How To Guide: Setting Up A New Rental Property

 Getting ready to begin leasing your rental property? Here are a few tips on how to prepare, prior to placing a tenant:

Prior to listing your property, it is best to schedule and complete any make-ready work that needs to be done. It is advised to complete any major/minor renovations, appliance replacement, flooring work, and painting before you start showings. This way, prospective tenants know exactly what they are getting, and you aren’t left rushing to finish up unfinished projects at the last minute. If there are any small or minor fixes and touch-ups that need to be done while you are showing, just be sure to set expectations with prospective tenants so that they are aware of any changes/improvements that will be made before they move in.

If you are planning to list your property for rent on your own, you will want to complete a fresh rental analysis before doing so. If you have access to the MLS, this is the best and most accurate way to determine an appropriate rental price. Not only can you see what similar homes were listed for, but you can see the rate that they actually “closed” for. If you do not have access to MLS information, you can get an idea by browsing around on sites like Zillow and Realtor.com. If you have a single-family home, make sure you are looking for rental properties that are of similar square footage, and have the same number of bedrooms and bathrooms. You’ll also want to take into consideration the kind of finishes and updates that exist in other rental properties. Is your home more or less updated than the others? You’ll want to adjust higher or lower within the range that you are seeing to account for those variables. If you are renting a condo or unit within an HOA or specific community, the very best comparables will be other properties within that same community. Keep in mind that the rental amounts you see online for active properties are what is being asked for, not necessarily what the owner will end up getting, so be prepared to make adjustments to the price if necessary.

If you are planning to use a Realtor or Property Management company to lease the property, then they will be able to complete a full rental/market analysis for you, and determine what the best listing price is for your rental (Pssst...Robert C. White & Company offers this for free!). They will also be able to monitor the amount of interest they are receiving on the property, and advise you of any adjustments that may need to be made.

Assuming you decide to market the property yourself, you’ll want to create an effective rental description and compile all of the information that you will need for your listing. Learn RCW’s tips for creating a stand-out rental listing here.  It is also strongly advised that you have professional photos taken by a Real Estate photographer. High-quality images are super important, especially when most renters are going to be finding your property online. Presentation and first-impressions are key to renting your property fast.

Next, you’ll need to decide on a showing schedule. The easiest way to do this is to determine set days and times throughout the week during which you will schedule all showings. This will keep you organized, and prevent you from running back and forth to the property a hundred times per day.

Lastly, prior to finding a tenant, make sure to have a screening process/criteria determined and a lease drafted and ready to present. Once you find a tenant that is excited about your property and meets all of your requirements, you’ll want to be able to move forward right away and get them into a lease. Happy renting!