If you want to achieve shorter vacancy cycles as a property owner, there are some steps you can take. That's excellent news since vacancy cycles can generally become a headache for many property investors when it takes too long to find a new tenant and they start losing money.
Lengthy times between tenants work against achieving your consistent cash flow and long-term revenue goals. However, with the right tenant retention strategies, including the right marketing tactics, you can shorten your property's vacancy cycles and reduce your financial risk, making it easier to see the profit and ROI you're looking for.
Here are six tips for achieving shorter vacancy cycles for your Indianapolis rental properties.
1. Increase Retention for Your Current Tenants
One of the best ways to see fewer vacancies is to keep the current tenants in the property. If they like it there, and they're being treated well, they're far less likely to move.
Good tenants can be hard to come by, depending on the area and the property, so you want to ensure you're incentivizing good renters to stay in your properties.
Treating tenants well and working with them if there are any issues won't guarantee that they'll stay, of course, but it can go a long way toward improving your odds. The longer your current tenants remain with the property, the longer that property will go without a vacancy cycle, which can improve your overall ROI.
2. Keep Rent Raises Appropriate
Raising the rent can feel stressful because it can sometimes cause good tenants to move out. However, if you focus on reasonable rent increases, you can generally increase the rent during every lease renewal by a small amount. This can be particularly important if your current tenants pay less than the market rate.
Whether you've recently purchased your property or have owned it for a long time, it's vital you keep rent increases appropriate for the location and condition of the property, along with what the market will bear. If you ask for too much, you may end up with a longer vacancy cycle instead of a shorter one because potential tenants don't want to pay that much for the property.
3. Maintain and Repair Properties Efficiently
Tenants don't want to live in properties that aren't being taken care of, which is why one of the most effective tenant retention strategies you can use to shorten vacancy cycles is good maintenance.
If a tenant asks for a repair, work to address it within 24 to 48 hours, especially if it's a serious emergency, such as no winter heat or water damage to the property.
The faster you fix problems and focus on keeping the property updated and in good repair, the more tenants will want to stay. If and when they move out, you'll also be able to rent the property out faster if it's in great shape, keeping your vacancy cycle short.
4. Communicate With Your Renters
Talking to your renters is essential. Communicating with tenants is necessary whenever you need to ask or answer questions, discuss late rent, or inform tenants about anything that could affect them. It's also important to be available and respond promptly when residents reach out with questions or concerns.
Prompt communication is critical in rental property management. Tenants who feel blindsided by changes or increased costs are much more likely to move out at the end of their lease, creating another vacancy for you and your property.
5. Offer Earlier Lease Renewals
Early lease renewals can help shorten vacancy cycles because you'll know in advance whether your tenants will be staying and renewing their lease or moving out of the property. If you know they will be leaving, you can start marketing the property and try to find another tenant.
The goal is to have a new tenant lined up before your current one moves out. Then the only vacant time at the property is the short period it takes to do a move-out check, make any repairs, and then do a move-in inspection with the new tenant. This keeps your vacancy cycle short.
6. Hire an Experienced Property Management Company
Another consideration for vacancy cycles is looking into property management companies in Indianapolis. These companies only get paid when your property is leased, so they work hard to keep vacancy cycles as short as possible for rental property owners.
Additionally, management companies have staff members who can turn the property over and have it ready for the next tenant faster, along with marketing professionals and maintenance company connections to expedite the leasing and move-in process.
The services and benefits of a property management company can make renting your property much more accessible and shorten vacancy cycles for increased profits.
Excellent Tenant Retention Strategies Help Owners Achieve Shorter Vacancy Cycles
Tenant retention strategies like what we've covered today result in happy tenants and a positive reputation. As a result, your rental property will experience shorter vacancy cycles, resulting in higher ROIs.
At ES Property Management, we help property owners throughout the Indianapolis area shorten their vacancy cycles and increase their revenue. We also apply a risk-based approach to selecting and managing tenants to reduce the risks to your properties and income. If you're struggling to find good tenants without lengthy vacancy periods, reach out to the ES Property Management team and learn how we can help!
You can also learn more about what experienced property managers do for owners when requesting our free resource, "The Guide to Finding the Best Property Manager in Indianapolis."