Dealing with vacancies!!!

Comments(6)

• 
  DaveT21st November, 2002

  If you are a landlord, vacancies are a fact of life.
  
  I wouldn't be too concerned with that local investor's experience with a 9 month vacancy. Since there are many reasons that may explain a long term vacancy, and you apparently did not explore these with this investor, let's not speculate on this without more information.
  
  Instead, I suggest you just call several property management companies in your local area (even better if they have property near yours under management). Ask them what their typical experience is with the length of a vacancy and with the tenant turnover rate.
  
  A two month vacancy may be perfectly acceptable if your tenant turnover is once every three years. A two month vacancy every six months may not be acceptable.
  
  Techniques you employ to reduce vacancy are usually the same techniques that induce tenants to stay longer and to renew their leases.
  
  Some that come to mind:
  1. Rent below the market top. Rents for similar properties have a range. Price your rent in the middle of the range.
  2. Keep the property in good repair, and immediately correct all maintenance items reported by the tenant.
  3. Raise your rents slowly. For example, the market may bear a $50 monthly increase, but why not just go up $25 per month -- still keeping your rents below the market top?
  4. Give the tenant a small rebate at Christmas time if the rent has been paid on time throughout the year -- $25 after one year, $50 for tenants who have been with you for two years, perhaps $75 for tenants with you three years and longer. Include a letter of appreciation with your rebate explaining that you are giving the rebate in appreciation for their care of your property and for their record of on-time rent payments.
  
  These are just some of the things you might do. If you implement all of these suggestions, I suspect that the word will get around. After a couple of years, you may find that you have a waiting list of applicants for your rentals whenever one does become vacant.
  
  No waiting list yet? Offer the current tenant, that just gave you a 60 day lease termination notice, a finder's fee if they secure a replacement tenant for you before they vacate the property. Consider the cost of advertising and the lost income incident to a vacancy, then ask yourself if a $100 - $150 finder's fee is worth the price if the current tenant finds you a qualified replacement before they vacate.

• 
  joel21st November, 2002

  Props to DaveT. Dave. Please submit this as an article. This is a must.
  
  Also I would like to add to know what your market is. I have found that I have been able to rent some properties better in some areas to specific people than others. Once you identify what your target market is, focus all your advertising like wise.

• 
  JohnMichael30th November, 2002

  I have had a 98% occupancy rate on all my rentals over the past 5 years by using a few tricks.
  
  When I rent one of my properties, I make my add stand out Like:
  
  $10,000 FREE
  Rent my property and you may win $10,000
  (I give them a lottery ticket)
  
  Or
  
  Free TV, Microwave, Couch, Swing set, Yard Care, etc
  
  I train my renters:
  
  All rents come in on the 1st, if not I knock on their door
  I do surprise visits
  I call them
  I take care of repairs in 24 hours or less
  
  I let them know I care by:
  
  I send them birthday and holiday cards
  I call them and wish them happy birthday
  If they have kids, I bring gifts when I visit, that I bought at the Dollar store for a buck
  
  This goes a long way when dealing with my renters.
  
  John Michael

• 
  Rudolf7th January, 2003

  Thanks JohnMichael.
  
  I'll use your method next time!

• 
  3qu1ty29th October, 2003

  This is an old post I'm dusting off here but definitely worth the read. Thanks for the sage advice DaveT.

• 
  alexlev29th October, 2003

  Thanks 3qu1ty. This was definitely an interesting discussion. DaveT and JohnMichael both had really useful advice.
  [addsig]