You don’t have to be an experienced real estate investor to understand the high cost of a vacant rental property. It’s the quickest way to reduce your cash flow and your long-term ROI. To have an effective and profitable investment experience, you need to keep your property occupied with a high-quality tenant who pays rent on time and takes care of the home.
In our experience, there are three ways to reduce vacancies in your Dallas investment property. You need to focus on tenant turnover, property condition, and rental pricing. When you’re on target with those three things, your vacancy loss will be minimal.
Retaining Dallas Tenants
The best way to avoid vacancy is by keeping your property occupied. If you already have a great tenant in place, it’s wise to do everything you can to keep that tenant in place. Make sure you’re responsive and attentive during the entire term of the lease. Take care of maintenance issues right away, check in with your tenants once in a while, and be sure to answer their phone calls and respond to their messages.
If your tenant wants to renew their lease agreement, don’t be in a hurry to raise rent dramatically. Most tenants will expect a slight increase, and they won’t fight back against it. But if you raise the rent by 10 percent or more, you’re putting yourself at risk for losing that tenant. Keep increases moderate and check the local market so you know how much homes similar to yours are renting for. Signing a new lease for another year saves you money on turnover costs and helps you to begin financially planning your next year.
Provide a Well-Maintained, High-Quality Dallas Rental Home
Attractive homes do not stay vacant for long. When you offer a great looking property that’s modern and updated, tenants are going to be eager to rent it. If your home is deteriorating and looking old, you might have to worry about a longer vacancy.
Make cost-effective and targeted updates, especially during turnover periods. Replace the carpet and put a fresh coat of paint on the walls. These things will attract new residents quickly, reducing the time that your property is empty.
Competitive Pricing According to the Dallas Rental Market
Pricing impacts vacancy.
Research the market extensively to price your property competitively. The goal is to eliminate any kind of vacancy but also earn the maximum return on your investment. When you work with a Dallas property management team, you can count on accurate pricing as well as strategic marketing, which will contribute to a lower vacancy period as well.
Don’t overprice your home. It will take you longer to rent it out, and the money you think you’re going to earn with a higher rental value will only be lost on weeks and even months of zero rental income.
You don’t have to suffer through an expensive and frustrating vacancy period. If you’d like to rent your home quickly and retain your high-quality tenants, contact us at OmniKey Realty. We’d be happy to serve as your Dallas property management resource.