The vacancy rate is a simple ratio commercial real estate or multi-family residential owners use to measure vacancies available in their property. Tenant turnover is primarily responsible for your building vacancy rate and can destroy profitability, costing landlords thousands of dollars each month. Therefore, avoiding rental property vacancy should be a goal for all independent real estate owners.
Why is the Vacancy Rate Important?
The vacancy rate is important because if the vacancy rate in your market is high, it could suggest that the area is unappealing to potential tenants. In contrast, if your area has a low vacancy rate, there are probably a lot of tenants leasing places to live.
Reasons Your Building is suffering from Vacancy Rate
Although there can be many reasons, your real estate can suffer from a vacancy rate problem. However, if you are looking for the most prominent and often occurring ones, the following are why your building is suffering from vacancy rate problems.
Rental prices play a huge role in determining if you have a vacancy rate problem or not. If your rental prices are costly, you can have difficulty filling unoccupied apartments, especially if similar properties in the vicinity are offering more attractive deals. Furthermore, expensive rent could also lead you to lose renters who are currently living in your building.
Lacking Proper Maintenance
The second reason we believe your property can suffer from a vacancy rate problem is your lack of maintenance. Tenants are more than happy to pay premium rent as long as conveniences are there; however, if you start slacking there, you can quickly find yourself having a vacancy rate problem.
Your Property Cannot Compete With Competition
We believe your property can be going through frequent turnover because the competition surrounding you is better. In this scenario, the only thing you can do to be competitive is either lower your prices or match the same amenities your competition provides.
Tips to Decrease Vacancy Rate in Your Building
Now that you know what the vacancy rate is, why it is important and how it can happen. The final topic we would like to focus on are the tips you can use to ensure you can decrease the vacancy rate in your building, and according to us, the following are the best of the best pointers to make a note of.
Resolve tenants' problems as soon as possible.
Provide loyalty incentives (Long-term lease discounts, parking space, etc.)
Provide state-of-the-art amenities.
Vacancies In NY, FL, MD, PA, NJ, and DE
If you are an owner who wants to stay ahead of the competition and looking for the most exemplary property management service, then feel free to get in touch with Milbrook Properties.