5 Steps to Prepare Your Property for the Rental Market

With a cooling housing market, property owners are looking for ways to maintain, elevate, and make use if the equity in the homes they own. You may be surprised (or not) to find homes leaving the for sale market and re-entering as rentals in the near future. Renting out property to qualified tenants is a solid option in continuing to grow equity while the market stablizes. We've put together 5 key steps to take in order to prepare your property for the rental market.

1. Neutral Walls

Much like preparing a house For Sale, removing personal items and personal style in favor of neutral walls and decor. Like Buyers, future Tenants want to see themselves in the home. Additionally, White and Beige walls are easier to color match and recover after Tenant's move out. Matching that perfect Peacock Blue you once chose for dining room a few years later? It's never going to be a great match.

When choosing the best paint for a rental, avoid builder grade flat paint. The cost is low, but you'll pay to paint again and again. Flat paint collects finger prints, scuff marks, and dirt in an unforgiving way. High quality Semi-Gloss and Satin finish paint will keep your rental looking fresher, longer.

2. Minor Repairs

Of course youre fixing major malfunctions, but pay attention to details. Items many owners gloss over include leaky faucets, loud appliances, or doors that don't open/shut properly. These seem like tiny maintenance items that "wouldn't bother me if I were a renter," but often these tiny nuisances can lead to or are a symptom of larger problems.

3. Professional Photography

Take photos! Once you're home is in top condition, take photos. Staging for photos or virtual staging is a great way to appeal to a wider audience. Crisp, professional photos will go a long way in making sure your rental stands out from the others on Zillow. Many owners often avoid the Professional photos route because of the cost. We regularly use Showcase Photographers in Nashville to snap our Rental and For Sale listings. Often they can schedule photos within a day, and are consistently turning around very well edited pictures in 24 to 48 hours.

4. Determine Management Method

Yes, this is the part where we shamelessly self promote Boxwood Properties as your Property Manager. Managing tenants, background checks, chasing rent, coordinating maintenance, it's a full time job - and it's our full time job. It doesn't have to be yours. For clients with one or two, well maintained rental properties, just using our Listing Only services takes the worry of Tenant Screening and Negotiating leases out of their hands. For most of our clients though, we handle everything from the painting to the tax reporting. Shop around, there are so many well established PM agencies in Nashville. You'll want an agency who is knowledgeable about the rental market, has access to painters and maintenance, understanding of tenant screening and lease negotiation. The cost of Property Management should match your expectations of the results you expect from your Property Manager. In addition to the management of your property, any professional agent can always recommend maintenance that should be done on the house and who should do the work. By engaging professional help, you'll be engaging a broad network of services!

5. Listing Exposure

Finding the best listing platform for your rental in your market will make all the difference in exposure. Real Estate Professionals usually have access to Business-grade platforms for maximum exposure. If you're hiring a Professional, ask them what platforms they plan to use to expose your listings. Regular Property Management companies often have a waiting list of individuals looking for housing, and can push your listings in front of these individuals and other Professionals.

If you're planning to list on your own, some great platforms for rentals are Zillow and Apartments.com. I've also seen great success for clients using Hemlane.com Hemlane is a property management platform that's used by individual owners and professionals. Hemlane makes all the connections for you, from listing agents to maintenance people. Hemlane does require a fee, and you should verify that the fees are in line with your budget. Other platforms like Zillow and Apartments.com will request small listing fees, that are one time payments. Both platforms will feed your listing to their sister platforms like Trulia and Hotpads.

Depending on your type of rental, you may find other platforms useful for Furnished rentals (FurnishedFinder.com) and Airbnb for 30+ day rentals. Prior to listing, research which platforms are best suited to your market and rental type.

Boxwood Properties manages Rentals of all kinds for Property Owners of all kinds. You can always call or message for a consultation to see if Self-Managing or hiring on a company like Boxwood is the best fit for you. We also offer guidance in estimating your current equity, and planning the best use for you of your property.

