5 Ways to Reduce Vacancies at Your Investment Property
In trying to attain maximum cash flow from your rental property, one of the biggest setbacks can be extended vacancy periods. During these times, no tenants living in the property or unit means no rent money coming in. These vacancy periods can be a major setback to the short-term return on investment of your property. Even a small increase in the occupancy rate of your property can result in significant returns, so it is important to reduce vacancies at your investment property.
Avoiding these extended vacancy periods is important. With that being said, landlords should not fill properties with bad tenants out of desperation either. It is essential to avoid vacancies in a smart way to get the most out of your rental property. Here are some smart ways for landlords to reduce vacancies at your investment property:
1. Avoid Tenant Overturn
One of the most effective ways to avoid vacancies is to keep tenants long term. Acquiring a short-term tenant may fill an immediate need but will create more work months down the line when they move out. By looking for tenants that will stay long term you are ensuring that you will not have to do more work in the short term to fill a vacancy. Long term tenants make your life easier and relieve the stress of consistently having to quickly fill a vacancy.
2. Communicate with Current Tenants
As a landlord, it is important to communicate with your current tenants. If a lease is about to expire, it is important for landlords to talk with tenants so they know if they should prepare for an upcoming vacancy. Landlords should ask tenants over a month in advance of their lease expiring if they plan on staying or moving out. By knowing the answer, landlords have plenty of time to get new tenants lined up to avoid a vacancy period.
3. Have a Reasonable Rent
Having reasonable rent is crucial to maintaining high occupancy rates. If your rent is too high you will find trouble in signing on tenants because they want more reasonable rates. On the other hand, your rent could be too low, and you could lose out on cash flow while also attracting the wrong type of tenants. It is important to know the rent range for your type of units in the area so you have a set rent price that you can list the property at, safely knowing that it is not too high or too low.
4. Invest in Proper Marketing Tools
No matter how attractive a property you have to rent, it will be difficult for tenants to find unless you market it properly. A good approach for marketing your property includes listing it on multiple websites with detailed descriptions of the unique features and accommodations your property offers. It is also wise to invest in high-quality photos of your property to best allow tenants to visualize themselves in your unit. Going the extra mile and creating a virtual tour is also an option to improve your marketing strategy.
5. Make Smart, Long-Lasting Repairs
One thing that will surely turn away tenants is a beat-up property. It is important to make smart, long-lasting repairs upfront to save time in the future. When things are damaged it creates headaches for all parties, so it’s important to take care of these issues quickly. This will ensure tenant satisfaction and a working property that will attract new tenants to fill vacancies.
Filling vacancies can be a hassle and stressful for landlords. Longer vacancy periods mean that landlords miss out on potential cash flow. It is important to implement proper strategies such as these to ensure that you reduce vacancies at your investment property.
