The Features Tenants Want Most in a Rental

Do you ever think about what you can do to draw tenants to your rental property?  Like, how can you stand out from all the other properties on the market?

This week on the podcast we are talking all about what the tenants want and look for when searching for their next home.

Much like the adding value podcast we did a few weeks ago, but this is from the tenant’s perspective, not the landlords.

There are several features that do not cost much, if anything at all, that rental property owners can implement to make their investment more appealing (and thus, more profitable) over their competitors.

From location, budget, digitalization, and physical amenities renters are looking for, we are covering it all on this episode of the Your Landlord Resource Podcast.

LINKS

👉 Episode 23: Tips on Marketing Your Rental, Part 1

👉Episode 24: Tips on Marketing Your Rental, Part 2

👉 Kwikset Smart Key: Re-Key Set

👉 Episode 61: Fair Housing and Emotional Support Animals (ESA’s)

👉 Episode 36: ESA Insights and Pet Rules

👉 Episode 77: Adding Value to Your Rental Property for Appeal and Profitability

👉 Episode 34: Our Lease and Addendum Breakdown Part 3

👉 Choice Home Warranty: Never Pay for Covered Home Repairs Again.

👉Suncast Storage: 22 cu ft, 2X2X6 Vertical Shed

👉TurboTenant, A landlords one stop shop for tenant management(for FREE)

👉Avail Landlord Property Management Software

👉EZ Landlord Forms Now Has a Rent Collection Feature!

👉 Course Waitlist: From Marketing to Move In, Place Your Ideal Tenant
👉 Text Us a Question! Two ways: SMS text to 650-489-4447. OR

One way text only, you need to include your email for a response.

👉 Email us your questions! Stacie@YourLandlordResource.com, Kevin@YourLandlordResource.com
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Transcript

Stacie: 0:00

The mentality of, if it ain't broke, don't fix it, is not what tenants prefer. When your unit is updated, it will feel more luxurious to their tenant. They want to feel good about where they live, and you can charge more when your units have such things as updated appliances. And listen, you don't want them walking in during a viewing and asking if there's a plan for new appliances. This says to them that they have to ask for stuff and that you are not the landlord with the forethought to create a space for them to enjoy in advance. Tenants want a landlord who is willing to put an effort into their units. And whether that happens with repairs, or maintenance and upkeep of the unit, or security cameras, or a pet run, or nice but easy to care for landscaping, or even new appliances, they want you to create a space for them that makes them feel like you care about the property and them as a tenant.

1:03

Welcome to your landlord resource podcast many moons ago. When I started as a landlord, I was as green as it gets. I may have had my real estate license, but I lack confidence in the hands on experience needed when it came to dealing with tenants, leases, maintenance, and bookkeeping. After many failed attempts, fast forward to today. Kevin and I have doubled our doors and created an organized, professionally operated rental property business. Want to go from overwhelmed to confident? If you're an ambitious landlord or maybe one in the making, join us as we provide strategies and teach actionable steps to help you reach your goals and the lifestyle you desire. All while building a streamlined and profitable rental property business. This is your landlord resource podcast.

Stacie: 1:52

Hey there landlords, thanks so much for listening to the Your Landlord Resource Podcast. I am your host Stacie Casella, and I'm here with my co host my business partner my snuggle buddy Kevin Kilroy.

Kevin: 2:06

Geez. Really? Snuggle buddy? Okay, we need to work on your intro, Stace.

Stacie: 2:15

I don't know where that came from. I was trying to be spontaneous and apparently it was an epic fail. All right, duly noted. Do not call Kevin my snuggle buddy on air.

Kevin: 2:25

Thank you. Okay, I say we get on with the show.

Stacie: 2:30

Yeah, why don't you tell them what we're here to talk about today?

Kevin: 2:34

That I can do. All right, you guys, we're here to discuss the main features, and I think there's eight of them, that tenants want most when looking for their next rental. And several of these items are ones we've discussed in previous episodes. But today we are presenting them from the view of the tenant and why they are important to them. Many of these features have additional factors, aka amenities, that can be implemented fairly easily, some at actually no cost to you at all. And some will take some time and forethought, but we wanted to discuss those too because if you are planning on doing any renovations or updates they would be good amenities to add to increase the value of your rental and essentially your profit.

