27 Aug Vacancy Rate
A high vacancy rate is a landlord’s worst nightmare. In fact, most landlords would agree, there is nothing worse than having an empty rental property. That’s because, the longer a rental unit sits vacant, the more it has an impact on your bottom line. As a landlord, your goal is to maximize rental income and minimize costs. But, the only way to do that is by minimizing your vacancy rates. Avoiding rental property vacancy should be your number one priority as a landlord. That’s because tenant turnover can be a profitability killer. But, sometimes even when it seems like everything is perfect with your rental property, you still can’t retain good tenants. High vacancy rates can be the result of several factors. For this reason, we offer some insight on why you might be experiencing high vacancy rates.
San Diego County Vacancy Rates: although the overall vacancy rate in San Diego dropped to 4.1 percent as of spring 2019, they are still higher than the 3.4 percent reported in spring 2018.
Vacancy Rate & Proper Pricing
For those with a high vacancy rate, one thing you should consider is how your property and rental rates compare to the competition. For example, if you are charging the same rent rate as other landlords in your area, but offer fewer amenities and features, this could be an issue. In fact, chances are you will experience higher vacancy rates if your rent is priced too high. That is, unless, you are offering something no other landlord is in your area like allowing pets or more amenities. When managing rental properties, it is extremely important to know what comparable properties are renting for. Ultimately, the rental rate is determined by what the market will absorb. Other variables to consider include:
Rental Rate Considerations:
- Number of Bedrooms & Bathrooms: should be the same
- What Utilities Are Included: again, should be the same
- Square Footage: is it the same
- Similar Amenities: e.g. new appliances, in-unit washer & dryer, updated kitchen (etc.)
- Extra Amenities: e.g. ocean views, pool, spa (etc.)
- Pet Policies: as in, is your rental pet friendly
Choosing The Right Tenants
Placing a good tenant in your rental property is a crucial element of profitability. To help decrease tenant turnover and vacancies down the road, find good tenants from the start. A great landlord will go to great lengths to find a qualified renter for their property. That’s because qualified tenants are those with a proven track record. While no screening method is foolproof, there are certain factors you should look at that will give you a better chance. While it may take a little time and patience, it’s worth putting the right tenant in your rental property from the start. For more information on this, read our article on finding good tenants.
Manage Your Tenants Right
Any time a unit sits vacant, it can cost hundreds if not thousands in lost revenue. While there is no way to avoid tenant turnover, managing your tenants properly can help minimize it. That said things like making repairs quickly and promptly could have a positive impact on how happy your tenants are. And, happy tenants are tenants who pay their rent on time, renew their lease, and take care of your rental property. Remember, a good portion of ensuring you don’t attract bad tenants, is making sure you attract good ones! And, the only way to do that is by managing your rental properties and your tenants with the care and attention they deserve!
High vacancy rates are a landlord’s worst nightmare. That’s because it can indicate that your rental property is not performing as well as it could be. For any landlord, finding the right tenant from the start is a key component for decreasing turnover and your vacancy rate. If you need help finding the right tenant, or need help managing the ones you already have, let us help! We manage all types of residential rental properties including homes, condos, as well as multi-family properties (multiplexes such as duplex and triplexes, and even small apartment buildings). Whether you are interested in changing property managers, or simply looking to hire a property management company for the first time, look no further! Contact us today (858) 576-2176 and let us manage your rental properties, so you can enjoy life!