Do you have a vacant rental property? A rental property can help you make a great passive income. However, if left vacant, it can cost you more money than you are earning on it.
From increased insurance costs to potential legal issues, these risks can be daunting. But we're there to help you. At Real Property Group, understand that managing rental property isn't easy. We have the expertise to help you make the most of your rental income.
In this blog, we will tell you why you should avoid having a vacant rental property. Further, we will provide tips on how to attract and retain quality tenants. With our help, you can avoid the hassle of having an empty rental property.
Assessing the Risks of a Vacancy
The Costs of Vacant Properties
The longer the property is vacant, the more costly it can become. You must pay the mortgage, insurance, taxes, and maintenance even if there are no tenants. In addition, a vacancy can also cause deterioration of the property value.
This is why it’s important to do all you can to fill a vacancy as soon as possible. To avoid these costs, you need to make sure your property is attractive to tenants. Research the rental market and set a competitive rental rate that will attract tenants.
Tips to Reduce the Cost of a Vacant Property:
- Repair any damage and update any features that are out of date. Staging the property with furniture and decor can also help to make it more attractive.
- Make sure to advertise your property in places where potential tenants are likely to see it
- Offer incentives such as reduced rent or free utilities to make tenants more likely to choose your property
- Finally, be sure to act quickly when tenants show interest in your property
Using these tips, you can improve any situation involving a vacancy.
Unnecessary Repairs Due to Vacancy
Having a vacant rental property can be costly in more ways than one. Not only can it lead to higher insurance premiums, unpaid taxes, and security costs, but a lack of regular maintenance or upkeep may also lead to unnecessary repairs.
Changes in temperature and humidity can cause paint to chip, wood to warp, and metal fixtures to rust. Unconnected pipes and fixtures can cause leaks. Lawns, gardens, and outdoor areas may require regular upkeep.
Heating and cooling systems may also need to be serviced or replaced while the property is vacant. In addition, pests such as rodents and insects can take up residence in an unmonitored empty home.
Tips to Avoid Unnecessary Repairs
- Conduct routine inspections both inside and outside of the house for any visible signs of damage such as peeling paint or warped wood floors
- Regular maintenance is key when it comes to keeping a rental property in top condition
- Make sure that all plumbing fixtures are connected properly and that air conditioning filters are changed at least once a year
- Properly caring for lawns, gardens, patios, decks, etc., will ensure that tenants have attractive outdoor spaces when they move into the rental unit
Increased Vulnerability to Theft and Vandalism
Leaving a rental unit unoccupied for an extended period can be a dangerous situation for landlords. Without proper security measures and safety standards in place, it's easy for thieves and vandals to take advantage of the situation.
Avoiding theft and vandalism is the best solution, as any replacement or repair can be costly.
Tips to Avoid Theft and Vandalism
- Regular visits are necessary to catch any signs of vandalism early on
- Hire a professional security guard or use an online monitoring service during vacancies that can help provide 24/7 surveillance of the property
- Reach out to professionals like Real Property Group to manage these risks effectively and efficiently
Potential Legal Issues
A vacant property is more likely to become a target for litigation due to its lack of monitoring or supervision. Squatters may try to take up residence in the property which could leave you liable for any damages they cause.
Tips to Avoid Potential Legal Issues
- It is important to stay up to date on the local laws, ordinances, and regulations that affect vacant properties
- Keep the property secure by putting locks on all the doors and windows, installing a security system
- Pay attention to the condition of the property, as any damage could lead to potential legal issues
How to Attract and Retain Quality Tenants
From advertising to screening to incentives, there are many ways to attract quality tenants. Attracting quality tenants is the best option for protecting your property as you can rest assured that someone is taking care of the residence.
Here are some tips that can help you find the best tenants for your property:
Offer Competitive Rent
Offering competitive rental rates is another way to attract quality tenants. You don't want to be charging too much or too little for your rent. You can also offer special discounts or incentives to attract potential tenants.
Maintain the Property
Keeping your rental property in good condition is essential to attracting and retaining quality tenants. Make sure to keep the property clean, tidy, and well-maintained at all times.
Make it Easy to Rent
Make the rental process as easy and stress-free as possible. Offer online and mobile applications to make it easier for potential tenants to apply.
Invest in High-Quality Amenities
If you want to attract quality tenants, you need to invest in high-quality amenities. This includes things like modern appliances, updated fixtures, and clean common areas. Investing in these amenities will help to set your rental property apart from the competition.
Building relationships with tenants is key to retaining them for the long term. Make sure to be friendly and approachable and respond to their needs in a timely manner.
Furthermore, you should be responsive to tenant requests. This will help to ensure that your tenants stay for the long haul.
Having a vacant rental property can be a big risk for landlords. Not only do landlords lose out on rental income, but they also must shoulder the additional costs of maintaining the property.
Vacant rental properties are more vulnerable to vandalism, theft, and other damages. Additionally, vacant units can also attract unwanted pests and rodents. Landlords should take steps to make the property more attractive to potential tenants in order to reduce vacancies.
You can reach out to Real Property Group to help you manage the vacancy. We can provide you with services that will ensure that your property remains attractive to potential tenants.