There are factors out of your control when it comes to the tenancy rate of your investment property, but there are definitely things that you can do to keep the vacancy rate as low as possible.
So even if you have fully tenanted rental properties, it doesn’t necessarily mean it will stay that way. It means therefore, that you need to put in some work to keep your tenants happy, because Happy Tenants = Tenants who stay put.
Manage the Lease agreements to your advantage
Your rental property may be located in an area where there’s increased interest at certain times of the year. This is especially true of properties close to Universities. Something to consider then, is structuring your lease agreements so that they fall around semester times, which may keep the vacancy rate low.
Watch the rent
There is a real art to raising the rent so that you don’t lose your tenants. Here is some help on how to do it while keeping your tenants onside. The key in raising the rent is researching the area the rental property is located. If you try for too much and comparable properties don’t match up then you are likely to lose your tenants.
How’s she looking?
You need to make sure your property is in tip top condition, if you want your tenants to stick around. By staying on top of regular maintenance, responding to any and all calls from tenants, and by doing the odd improvements here and there, it will show you care about the property and you value the tenants. When the property is vacant, it’s even more important to make it look good from the street. Mowing the lawn and weeding the garden means that potential tenants will see it at it’s best.
You will experience vacancy periods, and that should be accounted for in your investment plan. But to maximize profits and not use the funds set aside to weather these periods, you need to plan ahead and put in consistent effort.