High rental vacancy rates are the main cause of rental income loss for landlords. Without tenants to collect rent from, your business won’t be profitable enough to be sustainable. Don't worry though, there are many ways you can effectively reduce rental vacancy rates, some of which are easy to implement!
Vacancy Rate Reduction by Attracting Tenants
Setting a Competitive Price
You will likely find more prospective tenants if your listing's rent price matches similar properties in the local market. You can research comparable properties near your rental business to determine the fair market value. One way to do that is through our free rental analysis tool.
Of course, you need to set a price that will still generate enough income for profit and to pay for operating expenses.
Offering Desirable Amenities
Amenities are one of the many factors potential tenants look into before considering a rental unit. Some of the most in-demand amenities include in-unit laundry, high-speed internet, and kitchen appliances. Research local market trends to identify which specific amenities will attract quality tenants in your target demographic.
Conducting Effective Marketing
Effective marketing plays a huge role in minimizing rental vacancy rates. How you advertise your vacant properties affects whether the listing will reach your target market. Use popular or mainstream online platforms like Zillow, Apartments.com, Craigslist, and even Facebook marketplace. Make sure you present your listing with good photos and comprehensive descriptions.
Providing Flexible Lease Terms
Prospective renters may prefer flexible lease terms wherein they can enter shorter lease agreements. While it seems like getting long-term tenants will benefit your rental property more, offering shorter lease options helps you reach a wider range of tenants, especially those who don't plan to set up roots in the area.
Improving Curb Appeal
First impressions matter, and by improving your rental's appeal, you can both retain your property value and reduce vacancy as you attract tenants for your rental property. Improving curb appeal is one of the most common ways to minimize vacancies in the rental market, and it allows you to produce better professional photos of your rental property for potential tenants.
Vacancy Reduction through Tenant Retention
Offering Lease Renewal Incentives
You can offer incentives like cash, discounts, and gifts for lease renewal to encourage existing tenants to stay in your rental property. It will ensure a consistent rental income and lead your business to thrive. This can even attract new tenants to rent your units when they hear about the advantages through word-of-mouth marketing.
Being a Responsive Landlord
Addressing tenant needs will cultivate positive landlord-tenant relationships, which contributes to overall tenant satisfaction. You can do this by responding to maintenance requests and making timely repairs. This will also ensure that your current tenants continue to live in a habitable environment as you maintain the property effectively.
Coordinating Moving Dates
Even if you do the right things to retain tenants, property vacancy is sometimes unavoidable. You can reduce rental vacancy rates by coordinating move-in and move-out dates so you can fill a vacant unit as soon as possible once the existing tenant moves out. You can use property management software or hire property managers to do it for you.
Conducting Thorough Tenant Screening
There are preventive measures landlords can take to find great tenants, ensure tenant retention, and generate steady rental income. Screening tenants allows you to rent to applicants who can pay monthly rent and follow your lease terms. Several companies in the property management industry offer comprehensive tenant screening services so you won't have to.
Making Rental Property Upgrades
You can also keep tenant interest by upgrading your property. This can be done by expanding storage space, applying a fresh coat of paint to the rental units, adding on-site laundry facilities, updating your security system, installing smart home features, and more. Replacing old facilities will reduce the chances of maintenance issues, and it will generate interest from new renters.
Requiring a Security Deposit
Requiring a deposit is also a proactive strategy that can help you prevent disputes in the future should there be property damage caused by renters. Georgia law does not limit the amount that a landlord can charge for a security deposit; however, it’s typically advisable to not go above the equivalent of one to two months’ rent. This will make it easier for you to pay for repair and maintenance costs during tenant turnover, as well as cover lost rent.
Benefits of Low Vacancy Rates
Increased Cash Flow: Property owners will see steady income and have a predictable revenue stream. This can make financial planning easier for other business ventures, or pay for costs like insurance, property taxes, and mortgage payments.
Higher Property Value: A rental property with low vacancy rates will have more property appeal in the real estate market, which makes for a great exit strategy for landlords since real estate investors will see it as an attractive asset.
Lower Marketing and Leasing Costs: Without the need to find potential renters to reduce vacancies, landlords don't have to worry about marketing their rental property or researching pricing strategies to set the right rental rates.
Better Financial Stability: If a tenant decides to end their lease, having other income streams will help you maintain financial stability. This prevents the urgency to reduce vacancy, which sometimes causes landlords to make rash decisions.
Potential for New Investments: With a steady income, landlords can start looking into other investment opportunities in the local market to expand their rental property portfolio, exponentially increasing their rental income in the long run.
How a Property Manager Can Help
Hiring a property management company like PMI Georgia can be beneficial in many ways. Our company knows key strategies for reducing vacancy, ensuring longer tenancies by making tenants happy, and the right marketing efforts to attract quality tenants. With the right property management, you can rest assured that you’ll retain tenants and appeal to new ones on the market.
It's not uncommon for landlords to hire professionals to gain access to resources and networks, as we do our best to achieve long-term success for your business. We offer services that can help you with many aspects of your business, from marketing your vacant properties to responding to maintenance requests and ensuring tenant satisfaction.
You won't have to commit right away! You can schedule a free consultation to see if we’re the right fit for your business. Reach out today to learn all the ways we can help maximize your investment.
