Dear Sue,
I have several rentals that I manage myself. I have been rather successful at it but lately I have had a couple of vacancies that I just can’t seem to fill.
I have never experienced a vacancy. It’s going on three months.
Any suggestions?
~ Landlord Lou
Dear Lou,
Congratulations!
I too am a landlord. I believe that providing housing is a good service.
If maintained and managed properly rentals can also be a landlord’s ticket to financial freedom.
First and foremost, a good landlord knows that vacancies are a cost of doing business. No rentals, no vacancies. Vacancies must be factored into the return on investment.
A good property manager’s challenge is to keep the vacancy rate as low as possible by staying in touch and adjusting to market conditions.
Options for renters are greater than ever. Tenants are being lured away with promises of better amenities, lower and sometimes free rent and other benefits.
Landlords like you and I can operate just as efficiently and often times more effectively than the larger professional property managers.
Our tenant relationships are often times better and our response time can be quicker when issues arise. The net result is happier tenants.
I view it as the difference between navigating a slow cumbersome ocean liner compared with a quick, little powerboat.
There will always be vacancies. People get married, divorced, change jobs, buy homes and everything else that one can think of.
You don’t want to lose a tenant because the rents aren’t in line with the market, or the property is in shambles. Face it, happy tenants mean fewer vacancies. Here are some tips.
Maintenance is important. Preventative maintenance is best. Quick responses and fixes to leaks, broken dishwashers, inoperable thermostats, plumbing problems and other tenant issues shows respect for your tenants. It also shows pride in the condition of your property.
Weekly laundry room cleaning and yard maintenance is essential. Again, it lets your tenants know you are on top of things. It gives them a sense of security.
Regularly scheduled maintenance such as gutter and roof cleaning and heating and air servicing will not only save you money, it will cut down on tenant complaints.
Why not make the improvements that you would normally make with a move-out before your tenant gives notice?
Make periodic visits. If the tenant’s carpet is stained or worn, replace it. Paint is one of the best and least expensive ways to spruce a place up. New light fixtures come in at a close second.
How about upgrading the appliances? Your tenant will be thrilled. Who wouldn’t like a new refrigerator? Don’t forget, the cost is deductible.
Keep your rent in line and maybe just a little under market. Offer discounts for longer leases.
I know a landlord that offers one month free rent for signing a two-year lease. His tenants love it and he only gives up two weeks worth of rent per year. It makes financial sense to receive a lower rent than to have a vacancy. You can never make up a vacancy.
Add value. Do you have room for an outdoor barbecue or picnic area? If so, it could be an inexpensive addition and fun for the tenant.
Is it possible to install a horseshoe or boccie ball game? Think about it.
Keeping your tenants happy helps to minimize vacancies and is a matter of good Home $$$s and Sense.
Sue Thompson is owner and sales manager of HomeTown Realtors in Auburn. She can be reached at seesue@seehometown.com, or on the Web at homedollarsandsense.com.