Stacie: 3:18

Yeah, so we wanted to come on here mostly to discuss these features to help you all minimize your vacancies. And to be honest, where tenant screening is super important, so is knowing what amenities renters want when they're looking for their next home. There have been surveys conducted that show that renters are pretty specific about what impacts their decision about what they want in a rental. And here's a tip for you. If your property has any of these most desired features, please make sure that you mention them in your marketing ads and your listings. All right, let's start with the obvious and that's going to be price. I mean, it's no secret that people want a good deal, right? 80% of renters say that the rental amount is important to them when they're searching for a new home, which duh, many have a budget that they probably follow. Smart tenants will heed what the experts say and not spend more than 30% of their gross income on housing related expenses. So, those expenses would be rent, security deposit, renter's insurance premiums, pet rent, storage, and any administrative fees that a landlord might charge. The factors on how much people are willing to spend on those housing related expenses are one, location. So, some areas are just more expensive than others. In California, which is notorious for high rents, tenants will share the cost to rent with roommates to reduce their rent and keep in their budget. Incomes are supposed to be higher here as well. And where I do realize they try to keep up with the cost of living, our kids, who are doing pretty well, cannot afford to rent without a roommate, at least not here in the Bay Area. And New York is another one.

Kevin: 5:12

Okay, a quick sideline. A couple of years ago, kid number two was living at home, saving money after graduating from college. And I still remember the day when he walked into the living room and asked if he could talk to us. I mean, he was so nervous and frankly, kind of so were we. But he basically announced that he was going to move to Idaho where his two closest buddies from college were. And at the time, the cost of living there was, and you know, really for the most part still is, lower than California. And the long and short of it is that when he interviewed for the company he ultimately ended up working for, they matched his California salary. I mean that is like getting a pretty good raise. I mean that income with the lower cost of living allowed him to continue to save his money and he ended up buying his first home only six months later.

Stacie: 6:05

Yeah, which is a good segue for discussing remote workers, right? They are notorious for moving to lower cost areas, but they earn a higher income from out of state or even out of the country. Obviously, rents in lower quality neighborhoods, let's say C and D areas, are going to be lower than more desirable areas, you know, like the A and B neighborhoods. So tenants may have to live in those C and D areas to be able to afford staying in their budget.

Kevin: 6:35

Another factor that determines where someone can afford is, again, duh, income. If they don't earn a lot, they can't spend a lot. The more they make, the better the unit and amenities they can afford. Again, just because they make good money doesn't always mean they want to spend a ton of it on rent. I mean, we have plenty of tenants who make as much money as we do, or maybe more, and certainly can afford to live in the brand new fancy apartments around the corner from our complex, with all the fancy amenities like a pool, a rooftop patio, a mailroom, parking, gym. But they choose to live in our units because maybe they want to save money, or those amenities just aren't that important to them. And FYI, only two of those amenities I just mentioned are part of the main features tenants are looking for in their rental that we'll be discussing today. So another factor that will affect how much a tenant can afford is debt. If someone has a lot of debt to pay they might want to spend less on housing to be able to pay those debts. And that could be their own decision because they need the income to pay their bills. Or it could be that, and we hope this is true, that no landlord will approve their rental application based on the high amount of debt showing from their credit report and the income they earn. And that forces them to find a home with a lower cost rent so they can qualify for the unit. Debt is another situation where a tenant may choose to live with someone else who can contribute to the rent. Dual incomes or even more roommates means that they can afford a higher rent so they can save, pay off debt, or I guess do more fun stuff like travel. And the last thing that affects how much tenants are willing to spend on rent are amenities offered with the rental that will save them money elsewhere. So, if your unit regardless if it's a multi family or single family home, offers a tenant such things as storage for all their stuff or maybe a washer and dryer so they don't have to haul their laundry to the laundry mat and waste a few hours waiting on it. Or a patio or outdoor space where they can entertain at home instead of going out. Or maybe even a gym so they don't have to buy a membership elsewhere. Tenants are willing to pay a higher rent to live there. And I know, before you ask how a single family home would have a gym, think about condos and homes in HOAs. They often have gym spaces for residents. Any of these amenities increases the perceived value of what they are paying rent for.

