For every week your property is vacant, you’re losing two percent of your annual income. That number adds up pretty quickly and affects your profitability. It’s a good reason to keep your vacancy rate to a minimum. While you don’t want to have a vacancy at all, you also don’t want to offer your property to the first person who comes in off the street. While it can result in getting your property rented quickly, you want to make sure the tenants you place are qualified. This is a balancing act, and it’s where our role as a property management company helps. We can look out for your greater good and slow the process down to ensure you’re getting a good tenant who you won’t have to evict three months down the road.
How to Prevent Vacancy Loss
You can prevent vacancies by tracking lease expiration dates and keeping in touch with tenants. It’s unusual for tenants to just up and leave. If they do, something went wrong during the selection process because most good tenants will abide by the lease terms and stay until the end of that lease. When the lease period ends, we will discuss renewal if all parties are happy. So, keep track of these expiration dates.
Property Management Burlingame: Market Conditions
Track market conditions. When leases are ending, consider whether you want to end the tenancy and go through a unit turnover. It may mean you get a few hundred dollars extra in rent every month, but you’ll face the cost of a vacancy for at least a few weeks, and you’ll have to pay to get the property ready for a new tenant. Understand the implications both ways. Work with a property management company that is at least giving you all your options so you know the pros and cons of raising rents and looking for new tenants.
Selective Screening Process
Choose carefully when you have prospective tenants. Avoiding issues with vacancies will be easy when your tenants are happy and willing to renew their lease. Place qualified tenants, and make sure everyone understands the terms of the lease agreement. That will prevent unexplained vacancies and surprises.
For further details on vacancies and how to avoid them, please contact us at Five Star Property Management. We’d be happy to help with any of your Burlingame property management needs.