The perspectives are different
TOP PRIORITIES
When searching for a rental home, the top three criteria most people prioritize are:
- Location – Proximity to work, schools, public transportation, amenities, and safety of the neighborhood.
- Price – Whether the rent fits within their budget, including utilities and other expenses.
- Size & Layout – Number of bedrooms, bathrooms, and overall space to fit their needs.
Other important factors often include pet policies, lease terms, parking, and condition of the property since they will not be making any improvements.
1. LOCATION
Location is usually the starting point and highest priority. Sometimes there is a need to be in a certain school district OR close to a certain private high school with teenaged drivers. Many times rentals are more affordable in prime urban areas – or perhaps more accurately described as more “justifiable” (meaning we can rationalize a short-term premium to be in what we think is a great location).
2. PRICE
Price is usually the fixed part of this equation – most people are working within a certain budget. Unless your priority is flexibility, many people are renting because they are not in a financial position to buy at the moment.
It depends on the renter’s lifestyle and needs, but in most cases:
3. NUMBER OF BEDROOMS
- Bedroom Count is more important for families, roommates, or those needing defined spaces (e.g., home office). If a family needs three bedrooms, a large two-bedroom home won’t work.
- Square Footage matters more for open-concept living, storage needs, and overall comfort. A larger 2-bedroom may feel more spacious than a cramped 3-bedroom.
When Bedroom Count Wins:
✔ Families needing separate rooms for kids
✔ Roommates who require individual spaces
✔ Buyers planning for future resale value
When Square Footage Wins:
✔ Open layouts with flexible space usage
✔ Renters prioritizing entertainment or workspace
✔ Homes with large common areas that make a smaller bedroom count livable
Key Takeaway: Bedroom count is usually a hard requirement, while square footage is more flexible depending on layout and functionality.
SIZE OF THE LOT
For most renters, lot size ranks low compared to factors like price, location, and number of bedrooms. However, it can still be a consideration depending on their lifestyle.
When Lot Size Matters to Renters:
✔ Families with kids – Need a safe yard for play.
✔ Pet owners – Prefer fenced yards for dogs.
✔ Gardeners – Want space for plants or outdoor living.
✔ Entertainers – Enjoy hosting in a private backyard.
When Lot Size is Less Important:
✔ Urban renters – Prioritize location and walkability over yard space.
✔ Apartment or townhome seekers – Likely focus on indoor space and amenities.
✔ Low-maintenance lifestyle – Some renters don’t want to deal with yard upkeep.
Bottom Line: Lot size is usually a nice-to-have rather than a dealbreaker, unless it directly impacts their lifestyle (kids, pets, outdoor use). If a renter asks about it, it’s a good sign they have a specific use in mind.
Helping renters balance schools, price, and number of bedrooms requires a strategic approach. Here’s how you can guide them:
MISTAKES TO AVOID AS A LANDLORD
When trying to get market rent for their home, landlords often make these key mistakes:
1️⃣ Overpricing the Rental
- Mistake: Setting rent based on personal needs (e.g., mortgage payment) rather than market conditions.
- Fix: Research comparable rentals in the area and adjust based on demand.
2️⃣ Neglecting Property Condition
- Mistake: Expecting top rent without making updates or maintaining the property.
- Fix: Ensure the home is clean, well-maintained, and has updated features that renters expect.
3️⃣ Poor Marketing & Listing Quality
- Mistake: Posting low-quality photos or vague descriptions that don’t showcase the home’s value.
- Fix: Use professional photos, write detailed listings, and highlight key selling points (schools, amenities, upgrades).
4️⃣ Limiting Tenant Pool with Strict Criteria
- Mistake: Being too rigid on tenant qualifications (e.g., no pets, no flexibility on credit score).
- Fix: Balance risk management with an open approach—consider higher security deposits or pet fees instead of outright denials.
5️⃣ Not Being Responsive to Inquiries
- Mistake: Taking too long to respond to prospective tenants, leading them to choose another property.
- Fix: Treat the rental like a business—respond quickly and professionally.
6️⃣ Ignoring Seasonal Demand
- Mistake: Listing during a slow rental season (e.g., winter) and holding out for higher rent.
- Fix: Price competitively or offer incentives (e.g., one month free) if demand is low.
7️⃣ Failing to Adjust to Market Trends
- Mistake: Not adapting rent pricing to supply and demand shifts.
- Fix: Stay updated on rental market trends and adjust pricing accordingly.
#1 PITFALL – Overpricing
Overpricing a rental is one of the biggest mistakes landlords make. Here are the most common pitfalls that lead to overpricing:
1️⃣ Basing Rent on Mortgage or Personal Expenses
- Pitfall: Landlords set rent based on what they need to cover their mortgage, taxes, or other expenses rather than market value.
- Fix: The market dictates rent, not personal financial needs. Research comparable properties instead.
2️⃣ Using Outdated Market Data
- Pitfall: Pricing based on rental rates from months or years ago without considering current market conditions.
- Fix: Check recent comparable rentals (past 30-60 days) and seasonal trends.
3️⃣ Misinterpreting Comps (Comparable Listings)
- Pitfall: Comparing the rental to homes with different features (e.g., a newer renovation, a better school district, or different amenities).
- Fix: Adjust for size, condition, and location when comparing similar properties.
4️⃣ Overestimating Unique Features
- Pitfall: Assuming special features (e.g., upgraded appliances, a large backyard, or smart home tech) justify a significantly higher price.
- Fix: Upgrades help attract tenants faster, but they rarely allow for major rent increases.
5️⃣ Ignoring Supply & Demand Trends
- Pitfall: Setting rent too high in a renter’s market where supply exceeds demand.
- Fix: Monitor vacancy rates and adjust rent accordingly—if similar homes sit empty, it’s time to lower the price.
6️⃣ Emotional Attachment
- Pitfall: Viewing the property as a “home” rather than a rental investment, leading to an inflated value.
- Fix: Think like a business owner, not a homeowner. Price based on market value, not sentiment.
7️⃣ Ignoring Tenant Feedback & Vacancy Duration
- Pitfall: Sticking to an unrealistic price, even after receiving low interest or multiple rejections.
- Fix: If inquiries are low or the property sits vacant for too long, adjust the price quickly before losing more money.
8️⃣ Overlooking Seasonality
- Pitfall: Pricing too high during slower rental months (e.g., winter) when demand drops.
- Fix: Consider pricing adjustments or incentives (like a move-in discount) during slow seasons.