Homes In Havasu Online

When you don’t have a tenant paying rent, you the landlord have to pay for the mortgage, the insurance, the taxes, the utilities, the property upkeep, and sometimes even ground rent or association dues. In a word, rental vacancies suck.

So here’s your No B.S. guide to minimizing rental vacancies, we’ll keep it succinct and on-topic, so you can get back to your primary business: making money.

Step 1: Research Before Investing
Some neighborhoods have lower vacancy rates than others. Knowing the rental trends in a neighborhood is important before buying in, so talk to a property management company that does a lot of renting in that area, or a realtor or appraiser very familiar with the rental market, and try to feel the neighborhood pulse concerning high rental demand or too much rental housing available.

Step 2: Location Means More than Price
You have 2 identical houses half a block apart, which both benefit from the neighborhood location. However, one of those properties is on a street that sees abundant foot traffic, and the other is hidden behind a shop. One of these properties is going to rent a LOT faster, as every passerby sees the For Rent sign in the window. A final note on this subject is that quality of the neighborhood makes a difference, as internet marketing will reduce this effect for middle- and higher-end tenants.

Step 3: Fast Clean-Out & Repairs
You can’t show the property until it’s been cleaned out, painted, landscaped, repaired, updated, whatever. So if it takes you a month to get the place in showable condition, that will cost you one month’s rent. Keep several good handymen, and several licensed contractors, among your Outlook contacts, and stay on VERY good terms with them, as you want them in the door the second the tenant has vacated so you can start handing out rental application forms as soon as possible. (Article: How to Find a Contractor)
As a final note, this may be a good time to do any overdue repairs on the property, so it may be worth delaying for a month if it means a better property and better tenants. Kitchens and bathrooms should be a priority here if you’re on a budget (and who isn’t?).

Step 4: Appropriate Rental Pricing
Charging too little or too much for rent can put a landlord in the red, so stop guessing and actually do some market research. Look up what else is available, consult with some property management companies, and learn a little something from your competition.

Step 5: Reach Your Target Audience
Determine who you’re trying to reach, and market specifically to that crowd. This may mean having the local Spanish newspaper translate your ad to Spanish, or it may mean posting ads with tear-off phone number strips in your local coffee bar, but the point is to make sure you reach the people who are most likely (and most desirable) to sign a rental agreement.

Step 6: On-Site Property Management
If you have a multi-unit or apartment complex, it may be cost effective to install on-site property management. Statistically, rental properties with on-site property management go from tenant vacancy to new rental agreement fastest, so consider it as an option.

Step 7: The Rental Agreement Term
A two year term on your rental agreement will, theoretically, be vacant half as often as a property with a one year rental agreement. Now, this may require some coaxing and incentives, as we all know that people are afraid of commitment, so consider offering a reduced rental payment in exchange for a 2 year term on the rental agreement (”We charge $800/month for a one year term or $750/month for a two year term.”)

Step 8: Rental Agreement with an Option to Purchase
Look, most tenants won’t follow through with an option to purchase, no matter how badly they think they want to when they sign the rental agreement. But there are some very serious advantages to advertising a rental agreement with an option to purchase, including tenants who are more invested in the property. It will draw more rental applications, and that’s the name of the game when trying to fill a vacant property.

Get those rental application forms out there, and sign a rental agreement this week instead of next month!