A Vacant Property Is An Costly Property
Getting it rented quickly is important to making a rental a good investment.
Marketing a home and finding a good tenant is critical, as the cost of a vacancy is the single highest expense for owners. The top priority is to keep rental income coming in by quickly filling vacancies with tenants who will pay and care for the property.
How Long Will It Take?
The average rental home stays vacant for about 52 days, and can be higher than 90 days if the home is not in rent-ready condition or if the rent is priced too high compared to other homes tenants can choose from. TrueDoor Property Management is the leader in leasing residential properties and most of our rental homes lease within the first 30 days on the market.
The Right Rent Price
Unfortunately, the rental market is indifferent to your monthly mortgage. If you are holding out for $1200 in rent when the market rate is closer to $1000, you are only prolonging the inevitable, as rental prices typically don’t change within a 90-day period.
Let’s assume that market rent for your home is $1,000/month, but you need $1,200/month. Now let’s assume that after two months of vacancy, the property rents at $1,100/month for 12 months. How much actual rent are you receiving over that 14 month period, (2 months vacant + 12 months occupied)?
12 x $1,100 = $13,200 divided by 14 months = $943/month!
If you had set the price at the market rate and rented the property at $1,000/month (market rent) right away with no vacancy, you would have made $798 MORE MONEY over the same 14-month period!
$1,000 x 14 months = $14,000
$943 x 14 months = $13,202
Total = $798.00
In this scenario, you would have lost $798.00 by trying to get higher-than-market rents.
TrueDoor Property Management has specialized expertise in area rents and market forces. Rely on us to help you set rent in a way that balances your ideal with shorter vacancy times.
The Right Condition
Your home must stand out and be in rent-ready condition to compete for tenants and to get market rents. If you are unable to make improvements due to budget constraints, the rental price must be adjusted below the market to offset the below market condition of the home. It's simple, excellent conditioned rentals get market rents while attracting excellent Tenants. Poorly conditioned rentals get below market rents while attracting less desirable tenants.