- Improve marketing for your property listings.
- Hire professional property management services to free up time and reduce stress.
- Offer tenant incentives such as lower first-month rent, gift cards, or smart home improvements.
- Partner with local employers to find tenants easily.
- Improve your property’s curb appeal by pressure washing sidewalks,
Vacancies in your rental property can be a real headache as a landlord. Empty homes aren’t just an annoyance; they’re a financial strain. When you have a high vacancy rate, you’re losing money, which is never good. Whether you’re struggling to fill existing vacancies or trying to reduce the likelihood of future empty homes, there are specific steps you can take to rent your property. Here are six ways to reduce your home rental property vacancy rates.
What is Vacancy Rate?
Vacancy rate refers to the percentage of your properties that are currently unoccupied. It’s a crucial metric to watch because it can impact everything from your bottom line to your overall tenant experience. A high vacancy rate could mean your properties are not competitive in the market or your current tenants are not satisfied with their living situations.
Consequences of a High Vacancy Rate
When your vacancy rate is higher than usual, it can have a serious impact on your finances. Unfilled homes mean you’re not collecting rent, which means less cash flow for your business. Plus, empty properties may require additional costs for marketing and maintenance that wouldn’t be necessary if they were filled. A high vacancy rate can also lead to lost potential opportunities for tenants as they look for a place to live.
Tips for Reducing Vacancy Rates
Fortunately, you can take steps to reduce your home rental property vacancy rates. Here are six tips that can help:
Improve Marketing
One of the first steps to filling vacancies is to improve your marketing efforts. Are your property listings visible in all the right places? Consider posting on both general real estate platforms and niche websites for rental properties.
Also, make sure your listings are well-written, clear and give a good impression of your rental. Excellent images help potential tenants see what they’ll be getting — if they like what they see, they’ll be more likely to schedule a walkthrough.
Hire Expert Help
Managing a rental property can be a lot of work. Hire a professional residential property management company to free up more time and reduce the stress of dealing with vacancies. They have the experience to know how to best market your rental, in addition to taking care of other tasks such as tenant screening and lease preparation. Their expertise will also help you comply with local laws and regulations to avoid any legal issues.
Offer Tenant Incentives
As the landlord, you have the power to offer incentives to your potential tenants. From rent discounts to signing bonuses, providing incentives can make your property more attractive to tenants. Consider adding any or all of the following incentives: lower first-month rent, gift card to a local restaurant, grocery delivery, or a smart home improvement for your rental property. These minor perks will make your property more attractive in the competitive market.
Partner with Local Employers
Partnering with local employers makes sense when you’re trying to find tenants. Many people who are relocating move to new areas for work purposes. When you partner with local employers, you’ll have the opportunity to meet potential tenants directly, giving you an upper hand in closing the deal faster than an average landlord. It is worth checking in with the HR department or offering employee referral credit to tap into the network.
Improve Your Property’s Curb Appeal
Don’t let a lack of curb appeal push potential tenants away from renting your home. Take time to spruce up your property’s exterior and make necessary repairs. Doing so will enhance its overall look and also show your potential tenants that you care about their renting experience. Consider pressure washing sidewalks and driveways, planting flowers or bushes, and painting any trim or accents.
Develop a Tenant Retention Plan
Losing a good tenant can be expensive and time-consuming. It is worth ensuring a good tenant sticks around by creating a tenant retention plan. A tenant retention plan is a strategy to keep your renters happy and want to stay for the long term.
You can develop a plan that includes regular maintenance and proactive communication about upcoming repairs and upgrades. Also, conducting short surveys to learn more about their preferences and proactively addressing issues can improve retention.
The Bottom Line
Reducing home rental property vacancy rates is a top priority for landlords. There are key steps you can take to ensure that your property is rented quickly and you’re not losing income. By utilizing all these steps, you can properly lower your home rental property vacancy rates.
