How Can I Lower My Vacancy Rates?
Vacancy rates can truly be what define the success or failure of your investment property. If your vacancy levels are too high for a long period, then it is quite likely that you will be losing money. There are a range of factors that can lead to higher vacancy rates, just as there are certain things that can be done to keep them lower.
Here are a few easy ways to lower your building’s vacancy rates:
- Charge the Correct Rent: Have a look at classified ads for other multifamily buildings in your area. If you have been having a tough time finding people to stay with you over the long-term, it could be possible that you are charging them too much. Correcting this by even $100 per month can have an immediate and visible impact on your vacancies.
- Offer Incentives to Renters: This could include something as practical as offering a discounted month of rent for signing an longer lease. Even a few bucks a month could be enough to inspire someone to agree to a long-term obligation. Another way to lure in tenants is to offer free or partly free utilities, like cable and Internet. You could also try giving away gifts with rentals, like home appliances.
- Don’t Delay on Repairs: Though this may seem like a basic concept, the nature of property management is that most things will go wrong at the least convenient times, making it very attractive to put things off. This will only lead result in a situation where the result is a massive bill all at once. Furthermore, repairs can save you money in many ways (such as installing new windows to save money on heating).
- Advertise Your Rentals Aggressively: This is a huge factor in having all your spaces rented. Always keep in mind that technology these days plays a massive factor in finding tenants. If you are advertising your building online, then you are on the right track. But if you are still relying solely on print and newspaper, you are likely doing it all wrong.
- Keep Things Looking Clean: Think of it in the following terms: where would you want to reside, somewhere nice and tidy, or a place that looks like it needs a good cleaning? If the common areas of your rental are not well taken care of, it will give people a terrible first impression, and likely frighten them away.
These are but a few ideas that will help with locating tenants for your apartment buildings. Although there will be different challenges for some landlords, this list will serve as a base for minimizing your vacancies.