InvestorLoft Real Estate Investing Blog

How long are you willing to wait for a tenant?

Your rental home is sitting vacant and you’re left paying the tab on the mortgage and everything else that comes along. Sure, you expected a month or two of vacancy every year, but it’s still empty! Whether houses surrounding yours are in the same boat or getting snapped-up off Craigslist like $20 bicycles, there are certain steps you can take to drastically increase your property views and lower the likelihood of longer than necessary vacancy periods.

Photos. Blurry doesn’t cut it. And if you don’t have photos on your listing, that’s even worse. Photos are the difference between lookers and renters. Take the time to get some great photos of your rental property. Big backyard for dogs? Take a picture. Hardwood floors? Take a picture. New appliances? Take a picture!

Incentives. If your rental property has been vacant more than 45 days, it’s likely you’re at the threshold of your estimated vacancy rate. It’s time to get creative, and that’s where incentives come in. What are you willing to do in order to get a tenant in place? One month free rent, utilities paid for first month, pick up the water bill, free lawn maintenance, new ceiling fans, a brand-new garage door opener, or option to renew at 2^nd year for same rate all make enticing offers for prospective tenants.

Be a Craigslist Snoop. If you’re a self-managing landlord or find that your property management company is missing the boat with securing tenants for your rental property, start snooping on your own. Visit Craigslist and enter your zip code in the rentals section and see what your neighboring homes/apartments/condos/duplexes have that you don’t. You can also see how you compare to your neighboring rentals and whether you’ve got some work to do to be competitive or if yours really is the nicest property on the block. There’s nothing wrong with being nosey!

When you’re a real estate investor, it’s likely you fall into one of two categories: those who use property managers and those who don’t.

This entry isn’t meant to bash one particular choice or the other, but rather explain some of the benefits to using a qualified and reliable property management firm for your rental properties.

• On-Site Property Management: For real estate investors holding rental property in a condo complex or the like, an on-site property manager offers many benefits to prospective tenants. Faster response to maintenance needs, a friendly face to answer questions and the benefit of having an on-site eye on your property more often than not. When your property goes on notice when a tenant decides to move out, they’re also a great source of walk-in traffic for potential new tenants. Make sure you obtain PTE (permission to enter) from your tenants so that you may show the property to prospective tenants when the time comes.
• Marketing: While Craigslist and your local newspaper are excellent places to list your property for rent, property managers establish relationships with local publications and sometimes the local MLS to get your property seen. Remember – they don’t make money for LISTING your rental. They make money from RENTING your rental.
• Tenant Screening:  Let’s face it – tenant screening is a time-consuming process and the credit report isn’t an end-all/be-all indicator of a quality tenant. Property Managers are interested in securing tenants for their clients that have all of the signs of being favorable long-term renters. Let the property manager do the tenant screening for you – and feel free to ask in-depth questions as to how they select tenants and their screening criteria.
• Potential Tax Benefits: It’s possible to reap some tax savings from the professional fees charged by your property management firm. Be sure to consult your tax advisor, but how cool is it to think that you can write-off what you’re paying your property manager to keep an eye on your investment?