If you have stumbled upon this article, it is likely you own or are planning to own an investment property. Though there are different types of investment properties: multifamily apartment complexes, office buildings, industrial facilities, and retail shopping centers, an investor’s top priority is usually low vacancy percentage. But what happens when you notice you’ve been facing challenges in keeping your investment property at maximum capacity?
This can be one of the most pressing challenges an investor can face, considering fewer tenants leads to a decrease in cash flow. An investment property with a high percentage of vacancies can also hinder a landlord’s ability to negotiate rent renewals and options. However, there are some tips that can help minimize vacancies in your investment properties. Take a look below, and enact some of these tips to maintain current tenants and attract future occupants.
- Appeal to Tenants With Perks
Everyone enjoys feeling like they are getting a great deal. Offering your tenants extra incentives can make them feel like they are getting something special. By including utilities in rent, or providing incentives like free car washes in the office lot, you can attract new tenants. Though sometimes this can cause you to make less money at the moment in the long run, it can help throttle your property to less vacancy.
- Monitor Future Lease Expirations
As a landlord, it is important to monitor leases. Keep leases that are expiring within 12-18 months in mind. This is a good time frame to begin monitoring them if the tenant plans on staying –Great! If not, you have enough time to market the unit and find a new tenant to fill the space.
- Long-Term Leases
Long-term leases can mean vacancies will arise less frequently. In addition, tenants who plan on staying are putting down a solid foundation. Whether it is a company renting an office in your building and establishing their headquarters or a tenant in your apartment building a home, an individual seeking long-term locations are more likely to remain good tenants.
- Hands-on Management
Hands-on management is an important tool to attract and keep tenants. If your tenants are unhappy, they are more likely to leave. Therefore, if they have an issue, problem or repair needed, a speedy response will ensure their happiness.
- Research Marketing and Advertising
It is extremely important to market and advertise vacant properties properly, thoughtfully, and thoroughly. Make sure your ads target the business owner likely to fill your investment property and highlights the benefits that they are looking for. This is where hiring a proactive real estate agent that is an expert in the type of property you own and the market you’re in can be worth its weight in gold.
- Tenant Screening
Screening tenants is just as important as finding them in the first place. Do not hesitate to be aggressive in your screening techniques. Bad tenants have a habit of making late payments, which can lead to eviction. If a tenant has a good rapport with former landlords, good credit history and a clean record, they may be likely to stay longer.
Of course, there will always be unexpected vacancies as an investment property owner. However, knowing how to minimize these vacancies can help to retain maximum tenant occupancy in your property.