Stacie: 9:15

All right, so the next feature that tenants are looking for is location. I mean, you always hear the phrase location, location, location, right? Location is not only about the physical location of your rental. It also includes the proximity to desired amenities that tenants are looking for. Now, depending on their age, location can be an important factor in whether someone rents from you. Can you control your location? Not really. So when you're looking to buy a property, check out the neighborhood to see what the area can offer your tenants, and what you can include when you market your property. Young professionals want to be in the heart of the action. Living in a well connected and accessible city or town makes life more convenient and allows them to feel like a part of the community, even if they don't have permanent roots. Some factors that tenants look for with relation to location would be walkability. Many landlords have seen a big uptick in the desire for outdoor space ever since the pandemic. 57% of renters valued a walkable neighborhood when searching for their next rental unit. They want to be able to walk to social spots, so they don't have to deal with driving and parking or even paying sometimes ridiculous prices for an Uber. For big cities, being near public transportation is a huge plus. If your tenant can walk a short distance to public transit, then that might be important for them to know about. For our Sacramento units, The Midtown location is about a mile and a half from downtown. It's all flat and really easy to walk. It's also close to all the fun and fancy restaurants, the Golden One basketball arena and entertainment hub, as well as a park with a baseball field, basketball courts, and weekend outdoor yoga. For a single family home that we help a family member with, about 15 minutes away from our home, it's marketed that it's two miles from the following. A main public transportation hub that can get you pretty much anywhere in the Bay Area, a huge medical campus, highly rated schools, and a highly desired area with amazing shops and restaurants. Now, you know, we get that two miles is not an easy walk, but with bikes, you know, especially those new electric ones, and the bus that runs a quarter mile from their rental, if they don't drive, they can easily reach whatever they need in a very short amount of time. But, also know that being near grocery stores, restaurants, parks, gyms, and entertainment facilities is a huge plus. For single family homes, maybe the location is not walkable to those amenities at all. But maybe your target market is more a family who would be looking at walkability to good schools, or a walking or running paths, or maybe even a dog park. We did a two part series, episodes 23 and 24 on tips for marketing your rental property, and we're going to link those in the show notes for you.

Kevin: 12:21

Yeah, and where walkability is one thing tenants like, for those that don't mind driving, understanding the commute to their employment or wherever they need to go on a regular basis is a factor as well. 56% of renters surveyed said their commute to work or school was highly important. It was 58% back in 2018, so the desire to be close to work or school has remained fairly consistent. Again, know what is located around your rental. If near public transportation or near the freeways or highways, people like to know if their drive to work is easy or not. Having your rental near large employers is also a plus. So, think universities, corporate offices, government facilities, let's, uh, military bases, healthcare facilities. Or maybe large warehouse distribution centers or manufacturing facilities are a huge plus. And where yeah, it's nice to have less wear and tear on a unit, you want tenants to be able to enjoy your rental unit and not just sleep in it because they have a two hour or more round trip commute to get to work. Which really is not uncommon here in the Bay Area. I mean many people work here in the bay and live over an hour away. We know some who will commute three hours a day. Now this is not uncommon for firefighters is you know they usually work 24 and sometimes 48 hour shifts and then they're off for several days before having to race back to work. Our nephew just got hired as a firefighter and is looking to buy a house a couple hours away and then commute to his shifts. One because he wants to live in a more rural community, which is very difficult to find here in the Bay Area but mostly because that is where he can afford. Now we know he's buying a home, but it's still the same concept for renters and goes back to location, price and the amenities are lifestyle he wants. A good friend of ours is in the plumber's union and a good buddy of his can experience commute sometimes three hours a day. Again, he's older and took advantage of the low interest rates way back when and bought a beautiful home to eventually retire to up in the Sacramento Valley somewhere. But until that retirement day comes, he is choosing to commute back and forth so that someday he can enjoy a home where the price and location were available. And I know I kind of went off on a tangent there, but I just wanted you all to know that commute times are important, but to some price and location are more so. Alright, the last factor tenants consider when deciding on the location of their next home is that they want a safe environment. And yeah, this does seem obvious, but some who cannot afford to live in better neighborhoods will have to consider living in ones where they might be taking a chance on safety. Regardless, having a safe and secure place to live is also vitally important to tenants. Now, we like B level properties that are typically in safer neighborhoods. And sometimes we see C or C plus level that is right on the border of a B level and might be more desirable and considered safer. So beyond the physical location and the safety statistics for the area, there are steps landlords and property managers can take to make their units feel more secure for tenants. One would be adding floodlights and other outdoor lighting to parking and walkway areas. Sensor lights that automatically come on and then go off after a minute or so, are a huge plus. And this is especially appreciated by your neighbors who don't want to feel like they're living next to a football stadium that's lit up for a night game every single night. Another thing we can all do to make our units feel more secure is to install security cameras around public entrances. there are some issues with security cameras and rentals, so you'll want to make sure they're only facing common areas around entry doors and walkways. Some cities actually have ordinances about using security cameras, so make sure you follow the law as well. And another thing, which we are shocked at how many landlords do not do this, is changing locks or entry codes after every move out. And yes, where we personally have not experienced it, we actually do know others who have had an old tenant come back and try their key or code to gain entry to the rental property. I mean, That's nuts. Some said they forgot something on the top shelf of the kitchen cabinet when they moved and wanted to see if it was still there. And creepy enough, one said they wanted to see how the new tenant arranged their furniture.

