subject: 3 Steps To Conquering Your Vacancy Rate [print this page] For the past 2 years vacancy rates for single family rental properties have really taken a hit. In some markets the vacancy rates are at an all time high. Many individual real estate investors are unsure of how to fix the issue and get back on the positive cash flow train once again. If you are a real estate investor and have 1 or 100 buy and hold cash flow properties there are 5 easy things you can do today to reduce your vacancy rate and turn your investment properties back into winners.
Step 1 - Better is always better. If there are a lot of investment properties vacant then that means one thing, there is competition. As a landlord you need to think about the potential tenants and make your property better than others on the market.
Grab a pen and paper and do a thorough walk through of your property. If you were looking for a home to live in what items would you fix to make it acceptable to you. Now you don't need to start pumping in cash for upgrades. In fact most real estate investors over-rehab their homes. Instead what you need to do is get the property into rent ready condition. This means fixing items like broken blinds, any lights that are out, dirt or smudges on the wall, dirty carpet. These are quick affordable fixes that will show you care about your properties and your tenants.
Step 2 - Keep what you have. It is always less expensive to keep a good tenant than it is to try to find a new one. While some vacancies issues can be attributed to the economy there are plenty that can be contributed to the real estate investor themselves. If you have a good tenant then you want to keep them.
Easier said than done right? In reality the key is keeping them happy. Do regular inspections on your properties but not just to see what is wrong but to also find out if the tenant has any issues. If there is anything that are having trouble with fix it right away and thank them for bringing it up. By the way $60 for a new ceiling fan they would like in their bedroom is a lot cheaper than the cost of paying for a vacant property for 2 months.
Step 3 - Pay for it. I know real estate investors are notoriously very attached to their money. The fact is we call it real estate investing because we are investing money to make more money. If you can't fill your properties then invest in hiring a property manager. But not just any property manager. Find a superstar. Ask around for referrals and find someone that can fill your properties better than you can and can keep them filled.
It won't be easy but once you get the right key player on your team life gets a lot easier. Just ask yourself, "If I could get all of my homes rented a month after investing in them would I be confident in going out and buying more investment properties?" The answer is of course.
Keeping your vacancy rates low is not always the easiest thing to do but once you have a system you will be able to make more money investing in real estate and sleep better at night knowing the cash is coming in instead of going out. Today's real estate market is one of the best ever to buy really affordable properties that make good cash flow sense. Don't let getting and keeping them filled be your bottleneck to a great financial future.
