Vacancy rates are something that a lot of owners and real estate investors will obsess over.
That’s understandable. Vacancy is one of the things that eats into your cash flow, diminishing the returns you earn on your investment, and costing you money. Avoiding vacancy is always a priority when you’re renting out a property in Golden.
Every day your property sits empty is an opportunity cost, but don’t obsess over it too much. When you’re working with a property management partner like Laurel Property Services, you’re in less danger of long, expensive vacancies.
Here are some of the strategies that we use to minimize vacancy rates in the Golden homes we manage.
Understand the Golden, CO Rental Market and Lease Accordingly
Before you can effectively address vacancy rates, you need to understand the market dynamics that are sure to impact how quickly you find a tenant and how long they stay in place. Research the local rental market to determine:
- Average vacancy rates, especially by property type. Are vacancies longer for single-family homes than multifamily units? This may have an impact on how you invest in the future.
- Rental prices. You can learn a lot about whether tenants in higher priced homes are staying or leaving.
- Demographic trends in your area. Are more people moving in or out? What do potential tenants look for in a property?
Understanding these factors can provide you with insights that allow you to position your property competitively when you’re leasing and marketing, thus increasing the likelihood that you’ll find a great tenant quickly, and not be trapped in a longer than necessary vacancy.
Price Your Property Competitively
One of the most common reasons that rental properties remain vacant is due to overpricing.
Striking the right balance between a profitable rental price and a competitive one can be a challenge for a lot of rental property owners. You can help yourself find just the right rental price by doing a little research or leveraging the data that a local property management company can gather.
At Laurel Property Services, we use the insights and analytics that our innovative technology delivers when we’re pricing properties. We ensure your rental rates align with the market by conducting a comparative analysis of similar properties in your area. We look at how long it’s taking other homes to rent and we make pricing decisions based on how your property fits into the market.
There are things you can do to attract tenants to your property more quickly. Consider offering incentives or discounts for long-term leases to make your property even more attractive. Remember, slightly reducing your rent is often more cost-effective than enduring extended vacancy periods. You don’t want to lose an extra month of rent waiting for the tenant who is willing to pay your price while everything else on the market is priced lower.
The longer your property is vacant, the more money you lose. For example, taking a $100 loss per month may be better than losing a whole month’s worth of rent.
Attract Tenants by Enhancing Your Property’s Appeal
First impressions matter, and they often deliver you tenants faster.
Stand out on the market by investing in curb appeal and an attractive exterior. You want to ensure your property is well-maintained, both inside and out. You can attract and place good tenants faster when you’re offering a rental home with fresh paint, attractive but simple landscaping, and modern amenities. These things can make a significant difference in attracting prospective tenants.
Improve Your Marketing Game
You might have the best rental property on the Golden market, but you’re not going to benefit from that if tenants don’t know what you have to offer.
Market your property aggressively. This requires a fantastic listing that can quickly grab the attention of high-quality renters. Identify those ideal tenants (residents who pay rent on time, take care of your property, and follow the lease terms), and create marketing strategies that will reach those well-qualified residents.
You want to make sure you’re maximizing all the potential outlets for your listing. Use social media platforms, online rental listings, and websites, or local community boards. Those platforms will ensure your property reaches the right audience. Be clear about what makes your property unique and why it’s the perfect fit for their needs.
Focus on Tenant Retention
The best way to fight vacancy is to hold onto the tenants who are currently renting from you. Tenant retention will improve what you earn, it will provide stability for your rental property, and it will lead to a profitable rental experience.
When you’re focusing on tenant retention strategies to combat vacancy, you want to make sure your tenants are happy.
Happy tenants are more likely to renew their leases. Create good relationships with your tenants by:
- Being responsive with communication. When you’re accessible and available to residents, they’re more likely to trust you. This leads to better retention and lower vacancies. Active listening will help you avoid conflicts and prevent the escalation of any problems.
- Make sure you’re easy to approach. Be a resource for your residents. If someone is struggling to pay rent for one month, you want them to feel comfortable approaching you. It’s worse when they avoid you.
- Address maintenance issues promptly. You will lose tenants quickly and have a lot of vacancies to deal with when you don’t prioritize maintenance requests and repair needs. Make sure there’s a streamlined process in place that allows tenants to notify you right away when something needs attention.
Consider creating a tenant retention program that offers rewards for long-term residents, such as discounts on rent or upgrades to the property. You want your tenants to know that you value them and appreciate their lease renewals.
Streamline the Leasing Process
If you want to attract tenants to your property and avoid long vacancies, make it easy to rent your home. You have to make sure you’re responding immediately when someone gets in touch about your property. Don’t avoid return phone calls. Set up showings right away. Answer questions. The more responsive you are, the more likely you will be to find tenants quickly.
A complicated or slow leasing process can deter potential tenants. Simplify and expedite the application process by offering online applications, digital lease signing, and clear guidelines on the steps involved. The easier you make it for prospects to apply and move in, the less time your property will remain vacant.
This requires an investment in technology. If you don’t know about property management technology or the budget to buy the best software systems, work with a Golden property manager. At Laurel Property Services, we have excellent tech in place, allowing for online rent payments, easy maintenance requests, and a very convenient rental process.
Utilize Professional Golden Property Management
There are many excellent reasons to hire a property manager. A great management partner can help you earn more and spend less on your investment. We can offer you better relationships with vendors and contractors, to make your repairs more cost-efficient and predictable. We take care of accounting, screening, and legal compliance.
One of the best reasons to work with a property manager, however, is to reduce vacancy and increase retention.
When managing vacancies becomes overwhelming, you’ll want to partner with a professional property management company. Our team welcomes self-managing landlords into our client family all the time because it doesn’t take long to realize how difficult it is to keep your property occupied with high-quality renters.
As property managers, we bring expertise, resources, and market knowledge that can help reduce vacancy rates significantly. A good property manager can handle everything from marketing and leasing to lease enforcement to maintenance. This attention and hands-on management on our end means that you can be hands-off, focusing your attention on other investment opportunities.
Whatever strategies you use to reduce the vacancy you experience with your rental property, we always recommend that you continuously monitor your property’s performance and be ready to adapt your strategies as needed. Keep track of vacancy rates, tenant feedback, and market changes to stay ahead of potential issues. Regularly assess what works and what doesn’t and be open to trying new approaches to keep your properties occupied.
By implementing these strategies, real estate investors can effectively minimize vacancy rates and ensure a steady stream of rental income.
We know how important it is to avoid vacancy. At Laurel Property Services, we’re studying the market on a daily basis, using our insights and analytics to better understand why tenants choose the homes they choose and what makes them stay in place for longer. We take a proactive, adaptable approach to filling vacancies, and we always remain focused on meeting the needs of your Golden tenants.
When you have questions or need help, please contact us at Laurel Property Services. In addition to providing property management in Golden, we also serve Wheatridge, Morrison, Lakewood, Arvada, and Genesee, Colorado.