Stacie: 17:06

Okay. That's just weird.

Kevin: 17:09

I mean, people can be very unpredictable. So please change out your locks every time. And before you groan and say, Oh, but it's so expensive to chain the lock or call a locksmith out It is not if you use Quickset locks. There are kits you can buy and it's like five or seven bucks and they have a new set of keys and they have the special tool needed, I mean, I swear, even for me, it takes a couple minutes to swap out and change the locks. We will link the kit in the show notes so you can see what it entails. So these are just a couple of things landlords can and should do to make sure their rentals feel safer.

Stacie: 17:50

And if a tenant feels safe and secure where they live, they'll not only be willing to pay more, but likely they're going to stay longer too. All right, so Kevin finished out the discussion on location. Now I want to move into one amenity that a lot of tenants want as an option. And that is the opportunity to have a pet. Since the pandemic, the number of renters with a pet has increased dramatically. In 2018, it was 46% of runners reported having one pet. And now, that number is over 60%. That is a huge number of renters who need to have a landlord with pet friendly policies. Dogs seem to be more popular than cats, but not, not by much. Now, there are pros and cons to allowing pets. So the pros would be happier tenants, less turnover, because it's hard to find good rentals that allow them. And depending on the state and local laws that surround your rental, you may be able to charge pet rent and fees, which will increase your income. And the cons to allowing pets are that they can be a noise nuisance if they have a dog that barks a lot. Or even a loud bird that squawks all day. We have found with other rentals that we manage that once you have a pet in the unit, it's hard to clean it well enough that it won't affect another incoming tenant that might have pet allergies. Damage is another issue. They can ruin your property if they are not properly cared for. And it's hard to prove that the pet caused that damage, to say something like floors, unless they're the first tenant in after installation and they're brand new. Dogs chew and they scratch doors and cats spray walls and they tear up carpet. And we know many landlords who have removed their pet policy after having a really bad and expensive experience. That$50 a month is not worth it when you have to spend way more to clean and repair the unit properly after someone and their pet moves out. And you know, we do not allow pets in Sacramento. They are not set up to accommodate pets at all. They'll get trashed. We have carpet in the bedrooms and older, not water resistant plank flooring. And none of our units have private outdoor space, although for the most part they are pretty soundproof. In Idaho, we bought the complex with tenants who already had pets, so we kind of had to roll with it. But that complex is situated among 24 other fourplexes and there is a dog area for the tenants to go and socialize and potty their dogs. That's kind of a good benefit to have there. So let's talk about some things that you can do so that allowing pets won't be so worrisome. If you have the space, create a designated pet area outside your rental property. My cousin owns a single family home rental and installed a pet run along the side of the home for dogs to be able to either stay out there full time or stay there when the owner's away. And it has a fabric awning for shade and gravel for the potty area and I think she has fake grass or turf out there too. This has significantly cut down on the pet wear and tear inside their rental. Apartment owners could do the same, but obviously not for pets to stay in permanently. But if you have the room to set up a, like, little mini dog park or at least somewhere for them to go potty so that they don't use your lawn or common space that other tenants are using, that really is helpful. Maybe provide some poop bags and a special lidded garbage can where they can go and dispose of the poop. Check your neighborhood to see if there's a dog park close by. In Sacramento, we have one right around the corner, which if we allowed pets is what we would encourage our tenants to use. And another thing you can do is screen the pets. You can vet pets just like you do your applicants. You can speak with the veterinarian and you can speak with the previous landlords about their behavior. You can spend time with the pet so that you can see what kind of control that the applicant or the tenant has with them. Accepting pets and having a useful outdoor space for them is a great way to increase your tenant pool and you may be able to charge more in rent. Some other not so cost effective ways to combat issues are to update your units so they are somewhat pet proof. And I hate to say it, but these upgrades would benefit tenants with children as well. But carpets are horrible for pets, and a lot of that new luxury vinyl flooring is pretty waterproof. So consider swapping out carpet for durable, waterproof, and easy to clean flooring. Soundproofing units during a remodel is a really good idea, so that barking dogs won't be a nuisance. And if you have a single family home rental, good fencing is important so dogs can't escape. I guess that would work for, for kids too. So if you're planning on doing any renovations, you might consider paying a little bit more to add finishings that can handle pets easier.

Kevin: 23:17

And let me just say that Stacie and I have had pets all our lives. I mean, we've grown up with dogs, cats, whatever. So we do get it. It only took one bad experience for us to not allow pets in any of our units again.

