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Build Income and Wealth with Residential Proper ties

Provide your chosen tenant segment with the specialized features
and benefits they want, and in exchange, they will reward you with

higher rents, lower maintenance costs, and reduced turnover.
3. Design a lease for your target market: The terms and clauses within

your lease should reinforce the competitive positioning of your
property. Do not merely offer your tenants the same off-the-shelf,
so-called standard lease form that your competitors mindlessly use.
In addition to rent level, you could adapt nearly any clause in the
lease to better appeal to a selected tenant segment. For example, you
might:
• Reduce (or increase) your upfront cash requirements.
• Reduce (or increase) your credit qualifi cations.
• Shorten (or lengthen) the duration of the lease.
• Shorten (or lengthen) the payment periods (e.g., weekly for lower-
income, annual at a discount for an affluent target market).

• Permit (or prohibit) pets.
• Include an option to renew at a guaranteed rental amount.
• Include (or omit) appliances, furniture, and window coverings.
• Include an option to buy the property with the lease.
This list could continue, but you see the point. You not only tailor
the features and amenities of the property to tenant preferences; but
also craft a lease with their wants and needs in view.
4. Attract top-fl ight tenants: Now persuasively communicate the advan-

tages of what you’re offering. Don’t just run a generic, look-alike,
classified ad in the local newspapers. Write a compelling ad or fl yer

that extols the property’s benefits and your outstanding value proposi-

tion. Then put the word out in a medium that offers the lowest cost
per prospect reached.
Find out where your target market currently lives, works, or shops.
Investigate ways to stimulate word of mouth. Are there bulletin boards,
newsletters, web sites, or housing offices/agencies where you could

reach your desired audience? A sound market strategy incorporates a
well-written and well-researched promotional campaign.

5. Create a fl awless move-in: Now that you’ve attracted the perfect tenant
for your property, begin your relationship on a positive note. Establish
cordial relations. Avoid issuing stern orders as if you were an army
drill sergeant. Explain house rules along with the reasons why the
rules exist. In a friendly way, talk with the tenant about the behavior
you expect. Also talk about your responsibilities (as imposed by law,
the lease, or operating policies), and how you will diligently perform
your landlord role.

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