As the owner of an investment property, one of your biggest concerns is vacancy. Experienced investors will typically set aside some of their profits to account for months without a tenant, and while this is certainly wise, there are other ways to contend with potential vacancies in your investment property.
HomeUnion has been helping investors like you find single-family rentals that specifically meet their individual strategic investing goals. We offer end-to-end to services for investing in SFRs, which includes asset management and finding tenants, among a comprehensive host of other services. Here are three strategies we use to keep vacancies low and the investment asset profitable.
1. We Price Rent Correctly
It can be difficult to accurately price your investment property. If you set your rent too low, you’ll be missing out on valuable profits that eat away at your bottom line. If your rent is too high, you’ll be pushing away potential tenants, thereby extending your vacancy time, and decreasing your overall profit.
How do you accurately price your rent? If you are a full-time landlord, you probably live and work in the market in which your property is located. You might therefore have a good understanding of local market demand and reasonable rental prices. We understand that not all of our clients necessarily live and work in the markets in which they own rental properties. If they do, they are using our services precisely because they are not interested in being full time landlords, and do not want to have to figure out what constitutes a fair rental price.
Here at HomeUnion, we take a data-driven approach to pricing rent. We take numerous factors into account to help us ensure that our rental prices are accurate. This includes looking at rental comps (or comparisons) in the area. We also take into account a wide variety of neighborhood statistics including median income, average home price, employment levels, and many other factors. From this data we can set a price that is right for the area, which will keep your investment profitable, and ensure vacancies are kept to a minimum.
2. We Keep Tenants Happy
The easiest way to keep your vacancy low is to keep your tenants happy. Most of the time it can be far easier to keep the tenants you have, instead of trying to find new ones. Remember, every time a tenant moves out, you have to refresh the property; fill holes, touch up paint, clean the carpet, etc. This expense will usually come out of the previous tenant’s deposit, but such maintenance does increase the time your property remains vacant.
HomeUnion ensures that tenants don’t leave because they are unhappy. This isn’t complicated or expensive. We make sure repairs are handled in a timely manner, and that the property is well taken care. Good customer service is often a strong enough motivator to keep tenants from searching for another place to live. Moving is never an enjoyable experience for any tenant, and making sure they are satisfied will keep them continuing to pay rent, and from moving prematurely.
3. We Choose The Right Tenants
By starting with well-qualified tenants, you can prevent issues from coming up down the road. Conducting credit checks on applicants, asking for references, and conducting an interview can help you choose trustworthy and reliable tenants.
Typically speaking, a reliable tenant will pay the rent on time and will take care of the property as if it were their own. If for some reason they do need to move, since they’ve taken such good care of the property, it will not require as much maintenance or as many repairs. The “wrong” tenant is one who does not take care of the property, and will increase the turn around time before your next tenant can move in.
HomeUnion ensures that the only well-qualified tenants take possession of your investment property. We vet tenants thoroughly to ensure that tenant-related property issues are kept to a minimum. For more information on how we ensure the right tenant rents your property, check out this video on our asset management services, or download our white paper, The Definitive Guide to Finding the Perfect Tenant.
Limit Vacancies to Ensure a Profitable Investment
Keeping your investment property occupied means you will receive a steady cash flow and make money on your investment. At HomeUnion, in addition to finding properties that meet your personalized investment needs, we take care of all aspects of property management so that you don’t have to worry about collecting rent, managing repairs and maintenance, or even finding tenants.
Want to learn more about what HomeUnion does to reduce vacancy time on investment properties, or how you can own fully managed investment properties? Call us at 866-732-3220.