When you own rental properties, vacancies present many problems. No one wants to own something that fails to net them income, as this defeats the entire purpose of investing. Unfortunately, this is the exact situation that vacancies create.
While some vacancy is to be expected— specifically when you are in between tenants— months of it can really hurt your bottomline. The lack of cash flow during prolonged months of vacancy can leave you frustrated, strapped for cash, or even worse— in the red. For these reasons, you’ll want to make sure that when there are vacancies, they get filled as quickly as possible.
Here’s how to achieve shorter vacancy periods:
1. Make Your Rental Desirable
A great start is to pick a desirable neighborhood to invest in by researching the area and by simply asking yourself: would I want to live here? If an area is not attractive to you, it’s not likely to be to tenants either, so don’t skip this important step! A housing market’s local economy, school district, and overall quality of life are all important factors in determining its attractiveness. An increase in attractiveness is likely to result in an increase in tenant interest and length of tenancy.
2. Perform Proper Maintenance & Repairs
As a rental property owner, it’s your job to keep your property safe and updated. For HomeUnion investors, we give them a great start by transforming their investment properties into profitable HomeUnion Homes, as part of our end-to-end process. We perform strategic renovations to increase a rental’s attractiveness as well as keep the budget inline; this includes: appliances, flooring, cabinets, lighting, paint, safety, and much more. By upgrading all rentals into HomeUnion Homes, we reduce the vacancy time between tenants and produce a beautiful, safe place that tenants can be proud to call home.
3. Market Your Rental Efficiently
Once you’ve found the right neighborhood and renovated to standards as high as a HomeUnion Home, you need to market it efficient because a great product can’t make money if no one knows it exists.
Here are a few tips to help you achieve this goal:
1. Hire a professional photographer for the photos on the ad listings
2. Write short, descriptive copy in your ad that highlights the benefits to the tenant
3. Post on multiple listing sites and start marketing as early as possible, even during the renovation phase
For more great tips, check out “6 Secrets to Successfully Market an Investment Property”
4. Make the Entire Process as Easy as Possible
Today, every type of service has an online presence or mobile app geared towards even higher levels of convenience; the renting process is no different. Using applications, like Rently, allow potential tenants to take a tour of your property on their own time. You should also make it easy to collect applications on your website. Remember, in increase in convenience for tenants is likely to keep vacancy time at a minimum.
5. Create a Concise Plan for Tenant Screening
Before becoming bombarded by applications, you will want to have a plan in place for a more efficient application vetting process. Having an application, background check form, and criteria sheet ready to go will enable you to vet potential tenants quicker— because after all, time is money! You also need to be aware of the rules. Fair Housing stipulates that you must evaluate tenants on a first-come, first-serve basis. Knowing the rules and having a well-determined vetting process will allow you to create a concise plan for tenant screening destined to save you both time and money.
HomeUnion: the Ultimate Vacancy Reducer
From transforming your home into a HomeUnion Home, to screening tenants, HomeUnion does all this and more to help you— our valued client— invest in real estate hands-free. To learn more, call us at 888-276-0232 today or schedule a consultation.