One Thing Can Make a Huge Difference in the Success of an Investment Home

One Thing Can Make a Huge Difference in the Success of an Investment Home

Marketing an investment home to prospective tenants requires all of the same dynamics as promoting any product to consumers. The advertising needs to be engaging and eye catching with tremendous pictures of the product, a wonderful narrative describing the values or benefit, and a price that is very attractive.

Typically advertisers focus on one quality of their product that will eclipse the competition and create a need, possibly unknown to the consumer, but very cleverly highlighting the specific feature which solves the newly created need. Therefore, marketing a home to a prospective tenant requires the same advertising skills and advertising creativity to differentiate your property from the next.

Through the years I have noticed that most investors buy the plain, boring home, a decision that is based on pure, short term economics. They buy a home that only looks good on paper. Sadly the decision is primarily based on the concept that the property will rent and stay rented for the length of ownership.  The predicament comes when the home does not rent, certainly not within a reasonable timeline or for the agreed upon rental price.

The problem with this scenario actually began during a recent investment home selection.  As the buyer was reviewing properties and spreadsheets, no determination was made to the eventual attraction of this product to the end user.  As a result, there is nothing an advertiser can do to enhance the product to the consumer.

There are several easy solutions for investment home buyers.  As with any product, there needs to be one defining characteristic that will set this property from all others.  The same qualities a primary home buyer uses in their selection should be utilized during an investment property search.  Typically the list is not as long for the investment home, but it is just as important as a primary home search.  Basics should not be overlooked; the home needs to be the size that will market well to your demographic renter, it should be situated strategically in a neighborhood (close to a school or a park and not backing against a busy street), and located in a neighborhood that is stable or improving.

The significant difference in locating the ideal investment residential property is that it should have at least one defining characteristic that will make the home stand out from the competition.  Buying a home for yourself requires that only you like the home, no one else has to appreciate your selection.  Buying a home that you will be marketing to others requires that you select a property that will be admired by others looking to rent a home.  Typically it only requires one defining quality in a home that will create a strong powerful impression to a potential renter. Sometimes it is as small as a built in bench next to the front door creating a cozy initial feeling.  Oversized kitchens, with a large island or pantry always help homes rent faster.  A back yard that faces north with large shade trees especially on the west side provides a positive first impression also.

Typically these characteristics in homes do not cost home buyers more, it only requires that the property selection process is more carefully analyzed.  It is also important to remember that the traits and qualities that first attracted a renter to your home is one of the reasons that a renter will stay longer. Unknowingly, your future renter, once they are in your home, will appreciate the time and energy you spent selecting this home.  Following this advice, your home will always command top dollar and be vacant substantially less than a home that offers very little beside basic shelter.  Your advertising efforts will also be much easier and more successful because you have a better product to market.