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Cloop’D Advice: How Can a Landlord Make His Property More Appealing in This Post-Covid Era?
How can a landlord make his property more appealing in this post-covid era?
Aside from landlords, we believe that many businesses would benefit from new marketing strategies in the post-covid era. If the pandemic has taught us anything, it’s to be more tactical, intentional, and definitely spontaneous. Occasionally, unconventional even!
Now that an unusual pandemic appears to be here to stay for the foreseeable future, we must live while also attempting to avoid contracting the virus, so everything we do, including business, must be tailored made! In this case, it has to be how to make a landlord’s property more appealing in the post-covid era for landlords.
For the all-new monthly segment Cloop’D Advice, we decided to ask Toks Adebiyi this question. Based on his wealth of experience, Clooper founder Toks Adebiyi will attempt to answer questions about property management, ownership, and rental, as well as educate us, in general, every month.
So, from our pool of questions, Christine Mugeni decided that the best topic for this edition would be post-covid consequences on landlords; how can a landlord make his property more appealing in this post-covid era?
Toks responds:
The rental space is a very competitive market and landlords are likely to face a healthy amount of competition to secure good tenants for their property as quickly as possible, depending on location.
I’ll share five (5) tips for making your property more appealing in the post-covid era in order to find tenants faster.
1. High-quality photos of rental properties seal the deal!
I cannot emphasize how important this is, so be prepared to pay for professional photos or invest in an app or high-quality camera for this purpose.
The business of renting out properties is actually a hospitality business and should be treated as such. Think about it for a minute. Would you pay to stay in a holiday rental or hotel if the pictures of the property were unflattering? Your answer is most likely no, so how much more for a potential tenant who may stay 6 months, a year, two years or more? Although it may be a business or investment for the landlord it’s a home for the tenant so the more you make it look and feel like a place they would be proud to call their home, the more likely you may be able to secure better tenants for it.
Furthermore, tenants typically have a large number of properties to review, and the shortlisting process can be brutal. One of the most important motivators in shortlisting potential rental properties is high-quality photography. So don’t be concerned if you have to pay a little more for great photos; it should be worth it and pay for itself.
2. Master the art of rental property pricing
Unless you work in luxury rental properties at the top of the market, you will most likely deal with price-sensitive tenants who shop around to match affordability with comfort and luxury.
The best way to price your rental property, in my opinion, is to gather 3 to 4 comparable properties that are similar to your rental property in terms of location, size, and condition. Take into account any special features such as parking space, amenities, bills, and so on to determine whether to price slightly above or below comparable properties.
3. Get creative with extras for your rental property
Everyone loves a good freebie or discount so take advantage of them. There is a reason why many hotels and holiday rental companies lure their guests with offers, discounts or special packages that entice them into a transaction. Well, rental property is exactly the same, so a great way to differentiate your property is to creatively include a deal or Freebie and it doesn’t have to be too expensive.
For example, you could offer to pay for your tenants’ first year’s TV license or include an Uber voucher. You could even provide a month of weekly cleaning for free. Whatever it is, that little something extra is a powerful way to pique the interest of potential tenants for your rental property. Remember that you are in the hospitality business as a landlord.
4. Consider deposit replacement as an alternative to the traditional security deposit
There is a growing trend in the private rental market in favour of deposit replacement products, and I believe this may soon become a high priority criterion for tenants looking for a new home. So, how exactly does it work?
Traditional security deposits for most types of assured shorthold tenancy lets are capped at 5 weeks, and such deposits also need to be protected via government-approved insurance or the more popular custodial scheme. While deposit replacement products are typically where a tenant pays a non-refundable fee to the company providing the service instead of a traditional deposit to provide protection to the landlord against breaches of the tenancy agreement.
The potential benefits of such schemes include enhanced landlord protection over the standard five (5) weeks security deposit and the tenant not having to tie down a large amount as a security deposit for the duration of their tenancy. Instead, they pay a much lower fee.
So perhaps giving the tenant the option of traditional security deposit or deposit replacement may be prudent for flexibility.
5. Make use of technology to simplify the process
One thing Covid has taught us is that the world has moved to a more remote and less traditional way of doing business and finding new tenants is no exception.
Using web platforms such as Clooper.com, you can find new tenants more quickly. Schedule your viewings with apps like calendly, or offer a remote tour of your property via Whatsapp video calling. You get the idea.
Because the world has changed since covid, using technology to make this easier and more accessible should be embraced in order to secure tenants more quickly.
Cloop’D Advice is a monthly recurring segment in which our founder, Toks Adebiyi, answers questions about property management, ownership, tenancy, regulations, and everything else in between.
About Toks
Toks Adebiyi, Clooper’s founder and CEO, has over ten (10) years of consulting experience leading and delivering digital transformations (including FTSE 100) for brands like VISA and G-Research.
He began his real estate career as the previous owner of a property club with over a thousand landlord members, and he has over fifteen (15) years of experience in property investment and management.
Toks Adebiyi has a BSc in Business Management and Information Technology with 1st class honours. He also has a Harvard Business School Certificate in Real Estate Management as well as an NFoPP Level 3 Technical Award in Residential Property Management and Commercial Property Agency. Among others.
His firm has provided consulting services to a variety of brands, including Prudential, Visa Europe, G-Research, LexisNexis, Lloyds Register, Regus, and the European Medicines Agency.
Toks is a Paul Harris Fellow and a Rotarian. He likes to travel, eat out, play tennis, box, and watch cartoons.
Toks is active in community improvement projects and has served on the boards of directors of several local charities. He coordinates his neighbourhood watch and donates to numerous local, national, and international charities.
Toks describes his purpose as “using my optimism and creativity to assist people in living more fulfilling and joyful lives.”
This blog post is not intended to constitute legal or financial advice.