Stacie: 23:32

Yeah. Well, we actually, we really never allowed pets in the first place, but we've had several tenants who snuck them in and you guys, we've heard all the excuses. It's my friend's cat, I'm watching it for a week while they're on vacation. Or the lease didn't say no pets. Yes, it did right here, and you initialed the page to acknowledge it. And the best one was when they bring in a pet and say it's an ESA. And then we have to tell them that regardless of if it's an ESA that has to be approved in advance. So the pet, or should we say, ESA has to go until you go through the proper process. And when we tell them what that process is, they never do it and they just end up moving out when their lease is up. And you guys we've done a couple episodes on pets and ESAs, we will link them in the show notes so you can check them out.

Kevin: 24:23

Okay, so we've gone over price and affordability, the factors that tenants consider with regards to location of the rental, safety and pets, so now let's delve into the interior space and what physical amenities tenants are looking for in the actual rental itself. So think about it. This is where the tenant makes your unit their home and hopefully for a long time. First up, having the preferred number of bedrooms was a high priority for 68% of renters. And my guess is these would be families that need additional space. And whether that need is for extra bedrooms or a bonus room for an office, people are wanting more places to spread out. Some want a large open concept area where they can put a desk to work from home or manage household bills, or maybe even having space for a play area for the kids. Now, we discussed ways to increase bedrooms in Episode 77, where we discussed adding value. If you want to check it out, we will link it in the show notes. But, the gist of it is this, especially those who work remotely, renters need additional space. And the layout of the rental unit is important to about half of renters.

Stacie: 25:41

I will say that it seems that the whole open concept home is apparently not as popular as it was about 10 years ago. Maybe the pandemic had something to do with that.

Kevin: 25:52

Oh, I think that was a definite factor, but from what we're reading people still like the open concept area for the kitchen but might want a separate space where they can steal away for some quiet time.

Stacie: 26:04

Yeah, and you guys, we've joked about this before, but we are HGTV junkies, and we are seeing more separation of rooms. Like Kevin said, a majority of people still want the kitchen and the living space open, but they do want closed off or separate space for an office or a TV room. And we are seeing more people wanting separate dining space away from that open concept area. I mean, my guess would be that families want a place to eat away from distractions like TV and toys.

Kevin: 26:35

Now, our home is not exactly open concept where the kitchen is open to the living room. But we do have a pretty nice open kitchen area and it can get loud in there when we have guests.

Stacie: 26:46

Yeah, because that's where everybody wants to be.

Kevin: 26:49

Always

Stacie: 26:51

All right Let's move on. Updated appliances are another thing that tenants want to see in a rental unit. If your units are still sporting appliances that are from 10 to 15 years ago you might want to consider upgrading to newer more modern ones. The mentality of, if it ain't broke, don't fix it, is not what tenants prefer. When your unit is updated, it will feel more luxurious to their tenant. They want to feel good about where they live, and you can charge more when your units have such things as updated appliances. And listen, you don't want them walking in during a viewing and asking if there's a plan for new appliances. This says to them that they have to ask for stuff and that you are not the landlord with the forethought to create a space for them to enjoy in advance. Tenants want a landlord who is willing to put an effort into their units. And whether that happens with repairs, or maintenance and upkeep of the unit, or security cameras, or a pet run, or nice but easy to care for landscaping, or even new appliances, they want you to create a space for them that makes them feel like you care about the property and them as a tenant. Several years ago, we decided to upgrade our appliances. And not because they didn't work, they all worked fine, but just by swapping out those white stoves, dishwashers, microwaves, and refrigerators in every unit, it made those units look so much nicer. And we didn't do it all at once, we did it one unit at a time as tenants moved out or renewed. We did that, we offered him sometimes as incentives as well. And depending on the sales hint, President's day, Memorial day, and Labor day are great times to buy. But depending on the sales, we were able to get bundled appliances. So that would be all the appliances from the same manufacturer for anywhere from$1800 I think$2500 is what we had to pay for the last unit. Appliances from the same manufacturer are important if your kitchen is open and your eye can see all of them in one shot, because the color of the stainless steel, the accents, like the black knobs, the handles, or any digital readouts are all going to match. So, the handle on the stove, the handle on the dishwasher, and the handles on the refrigerator match and the digital components on the stove, the microwave, and the dishwasher all are the same color and brightness. And this might seem extreme to some of you guys, but it really makes a huge difference to the design and the look that you get. And please be smart. Do not go with really off brand or really expensive ones. GE, Frigidaire, and Samsung are some of the brands that we have done really well with so far.

