When you think about the downfalls to owning a vacant rental property in Golden, Colorado, you likely think about the fact that there’s no rent coming in. That disruption to your cash flow is certainly a danger, but there is also a lot of liability that comes with vacant property. You run the risk of vandalism, undetected repairs, fire and other losses.
Protect yourself against these dangers that are common with unrented and unoccupied properties.
Out-of-Pocket Maintenance Costs
When you’re paying taxes, insurance, and keeping the lights on at your vacant rental property, you’re paying more than you realize because you aren’t making money off of this property. So, every dollar spent is cost negative. You’re essentially paying for something that you aren’t using. That’s a huge money leak, and it’s going to be hard to make up what you lose.
The best way to reduce your negative cash flow is to fill the property quickly and keep your vacancy time to a minimum. Increase your tenant retention efforts to reduce turnover.
Deferred and undetected maintenance is also a risk. With a tenant living in the home, you’re typically notified right away when something is wrong. With an empty property, you won’t know when a sink begins to link or a toilet backs up. That could lead to higher repair costs later.
Inspect your vacant property regularly. If you aren’t available to do it, send out a Golden property management or an individual you trust. Make sure you have a landscaping service visit the property regularly. If the home is vacant in the winter, watch out for frozen pipes and keep everything shoveled and safe when it snows.
Potential for Vandalism and Trespassing
Vandalism can happen anywhere, even if your rental property is in an HOA or a building with great security. You never know when someone is going to decide to break a window, take off with an appliance, or cause problems at your property simply because it’s vacant.
If you find yourself with a squatter, the situation is going to become even more complicated.
Check Your Insurance Requirements
Insurance companies aren’t fond of vacant rental property and that’s because they understand all of the risks associated with a home that is left unoccupied. Check your policy for any occupancy requirements. You might have to purchase additional coverage for a home that’s left vacant for an extended period of time. To avoid this extra cost, you’ll have to make sure it isn’t classified as vacant. Every company has different standards, so find out what they are with your insurer.
These are just a few of the risks associated with a vacant home. We can help you avoid them with a fast and effective leasing process. If you’d like to hear more about how we can help with Golden property management, please contact us at Laurel Property Services, Inc.