If your Philadelphia rental property is vacant, chances are you are not a happy property owner.
Vacancies are often the worst thing a property owner has to deal with in the rental property business, next to dealing with a non-paying tenant and an eviction.
In order to minimize losing profit, and maintain your status as a successful landlord, managing your rental property’s vacancies should be your main priority.
After all, if you have no one leasing your property, no cash is coming in.
At least when you have emergency repairs (though they often break the bank), you have your tenant continuing to pay their rent each month.
But with a vacancy, you can lose your positive cash flow for the entire year in the blink of an eye.
While there are many things that can lead to high vacancy rates, there are steps you can take to keep rates at bay.
Thus, we are sharing with you 6 brilliant ways to help you reduce your rental property’s vacancy rate.
Ways to Reduce Your Philadelphia Rental Property’s Vacancy Rate
1. Include Your Rental on a Website
People love to search for things, including their next rental, online.
By advertising your vacant property on a reputable website, your chances of exposure to a large tenant pool are significantly increased.
This is especially true if the website highlighting your rental is optimized for search results (meaning those looking for rentals like yours can find you), and has plenty of detail regarding your rental (for instance images, details, pricing, and contact information).
Better yet, if your rental is being showcased on Bay Management Group’s website, prospective tenants will also get to know what services they can expect from our Philadelphia property management team.
Why is this beneficial?
Because tenants like to know their needs will be taken care of quickly and efficiently.
If they can see that there is an easy rent collection process, a 24/7 on-call maintenance crew for repairs, and a general sense of superior customer service, they will be more likely to inquire about leasing from you.
2. Take Care of the Exterior
Vacancies are a part of being in the rental property business; there is no doubt about that.
However, what’s not part of the rental property business is having a property that sits vacant for long periods of time.
Not if you take care of your property, that is.
First impressions are not to be underestimated when it comes to showing your vacant rental to interested tenants.
Would you want to live in a home that looks run-down, unkempt, and all-around shoddy from the outside, regardless of what the interior looked like?
If you are like most people, probably not.
This is why slapping on a new coat of paint, replacing old, outdated, or broken windows, and tidying up the landscaping (both in the front and back yards) is so important.
Impress tenants from the moment they drive up to your property.
This will put them in a good mood about your place from the start, and make them more likely to want to lease from you.
3. Regularly Evaluate Your Rent Prices
Every Philadelphia property owner wants to maximize their profits by commanding the highest rent rates possible.
However, if you notice that tenants are not keen on renewing their lease come the end of their term, or that your property is sitting vacant for longer than you wish, it might be time to evaluate how much you are charging.
Here are some helpful tips:
- Understand the national and local rental property markets, and see how your rental compares
- Consider lowering your rental price to entice new tenants or keep current tenants for another lease term
- Find out why tenants are moving, and then cater to them if possible
- Offer incentives to loyal tenants so they are less likely to move come the end of their term
- Pay your tenant’s utilities as a bonus for moving in
In the end, sometimes a small gesture, such as paying a $25 water bill each month, is enough to keep a current tenant in your property long-term, or encourage new tenants to apply to lease your property.
Either way, you are effectively reducing your vacancy rates in the process.
4. Research Before You Buy
It can be very easy to jump into an investment when you find the “perfect” rental property.
However, even if your individual property is a gem, that does not mean the surrounding area can keep up.
Look at some of the things that may inadvertently affect your vacancy rates, no matter how great your investment is:
- Low employment rates
- Increased crime
- Lack of nearby shopping, dining, and entertainment
- Increased construction affecting commutes, noise control, and views
- Shortage of good schools nearby
Conducting thorough research before you invest in a Philadelphia rental property is the key to garnering high-quality tenants that have sufficient income to pay their monthly rent, enough interest when your property goes vacant, and a positive cash flow.
5. Offer Long-Term Lease Agreements
One great way to reduce overall vacancy rates is to offer your tenants long-term lease agreements.
This not only ensures that your tenants will be in your property for longer, it helps solidify a strong relationship between you, your tenant, and your Philadelphia property manager.
If this relationship is nurtured right, and your tenant feels that they are important to you, they will be even more likely to sign another lease term with you when their long-term agreement is up.
Not sure how to convince tenants to sign long-term lease agreements?
Try offering incentives such as a reduced rent rate, paid utilities, on-site landscaping or pool maintenance, or even upgraded appliances.
The small investment you put into your tenants upfront will come back to you many times over in the form of a rent payment being sent your way for a long period of time.
6. Be Proactive
Start showing your soon-to-be vacant rental to prospective tenants before your old tenants move out. This way you can have someone ready to move in shortly after your current tenant leaves.
In addition, make sure you handle all repairs and cleaning issues immediately after your old tenant moves out, so that your vacant rental is move-in ready as soon as possible.
If your vacant property sits untouched for some time, and a potential tenant shows interest, you want to be able to move them in as soon as possible.
While being proactive may not exactly prevent a vacancy from occurring, it definitely helps reduce the time your property sits empty.
In the end, you will generate more rental income by moving people in and out as efficiently as possible.
If you own rental property in the Philadelphia area, and are interested in receiving help with keeping your property’s vacancy rates low, contact Bay Management Group today.
We understand that vacancies harm your profits, and are no good for business. That’s why we specialize in leasing your property, on average, in under 30 days with aggressive advertising methods and a dedication to finding the perfect tenants for your property.
In addition, we are committed to providing both you and your tenants the best customer service available, along with superior property management services.
So, contact us today and see how we can help you maximize your rental profits, and minimize your property’s vacancy rates, as well as everything in between.