Your ability to build wealth from rental properties is dependent on the quality of tenants you attract. Great tenants are the ones who will take care of the property and pay their rent on time. To find great tenants, you must first find great properties that attract the great tenants. Here are 10 criteria for great rentals that will help you, the investor, attract excellent tenants.

1. School Quality

               According to BiggerPockets, the quality of schools was the primary deciding factor for over 85% of great tenants. Schools are very important to families and single parents with school-aged children. School quality is also a great predictor of neighborhood quality. All perspective tenants are interested in high quality neighborhoods.

2. Safety

               Safety is a basic human need and an important metric for excellent tenants. Tenants look to rent properties that provide a safe environment for themselves and their families. Make sure to research crime statistics and purchase rentals in safe neighborhoods.

3. Move in Ready

               The ability to move into the home is also important to renters. Your target tenant wants to take care of the property and ideally maintain high levels of cleanliness and maintenance. By providing a move in ready home, you communicate that you share those same standards.

4. Proximity to Employment

               No one likes long commutes. Proximity to employment areas is important to great tenants. Look at where your target tenant is likely to work and find rental properties nearby. Due to the increase in working from home this metric has lost some of it’s weight, but it is still important to consider.

5. Upgrades

               Most investors that are starting out go with the mantra of ‘good enough for a rental.’ Then they outfit their homes with cheap finishes and rent them to mediocre tenants. Try to go a step further. Excellent tenants will be looking for excellent homes. Hardwood flooring, granite counters, and stainless-steel appliances will cost more upfront, but they might save you from the headaches of a low-quality tenant down the road.

6. Appliances Included

               In Colorado it is usual for the landlord to provide appliances with the home. This helps alleviate the financial burden of the tenants. Usually at the start of the lease a tenant will have to pay a month of rent for the security deposit and then first month’s rent. It makes it easier for them if they don’t have to purchase a refrigerator and washer/dryer on top of that.

7. Neighborhood Quality

               Neighborhood quality is more than just school quality. Local amenities factor into the quality of the area. It is more desirable to live in areas with bike trails, lakes, and nice community parks. Some homes may be part of an HOA where a community pool and gym are included as part of the HOA fee. The more amenities the better chance at attracting great tenants.

8. Access to Transport & Basics

               Access to transportation and necessities are important to keep in mind as well. Make sure there is easy access to grocery stores, restaurants, and shopping areas. In Fort Collins, we have a great public bus system. If you are targeting student renters, try looking for homes near a bus stop.

9. Age

               One thing investors and tenants have in common is that they both don’t like hassle. The age of the property is an important indicator of potential hassle. Old properties will have older systems like plumbing, electrical, and HVAC. These usually require more upkeep than the systems of newer homes. If you are looking to avoid older home issues, try to look for homes no older than 15 years. Obviously, the newer the better.

10. Rent and Price

               A rental property is an investment for you as well as your tenant. The tenant will be concerned with the rent and you will be concerned about the price of the home. Make sure to know your numbers when it comes to buying a home and knowing how much you can rent it for. You will need to find an experienced realtor that is familiar with home prices and rental rates to be successful. Contact Angie if you are interested in investing in the CSU area or Fort Collins in general!