Accessory dwelling units can be a good investment property as they allow homeowners to extend their living space, increase property value, improve the functionality of an existing property, and get an extra source of rental income. While some households build ADUs with the intention of creating a rental property, others come to this decision only later, for example, when there is no need to keep the place for a family member anymore.
Whatever your situation is, you would want to attract potential tenants. Rental properties of ADUs are considered to be affordable housing solutions, and that is why the number of potential applicants has risen in the past few years in the local community. To increase rental income, proper marketing efforts were made by property owners.
So, how to attract prospective tenants to the rental units? There are several effective marketing strategies that will make owners of accessory dwelling units (ADUs) find the right tenants and profit from their real estate. In this article, we will discuss the main points to consider for your rental property.
Firstly, you need to identify your target market. It does not mean that your ADU construction has to be dedicated to a very specific group of people. Living spaces of ADUs, otherwise called in-law suites, can be interesting to a variety of people, and considering their needs and possible preferences can help you to advertise your rental property better.
For example, property owners living in the suburbs might be interested in positioning their affordable housing as one far away from the city's hassle, located in a peaceful area. All the family necessities that are close to your property, like parks, schools, grocery shops, or shopping malls, can be mentioned. As such an environment is usually attractive to good tenants with families, you should think about what is the decision point for them.
The rental market is full of differently qualified tenants. However, that does not mean that you can pick your perfect tenant based on their personal and sociocultural characteristics, like race, gender, ethnicity, and others. This is prohibited according to the federal Fair Housing laws.
In general, think of what kinds of people might be taking advantage of your ADU. Finding tenants that are interested in your rental property is easier when you specify particular characteristics of your small home.
A potential tenant is most likely to come to you from an online advertisement. Therefore, you need to put your living space in the best light. The time of mouth marketing is long gone, although it can still sometimes help some people.
Whether you are making a specialized property website, paying for Google ads in your area, or using real estate online platforms, creating a detailed listing is important. You do not have to promote huge marketing campaigns. However, a good advertisement is a necessity.
Here is what you should include in your ADU listing for prospective renters:
People often underestimate the power of a good investment property photograph. However, this is the first thing people notice about rental properties. Some property management companies even suggest hiring a professional real estate photographer in order to achieve good results.
ADU owners now widely use online platforms to attract renters. The entire process has now become much easier than it was in the past, as you can simply include all the information about your accessory dwelling unit and personal contacts right in one place.
Thus, you can chat with tenants in advance before deciding whether an in-person meeting is needed. Such software also helps you to filter out a bad tenant easier, as you can specify your requirements right there.
Marketing campaigns work most effectively in social media nowadays. Even real estate agents and property managers often opt for this solution, as they are more likely to get your rental unit rented out and attract high-quality tenants.
One possible option is to find local community pages with similar listings of properties and search for tenants. But social media marketing does not stop there, as you can create whole new pages for your property to promote it online.
Such marketing efforts can be especially lucrative to those who rent out for a short term or provide vacation rentals. Find tenants by specifying your location, adding hashtags, and regularly posting about the additional living space that you have in your backyard.
Real estate agents and property owners often work hard to showcase their offers to those who are interested in renting out. To make your property even more attractive and find tenants who will surely be satisfied with the indoor and outdoor space that you have, you might want to do the same.
An open house will help you to maintain trusting relationships with future tenants. With such a gesture, you are not only offering them better conditions but also showing that you have nothing to hide and you are ready to provide them with what was promised.
Another way to attract tenants is to implement promotional strategies that will make your property more desirable. This is especially effective when it seems like you have nothing outstanding to offer, but you still need to be distinctive from other similar property advertisements in the area.
You can offer discounts for tenants to save more money on rent. Or you can offer them special rewards for referring to future tenants or people who can be interested in the property.
Even such simple solutions can increase the number of tenants willing to consider your rental unit. When comparing similar options on the market, they can go for yours only because of these additional incentives.
Short-term rentals are often in demand among people who come for business trips and other work-related stuff to a new city. Therefore, communicating with your local companies can be more than useful. Talk with them about the place you rent out and suggest working together. One of the possible options for this collaboration is to have them offer your property to their new-coming workers while you provide them with discounts or other bonuses.
The same thing actually goes for universities and colleges. Not all students wish to live in a dorm on campus, and some of them might be interested in affordable housing solutions. You can discuss the offer of your property with university staff and recommend them to suggest your ADU as one of the options for students.
Thus, you can easily find your target tenants within local organizations, especially if they are interested in what you offer.
Nowadays, you would surprise no one with a variety of your property photos attached to the listing. Video tours, on the other hand, are not as common among homeowners. Not all of the potential tenants have an opportunity to come for an in-person visit and see everything themselves. Some people might look for guest houses while staying in another city, while others might simply not have time during the day.
Luckily, modern technologies allow us to present everything in its best form, even through a video. The crucial point here is that it needs to be taken properly and in high quality, just as you would do it with photos. You might also want to consider hiring a professional videographer who can provide you with some cool and stable shots of good resolutions.
ADU rentals are pretty common among property owners. To make yours stand out from a variety of options, make sure to specify what is so great about your unit.
For instance, you might want to talk about the following features when talking about your ADU:
Whatever you think makes your ADU and the place it is located special should be described in the listing. You never know what will catch the tenant's eye and what can push them to make the final decision.
It is really important to establish great relationships and communication with your tenants. It is not like you will rent the place out and disappear from their lives for some time. In the case of renting ADU, you will actually live on the same lot. It is easier to go through your everyday routine when you know that you are on good terms with someone living nearby.
The first steps to maintaining such a relationship actually start in the stages of offering your property. As you are interested in selling your product, you should follow all the customer service rules. Being friendly, explaining everything in detail, offering help, and answering questions from your future tenants will show you your best side, making the whole process more comfortable for everyone.
Many people think that they are the landlords and, therefore, they can dictate their own conditions, neglect customers' requests, or even be harsh and rude. However, such strategies will surely fail, as no one wants to deal with arrogant people who do not know how to talk or to listen.
To conclude everything that has been said, there are many ways you can promote your ADU as a rental property to find new potential tenants. Implement various solutions for your property marketing and find the perfect person to rent the place out to. Describe your property in detail, present visual files, and provide good customer service to everyone interested in your ADU.
More tenants can be reached using various promotion tools for rental property. For example, you can join communities on social media or create your own pages and websites to include all the information about your property. The most common option is to list your housing on different real estate platforms that offer similar advertisements.
You should specify all the conditions for living in your ADU right in the description of the property. Moreover, you should clearly state payment requirements. Promoting your rental among workers of a particular company or university can help to reach the audience that you wish for as well.
Some unusual qualities can be specified in the description of a property. For instance, your tenants might be interested in the area you are located in or the design of the accessory home. Another thing you can do is to offer bonuses and other incentives to attract more potential customers.