A big expense for many landlords is tenant turnover. Lost rent, maintenance and repairs, cleaning costs, and advertising can all add up the longer the unit sits on the market. This lost expense can really take a toll on your company, so finding ways to better reduce your vacancy rate can be key in its success and bring in more profit. Here are 10 ways you can better reduce the vacancy rate of your rental properties.
1. Know the Market
Knowing the market might just be the most important factor in reducing your vacancy rate during trying times. Most tenants know what a fair rent payment would be so it’s important to make sure you aren’t priced too high. The truth is, the quickest way to fill your property is to simply reduce your rate. However, you don’t want to be cheap either. If there is a range of let’s say $490 and $550 for a certain type of home in your area, try charging anywhere between that amount. The price you choose will also depend on how nice the unit is. If it is a higher class home, try charging on the higher end of the spectrum and visa versa. Vacancy rates this year are also at a fairly low rate with our country being at 7% and Georgia at 7.7%. So knowing the market can definitely help in getting a tenant into your property.
2. Keep it clean and looking nice
If you want nice tenants to fill your property, then keep the property clean! Nice tenants want to rent nice places. Make sure any unit you rent out looks nice and clean on the inside and out. Even if this means buying a fresh bag of bark mulch. Doing this will help the appeal of the home greatly. It’s important to create a good first impression when people come to view the property as this will better the chance of the unit getting rented out.
3. Screen for long term tenants
Perhaps one of the best ways to avoid a high vacancy rate is to simply hold on to your tenants for the long term. When you go to screen tenants, be sure to think long term. Is this person likely to stay for 3 months or 3 years? If they seem likely to stay for 3 years then consider them!
4. Create scarcity
When you go to advertise a unit for rent, let the tenants know the unit isn’t going to sit empty for long. This lets the tenant know that they might miss out if they don’t act fast. Fear of loss is a major source of motivation for people to take action.
5. Offer Move-In Bonuses or Incentives
Offering a bonus for moving in quick could help tenants to take action. We wouldn’t recommend offering bonuses every time but having them here and there, especially when you need a tenant to move in quick, could be a great solution. A few ideas of bonuses you could offer include a free microwave, a rent reduction for one month of rent, a big screen TV, or whatever else you might be thinking. Not only can you offer incentives for tenants looking to rent the home, but you can also offer them when trying to get a tenant to stay longer. If they happen to sign another lease, offer a reduction in one month’s rent.
6. Make Timely Repairs
Making timely repairs for tenants helps them to see you as a proactive, on top of it, company. It will also create a higher customer satisfaction rate which can influence current and future tenants. Making timely repairs means that you take action right after something goes wrong at the rental property. Depending on what the issue is, can depend on how long it should take to be resolved.
7. Get to Know Your Tenants
Getting to know and becoming friends with your tenants might just be the best way to keep your tenants longer and create a more positive vibe for your company. For tenants, it is harder to leave a friend’s house than it is to leave a rental ran by someone you don’t know or don’t like. Take the time to learn more about your tenants and do your best to make them feel at home. This will make it harder for them to want to leave and will help the overall success of your business. After all, relationships are key to any successful business. It’s all about the people you know and the way others see you. So be positive and inviting!
For more ways on how you can reduce the vacancy rate of your rental properties, contact Keyrenter Atlanta today!