The Bozeman rental market is pretty strong right now, and we can thank several years of low supply and high demand for the rising rental prices and the well-qualified pool of tenants who are looking for a new home. In the last five years alone, the cost of a rental home has risen by more than 30 percent. And, while those prices have stabilized a bit in recent history, Zillow says that the median rent in Bozeman is $2,250.
As the rental prices level off, we’re also seeing the supply increase and the vacancy rates begin to creep back up to their normal resting places. That means you have to be thinking competitively about your own rental property in Bozeman and the tenants you’re attracting and placing.
We’ve been pretty attuned to the shifts and trends in the local rental market and professional Bozeman property managers. Today, we’re sharing some of the strategies we employ to avoid vacancies and tenant turnover. Placing a good tenant quickly and retaining that resident year after year is an excellent way to maximize your income and earn more in the short and long term.
Local Market Knowledge is Essential
The first step in attracting and retaining tenants is understanding the Bozeman rental market. Study the demographics so you know which tenants are most likely to be seeking a home like yours. We have a good mix of professionals, families, retirees, and even remote workers. Your ideal tenants are looking for rental homes that provide a sense of comfort, proximity to the best recreation and entertainment, and of course all the conveniences that tenants today expect.
Follow your competition as well. What other rental properties are out there? When you have a lot of competition, you know you’ll have to offer incentives and competitive pricing in order to attract and hold onto renters. When it’s a tight market and there’s not a lot available, you can focus on other things.
Good Tenants Seek Out Good Rental Properties
If you want to attract tenants, you have to offer an attractive rental home.
The expectation for quality rental properties is higher than ever. Tenants are looking for more than just a place to live. They want a place to nest, a place to work, a place to spend time with families and friends. Today’s tenants are going to rent the homes that have:
- High-quality finishes. Think tile backsplashes and new fixtures on faucets, sinks, and drawers in the kitchens and bathrooms.
- In-unit laundry. Provide machines or hook-ups and you’ll have an easier time attracting good residents and higher rental values.
- Modern appliances. They don’t have to be stainless steel, but they do have to match, and if they’re certified as energy-efficient, tenants will feel good about lowering their utility bills and conserving energy.
- Smart home tech. Video doorbells, keyless entry, and smart thermostats are all more important than ever to tenants. They want to enjoy the convenience and connectivity that come with smart home features.
Tenants want to rent well-maintained homes that are updated and modern. A well-maintained and recently renovated property not only attracts tenants more easily but also encourages them to stay longer, reducing turnover and vacancies.
Offer Flexibility in Lease Terms
Typically, the lease you have tenants sign will be for a year. However, a lot has changed over the last five years, and you may find that tenants want a bit more flexibility in leasing periods and even in what’s permitted and what’s restricted.
Offering flexible lease terms, such as shorter or longer lease durations, can make your property more appealing. By adapting to the changing needs of renters, you’re more likely to keep your units filled. Maybe a tenant will want to paint the walls. It’s worth negotiating. A lot of them will have pets. Make sure you’re at least willing to consider pets, otherwise you’ll find yourself waiting longer to find a pet-free tenant.
Consistency is important in Bozeman property management, we can tell you that. But turning away a qualified tenant who wants a nine-month lease instead of a 12-month lease is not a great way to limit your vacancy.
Enhance Your Listing and Focus on Marketing Your Bozeman Rental Home
As tenants scroll through listing after listing, they all start to look the same.
You have to stand out if you want to get the attention of the best tenants.
Start with better photos. Tenants will review your pictures before they read your listing. High-quality photos that showcase your property’s best features can significantly increase interest. Additionally, a detailed description that highlights unique amenities, such as proximity to hiking trails or downtown restaurants can make your listing stand out.
Utilizing online platforms is a great first step towards getting your listing the attention it needs. Use social media platforms, too. You’ll have the opportunity to engage directly with existing tenants and interested prospective tenants.
Keep Pricing Accurate and Competitive
A profitable rental value is essential when you’re working hard to earn money on your investment. However, losing an extra month to vacancy will cost you far more than what you’ll lose by reducing your rent. You want to set high rental prices, especially when the market supports them. But, doing so can lead to longer vacancies.
Research current market rates for comparable properties in Bozeman to ensure your pricing is competitive. Get some good data from a Bozeman property manager. Keep in mind that you have to make sure your renewal rental rate is competitive and market-driven, too. Most tenants expect that the rent will go up when they renew their lease. But, you don’t want to chase those tenants away with a rent that’s too high.
The Bozeman rental market offers an abundance of opportunities for property owners. By understanding the market, maintaining high-quality properties, offering flexibility, marketing well, and offering competitive pricing, you can minimize tenant turnover and vacancies.
These are general strategies, and we’d be happy to make some specific recommendations that fit your unique rental property in Bozeman. Contact us at Absolute Property Management, and we’ll tell you more.
