Any tips for attracting excellent tenants in not-so-nice areas?
I'm finishing up a duplex renovation in the Payne-Phalen area of St. Paul, MN and am ready to market it.
I've been in the landlording business (mostly owner-occupying 2-4 unit buildings) since 2009, and so far, I've been very blessed with finding great tenants who take care of my buildings and pay rent on time. My other multi-families are all in nice, but not too nice areas of the Twin Cities.
I'm a little nervous about this building because it is in an "up and coming/transitional" neighborhood that has a history of being a little rough. It is my first time marketing in lower-income market. I want to figure out how to get the best tenants for this area. I'll list what things I've done, and I'm hoping that if I'm missing anything, people can offer suggestions.
1) Set clear criteria (650 credit score, No UDs in the last 7 years, 3x rent, able to pass criminal background check, etc.)
2) Aggressively priced the units below market value. The two bedroom comps are from $850 to $950 or higher. I've priced it at $825 to hopefully attract the best tenants in the area. My units are clean and the nicest units in the area (at least that are advertised on craigslist)
3) Offer a free, preliminary application prior to them submitting the $35 fee for the background, eviction and credit check.
4) Presented a nice craigslist ad with pictures and information about both the unit and the area.
5) Ensured that the entire property is smoke free.
If there's anything I'm missing, please chime in! Again, I want to get the best possible tenants for the area. If you think my rental criteria is out of line, please feel free to comment on that as well. (I typically require a minimum of a 700 credit score in my other properties.)
Thanks!