Vacancies are expensive for investors, and the money you lose cannot ever be earned back. While it’s impossible to completely eliminate vacancy times, you want to be sure you can minimize them as much as possible. We have a few tips that will help you keep your vacancy days down. When your San Diego rental home is consistently occupied with a good tenant, you earn more money.
Price the Home CompetitivelyOne of the main reasons that rental properties remain vacant is that they’re priced incorrectly. If you are overpricing your property, you’re not going to rent it out quickly. This is usually difficult for property owners; they want to earn as much as possible in monthly rent. However, if your property takes two or three months longer to rent while you’re waiting to find a tenant who is willing to pay your higher price, you will actually lose money, despite the higher rent.
Conduct a market analysis so you know what similar properties are renting for in your area. You need this information before you price your own rental home.
Market the Property EffectivelyIf your home is priced correctly but it still remains vacant, it could be that you’re not marketing it well enough. Make sure you’re using all the available online advertising channels. Take good pictures and write a compelling ad. When prospective tenants call for more information, be responsive. You cannot find good tenants fast unless you are aggressive with your marketing and available to show the home.
Provide a High Quality HomeIt’s rare to find a well-maintained home that’s vacant for too long. Good tenants are searching for good properties. Make sure you’re providing one. Take a look at your home and determine whether any minor upgrades or updates would make a difference in its appeal. Removing old carpet and installing hard surfaces on the floors might get your property rented faster. Upgraded appliances instead of the 20-year old appliances that were in there previously will also help.
Make sure your property stands out on the rental market. Old, tired homes will be vacant for longer. Modern, fresh properties will be rented quickly.
Focus on Tenant RetentionOne excellent way to avoid vacancy is by keeping the tenants you already have. When you have a good resident in place who pays rent on time, takes care of the home, and follows the lease terms, you want to keep that tenant in place as long as possible. There are several ways to keep good tenants for longer:
- Show them you appreciate them. Small gifts from time to time are surprising and notable. Tenants will appreciate gift cards to your local café as a way to say thank you when rent is paid on time six or seven months in a row.
- Respond to maintenance. Show tenants that you care about their comfort and their rental experience. Take care of routine repair issues right away.
- Communicate openly. Check in with your tenants once in a while and ask if there’s anything they need.
- Be careful with rental increases. Most tenants expect their rent to go up when they renew a lease, but make sure any increase matches the market. Don’t chase away good tenants with unreasonable rental increases.
These are just a few of the things you can do to ensure you limit your vacancy time and keep good tenants in place. You’ll earn more ROI and have a better rental experience as a landlord.
If we can be of assistance, please contact us at Mercer Properties. We’d love to tell you more.