Kevin: 29:48

Yeah, I mean, upgrading the stove, dishwasher, and fridge, maybe just the facelift your rental property needs to close tenants quickly. And take in a bit more in revenue too. So think about that. And appliances really aren't hard to swap out. We always like to shop local, but I will say we get our best deals through RC Willey. We have an account there and i've used the same rep for years and he really knows what we prefer. And we're able to get our deliveries quickly. Plus we can opt for delivery only or have them install the appliances if we wanted to pay a little more. And the big bonus is they will take away the old appliances, which is huge for us. All right, let's move on to another amenity tenants really love, and that is a washer and dryer. This is one thing that allows us to stand out from the rest of our competition. And for us makes a huge difference on our applicant pool, because we can charge more for the amenities we offer. Being able to do laundry at your home is a major convenience, one that can easily bring in$50 or more a month in rent revenue. For many, especially renters that are families, not having a washer and dryer can be a complete deal breaker for them. In our multi family properties, we include washers and dryers in all the units. In the sixplex, which is a renovated Victorian building, the previous owner removed hall closet space, which all backed up conveniently to a bathroom or kitchen, and he installed stackable units. They don't use up a lot of space and not one tenant has wished they had closet space instead. Now in Idaho, the units were built with a closet to house side by side washer and dryers with storage space above. In many single family home rentals that we either manage or used to own, some included the washer and dryer as an amenity, some just listed that the hookups were available, and that the tenant had to provide their own. A couple of owners we know will provide the units but have a stipulation in their lease that the use care and maintenance of the washer and dryer falls to the tenant to handle. One thing you can consider if you don't want to deal with repairs of appliances is to get a home warranty. It can cover just appliances or even HVAC and water heaters too, and will be priced depending on how much coverage you want. Now we like and have used Choice Home Warranty before. We'll link them in the show notes if you'd like to check them out.

Stacie: 32:27

And the one thing I want to say about washers and dryers is that this is one thing that we look for when we're buying rentals as well. We want to make sure that they either have them already or have a place where we can incorporate them in. That's how important they are to have and to get that upper edge, especially when you're buying older or aged multifamily rental properties. Pretty much all the new builds now are incorporating washers and dryers in their units. All right. The next amenity is storage space. And this is especially important for multifamily units and even some older single family homes where extra closets or storage space is a big challenge. Whether you create ways for additional storage within your unit or provide a place on property for tenants to rent space, everyone likes the option for more space to store stuff. Most tenants have more things than can fit in a typical rental property. So having a storage shed or a designated basement space or an attic can be a major draw for those folks. If you already have storage space in your rental property, but haven't highlighted it before, add it to your marketing next time for a boost. If you're lacking space for additional storage, look around and see where you can easily incorporate some. We have seen landlords create space under stairways of a single family home that didn't have a garage. And for multifamily properties, landlords can easily build storage lockers in their basement or put up waterproof lockers in a secure place outside, which is what we did in Sacramento. We had a tenant who was an outdoorsman and needed space for all his camping and hiking and ski gear that was taken up space in his apartment. So we bought a couple of their two by two by like seven feet tall waterproof storage lockers and secured them in the back of the building. I think they cost like$200 bucks and we rented it back to the tenant for$25 a month, which he was thrilled and more than willing to pay. It paid for itself and is just a little extra income that we now have zero maintenance to do for. I think the ones we bought were made by Suncast. We will look and see if we can link the one we used in the show notes if you want to check it out.

Kevin: 34:49

Okay, let me take the next one, which is parking. And this is definitely something we have struggled with in Sacramento, as we have no parking available at all, just street parking. More than half the workforce commutes to work, likely more. So, if you have parking or a way to offer parking, even if the tenant has to pay for it, this is a huge perk for tenants. When we go to Sacramento, like I said, it's only street parking. And on weekends and in evenings, it's really hard to find a place to park. We just went by there on a Sunday recently and had to double park while Stacie ran up and did a quick inspection after a roommate moved out. And I think we've mentioned this before, but we used to have an empty lot behind us where the owner, who owned the building next to us, rented it to a local auto shop to park cars that needed work. The lot was rather large, so they would allow us to park there when we came up, but not for our tenants. That lot was sold, and they put up four new townhouses, so it's kind of a bummer we've lost that parking space, but we do like how it's added new units to our area. But many of the new buildings around us are renting for hundreds, if not thousands more than us. And they offer parking, they have pools, doormen, a mail room, gyms, patios, I mean, the list goes on. Which leaves the rest of us to park on the street. But getting back to parking, here is why it's important for many tenants. It is an added convenience and can make a tenant's day to day life easier if they don't have to circle around the block or deal with parking on a busy road. For multifamily parking lots, there can be parking for more than just one vehicle, covered parking to help in extreme weather conditions, and of course, handicapped parking for the disabled. And if a multifamily owner wants to, they can charge more for preferred parking spaces. So there's that. It is also perceived as safer when rentals include parking. Again, for single family homes, tenants don't have to worry about taking kids out of the car on a busy road. For a multi family unit parking, like in a lot, often there is ample lighting at night and sometimes maybe even security cameras. They can also be gated so there's no worry about outside people getting access to tenants' cars. And it's also an amenity that's right up there with washers and dryers. It's something that is not necessarily needed, but the convenience of having it really boosts tenant satisfaction and lowers the turnover rate. You see, tenants don't like to move. They want to stay in your unit, so do whatever you can to help them continue renewing their leases.

