Vacant apartments drain your funds until a new tenant agrees to your lease agreement.
Yes, well, no kidding, Einstein! Tell me other things I do not realize!
Alright, everybody, relax! I want tell you a number of things that will take the anxiety out of you owning a few vacant apartments and get you up and going as fast as possible.
Besides the blatant costs to the ghost town you refer to as unit #2E loan, insurance, property taxes and all the power, there are additional costs you may well not have remembered: Property damage, keeping that lawn free of weeds (aka lawn maintenance and sprucing up your ghost town to make it appear cheery and appealing to your next applicant.
So, with no further waiting
Here are seven things you can do to reduce your vacancies:
Assess Your Neighborhood
Your locality is different than every other locality on earth. How come? If you can not respond to this inquiry, it is the explanation you have higher vacancies than the majority. What makes your locality different? Does it have a flea market you can walk to on Mondays? Are youthful families relocating to the neighborhood (more so than in times past)? Even if you are the owner of a apartment in a not-so-hot neighborhood, discover something encouraging to market to your potential tenants! Grocery store one block away that gives fifths in brown paper bags away half price the third Tuesday of every month! Whatever you come up with, sell it! Make it work for you and your potential applicants! And if you do not realize, you should spend some quality time in the area and really discover what makes it special.
Visibility
How often have you heard the expression: Location, location, location? Precisely. Numerous times. Prior to investing in a rental building expecting to sign a hot new lease agreement with a tenant, think about how much foot traffic your property will get. Two of the buildings I handle gets nothing but foot traffic (which saves me cash on marketing. If you are purchasing in a area renowned for it’s character, make sure you make an investment in a dwelling that is effortlessly noticed from the road.
Turn that Unit Around Fast!
Be intelligent about your turn-arounds and learn to do it as expeditiously as possible. Make a straightforward list and schedule your sub-contractors to do their work as close together as possible. For instance, when I am turning over an unit, my list goes something like this: Maintenance make-ready for all the work that has to be done during the weekend taking off lights, removing fittings, etc.), new paint (you clearly want to leave the carpet cleaning/carpet installation after the paint has dried, new floor covering or carpet cleaning, blinds and window replacement, switching out fixtures, etc. And ultimately ending with janitorial cleaning. If I am pushed I can do a complete turn-over in five to six days. How? Because I know the process and the sub-contractors and can rely on them if one vendor shows up 1 day late, you have to reschedule your entire week’s worth of sub-contractors. Learn and jot down a time frame that works for you and keep the sub-contractors information and days they are arriving in plain sight. Call to confirm them the day before. It is your responsibility to make sure they show up? what does it cost them to not get the days mixed up? Exactly, nothing!
Having a fast turnover, puts cash in your bank account.
Know what to Charge for Your Unit!
If you are just estimating and do not really know what comparable apartments in your locality are renting for, you will be the one losing. I complete a regular ‘market survey’. Shop your own neighborhood to find 3 to 5 units that are comparable in scope and the type of building. When they have vacancies, call the manager (keep their information because you will be calling every 3 months) and inquire what they are charging for their apartments. They do not know who you are or what you are doing – the information is invaluable in making sure you get that next lease agreement signed right away!
Market Your Vacancy Correctly!
Put yourself in the place of your potential occupants. Who are you reaching out to? If you own in an Hispanic neighborhood, consider running your ads in a Spanish newspaper. As a property owner, we use computers all the time, but a lot of people don’t- where is your potential tenants likely to see your ad? Corner liquor store? (here we go again!), stock car race? Sometimes a perfectly placed ad can swarm your place with computer illiterate potential occupants.
Consider an on-site property manager.
If you own multiple apartments all in the same neighborhood, you may want to consider hiring an on-site manager. Usually, buildings with on site management have faster turn-overs and thus, fewer vacancies. And in most states, buildings with a certain number of units or more HAVE to hire on-site management- know the law in your state.
If you hire a property manager to reside in your building and run your properties, they are going to learn all of the smooth moves mentioned above and save you time over the long haul. Do it! It’s a good move!
Terms of the Rental Agreement
The longer the terms of the rental agreement 2 years versus 1, the fewer the number of vacancies. So, who wants to sign a longer lease agreement? I will tell you who- individuals you dangle sweet tasty morsels in front of? why not offer a 1 year at a certain price and a 2-year at a slightly lower price. In this world of commitment-phobes, you have to offer them something to get them to want to stay longer!
What if you give them a fifty dollar per month discount if they choose a 2 year lease agreement? Or tell them, if they are willing to sign off on a 2-year agreement, you will agree to leave the rent the same- “lock it now, guys!”
Come on now! It is not that challenging, is it? You have now learned eight Smooth Moves that can put some money in your bank account!
|
By: The Hollywood Landlord
Article Directory: http://www.articledashboard.com
Stirling Gardner enjoys epic films when he is not consulting for EZ Landlord Forms – your best online resource for a state specific rental agreement and free rental application.
Click here to view rest of article from original site
|
||||||
|
|
||||||
