The busiest time of year for rental property owners is often summer. Still, summer can create real opportunities for owners looking to expand or optimize their rental property portfolio. For instance, rental housing demand tends to rise in summer, but so does competition for good tenants. This can cause vacancies to drag on and annual income to drop. Reducing time spent vacant requires proper prep work, strategic planning and marketing, accurate pricing, and a smooth leasing process. Below, find our top summer leasing tips that can help minimize vacancy issues and keep your cash flow growing steadily.
Every Empty Day Impacts Your Bottom Line
As most owners are aware, vacancies can have a major effect on a rental’s overall profitability. Along with lost rental income, owners also face higher costs and a lower return on investment. Unexpected vacancies can also throw a property’s operating budget into disarray and derail plans for future upgrades.
Vacancies’ cumulative costs can become bad news for your overall profitability. This is why it makes sense to take steps to reduce vacancies on your rental property.
Start Preparing Before the Property Becomes Vacant
One effective strategy for shortening vacancy periods during peak season is early preparation. As soon as a tenant gives notice, the clock starts ticking to plan and execute an efficient turnover. Without disturbing your current tenant, there are still several things you can do ahead of their move-out to get a head start on re-leasing. Such steps include:
- Scheduling inspections of the property early
- Putting together a checklist for required maintenance and repairs
- Lining up repairs in advance and vetting the technicians and vendors involved
- Scheduling and organizing professional cleaning
- Updating your marketing assets
With up-to-date information on your property’s condition and a clear turnover task list, you can shorten the time between tenants.
Price Your Rental Strategically
Competitive pricing is another key factor in reducing summer vacancies. An accurate rental rate is one based on a recent comprehensive local market analysis. Consider running a fresh market analysis before your tenant moves out if you haven’t done one recently or it’s been over six months. Setting the price too high, in particular, can result in unwanted vacancies even at peak season. A properly set rental rate, however, brings in better-qualified applicants and speeds up leasing.
Invest in High-Quality Marketing
High-quality marketing materials play an outsized role in reducing vacancy time, particularly in competitive markets during peak season. Renters today want thorough details on a property before setting foot in it. They also expect to search for and research properties online and via mobile. For these reasons, an effective marketing strategy for any rental property should include, at a minimum:
- High-quality professional photos
- Thorough property descriptions
- Online tours of the property
- Mobile-optimized property listings
- Wide online visibility
When marketing materials are outdated or low-quality, plan ahead to have fresh photos and video walk-throughs completed as quickly as you can. One great place to start is confirming your curb appeal is sharp, including tidy landscaping, clean walkways, and appealing flowers. A visually appealing property attracts more inquiries, and quality marketing materials do too. Together, both usually contribute to faster leasing outcomes.
Streamline the Application and Screening Process
Another important part of minimizing vacancy time in busy months is a streamlined applicant screening process. Because renters today typically expect online, tech-based processes, investing in a suitable platform or technology makes sense. Whatever setup you choose, make sure to respond to tenant inquiries quickly. In peak season, applicants are frequently reaching out to several properties simultaneously. For that reason, timely responses can significantly impact your results.
By the time applicants are ready to apply, make sure your application, screening, and lease prep process is already in place. This is one place where a professional property manager can prove invaluable. Top professionals use proprietary software that creates a smooth experience for both owners and applicants, keeping vacancies to a minimum.
Focus on Resident Retention
Naturally, one of the best ways to avoid vacancies entirely is to prioritize strong retention strategies. It’s far better financially to retain a good tenant than to force a turnover. Tenant retention likely hinges most on caring for the property all year with prompt repairs, regular positive communication, and fair lease renewals. A happy, quality tenant will typically help you maintain the property well while keeping your rental income steady all year. That’s a far better outcome for any investment property than constant turnover.
Systems and Expertise That Deliver Results
A lot of time and effort often goes into reducing rental property vacancies. As a result, many owners decide to entrust their properties to professional management. Choosing this route has many advantages, with a property manager able to provide:
- Current, data-backed market analysis and trend tracking
- Accurate, data-driven rental pricing
- Professional-grade marketing and advertising
- A streamlined process for screening applicants
- Professional-grade lease prep and execution
- Tenant correspondence and communication
- Coordination of turnovers
- And so much more!
There’s tremendous value in simply having a local market expert ready to manage the heavy workload of peak season. A good property manager can also provide benefits you haven’t even considered yet, like optimizing your rental and growing your portfolio.
Ready to reduce vacancy time and increase rental income this summer? Contact us today, or check out Real Property Management Neighbors at Metro Grand Rapids to learn how our local market expertise, proven marketing strategies, and full-service property management solutions can help keep your rental property occupied and performing at its best.
This content is provided for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. Readers should consult with licensed professionals regarding their specific circumstances.
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