Leaving a rental property vacant is a big risk for investors. Not only is it expensive, it also leaves you open to vandalism, theft, and squatting. There’s also the risk of unreported maintenance issues. When tenants are living in your property, they’re quick to notice leaks, electric issues, and other potential problems. With no one in the property, it could be weeks or months before you notice there’s something that needs repairing.
You want to avoid a vacant property, for the good of your investment home and to get your income flowing and your ROI stabilized.
Financial Risks to Vacant Properties
The financial risks are easy to calculate. When your rental property is vacant, you don’t have rent coming in. That lack of cash flow is going to hurt in both the short and the long term. Not only are you losing income, you’re also required to cover all expenses associated with the property. There isn’t a tenant paying the electric bill, so you have to. The landscaping still needs to be maintained and you may have Champaign-Urbana property management bills, insurance costs, and other expenses that aren’t being covered by rental income.
Vacant properties may also be quick to decrease in value. High quality tenants will hesitate to rent a home that has been untouched for months. They’ll wonder why other residents didn’t want to live there, and you may have to drop your rental price.
Crime and Deterioration: Work with Urbana-Champaign Property Management
The risks of a vacant rental property are more than financial. You also have to worry about crime and deterioration. A vacant property may be attractive to criminals or squatters. You might find appliances stolen or walls vandalized if you’re not checking in on the home once in a while. Vacant properties need to be kept secure, and that’s going to cost you time and other resources.
When you’re facing a prolonged vacancy, we strongly urge you to get a Champaign-Urbana property management company involved. Property managers can put an end to vacancy quickly by finding a well-qualified tenant. If you’re purposely keeping the home vacant for renovations or because you plan to move into it yourself in a few months, we can keep an eye on it and make sure it’s safe, secure, and protected.
Tips to Preventing a Vacancy
While a vacant property can cause owners problems and expenses, there are ways to minimize and avoid the number of days your rental property is unoccupied. Here are three of our best tips:
- Provide an attractive and well-maintained property that tenants will be eager to rent. Before you show your property, have it cleaned professionally and make some simple updates and upgrades that will really grab a prospective tenant’s attention. Think about a fresh coat of paint, new floors, energy-efficient appliances, or upgraded landscaping.
- Price your rental home competitively. One of the most common reasons that properties remain vacant is that they are priced outside of what the market supports. Listing a rental home for a price that’s too high can extend your vacancy period.
- Market your rental property strategically. The better your marketing plan, the faster you’ll place a qualified tenant. Good marketing starts with professional photos. Take pictures that show off what your property has to offer. Use as many of them as you can in your online listing.
Owners appreciate how quickly we’re able to rent properties. If you want to avoid the risks that come with vacant investment homes, make sure you’re working with an excellent Champaign-Urbana property management company. We’re happy to tell you more. Contact us at Ramshaw Real Estate.