How to Land a Tenant You Want

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How to target a specific tenant segment based on their housing requirements.

All people who rent are not the same. The people who rent consist of multiple segments, each with specific housing requirements. Segment members will only rent properties that meet all of their housing requirements.

Suppose you have identified a tenant segment that you want to occupy your rental property, and you have determined where and what they are currently renting (to know how, read this guide). Based on where and what they are currently renting, you determine the following housing requirements for this tenant segment:

• Rent range: $1,600/Mo. to $1,800/Mo.
• Property Type: Single-Family
• Location: Northwest, within 10 to 20 miles of the central business district.
• Configuration: Three bedrooms, two car garage, one story or two stories, built after 1990, with a lot size between 4000 ft.² and 8000 ft.²

If you buy properties that match the segment’s housing requirements, the majority of applicants will come from your desired segment.

For example, suppose you purchase a property with the following characteristics:

• Rent: $1,750/Mo.
• Property Type: Single-Family
• Location: Southeast, within 10 to 20 miles of the central business district.
• Configuration: Three bedrooms, two car garage, one story or two stories, built after 1990, with a lot size between 4000 ft.² and 8000 ft.²

Will this property attract your target demographic to the pool?

Your property did not attract the desired tenant segment, even though it met the range, type, and configuration requirements. The reason is that it does not match your target segment’s location requirements. By choosing an incorrect location, you excluded the segment you wanted to attract. The property will still attract a tenant segment, but you do not know the characteristics of that segment.

To attract a specific segment, only buy properties that match all of their housing requirements.