Ways to Avoid Vacancies in Your Rental Property
Savvy real estate investors calculate budgets and set aside cash to cover unexpected maintenance issues and vacancies. Maintaining optimal occupancy takes forethought and planning, but there are many commonsense ways to avoid vacancies in your rental property.
Keep the Tenants You’ve Already Got
Retaining good tenants is a matter of showing them appreciation for their loyalty to and consideration of your property, and for their timely rent payments. In addition to the basic expectations of maintaining a clean and secure building and responding to repair requests promptly, show your tenants that you care about their experience and that you’ve taken the trouble to get to know them. Address them by name when you see them. Observe birthdays and the anniversary of their move-in date with a personal note. Three months before their lease is up, check in with them to ascertain their plans for renewal, and offer a small incentive like no rent increase for an early response.
Find Great Tenants in the First Place
Every experienced real estate investor knows the critical importance of tenant screening. Knowing how to select the right tenants for your property from the start will save you the headaches of difficult tenants and help you welcome tenants who are likely to renew and help you maintain occupancy of your rental property.
Upgrade Amenities
Do an annual competitive analysis to see what other landlords in your property’s neighborhood are offering. Upgrades that go beyond a fresh coat of paint will help you avoid vacancies in your rental property. New appliances, faster internet connections, upgraded security systems, free parking, or including utilities in the rent can go a long way in attracting and retaining great tenants.
Set the Right Rent
Sometimes, setting the rent too low can be as off-putting as rent that’s sky-high. Evaluate your costs, analyze what similar properties are fetching, and set an appropriate rent that reflects your property’s value, neighborhood, size and amenities. Being ballpark as similar properties communicates that you know your property’s value in comparison with comparable units in the neighborhood. Ultimately, the rent you charge is a function of how much return you need, or want, from your rental property to make it a worthwhile investment.
Remember Curb Appeal
Prospective tenants won’t get as far as the inside of your unit if the outside looks run down. Freshen landscaping, make sure garbage removal is timely and attend to exterior repairs as quickly as you would a malfunctioning air conditioning system.
Ultimately, the best way to avoid vacancies in your rental property is to simply gain and maintain a reputation as a responsive, respectful, and approachable landlord.
