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Tenancies are the lifeblood of a rental property, and having even just a few vacancies can hurt the business since you won't be profiting from them. One of your top priorities as a property owner is to reduce vacancies, and here are a few tips that might do the trick.
1. Pricing Correctly Works Wonders
Setting a competitive rent price is critical for attracting potential tenants and reducing vacancies. You or a property manager can research the local rental market to determine your rental unit's fair yet profitable price.
You can monitor your vacancy rates to adjust the rent price as needed. If you feel like your marketing efforts are not working, you might want to lower the amount and minimize vacancy rates. Some property management companies offer free rental pricing analysis, which makes the process easier.
2. Offer Flexible Lease Terms
Some tenants prefer to have options when it comes to their tenancy period. Offering flexible lease terms will broaden your range for tenants. While long-term tenants are preferable, you can always convince month-to-month tenants to opt for lease renewals.
Remember that a steady rental income is always better than no income at all brought by the lack of flexible lease extensions.
3. Everybody Loves Incentives
While we're on the subject of lease renewals, there are many ways you can encourage tenants to stay longer. Property owners have the option to offer lease renewal incentives like discounted rent, gift baskets, access to amenities, or flexible lease options.
This can foster a better landlord-tenant relationship with your existing tenants, encouraging them to stay longer.
4. Thorough Tenant Screening Process
There's only so much rental management can do when your tenants refuse to comply with lease rules. Screening your prospective tenants and finding quality tenants will help you minimize vacancy rates, as well as make your job a lot easier.
Criteria for background checks on potential tenants include credit checks, employment verification, criminal history checks, and calls to previous landlords.
5. Be a Good Landlord
The most obvious key to avoiding vacant property is to be a good landlord or hire a good property manager. That means setting fair rates in your rental, conducting regular property inspections, addressing maintenance requests, communicating effectively, and keeping the property well-maintained.
You can't expect reliable tenants who abide by the lease agreement when you don't do your end of the bargain. To retain tenants, do your job well and go beyond when needed.
6. Marketing Your Property Right
Creating a good image for your rental business may not be as easy as you think. The real estate market is full of properties that offer tenants what they want, so you need to show tenants that your property is better than the others.
Market your property effectively by highlighting its unique and desired features, like hardwood floors, open floor plans, or unique amenities. Use as many online rental platforms as you can to reach a wider audience.
7. Rolling Out the Red Carpet
Of course, you don't actually have to roll out a red carpet for new tenants, but providing a move-in kit is a nice touch. You can offer welcome gifts like a basket full of toiletries or discount cards for nearby restaurants and services.
It's among the most inexpensive efforts to reduce vacancy rates in your rental property, and it can contribute to tenant satisfaction right at the beginning of their tenancy.
8. Tenants Judge the Book by Its Cover
In the case of rental markets, potential tenants do judge a listing based on the property's exterior, especially since it's the first thing they see. Improving the curb appeal of your rental property can boost your marketing efforts.
Of course, don't forget to maintain or spruce up your rental units as well if you want to minimize vacancies. Plus, you can use the upgrades to justify raising rents.
Why Reducing Rental Vacancy Rates is Important
Tenant retention is not a minor goal. Your rental business needs tenants who pay rent, and your rental income helps with mortgage payments, property taxes, costs for maintenance issues, and more. Property vacancy periods can cripple your business, and resolving this as quickly as you can is crucial.
Other than long vacancy periods, losing tenants means you'll have to cover turnover costs. Between marketing and the leasing process, it's money that you could've used to upgrade your rental property instead, appealing to current tenants and encouraging them to stay.
Rental Vacancy FAQs
What are the most common causes of rental unit vacancies?
- Rent increases, poor property condition, ineffective marketing, and poor tenant relations are among the most common causes.
How can I keep tenants from ending their lease?
- Try and create a great living environment for them and do your job efficiently as the landlord. Keep in mind that it will ultimately be the tenant's decision, and that some circumstances are out of their control.
How bad can vacancy periods be for rental businesses?
- That will depend on how many rental units you have. If a single-family property sits vacant for a while, you might fail to pay the necessary bills, whereas multi-family properties allow you to collect rent from multiple residents, softening the blow on your income when there are vacancies.
What is the vacancy rate in Nashville?
- Nashville has a 10.8% vacancy rate in 2023, which has been the highest in 20 years. With an oversupply in rental units, making your property stand out has become more critical.
Why It Makes Sense to Hire Professional Property Management
It's not very easy to find potential residents for your rental property, much less find good tenants. Even when you do, there's the responsibility of doing your best to promote tenant retention.
It's understandably overwhelming, and many landlords think that hiring a professional property manager is worth it. Green Tree Property Management has always strived to maximize the value of every property we manage.
From marketing to handling evictions, we want to ensure that you and your tenants are happy. Leave the worries to us and focus on finding other lucrative ventures.
Learn more about what we can do for you and contact us today!
