Today we are discussing vacancy rates. This is important to because a high vacancy rate can wreak havoc on your investment and your rental income. At Phoenix Realty and Property Management, we work hard on behalf of our owners to lower the number of days a property is empty. There are a few things you can do to ensure your vacancy rate stays low.
First, make sure your lease has language in it that enables you to contact your tenant 60 days prior to the lease ending. At that point, you want to find out if the tenant plans to renew. If they commit to another lease period, all is well. You can keep going, because you know you don’t have a vacancy. However, if the tenant gives you notice, you need to get that property back on the market quickly. Check out our blog on marketing a property to get some tips on setting a price.
It’s important to review your price point between each vacancy. The market could have changed since your tenant initially moved in. In most cases, the market has increased and you’ll want to increase the rent with it. In some rare cases, the market will go down and you’ll need to adjust for that change too. Check your price and make sure it’s current.
Then, look at the property critically. Homes need a bath once in a while, just like people. Give the property a good pressure washing and hire a professional to scrub the inside. You want to make sure the curb appeal is first-class so potential tenants find it appealing.
Finally, use the time between tenants to adjust and update the home. It’s an ideal opportunity to make any changes or improvements that might increase its value. For example, brass fixtures right now are not very popular or stylish. Update your home so it’s fresh, marketable and valuable for your future exit strategy.
If you have any questions about how to keep vacancy times low, please contact us at Phoenix Property Management, and we’d be happy to answer them for you.