Corona-virus has put a stop to everything; life has come to a point where nothing is moving or too scared to move. The real estate is no different, vacancy rates have gone up, and the occupancy rates have gone down in the past six months. The vacancy rate directly affects your real estate’s income; a lower vacancy rate means higher income, while high vacancy rate means lower income. A higher vacancy rate not only means you will be losing your portion of your income if the rate continues to grow, but you might also be unable to pay your bills and mortgages and may even risk foreclosure. Here are some tips and tricks you can use to decrease your vacancy rates.
There are many reasons why the vacancy rate rises; however, with the help of the following tips and strategies, you might be able to tone it down.
It is a fact that location is the most important thing when it comes to real estate. You can do so much better if you research about the neighborhood and invest in one that is the most desirable. Better and secure neighborhoods attract better tenants, and when you invest in such neighborhoods, there is a higher chance that your tenant will stay with you for longer. You can ensure long-term contracts by investing in excellent and desirable neighborhoods. A good or friendly neighborhood is defined by its secure location, easy commute, amenities such as schools, hospitals, parks, etc., entertainment options such as hotels, bars, cinemas, etc., and one that has high job growth.
If your rental property has everything but no security, it will always be hard to rent it out. You need an area with a maximum of the above-mentioned features, and security is the topmost among these. The location also depends on the kind of tenants you are looking for; if you are looking for senior citizens, you will need to search for neighborhoods with parks, recreation centers as well as hospitals. If your target market is youngsters and professionals, you will need to think of easy transportation as well as entertainment opportunities and amenities. For tenants that have big families and pets, you will need to think about parks, schools, hospitals as well as extra secure neighborhoods.
Do Your Research about the Properties Occupancy Rate?
An excellent rental market as well as a good neighborhood is not the guarantee of a low occupancy rate. You will need a little more than that to succeed. Analysis of the property you are going to invest in is highly recommended. Do a little research, dig in a little deep and ensure that the property you are investing in has a low occupancy rate.
The most effortless way to do this research is through websites like Mashvisor; this site lets you estimate vacancy rates; it will provide you reliable occupancy rate data for the US housing market.
Repair, Repaint, and Unclutter:
The interior, as well as the exterior of your rental property, should be highly well-maintained. In the time of today, everyone expects to get value for money, and if you fail to provide, your occupancy rate will rise. A well-maintained and clean property will attract better tenants, and when they are comfortable, they are likely to repeat another term with you. When a tenant enters the property to check it out, he is calculating how much he will need to put in to make the place habitable. If he sees more repair than he likes, he might not sign up with your rental. But when he sees little or no repairs, there is a chance he will sign the long-term contract with you.
Apart from that, a well-maintained property also indicates a reliable landlord, which in the eyes of the tenant is a huge bonus.
Amenities and upgrades:
Like mentioned earlier, tenants need their money’s worth, and according to them, lack of freebies is not how they calculate the value of their money. So, to attract better tenants, you will need to add a little extra to your property. Things like a small gym, pool, recreation area, free WI-FI, as well as washing machine and dryer are just to name a few. You can also go for amenities that will make the place look great and not break your bank either.
Rethink Your Marketing:
Effective marketing is the key to success. So, rethink how you are marketing your unit and come up with a new and better plan. When making a marketing strategy, you need to think of all platforms as well as all channels, take the 360 approaches, and leave no stone unturned. From newspaper marketing to social media marketing, do it all. Get paid online ads and join free Facebook groups that are made for marketing real estate properties. Put yourself in your potential tenant’s shoes and think where they will go to find a property to rent.
When creating your listing, make sure it’s comprehensible, clear as well as to the point. Add ample pictures of your property from all angles. Present your property in the most impressive way to attract tenants.
Severe tenant screening will lead to better tenants, one that will stay on your property for longer. Having a steady stream of tenants decreases the vacancy late, and this is what you need. While screening, select tenants who are humble, stable, high-income, reliable as well as free of any debt. Such tenants find it easier to pay the bills and rent, and you will get your rent payments on time.
Happier Tenants Better Marketing:
Word of mouth, even in today’s day and Era, holds great value. Yesterday’s word of mouth is today’s reviews, and they spread fast. So, keep all communication channels open, make your tenants feel comfortable, and give them brilliant customer service. So, even when the old tenant leaves, he or she will leave a good review and also recommend your property to others. This is a great opportunity, especially when you are running a vacation unit.