There are a lot of expenses that catch landlords and investors off guard while they’re renting out property. One of the most expensive and surprising costs is vacancy. When your rental property is unoccupied, you’re not earning any money on it. In fact, you’re losing money every day that it’s empty.
fIf you care about your cash flow and your ROI, you need to avoid vacancy. Today, we’re sharing a few tips that can help you find and keep outstanding tenants who pay rent on time and take good care of your home.
Price Your Home Correctly
An overpriced property will always stay vacant longer. Make sure you have your property priced competitively and according to market rents. Tenants are well-informed, and highly qualified renters will never be willing to pay more than they need to for a rental home. Conduct a comparative market analysis so you know what similar homes are renting for in your area. Make sure you’re working with reliable data. It doesn’t matter what homes are advertised for. What matters is what they ultimately rent for. If you don’t have access to data beyond the rents you see on Craigslist, get in touch with a professional property manager in Colorado Springs who knows the local market.
Provide an Outstanding Home
There’s a lot you cannot control in the rental market, such as the tenant pool, the inventory, and the rental values. You can, however, control the condition of your home, and that will have a huge impact on how quickly you rent it. Make sure your property is well-maintained and in rent-ready condition. Prospective tenants will want to walk into a home that’s clean, functioning, and inviting. Pay attention to curb appeal and don’t forget the details like working light bulbs and natural light. When you offer an outstanding property that looks and feels like a great place to call home, you’ll place high quality tenants quickly, and your vacancy days will be minimized.
Focus on Tenant Retention
Turnover costs are just as expensive and unpleasant as vacancy. When you have a good tenant in place, work hard to keep that tenant. You don’t want to lose a renter who pays on time, follows the lease, and takes good care of the home. You especially don’t want to lose that renter over something silly like a repair that took too long to make or a phone call that wasn’t returned.
Make tenant retention a priority. Respond immediately and thoroughly to maintenance needs, whether they’re emergency issues or routine fixes. Check in with your tenant once in a while to make sure everything is going well. Ask if there’s anything you can do to improve their rental experience. Give them little gifts and incentives to renew their leases. Make sure any rent increases are reasonable and supported by the market.
These are just a few of the things you can do to avoid vacancy costs. Working with a professional property manager can also help. We keep an eye on your bottom line and employ unique strategies to keep your property occupied and profitable. If you have any questions, please don’t hesitate to contact us at Muldoon Associates.