save money on your rental property, then here are three secrets to be able to do it yourself just as well as we can.
1. Curb Appeal
Curb appeal and first impressions can make a huge difference between a tenant getting out of the car and viewing your apartment, and seeing a red flag that sends them back to their previous landlords to accept that rent increase. From the basics of making sure the lawn is well manicured with no trash in the yard, to no peeling paint on the exterior, to the stairs being stable and in good condition - all of these things matter to a potential tenant. Chicago landlords, especially, know that an unkept building attracts unwanted guests like mice and roaches, and your potential tenant is going to see high grass or failing brickwork and decide that they need to keep looking before even getting into the home. The curb appeal cannot stop at the front door either; try things like air fresheners and a few simple decorations in the hallway to entice good tenants even more. A good property management company will ensure that tasks such as standard area cleaning, lawn care, and snow removal are taken care of regularly. However, an evil landlord is going to allow the property condition to fall into disarray. Will you still be able to find a tenant with tall grass and a dirty hallway? Yes, however, the tenant you find will be unqualified and have to settle for your property because their previous landlord kicked them out, and no one else is willing to lower their screening criteria to accept them.
2. Descriptions for Google
Marketing your rental property not only means putting it on the top sites like Zillow and Apartments.com, but it also means having the right descriptions when doing so. These sites all now have real-time data coming from all kinds of sources, including realtors using MLS and other landlords self publishing their listings. You have to compete just to get a qualified tenant to come and look at your rental properties let alone get them to apply. The good news is there are more online resources now than ever that can help you find your next tenant. The bad news is there are more options than ever before for a tenant to get information and narrow their search to just a few properties before they schedule any showings. Here are some things to consider when entering data into sites like Zillow:
List all of your fees, such as your security deposit, move-in fees, rent, and any other fees you will charge.
Let them know what utilities are included and which they will pay, even if you think it is obvious.
Let them know about your rental application and credit checks so they know what credit score they need to get the apartment.
Add details such as the closest train station or coffee shops so the potential tenants can get an idea of the neighborhood in addition to the apartment.
Add as many amenities as you can. List the fact that you have a stove, a fridge, and big closets if you have them. These things that may seem small to you may be something they filter by and cost you good tenants because they never even see your listings.
Ensure you are priced competitively; if it's too low, people may think it's a scam, but if it's too high, no tenants will consider your apartment. Remember that they can see what other rentals are renting for on the same site where they find your rental.
Get good pictures! If your pictures suck, your prospective tenants may think you suck.
3. Make it easy to see the property
Chicago renters don't want to jump through a ton of hoops to see your property. You want to have a tenant screening process where you ask questions before wasting your time to do a showing, but you don't want to make them apply and run credit or pay any money before seeing your apartment. This comes off as though it might be a scam in the Chicago market, and oftentimes tenants from subsidy programs like the Chicago Housing Authority don't have the resources to apply and need additional assistance from their subsidy to apply once they find a place. So make sure you are not scaring off potentially great tenants to avoid showings. Once a tenant has answered your prescreening questions, the next step is to show them the apartment at their convenience, not at a time that suits you. You want a tenant that is working and has a life, which means they may not be able to see the apartment when you are free. This needs to be a priority and can be solved easily by hiring someone whose job is to show tenants the apartment. Whether it be at 7 am before work or 7 pm after work, being able to show tenants on their schedule will speed up the process of finding a qualified tenant.
All of these tips are important, but more than anything, if you are mispriced, you are either leaving money on the table or extending your vacancy period which will make it almost impossible to cash flow from the unit. Find out the true costs of your vacancy by getting a free vacancy cost analysis and see the difference that having pros like us rent out your unit quickly can have.
