If your rental property is in the hands of an Orlando property management company, you are most likely seeing short or few vacancy cycles. If you are managing your own rental property, it is important to do what needs to be done to have rentals that are almost always occupied. Keep reading to learn a few factors that determine vacancy cycles.
Fair Rates
As a rental property owner, you can't just charge what you want in rent. You have to arrive at the figure by comparing rents with similar properties that feature similar amenities in the same area. If you charge rent that is significantly higher, you will quite possibly have long vacancy cycles because it's likely that potential renters will shop around and compare rates before they decide where to rent.
Effective Tenant Screening
It's important to thoroughly vet potential tenants before handing them the rental agreement and the keys. You want to look out for red flags like questionable job history, reluctance to give information like place of work and next of kin, and a history of frequent moving without a valid reason such as for work.
To get a screening done, there is the option of hiring a private investigations firm, but this is often costly. The better option is to leave tenant screening to a professional, experienced Orlando property management company. They have the tools and experience to pick the best tenants for your properties.
Maintaining a Property
While a rental property can be a source of passive income, an owner's attitude towards maintaining a property should be anything but passive. Customer care is important because a happy customer keeps coming back. In this case, it's a happy renter, and the hope is that they stay, even after their initial lease is up.
When paying for a rental property, no one wants to live in one with broken fixtures, peeling paint, and an unmaintained compound. A property owner should be available or have a handyman available who can handle repairs like leaking pipes and blocked toilets that can cause tenants a lot of inconveniences and an owner a lot of damage that is expensive to repair. Additionally, there should be periodic maintenance and routine repairs that keep the building, its exterior spaces, and amenities in good condition year-round. Again, this is something that an Orlando property management company would handle as part of their management duties.
Play Fair
It may be that an increase in rate is justified. Like others holding down jobs and running other businesses, property owners rely on the rent they receive for income. The cost of living goes up for them just as does for everyone else, so raising the rent may be necessary and justifiable. That doesn't mean that you shouldn't play fair. Even if the increase can be justified, most people will not be happy about having to spend more on an expense that takes up most of their income, especially if there isn't justification. According to NY Post, more and more Americans are spending more than half their income on housing, so increasing that spending for your renters can be a sensitive subject.
Rent control is exercised in just a few states. In some of these states, it is exercised only in specific cities or municipalities. If you own rental property outside these areas, do not take advantage and increase rent by the amount you wish when you wish. Doing so will more than likely backfire. Rather than earning more money, you'll face more frequent and longer vacancy periods.
Also, you will need to follow the procedure for increasing rent which includes giving tenants sufficient notice as required by law. This gives them time to accept the new rate or give notice and move out. You will also need to draw up new rent agreements with the new rate. Again, this is best handled by a property manager.
Build and Maintain a Good Relationship with Tenants
A rental property may be yours, but whether it is viable or not depends on those who use it. A vacant one is of no fiscal benefit. Unlike homeowners, renters have the freedom to up and leave when they choose to and you don't want to give them a reason to do so. Be respectful and cordial when dealing with them, such as when doing mid-lease inspections and even evictions.
Let an Expert Do It
Just as it is dealing with customers in other businesses, dealing with renters should be done with care and respect. It is also a potentially delicate relationship, because renters may not have the same attitude. Engaging with Orlando property management and leaving handling tenants to them is a great decision.