While trying to increase what you earn and limit what you spend, every investor endeavors to limit the number of vacancy days that they face while renting out a property. Vacancies are more than just empty spaces; they represent lost potential and revenue. There’s risk, too. When no one is living in your property, how will you know if there’s a sudden leak or a problem with ventilation?
Keeping your rental units occupied is essential in avoiding lost income. Each vacant unit means missed rent payments, directly impacting your income. You’ll also have to keep utilities on, pay attention to pest control, and manage the landscaping and the routine maintenance that every property requires. Prolonged vacancies can lead to property deterioration, lowering the rental home’s market value.
We’re talking about avoiding all of that with successful management. Whether you have a single-family home or a portfolio of multi-family rentals, you’ll want to know how to avoid vacancy, but you’ll also want to consider how you can maximize property value during those vacancy periods.
Let’s unpack it all.
Vacancy Risk and Property Type: Single-Family versus Multi-Family Rentals
The vacancy risk is different with a single-family home than with a multi-family property. There’s only one income stream for your single-family home, so you’re more dependent on those tenants staying in place. When you’re renting out a duplex or a small apartment building, you have multiple rents coming in every month, so that one vacancy won’t bring your cash flow to a complete standstill.
This is something to consider when you’re investing.
Limiting Vacancy and Increasing Earnings
Whether you’re renting out one home, a portfolio of units, or an entire building, here are some of the ways to limit the risk of vacancy and keep your property value intact:
Competitive Pricing
Ensure your rental rates are in line with the local market to attract potential tenants quickly. You’ll need access to good data so you can compare your property to the competition and price it accordingly. Think about remaining competitive with your renewal rates, too. Most tenants expect their rent will increase when they renew a lease agreement, but don’t chase them away with an unreasonable price hike.
Effective Marketing
When you invest in a mix of online listings, social media, and local advertising, you’ll reach a broad audience and rent out your property quickly. Marketing is more than publishing a listing and then waiting for the phone calls to roll in. You have to be responsive, and you have to track the response you’re getting to that listing.
Tenant Retention
Focus on providing excellent customer service and maintaining the property to keep current tenants happy and reduce turnover. The best way to avoid vacancy is by keeping the tenants you have in place already. Give them every reason to stay and renew the lease year after year.
Leveraging Vacancy to Increase Value
Vacancies, while costly, also present an opportunity to enhance your property without disturbing tenants. This is a good time to make a detailed maintenance list, and to take care of any deferred repairs that may have piled up. You also want to use any vacancy time to make improvements and upgrades that will attract both tenants and higher rents.
Here’s how you can turn a vacant period into a value-adding phase:
Conduct Inspections and Maintenance
Routine inspections of a vacancy property are an important way to protect it. During your inspections, check for issues such as water damage, pest infestation, and mold growth. By identifying issues early, you can start repairs and maintenance promptly, ensuring that your property is ready for occupancy as soon as possible. Additionally, regular inspections help deter vandalism and theft, which can cost you significantly. Empty properties look like opportunities to criminals and dishonest people. Invest in good security while you’re managing and improving a vacant property. Video doorbells are a good idea, especially on a single-family home.
Invest in Strategic Upgrades
Now is the time to modernize your units. If it’s a single-family home you’re renting out, maybe look at ways to increase the curb appeal and make the landscaping more attractive. In a multi-family property, this is a good time to make your vacant unit stand out. Install in-unit washers and dryers or replace old carpet with hard surface flooring.
Update kitchens and bathrooms with contemporary fixtures and appliances. Consider adding energy-efficient lighting and HVAC systems. We recommend that you take a look at your paint, your floors, and your fixtures. Add or improve facilities such as gyms, laundry rooms, or common areas to attract high-quality tenants.
There are a number of benefits to these upgrades. Modern, well-maintained properties can command higher rental rates. You’ll also find that upgraded properties are more appealing to reliable, long-term tenants. And, newer fixtures and appliances often require less maintenance, saving you money in the long run. Those lower long-term costs can make any money you spend on improvements well worth the investment.
Manage Vacancies Better with a Piedmont Property Manager
Hiring a professional property management company can alleviate the stress that comes with both reducing vacancy and maintaining your property during those vacancy periods. A property management company can take care of regular inspections, cleaning, and landscaping, ensuring that your property is always in good condition. Additionally, we can market your property, find new tenants, and perform all the screening that’s required to ensure you get a well-qualified tenant who will take care of your investment, whether it’s a single-family home or a multi-family rental.
We focus on keeping your investment property safe during turnovers. We can manage the maintenance that needs to be done, oversee any improvements that you’ve decided to invest in, and keep the property safe while it’s vacant.
The idea is to minimize your vacancy time so that you don’t have to worry about keeping the property safe and maintained. You’ll have shorter, more efficient turnover periods when you’re working with a property manager, and that means less vacancy loss.
If you have any questions about how we can support you and your property whether it’s occupied or vacancy, please contact us at EPOC Property Management. We’ll help you turn a vacant home into a valuable one.
