The rental market in Tennessee is constantly evolving as the market supports higher costs. The average Tennessee home value has increased by 6.6% over the last few years, showing strong demand for housing in the state. However, more places still need to be built to meet the demand due to the effects of Covid-19.
As a result, rent prices have increased by 15% to 20% in the last year. In Memphis, the average rent is $1,500 monthly, a 0.5% increase in rental prices in October. These frequent changes in the current market highlight the need to stay proactive and ahead of the competition so that you, as property owners, can generate more profit on your investment.
As real estate experts in CrestCore Realty, we introduce some effective strategies for owners to help them thrive in a changing rental market. Let us take a look at them.
Emphasize Property Maintenance and Offer Amenities
Offering regular maintenance and modern amenities in your unit can help you attract new tenants and retain your existing tenants. It also ensures that your unit remains in good shape, which can eventually boost your income. Here are a few things you can add to your maintenance schedule:
- Checking the Heating, Ventilation, and Air Conditioning (HVAC) system
- Inspecting water filters and smoke detectors
- Repairing or replacing home appliances
- Examining plumbing and drainage systems
Apart from general upkeep, providing modern amenities such as laundry, home appliances, fitness centers, and pools can make your property more attractive to potential renters, motivating them to lease your unit for the long run.
Owners who maintain their property and offer desirable amenities are more likely to build a good reputation with the market, ensuring increased demand and lower vacancy rates.
Offer Flexible Lease Terms and Rent Payments
Offering flexible lease terms and rent payments can be a smart move for owners to thrive in a competitive rental market like Memphis. For instance, offering short-term or mid-term leases to renters can accommodate their changing needs and circumstances.
By doing so, property owners can appeal to a broader range of potential tenants, including students or employees who may only need a short-term rental or families and elders looking for a longer-term lease with the option to renew.
Additionally, flexible rent payment options can let your tenants pay rent weekly or bi-weekly instead of monthly, making rent payments more manageable for those undergoing financial challenges or receiving irregular income.
This way, owners make themselves stand out from competitors. It can also help to foster long-term relationships with tenants and increase tenant satisfaction, leading to positive word-of-mouth referrals and a more substantial reputation in the rental market.
Utilize Technology and Social Media
Advanced technology and modern property management software make running a rental business relatively simple. Owners can use advertising platforms, such as listing websites, social media websites to promote their units and connect to a broader audience. It allows you to target your ideal renters based on location, age, income, interests and other demographics.
You can also use 3D virtual tours to showcase the unit to potential renters who cannot visit in person. With the help of online application software, owners can also easily collect and manage applications in one centralized location. Online rent payments can also help renters to send rent easily and property owners to manage their income more efficiently and accurately.
Analyze and Adjust Rental Rates
As the property owner, you need to stay informed about the current state of the rental market and monitor trends in your local area. It can help you to adjust your rent rates and offerings to attract potential tenants, stay competitive, and ensure maximized profit.
Similarly, understanding tenants’ demand in the current rental market can help you provide in-demand amenities. For instance, offering amenities like fitness centers, outdoor spaces or co-working spaces can ensure 100% tenant retention and create a unique renting experience for renters that aligns with their expectations.
Knowing the market also helps owners stay up-to-date with local and state regulations and laws that may affect their properties. It includes changes in rent control, eviction moratoriums and other tenant protection policies.
At a Glance
All the above strategies can help Memphis owners increase their rental income and run a successful business. But, you can prioritize tenant satisfaction by providing excellent customer services and addressing all their repair request property.
Furthermore, considering the changing demographic landscape of Tennessee can also help you tailor rental strategies to meet the needs of different age groups, ensuring a higher occupancy rate. As an expert property management company in Memphis, CrestCore Realty can help you increase profit on your investment and ensure maximized ROI.
To learn more about the current rental market trends in Memphis, Tennessee, reach us at CrestCore Realty.