Vacancy is a four-letter word in real estate investment. You always have long-term prospects for a significant return upon resale, but it’s often monthly cash flow in the short-term that makes a deal click.
Unfortunately, vacancy means there is no cash flow. You’re paying principal, interest, taxes and insurance as well as a maintenance and upgrade costs. That’s why you need proven strategies for attacking vacancy and securing paying tenants.
But what exactly are the most effective ways to fill a vacant investment property?
At HUNTAHOME, we provide DFW property management services to a wide range of real estate investors. Through our many years of service, we’ve identified 4 vacancy tips that actually work when you need to find quality tenants for your properties.
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Get Creative With Rent
Start by getting creative with rent. To create urgency, offer a free first month if prospective tenants move in by a certain date. For example, if it’s early November, offer a free first month if prospects move in by Dec. 1. Or, offer a second year without a rent increase if prospects move in by New Year’s Day.
No matter how you structure your offer, make sure it includes 2 things. First, make sure the offer includes something prospective tenants want. For example, any tenant would want a month of free rent or the option for another year with no rent increase. And, second, make sure you include a deadline. Creating a deadline drives the urgency that’s needed to fill your vacant property.
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Offer Attractive Perks
If getting creative with rent doesn’t fill your rental property, try offering a series of perks. A perk could be as simple as offering free lawn care for the year or paying membership dues at a community swimming pool.
Alternatively, offer to make a series of upgrades to the property if a prospect is willing to move in by a certain date. For example, offer to repaint the home’s interior (and to let the prospective tenant pick the color). Or, offer to install ceiling fans in rooms that don’t have them or to add a washer and dryer to a property where tenants are typically expected to bring their own.
The keys to perks are the same as with rent deals. Make sure you’re offering something your prospects want, and make sure to include a deadline that drives urgency.
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Work Your Leads
Here’s something we’ve learned through the years: Investment properties don’t rent themselves. When you place a sign in the yard, when put your property into the MLS and when you market on social media, you’re going to generate some leads. So follow up on them.
Work your leads constantly. Call them. Send them hand-written letters. Offer to walk through the property with them. Ask for their feedback after showings. The more leads you’re communicating with and the more you learn from them, the easier it’s going to be to get creative with rent or to offer perks that compel one of those leads to sign a lease.
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Get Expert Support
It can be hard to lease an investment property, especially when you’re self-managing a portfolio, worrying about monthly cash flow and working on your overall investment strategy.
At HUNTAHOME, we offer property management in Dallas and Fort Worth so that investors can enjoy their returns and focus on what matters most. We can make your vacancy disappear, and we can also handle ongoing maintenance and repairs, as well as the many other tasks related to owning an investment property.
Sometimes expert support is all you need to realize your real estate investment goals.
Get in touch with us to learn more about our services as the leading DFW property management company.