Stacie: 37:32

Yeah, parking is a really nice feature to have when you have it. And again, if you have it, advertise it. So sometimes people searching for a rental will adjust the filter online to only show them properties that have parking available. Same with washers and dryers. So make sure that your marketing includes it, even if it seems obvious. Alright, we have two more features that tenants are looking for and I'm happy to take this next one and that's that tenants want units that are clean. They say it's a big put off when they walk through a unit that has ladders and paint cans and tools laying around because they can't visualize how they can take that space and make it into their home. So our advice is do not show your units until they're completely clean and ready to rent. When a unit is really clean, it shows pride in your business. It will also show a new tenant how you expect that unit to be returned back to you. I will cover this briefly, but when someone moves out, and we do not have any big updates to do, we will take all of the plug and switch plate covers off, and toss them in the sink, spray them with a cleaner that has a degreasing agent in it, or even just sometimes plain old Dawn dish soap, and we soak them for a little bit while we prep to spot paint the unit. Now, depending on how long they have been in there, we can usually just take one of those small rollers and paint where we see some scuffs and dirt, like around the switches and in the hallways. We touch up the trim as needed too. Then we go and we put those plate covers back on and they look like new. And yeah, we could go and buy new ones for about 30 bucks, but for less time, because I don't have to go get those covers, I get the same results. If they're broken or something, then yeah, we replace them, but you would be amazed at what a difference those clean cover plates can make. We go over every single surface in that unit to make sure it's clean. We check all the appliances, the shelving and the cabinets, all the light fixtures are wiped down, windows, screens, blinds. We pull out the washer and dryer and the refrigerator and we vacuum all the dust up behind it. We check the smoke and carbon monoxide detectors and no matter when they were changed last, we always change the batteries. Even in the thermostat. And we replaced the air filter too. We oiled wood cabinets, we tightened the handles in the pulls, and we changed the locks on the entrances. And you guys, this process can take both of us the better part of a day, sometimes two if we find more needs to be cleaned than expected. And I'm telling you, our units are spotless when we hand them over to a new tenant. And I will also tell you that nearly every single person that walks through the door mentions it to us. You know, we are proud to offer a super clean place. Most landlords do not take this time to clean, but then they get pissed when their tenant moves out and leaves it dirty. And then they try to deduct from their security deposit. They still don't clean the unit and do this process all over again. And this is not the way that we want to operate our business. We clearly communicate how we care for our properties just by showing them that clean unit. Did we always do this? No way. It took trial and error and someone that we looked up to to explain how when you take pride in your units that pride will be seen and hopefully transferred to the tenant. And of course you have to be careful who you rent to but I'm not getting into that today.

Kevin: 41:15

I will tell you that every single property that the kids move into during college, I mean they were all disgusting.

Stacie: 41:22

Yeah, it was gross.

Kevin: 41:23

Most all of his parents were in there cleaning and pretty disappointed that these landlords would just paint over switch plates. They wouldn't clean baseboards and they'd paint over all the lint from the previous person. Bathrooms, oh, geez I mean did not look like they had ever been cleaned. And of course the kids really didn't care. They were just excited to have their independence and I'm pretty sure those rentals were only cleaned when us parents showed up for a visit and not, not that well to begin with.

Stacie: 41:53

Well, I did warn the kids, I'm coming out, it better be clean.

Kevin: 41:57

And yeah, we hired cleaning people to go in there and clean every once in a while. Had those kids gone in and found the place clean to start with, they might have had some respect for the place. Maybe not

Stacie: 42:09

Hey a property's moving condition is important to every tenant no matter how much they pay in rent. And meeting expectations is the easiest way to satisfy your tenants. Just remember that first impressions are key to creating urgency and the desire to live there.

