Great. Another tenant is moving out, causing you to lose rental revenue again.
Losing money is only one downside to tenants moving out. Another is the amount of work you must put into the unit to prepare it for the next tenant.
As a landlord, you might long to decrease your vacancy rate. How can you do this? You might find the solution through clever rental leasing strategies.
Here are three ideas that might help you decrease your vacancy rate.
1. Start With Great Tenants and Properties
Maximizing your income requires keeping your units occupied. You'll earn more rental income this way and keep a higher tenant retention. To do this, start by finding great tenants.
You can run tenant background checks to find good ones. Good tenants are more reliable and cause fewer issues. They may also stay longer.
Of course, great tenants stay longer if you provide great services. Be attentive to their needs, and outsource your property management to provide the best services.
You may improve your occupancy rate by following these tips. However, this is just a start.
2. Prorate Rent
Another clever idea is to prorate rent. Many tenants move out on the last day of the month. The landlord then looks for another tenant to fill the unit.
The landlord lets the new tenant move on the first of the next month. Unfortunately, you lose a whole month of rental property income this way.
You can reduce your losses by prorating rent. Prorating rent means letting someone move in on a different day than the first. You only charge them for the days they stay there.
For example, if someone moves in on the 15th of the month, you charge them half a month's rent. In this situation, you earn half a month's rent instead of earning nothing.
3. Offer Incentives
Finally, offer your tenants incentives to stay living in your rental properties. You can be creative with these incentives as needed.
For example, you could agree to keep the rental amount the same if they sign another one-year rental agreement.
Another idea is to offer gift cards, gym memberships, or other gifts to encourage them to stay. The right gifts can be motivation for a tenant to stay.
You could also agree to update things in their unit. For example, is the kitchen old? If so, agree to give the tenant a new kitchen if they stay another year.
You'll reduce your vacancy rate if you can convince your tenants to stay.
Improve Rental Leasing Strategies
Do you want to reduce your vacancy rate? You can improve your rental leasing strategies.
Start by choosing great tenants and offering quality rental properties. Then, provide excellent services and aim to reduce the amount of time properties sit unoccupied.
Another option is to hire a property management firm for help.
PMI Spruce Tree can help. We are a full-service property management firm in Eastern Massachusetts. We aim to provide high-quality services that help owners maximize their profits.
Reach out today to learn more.