If you have a private property to rent, you may be discouraged if you have yet to fill it with tenants.
Having a vacant property can have a negative impact on your cash flow as there’s no rental income, not to mention it can also leave the property at higher risk of vandalism, arson and theft. So what could be the cause of your empty property?
Here we look at five common reasons why rentals remain vacant along with ways you can address them:
The property is poorly advertised
If tenants are unable to find your property, how can they be expected to view it – let alone rent it? Make sure you are utilising all possible avenues online, such as letting property portals, local newspapers and social media, as well as having a clearly placed For Rent sign in front of the property.
The rent is overpriced
If you have listed your property at an unrealistic asking price, don’t be surprised when tenants pass it over. One good way to assess market value is to look at the going rates for other local properties, but this is just a benchmark. Just because those properties are renting for a set amount doesn’t automatically mean yours will too, as tenants look for more than just location. Factors such as amenities and the condition of the property should be considered as well. If budget and time allows, you should look at ways of improving the property so that it warrants the current asking price, otherwise look at lowering the rent.
You have an ineffectual property manager
In addition to things like rent collection and tenant referencing, a property manager can also be responsible for listing a rental. If you have left this up to them and have noticed the property has not let, you may want to look into their practices to find out why.
There’s no curb appeal
If the property looks unappealing from the outside, few tenants will take the time to view the inside. Make sure the property looks appealing from the street, clearing the garden of debris and bins before adding a lick of paint to the door and windows and even walls if necessary.
You’re not flexible on tenancy arrangements
Every landlord wants the “perfect” tenant for his or her property, but it can also be the case that your criteria becomes too strict and your expectations unrealistic. If you find yourself rejecting application after application, perhaps look at what you are and are not willing to be lenient on to see if there is a way you can arrive at a compromise. For example, if you currently won’t let to a tenant with a pet, would you be willing to do so if you had written in that they had to cover the cost of professional end of tenancy cleaning before leaving?
There are steps you can take to reduce vacancy periods and ensure your property has little to no downtime between turnovers. With that said, if you are concerned about vacancy periods and the potential for damage to occur to the property during them, it may be wise to take out unoccupied property insurance to ensure you are covered in a worst case scenario.