If you are having a hard time finding tenants, here are a few tips that may help you participate more effectively in the rental market ,
Collect a larger security deposit. The reality of the market may be that in order to lift occupancy rates, property owners and managers will need to accept renters with lower credit scores than before the economic downturn. To mitigate risk, managers should require larger security deposits because, on average, default rates decline with larger deposits.
Consider renting to people with foreclosures on their record. Those who have a mortgage in foreclosure or who have mortgage payments that are 90 or more days past-due make up 9.2% of apartment applicants, up from 7% just two years ago. At the same, they tend to make good renters who pay their rent on time, and over 70% of them typically â€œpassâ€ their credit screening.
Reduce the security deposit, but make it non-refundable. Some property owners and managers may feel that in order to remain competitive, they still need to ask for lower security deposits than they would in fatter times. One way to mitigate losses is to make the deposit non-refundable. By doing so, they may actually increase their effective deposits while still remaining competitive and filling vacancies.
Best of Luck
Helene M Moore
Windermere Prestige Properties