What Are Vacancy Rates and How to Reduce Them
The vacancy rate is a statistic that shows the percentage of properties that are unoccupied in an area at a given time. This signals the state of supply and demand in a certain area or suburb. The higher the rate, the more difficult it is for landlords to find tenants.
As a landlord, you’re bound to deal with vacancy rates and it’s important to stay on top of them because having no tenants means having no cash flow. You’ll want to avoid an unnecessarily long vacancy period and you can achieve this a number of ways.
It’s important to stay updated on market trends and focus on keeping your property desirable. High vacancy rates don’t automatically mean no one wants your property investment. It just means there’s more competition out there. So, how do you stay ahead of them?
Speak with your property manager to see just how competitive the market truly is in the current market. How does your property compare to other properties? Is the rent you’re seeking enticing or deterring renters? Is the property marketed well online?
To keep your property desirable, see what needs updating. Consider renovations or small retouches that can add value to your property and help it stand out. Features such as air conditioning, fencing, an updated bathroom or even a fresh coat of paint can be of added value. You might also want to include garden maintenance as part of the rent.
Before you get ahead of yourself, prioritise retaining your best tenants by strengthening communication, regularly handling repairs and maintenance and carefully handling rent increases. When it’s time to lease the property once more, invest in a solid marketing campaign so you can reach your ideal tenant.
