How to Avoid Vacancy Rate on Your Rental Property

How to Avoid Vacancy Rate on Your Rental Property
How to Avoid Vacancy Rate on Your Rental Property

Tenant turnover or vacancy rate in rental properties is significant for developers, property managers, and landlords. Real estate experts said it must be below five percent to ensure a steady stream of renters that financially benefit the landlord and the management company. But having a high turnover rate can lead to difficulties in selecting new tenants who can maintain the occupancy rates at a desirable level. 

Statistics show that, on average, a renter moves every five years, while long-term residents may stay for over ten years. The motivation behind moving depends on geographic location, socioeconomic status, and personal preference. In some regions where homeownership opportunities are more vital than renting, people might stay in their homes for decades or even a lifetime.

Because of these, landlords should think of effective and efficient tenant turnover strategies to avoid difficulties and expenses related to finding new tenants. Here are some ways to reduce tenant turnover:

1. Maintain a Competitive Rent

If you don’t have the required capital to purchase a rental property, consider applying for financing to allow you to expand your business and increase the supply of available units on the market so you do not have a shortage of renters. There are ways to lower monthly rents by converting a two-bedroom into another one-bedroom if one is already occupied. 

You may also reduce rates after finding out what percentage of each income bracket is willing to pay. This lets you maintain consistent occupancy rates because of the increased demand from prospective tenants looking for affordable housing without giving up quality amenities.

2. Update Your Property with Modern Amenities and Add Value

Modernizing current units may discourage existing renters from moving out the following year. You can increase curb appeal by landscaping or adding new flooring, paint, cabinets, and fixtures making the unit more desirable. A competitive rent price is also important because it shows that you offer an affordable home for potential tenants. 

Moreover, consider updating the overall layout of the common areas to boost resident retention rates. Ensure to inform residents about these updates, so they can feel proud of their homes, knowing that you care enough to improve them every year. This is why famous property managers, such as this real estate agency Boston area, attract many tenants because of this strategy. Consider adopting this technique to decrease the vacancy rate on your rental property.

3. Ensure Effective Management Practices 

Many property managers have reported that tenant turnover is directly associated with management practices. Ensure the following to avoid high rates of renter attrition:

  • Ensure you are responsive to tenant needs.
  • Be transparent about all information given to residents.
  • Provide accurate rent payments.
  • Act on repair requests immediately.
  • Hire a Property Manager

4. Hire a Property Manager

Doing all the work yourself may take up valuable time that you could use elsewhere. This might even lead to mistakes with serious consequences. Local authorities could fine or sue you for discrimination if you mistake rejecting a prospective tenant. 

Hire property managers to handle any tenant complaints while protecting your best interest as an owner. And at the same time, they make sure that they are dealing with your tenants within the confines of the law to avoid any possible legal issues. They are also responsible for maximizing profits by finding renters below market rates and increasing occupancy rates. 

So, instead of worrying about finding tenants, you can now focus on running your business. Working with property managers also reduces no vacancies without having to worry about overcrowding because they will manage everything from rental agreements to maintenance requests. If you’re looking for a real estate management company Boston area, you may visit Platinum Realty Group.

5. Stay on Top of Repairs

Losing renters due to poor living conditions is a typical reason they leave. As the landlord, this is a sign that you need to know when things are not working properly or risk losing renters who might complain about these issues with friends and family looking for a rental house or apartment. 

Hire a property manager to inspect units on your behalf to avoid complaints. Property managers can fix the issue before it becomes widespread. You can also cut extra expenses and save time by keeping up-to-date with appliance maintenance and HVAC inspection appointments. You don’t want your tenants moving out due to device failure that could have been prevented if the unit had been inspected beforehand.

In a Nutshell

There are several ways to avoid the turnover of rental units, but these are the leading practices you can do to make your life easier and maximize profits by keeping more renters in your properties longer. In addition, consider investing in a property management company that will provide these services for you while using your interests as their priority. You can also pay a maintenance team to handle any tenant concerns about the property’s condition. 

Whatever you choose, following these simple yet effective steps will help keep tenants happy. They will have no reason to move out, allowing you to receive more income from your rental units over time. Platinum Realty Group, one of the best property managers in Boston, may help you with your rental properties if you’re looking for real estate experts.