Hearing the word vacancy is a property investor’s worst nightmare. Typically, vacancies indicate a decrease in profits which affects your business as a whole. Ultimately, the less money you have to maintain the property, the less likely your tenants will renew their lease.
Therefore, we understand the urgency to fill these spots as soon as possible! Here we’ve shortlisted eight ways you can reduce vacancy rates while boosting your overall renewals.
Offering incentives is an excellent and effective way of retaining tenants. For instance, you can offer move-in bonuses, minor property upgrades, or discounts on signing a six or twelve-month lease.
Infrequent and late repairs can lead to low renewal rates. Invest your time and money in making timely repairs to keep your units in tip-top condition.
This way, your renters will be happy in the long run and your rental units will remain in good condition longer.
As they say, curb appeal says a lot about a property. Therefore, you should never neglect the exterior of your rental property!
Here’s how you can revamp and spruce up your property’s exterior:
You should always listen to your tenants’ complaints and make them feel heard. Oftentimes their feedback can be the solution to a common problem you’re having.
Also, if multiple tenants request a change or certain amenities then you should weigh the pros and cons of each.
Whenever a tenant moves out you can ask them to participate in a feedback survey. This way you can address issues quickly and perhaps get them to reconsider leaving.
A leasing term longer than twelve months can be risky for both tenants and landlords. But it can also be the ideal solution to rental vacancy problems.
The pros of creating a long-term lease are that you won’t have to worry about tenant turnover after a year passes. However, if you go with this option then you should do a thorough tenant screening so you aren’t stuck with someone you’re unhappy with.
Keeping track of the rent prices of similar properties is essential for determining how much you’ll charge.
You must charge a fair amount that reflects the local market prices. If you charge too much or too little then applicants might hesitate in choosing your property.
An excellent way to reduce vacancy rates is by adding desirable amenities to your property. For example, adding a pool, playground, fire pit, or green space can make your property profitable.
You can also include things like an in-unit washer and dryer and modern appliances to make your property stand out.
Moreover, you may offer paid heat or water to attract new tenants who are looking for cost-efficient options.
Oftentimes property owners increase their rent to match the current market value. However, some tenants use this as an excuse to avoid renewing their lease.
While raising rent is inevitable, there’s a right and wrong way to go about it. Try increasing it steadily and in small increments year after year. If you end up raising the rent significantly out of nowhere then you may scare off some tenants.
Overall, renewing your tenants’ leases is the most cost-effective way to limit your vacancies. With these tips, you can lower your vacancy rate and better retain your tenants.
However, before renewing a lease, identify whether you want your tenant to stay at the property. If you’re dealing with irresponsible, uncooperative, or difficult tenants, it’s a wise idea to find a better fit.
Sources
https://www.propertyme.com.au/blog/property-management/
https://www.biggerpockets.com/blog/5-steps-to-increase-renewal-rates
https://www.millionacres.com/real-estate-investing/articles/
https://www.forbes.com/sites/forbesrealestatecouncil/2021/08/17/