Being a landlord has many rewards when all your units are occupied by good tenants. The steady stream of income you receive from monthly rent payments continually pad your income and become a building block for future investments. When there is a vacancy, however, you may find yourself experiencing some financial difficulties. This is problematic in a business where it is advisable to have extra money to cover inevitable repairs.
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How to Avoid Vacancy
In spite of the increased demand for rentals since the recession, the rental market is still competitive. Tenants want the best deal and are keen to see what their money is worth. To avoid vacancies after a lease ends, you need to have your next tenant lined up and ready to move in. It is possible to keep your units occupied like this by marketing your units well to make them appealing to quality tenants.
List Your Unit at the Right Price
First and foremost, the price is a major factor in determining how soon a new lease will be signed. Potential tenants are particularly observant of costs. To get the best value, they will weigh every factor to arrive at the best deal for their lifestyle, income, and family. When a rental is priced correctly for its amenities, location, and size, you will get the right amount of interest from qualified tenants. To maximize your property’s earnings, you will want to make sure the rent is high enough for you to earn a profit but low enough to be fair and appealing to future tenants.
When priced too high, your unit will generate little interest as prospective tenants explore similar properties at better prices. There is also a danger in listing your rental too low. When your unit is listed as a steal, you will get an overwhelming amount of inquiries from applicants with financial backgrounds that may not qualify for the apartment. This poses risks for you financially if the tenant is not reliable with payments. Also, when you make your rent too low, you do not get an optimal return on your investment.
Make Your Unit Visually Attractive Online
An overwhelming majority of prospective tenants start their home search online. The photos you post of your unit are going to be the first impression they receive, so they should highlight your property’s best assets. If there is a spacious living room with great light, show it off! Investing in professional photography for more high-end units will make your online advertisements look even better, attracting the best tenants.
Maintain Your Units Well
Keeping your units well-maintained makes them extremely marketable. Quality tenants want the most for their money and will choose an apartment that is in good condition over one that “needs work.” In your listing online, be sure to emphasize the new perks and maintenance that have been completed. Nothing is more assuring than moving into a unit with great appliances, fresh paint, and clean carpets. When your property is pleasant to live in, you can also keep tenants for years!