Vacancies present quite a challenge to property owners.
They dip into whatever positive cash flow you have accrued for the year, require extra time thanks to new tenant placement, and can be just plain frustrating.
In the past, we have discussed plenty of ways to reduce your vacancy rates, as well as how to improve your vacancy advertisements to entice new tenants to lease out your property.
Despite the fact that Philadelphia vacancy rates are still maintaining a relatively steady decline, there are always more ways to minimize property vacancies.
Today, we are going to discuss additional ways you can keep tenants leasing your property, as well as ways to minimize downtime in between lease terms.
The Cost of a Philadelphia Rental Property Vacancy
Understanding the true price of a vacancy can be enough to encourage you to avoid them at all costs.
Take a look at how much a vacant rental property is going to cost you in terms of money, time, and effort:
If you currently utilize a property management company in Philadelphia, chances are you are facing a fee to re-lease your property.
And while this fee covers the exceptional services your property management company is providing you, – advertisement, tenant screening, generating the lease, and moving the tenants in – when all is said and done, it is something you have to pay for.
In addition, any costs associated with the thorough background check you will do on any potential tenant is likely to cost you some money as well.
This is especially true because there are limits on how much you can charge a prospective tenant when it comes to application fees.
Though some online businesses offer free advertisements of your rental property, you still need to invest time and effort into creating these advertisements.
This includes drafting up a solid and detailed ad, taking high-quality photographs of your property, and advertising across as many platforms as possible.
Cleaning and Repairs
Every successful landlord knows that in between tenants you are going to need to conduct a thorough cleaning, and make repairs before placing a new tenant in the property.
The monetary costs of doing either of these things will largely depend on how well your previous tenants cared for your investment property.
However, no matter how minor the mess is, or how small the repairs are, you will need to invest some time and money.
As you can see, there is a lot to understand about the actual costs of a vacancy. Knowing the breakdown of costs in terms of money, time, and effort, may motivate you to take your Kensington property vacancies much more seriously.
4 Ways to Reduce Rental Property Vacancies in Philadelphia
1. Market Your Property Early
Successful property businesses make sure to give their tenants plenty of time to decide whether to renew their lease or not. This way, when a tenant decides not to renew, you have a heads up.
Utilize this time to prepare for the end of your tenant’s lease term, so that you can reduce the impact an inevitable vacancy will have on your bottom line.
For instance, start gathering advertisement details and photographs. In addition, as the lease term nears an end, consider showing your property to interested tenants before your current tenant moves out.
You may even secure a new tenant before your existing tenants leave.
2. Utilize Word of Mouth Marketing
If you own more than one rental property in the Kensington area, you might consider mentioning to your existing tenants that a property is opening up soon.
If your tenants are the high-quality type that you should be placing in your investment properties, chances are they know someone of the same caliber that may be a good fit for your upcoming vacancy.
In addition, sharing with friends and family that you are about to have a vacant property can be helpful as well.
Never underestimate the effects word of mouth can have on your success. And, as an added bonus, why not include a referral’s fee for anyone that refers a good tenant to you?
3. Prorate the Lease
Another great way to minimize vacancy is to offer a prorated lease agreement.
Although most tenants typically move in to new homes on the first of the month, there is no reason you can’t move a new tenant in mid-month, and prorate the rent.
And, even if the tenant doesn’t want to physically move in mid-month, there is a good chance they will be willing to spend a few weeks’ worth of rent to ensure no one else nabs the place.
Keep in mind that doing this means you’ll need to whip your rental into shape quickly between tenants.
This is where having a property management company on hand is helpful. With a reliable maintenance and cleaning crew available at all times, your Philadelphia property manager will have your property rent ready in no time.
4. Use a Property Manager
As mentioned above, using a property manager can significantly help you reduce your chances of having a vacant rental in Philadelphia.
In fact, a competent and reliable property management company can help you with things such as:
- Recommending improvements or upgrades that will garner better quality tenants who are more likely to renew their lease agreements
- Advising you when it comes to rent rates based on their extensive knowledge about the current market, specifically in your rental’s region
- Marketing your property across multiple platforms, so your upcoming vacancy gets as much exposure as possible
- Thorough tenant screening and placement processes
In addition, a quality Philadelphia property management company, such as Bay Management Group, can help with things like lease drafting, rent collection, routine inspections, and 24/7 maintenance requests.
All of these things help increase tenant satisfaction, and the likelihood that a tenant will resign a lease agreement come renewal time, thus minimizing your chances of having a vacancy in the first place.
If you own rental properties in or near the Kensington region, contact our Philadelphia property managers at Bay Management Group today. We can help you minimize your vacancies, and also provide superior customer service to your tenants.