How can a landlord find a tenant without paying for advertising?
Vacancy — no word is more motivational to a landlord. You’re required to pay your mortgage payment, regardless of whether you have the house rented. So, finding a tenant literally makes the difference between losing money or making money from your real estate investment.
The conventional wisdom is to buy an ad in your local newspaper and hope for the best, but most landlords will tell you it’s both ineffective and expensive. Here are two tips for finding a tenant WITHOUT spending a fortune on advertising:
Put a "FOR RENT" Sign in the Yard
It’s simple but effective. Experienced landlords will tell you that you’ll get more attention from a few well-placed yard signs than any other type of advertising. Usually, the sign will say "FOR RENT" at the top and then your telephone number below. You can also buy directional signs that have an arrow pointing toward your house. Place them at busy intersections to help drive traffic toward your rental.
For the best results, use a number where you can be reached any time of the day. Cell phones are usually best. The reason is many people hang up when they hear a voicemail message. Some landlords also use an answering service, where an operator will pose as your secretary and ask callers for their contact information. If it brings you a tenant that would have otherwise gone to another landlord, it’s worth a dollar or two per call.
Tell Friends, Family, and Neighbors
If you’re like most landlords, you know hundreds, even thousands of people. Tell them about your house and the type of tenant you want. After all, these are people that love, respect, and cherish you (I hope). Chances are, they’ll know someone looking for a house to rent. Why not recommend you?
The fastest way to tell everyone is e-mail. Methods vary by e-mail program, but you should be able to create a group of e-mail addresses for all of your friends and contacts. Compose a message and send it to the group. When you find a tenant, sent another message out, thanking everyone for their help.
Some landlords also go door-to-door, telling neighbors about their vacancy. If you’re desperate, it’s worth a shot. Some neighborhoods will even allow you to tie a flyer to their mailbox with a rubber band. A friend of mine recently put flyers on the mailboxes of his nearest 100 neighbors. No one complained and he received eight phone calls in three days.
A final warning. Be careful about renting to friends and family. I’m sorry to say it, but almost every landlord I know has a story about someone they love taking advantage of them. It puts you in the difficult spot of deciding who is more important: your loved one or your real estate investment?