As an investor, you already know the investment strategy you want to use. However, you may not know the best way to find and attract quality, longer-term tenants. I'll give you a hint: It's probably not by advertising in your local newspaper classifieds.
The newspaper is still a good place to find tenants for lower-priced properties. That's because some folks renting in that range still don't use the Internet much or at all. That may be hard to believe, but it's true.
For most properties the best place to look is, yes, the Internet. More people are doing business and research online than ever before. The November 5th Denver Post mentioned that a car is sold online once every minute., According to an October 31st article in USA Today, subscriptions to almost all major print newspapers in America are on the decline.
Print newspapers have to charge higher advertising rates to cover their production and distribution costs. A single Sunday want ad can cost $45 to hundreds of dollars - more if a photo is included. The ad is good only for as long as the reader keeps that day's paper, and actually finds your ad out of hundreds - sometimes thousands - of competing ads.
More and more people are using the Internet to find the specific information they need. That's why search engines such as Yahoo and Google are so popular. Newspapers offer vast amounts of general information, which is why they aren't as effective as websites that only address a specific niche. Internet usage is a technological and cultural shift that will only accelerate in the future.
Most newspapers run classified ads on their websites. However, a web posting is usually offered as an add-on when you purchase a print ad. These ads will only be kept online for a limited time. As a property owner, you never know how long it'll take for your property to rent. You're playing a guessing game in deciding how much advertising to purchase. That problem is eliminated when you advertise - for free - on a website that's targeted to your niche.
While the Internet is a great way for potential landlords and tenants to connect, its interactivity increases the possibility of scams and frauds. One way to avoid funny business is to deal locally with potential landlords or tenants you can meet in person. This way there's no misunderstanding or funds that can get 'skimmed' off.
Another tip to avoid fraud is to never wire funds via Western Union, Moneygram or any other wire service - which scammers love to use. You also want to be on the lookout for fake cashier's checks or money orders. If you cash these fake documents at your bank, the law says you are responsible for the funds, and they will come out of your account. It's wise to verify that any funds sent to you as security deposit or rents are good funds.
You should also NEVER give out any financial information, like a bank account or Social Security number, eBay or PayPal user ID or passwords. Scammers LOVE to get their hands on these to take money, and steal someone's identity to use their credit for personal gain.
Here are the key phrases and methods that scammers will most commonly use:
- An inquiry from a country far away, such as Nigeria or South Africa
- An offer of an 'escrow service' or 'guarantee'
- An offer written in very poor or broken English
These tips are (or should be) mostly a matter of common sense, but it's important to slow down and take precautions to make sure you're protected. By using this advice, you'll make the marketing and renting of your homes more enjoyable and profitable.
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