TESTIMONIALS

We worked with Boxwood maintenance services for some home repair needs, and we were very impressed with the entire experience. The scheduling and quoting process was quick and easy, and the pricing model provides valuable services at an affordable rate. We needed some carpentry, painting, and water-proofing done on exterior doors and windows, and we got a fair, on-site quote and were able to get the job started same-day. The maintenance professional we worked with was prompt, communicative, and highly skilled - all around a pleasure to work with. We also felt confident knowing that maintenance services are backed by a well-known company like Boxwood, so we had 100% confidence that our project would go well. The results were great, and we will use Boxwood for all of our future handyman, repair, and maintenance needs!
-Lindsey O'Connell, past Buyer, Maintenance-service User, Nashville, TN

Boxwood goes above and beyond to find the perfect house for you. If you are scared of interest rates or price, they know how to confront it! I highly recommend Boxwood for anything in the housing/renting/commercial market. Sara Muller, Past Client, Current Supporter, Ashland City, TN

I was introduced to Boxwood mid purchasing our vacation rental from out of state. As a Realtor myself I understand the importance to have a team you can trust....To say I was lucky to find them is beyond an understatement! Kristin bent over backwards to help us furnish the property and find a tenant with no time wasted and even ahead of schedule. Her lease agreement was customized to our needs (within legal rules of course) and she has maintained professional communication between us and our tenants again keeping everything prompt and on time. I actually hope to purchase another rental just so that Boxwood Properties could manage it for me! If you go with Boxwood you're in fantastic hands and would not need to worry about a thing! HIGHLY RECOMMEND!😍🏠
-Lindsay Hovdal, fellow Realtor, Property Owner, Lake Havasu, AZ

Reasons Millennials are NOT the Renter Generation.

Do You Believe Homeownership Is Out of Reach? Maybe It Doesn’t Have To Be.

It turns out, millennials aren’t the renter generation after all. The 2022 Consumer Insights Report from Mynd says there’s a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how they’re breaking into the market:

“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”

Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by today’s higher mortgage rates. The report above mentions how many people in this group are considering this approach. It says:

“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”

Why Younger Buyers Are Buying a Home To Use as a Rental

This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldn’t afford to buy. But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.

In a way, they’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.

Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time.

Bottom Line

If you’re thinking about buying a home as an investment strategy to build your wealth, let’s connect to explore your options and nearby areas that may have homes that fit what you’re looking for.

The Emotional and Non-financial Benefits of Homeownership

With higher mortgage rates, you might be wondering if now's the best time to buy a home. While the financial aspects are important to consider, there are also powerful non-financial reasons it may make sense to make a move. Here are just a few of the benefits that come with homeownership.

Homeowners Can Make Their Home Truly Their Own

Owning your home gives you a significant sense of accomplishment because it’s a space you can customize to your heart’s desire. That can bring you added happiness.

In fact, a report from the National Association of Realtors (NAR) shows making updates or remodeling your home can help you feel more at ease and comfortable in your living space. NAR measures this with a Joy Score that indicates how much happiness specific home upgrades bring. According to NAR:

“There were numerous interior projects that received a perfect Joy Score of 10: paint entire interior of home, paint one room of home, add a new home office, hardwood flooring refinish, new wood flooring, closet renovation, insulation upgrade, and attic conversion to living area.”

And as a homeowner, unless there are specific homeowner’s association requirements, you typically won’t have to worry about the changes you can and can’t make.

If you rent, you may not have the same freedom. And if you do make changes as a renter, there’s a good chance you’ll need to revert them back at the end of your lease based on your rental agreement. That can add additional costs when you move out.

The Responsibilities of Homeownership Give You a Greater Sense of Achievement

There’s no denying taking care of your home is a large responsibility, but it’s one you’ll take pride in as a homeowner. Freddie Mac explains:

“As the homeowner, you have the freedom to adopt a pet, paint the walls any color you choose, renovate your kitchen, and more. . . . Of course, along with the freedoms of homeownership come responsibilities, such as making your monthly mortgage payments on time and maintaining your home. But as the property owner, you'll be caring for your own investment.”

You’re not taking care of a living space that belongs to someone else. The space is yours. As an added benefit, you may get a return on investment for any upgrades or repairs you make.

Homeownership Can Lead to Greater Community Engagement

That sense of ownership and your feelings of responsibility can even extend beyond the walls of your home. Your home also gives you a stake in your community. Because the average homeowner stays in their home for longer than just a few years, that can lead to having a stronger connection to your local area. NAR notes how that can benefit you:

“Living in one place for a longer amount of time creates an obvious sense of community pride, which may lead to more investment in said community.”

If you’re looking to put down roots, homeownership can help fuel a sense of connection to the area and those around you.

Bottom Line

If you’re planning to buy a home this year, there are incredible benefits waiting for you at the end of your journey, including the ability to customize your home, the sense of achievement homeownership brings, and a greater connection to your community. Let’s connect to discuss everything homeownership has to offer.