High vacancy rates can frustrate any landlord. This business is based upon rental income and hence a landlord becomes upset when he finds that majority of units in his property are lying vacant. There can be many reasons why a property is not renting but if you have maintained it properly and it is also in a good location, the culprits are high rent and/or rental market.
Have you made efforts to reach out to target group of renters?
One reason why your property is unable to get tenants is because your marketing efforts are not reaching your target group of potential tenants. If these families are not even aware of your property, how can you expect them to approach you and request for tenancy? If you are not receiving any queries from potential tenants, then it is high time you changed your marketing strategy. Forget it if you are relying on a sign in your yard to attract good quality tenants. If you are not advertising with prominent realty websites, you are surely going to lose to your competitors. Check if you are communicating in the language of your target group of customers rather than relying only on English. Look at your advertising policies and make suitable changes to reach out to your target group of customers.
Carry out a study of your target group of customers
Understanding your target group of customers is a prerequisite to success in your marketing endeavors. You cannot set the monthly rent without understanding the requirements of your housing market. There are tools available online to know what is happening in your housing market. Realty websites like Zillow and Rentometer give you a rough idea of the monthly rent you can set for your property. Without setting the asking rent right, it is like trying to hit the target in the dark.
It boils down to the right rent
If you believe your property has exposure to your target group of renters and still your property is not able to attract tenants, you can deduce that your pricing is wrong. You are asking a high monthly rent and your potential tenants realize they are getting better value for their money in other properties rather than yours.
You will never realize your property is overpriced because your sentiments are attached to it. You must find out yourself what it is that is making your property unattractive to prospective renters besides high price. Is it the poor-quality fixtures in bathrooms or the ordinary quality carpets you have placed in living rooms? Is your landscaping not top quality to attract environmentally conscious and greenery loving people? Whatever it is, you must analyze your property minutely to find out makes your property unattractive in the eyes of prospective tenants. If you find an answer, you know what you must do to turn things around. There are problems that can be fixed if it is not pricing that is scaring your potential tenants.
If your property is not able to attract tenants, you are either not able to reach out to your target group of clients or your property is overpriced. You have made a wrong calculation of your housing market or you do not understand the requirements of potential renters. There are so many things that could be wrong if your property is not renting. Thankfully, you can fix most of these problems by doing your homework and research. You cannot continue to suffer loss in your business as a landlord even if it means you must lower the monthly rent you are asking from your tenants.
Why is your property not renting? Maybe you are not reaching your target market or have misread it. Maybe you are in a declining market. Perhaps it is because you have not fixed your properties up. But it can also be because of items way beyond your control.
Whatever the reason a reduction in price will usually solve the problem. Yes, I know it is frustrating and perhaps even a bit infuriating. But letting a property sit vacant is expensive. Do not let your pride get in your way. Despite your efforts the market has spoken. Listen.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
