One of the things that keeps real estate investors and landlords awake at night is the threat of vacant rental properties.
An unoccupied property is expensive. It’s also a risk; empty properties are an opportunity for thieves, squatters, and home invaders.
Reducing vacancy has to be an important part of your investment strategy, especially if you want to maximize earnings and create a stable, profitable rental experience.
At Real Property Management Choice, we’ve been hyper-focused on avoiding vacancy because we know how unnecessary it is. Well-maintained homes are in high demand, so there’s no reason that your rental should be vacant for too long.
Here are some of our proven strategies and best practices for reducing vacancy rates for your California rental property.
Create a Rent-Ready Property That Tenants Can’t Ignore
Pay attention to the property’s functionality and aesthetics before listing it. Prospective tenants don’t want to see a property that still needs work; they want to see a property that’s move-in ready.
- Make Necessary Repairs and Upgrades
Everything in the property must work. Test every appliance and check plumbing and electrical functions before you put your home on the rental market. Showing a home with a broken window or old appliances is pointless. Don’t list it if there’s still work to be done. Schedule and complete the repairs and the maintenance first, and think about the sorts of updates and upgrades that might attract tenants. Think smart home technology and energy-efficient improvements. These things will get your property off the rental market quickly.
- Invest in a Professional Cleaning
Hire a cleaning company that will pay attention to the smallest details. You want them to dust behind and under all the appliances, clean the baseboards and ceiling fans, make sure your bathroom sinks and tubs are sparkling, and remove any trash, debris, or belongings left behind by former tenants. Prospective tenants should walk in and immediately imagine themselves living there.
- Consider Curb Appeal
First impressions are very important when you’re renting out a property, and you’ll avoid long vacancies when the property looks good from the outside. Is it inviting and welcoming? That’s going to attract tenants.
Price California Rentals Competitively
Pricing has a larger impact on vacancy than many owners are willing to believe. The market drives an accurate and competitive rental price, not your own ideas about what the property is worth. Of course you want to price your property for profitability. But you also have to price it for the competition and for the tenants who are looking. It’s a balancing act, and a property management company with good data can be your secret weapon when it comes to pricing in a way that avoids vacancy.
Setting a rental price that’s too high will not earn you more money. It will actually backfire, particularly in competitive markets throughout California. When your rental is overpriced, expect prolonged vacancies. A property that’s too pricey will remain unoccupied for weeks or months. Each week your unit remains vacant constitutes lost income that you likely won’t be able to recoup.
There are also wasted marketing expenses to consider. Advertising can be costly, so it’s critical to attract attention right away. An overly ambitious price will lead to decreased interest, causing you to spend more on marketing efforts over time.
Even worse than a high vacancy rate is the missed opportunities that an overpriced property can create. Quality tenants often come to the market prepared, knowing what they’re willing to pay. Overpricing may deter responsible applicants who could otherwise have been a perfect fit for your property.
Leverage accurate data and analytics. Arrive on the market with the right price, and vacancy won’t be an issue.
Invest in Solid Marketing Strategies
Another important way to bring down your vacancy rate is with strategic marketing. You have to know how to reach qualified tenants, and it’s important to understand how to set your property apart from all the others they’re considering. Rental property marketing is online now, and that’s great for a lot of different reasons. However, it also creates a situation where tenants scroll through one listing after another. What’s going to make them stop on yours?
- Photos. Quality photos will grab their attention. Don’t upload the standard pics that every other listing has. Instead, capture all the details. Zoom in on the tile floors, the walk-in closet, and the newly installed backsplash in the kitchen. Let them see the lighting and the outdoor space. Include photos of the front door and even the neighborhood. Give them a sense of your property.
- Video. We’re surprised at how few listings have video. Provide a walk-through tour. Take tenants from the first floor to the second. Show them the view from the balcony.
- Social media shares. We market our rental properties on all the popular rental sites, but we also leverage social media. This is the best way to engage with prospective tenants. You’ll be able to answer questions, respond to messages, and encourage likes and shares.
There are many brilliant ways to market your rental property so that it’s leased quickly, avoiding the loss and the stress of vacancy. If you’re unsure of the best ways to approach the market from an advertising standpoint, talk to us about how our technology can help create a dynamic marketing strategy. It will make a difference.
Prioritize Tenant Retention
The best way to avoid high vacancy rates?
Keep the current tenants you have.
Tenant retention is going to create stability, peace of mind, and profitability for every rental property. When you retain your existing tenants, there’s no vacancy to speak of. There are no turnover costs, either. You don’t have to spend time marketing to new tenants or screening new applications. You’re re-negotiating and renewing the lease agreement year after year. You’re happy. Your tenants are happy. Your property is in excellent condition and appreciating in value.
Three things will impact your tenant retention:
- Providing an exceptional rental experience. Tenants want convenience, and they want responsiveness. If you’re offering online rental payments, if you’re responding right away to maintenance requests, and if you’re offering resources and support when necessary, you’re more likely to keep your best tenants in place, avoiding vacancy and all of its expenses.
- Offering upgrades and updates. When a tenant requests a new microwave or updated window blinds, be willing to consider those requests. It will show tenants that you care about their rental experience and that you’re interested in making whatever changes you can to keep the relationship positive and professional. Offer incentives when you’re talking about the lease renewal. A professional carpet-clean, for example, or a video doorbell for extra security. Keeping tenants in place means you won’t have to make a lot of upgrades and improvements during the turnover process, but the tenants who stay in place still want to feel like they’re living in a modern home. Give them what they want when it’s reasonable to do so.
- Smart strategies around rental increases. Raising the rent every year when the lease renews is typical, and most California tenants will expect a higher rent from year to year. But, there’s no need to increase it by a large amount every year, especially if the market doesn’t support it and most definitely if your rental property is covered by rent control laws. Make a smart increase that covers your own additional expenses but doesn’t chase away your great tenants.
Relationship-building with your residents is the key to avoiding vacancy and turnover. Share expectations with your residents before they even move in. Communicate openly and proactively. Make sure you remain accessible and available in case there’s an emergency.
Partner with a Property Management Expert
All of these strategies around bringing down your vacancy rate are already in place when you choose to partner with a smart property management company in California. Property managers not only have deep local market knowledge that can help avoid vacancies, but we also have the best technology that’s available. From syndicating rental listings to arriving at the right price point, our software and platforms automate a lot of the leasing process, ensuring that your property is rented quickly to high-quality tenants and for the most amount of money.
Renting out a property on your own is easy in a lot of ways. You can set up a system for collecting rent. You can put together a great list of vendors and contractors for when maintenance is needed. You can even find a solid lease agreement from a real estate attorney or a government agency to ensure the lease is compliant with California rental laws.
But when it comes to things like reducing vacancy, encouraging tenant retention, and pricing properties for the market as well as for your own profitability, the expertise of a property management professional is invaluable.
Don’t hesitate to call on us. When you contact our team at Real Property Management Choice, we’ll be ready to talk about bringing down vacancies and any other challenges you find you’re running into.
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