Vacancy is expensive for real estate investors, and you don’t want to lose the rental income that disappears when a property isn’t occupied. Reducing vacancies has to be a priority in your investment strategy. You should be thinking about the potential of vacancy before you buy an investment and while you’re thinking about price points and potential upgrades.
Sometimes, vacancy is hard to avoid. The market might be overrun with properties like yours. Tenants might be turning to something different than what you’re offering. However, there’s plenty that you can control when it comes to avoiding vacancy loss on your Florida rental property.
Rental Value: Pay Attention to PricingEarning as much rent as you can on a monthly basis is an important part of your rental property’s success. However, you can quickly sabotage your rental income and increase your vacancy time by asking too much. Invest the resources required to do a detailed analysis of the local rental market.
Before you establish a rental value for your own property, you’ll need to know what those similar to yours are renting for in the area. Compare your home to theirs, and establish a rental price that will get the attention of
highly qualified tenants
quickly.
If you refuse to rent your house for any less than $2,000 per month, but it takes you four months to find a tenant who is willing to pay that, you’ve lost more income than you realize. If you had simply listed the price at $1,800 and it rented right away, you’d make more money. Don’t extend your vacancy loss by chasing an unreasonable rental amount. Know your market and know what good tenants are willing to pay.
Keep Your Rental Property Well-Maintained and AttractiveGood tenants want to rent appealing properties. If your home is looking old and worn and the appliances haven’t been replaced in 20 years and there are stains on the carpet, your vacancy is going to be much longer and a lot more expensive than it would be if you updated the property.
Provide a clean, well-maintained home that’s inviting and welcoming. Make sure there’s fresh paint on the walls, updated floors, and modern appliances. Small updates like new hardware in the kitchen or better lighting in the bathroom will make a big difference when you’re showing the home. You’ll attract great tenants quickly, and vacancy won’t be a concern.
Focus on Retaining Florida Tenants
One of the best ways to avoid vacancy is through tenant retention.
Tenant retention is important. It saves you money and provides a consistent presence in your property. When you find great residents who pay rent on time and take good care of your home, do what you can to show those tenants how much you value and appreciate them. Be responsive when they make maintenance requests. Communicate openly and transparently. Be reasonable when it’s time to renew the lease and raise the rent.
Work with Professional Florida Property Managers