Kevin: 42:28

Which is exactly what your goal is, to get someone in there who doesn't want to lose out on renting your unit. Okay, and last but not least, tenants do like online rent payment options. Demand for online rent payment systems has steadily grown over the last few years. In spring 2019, 57% of renters said they'd prefer to pay rent online. the summer of 2022, that percentage had increased to 68%, yet only 56% of renters reported having the ability to pay rent online at the time. This is a modern convenience that most tenants are after. You can pay for pretty much anything you want online these days and tenants feel rent is no different. Asking people to write checks and place them in the mail is outdated and less efficient for everyone. And there are plenty of online rent tools available, many of them free, for landlords to collect rent electronically and move away from the traditional quote unquote checks in the mail method. I will tell you our kids that range from 24 to 29 do not write any checks. I mean, maybe once a year if that. So who can you use to process your online rents? Here are some companies that we like. Some we work with, others we just know are highly rated. We will link them in the show notes for you to check them out if you like. Well, you know we love TurboTenant, and the best part is that for the basic coverage, which does include rent payments, TurboTenant is free. Avail is another one that has a limited package, which includes free rent payments. EZ Landlord isn't necessarily free, but if you already have a paid account, either monthly, annually, or the lifetime one, and get access to all their state specific leases and landlord forms, then their new rent payment service is now available at no additional charge. And one thing we want to say about EZ Landlord is that they have shared with us a special code to get 15% off your first purchase. That includes their annual rate or their one time lifetime fee. Which I think would save you somewhere in the ballpark of$60 on lifetime state specific leases, forms, and now rent collection. The code is STACIE15, that's STACIE with an I E, and then the number 15.

Stacie: 44:54

Yeah, I mean that lifetime fee is a killer deal. I think it's like$399 for lifetime access to everything they offer. And that 15% off brings it down to about$340. If you consider each lease is$29 bucks, and I'm not sure if that includes addendums or not that you need to add. Um, and then you also have access when you pay the fee to all the forms that you need for your tenants to put in things like the different accommodation requests, security deposit, distribution forms, all that. And now they have rent collection. I mean, I'm pretty excited about it. And for anyone who does not need fancy landlord software, but you want to offer rent collection EZ Landlord is a really good option.

Kevin: 45:39

Yeah, I mean I think we use what we're up to about a dozen extra addendums in our lease now?

Stacie: 45:44

Yeah, at least.

Kevin: 45:46

And I didn't realize EZ Landlord Forms had added the feature. That's actually pretty cool. Okay, there are a few other landlord management software companies like RentReady, DoorLoop, and Hemlane, and they all charge a monthly fee to use their services, but are noted in the top 10 for landlord software, and they all have rent collection options to use. If you happen to have QuickBooks, you can invoice tenants and have them pay electronically, but that ACH deposit to you does include a 1 percent fee from the amount deducted. So it's hardly free, but if you wanted to, you could tack that fee on to the invoice so you could get reimbursed. But just make sure they sign and agree to that fee in the lease or an addendum. We will link all of those companies in the show notes if you'd like to learn more about them.

Stacie: 46:35

Yeah. I want to just say real quickly that QuickBooks, yeah, they charge a 1 percent fee, but it caps out at$15. So if you do charge higher rents, you don't have to worry about it. And the last thing I want to say about this episode is that like everyone else, tenants want the best bang for their buck. So think of ways that you can make life easier and potentially you may be able to charge them for that convenience offered. In Sacramento, we're in a real sweet spot. We are not high, high end that have, like Kevin said, the doormen in the mail rooms, parking garages, or gym, but we're not the lower end where units are not updated, offer little amenities either. We have updated, clean units with a few amenities tenants want, and we're located in a relatively safe part of town that's on a quiet street. And you can bet that yes, we do make sure that all of our marketing states are best features. So we can draw the best applicants to view our units. So those are the features that tenants are looking for when they're trying to find their next home to rent. We hope that you enjoyed this episode and at least got one good little tidbit of information out of it. If so, would you do us a favor and leave us a kind review of the podcast so other landlords can find us too. If you want to hear more, follow or subscribe to the podcast so each week the episodes are downloaded right to your favorite podcast platform. And hey you guys, we'd love to stay in contact with you. In the show notes, you can find links to all the free downloads that we offer, ways to sign up for our free weekly newsletter, and the waitlist to our upcoming course on tenant screening. There's also links to our social media accounts, which are on Instagram, Facebook, and YouTube. And we share very informative and detailed tips and tricks for landlords. So check those out. I think that's about it. But, thanks again, and until next time, you've got this, landlords!