How to Reduce Vacancies in Your Rental Property
Commercial/retail properties offer a very lucrative market for investors of varying budgets and experiences. However, a vacancy in these properties can be extremely stressful and detrimental to a landlord’s bottom line. Tenants help a landlord pay the mortgage, bills, taxes, fees, maintenance, and more. At any given time, a landlord wants the least amount of vacancies in his/her property as possible.
Vacancies happen – they are normal, unless they are long-term. Long vacancies keep a landlord from producing a profit. At HOWE Real Estate, we take immense pride in helping clients unlock the true potential in these properties.
Our team at HOWE has shared some tips below on how to avoid vacancies in your property.
Tips to Avoid Vacancies in Your Commercial Property
Take care of the building– Your property needs to look presentable inside and out. It needs to be clean and up-to-date. There shouldn’t be peeling wallpaper, broken railings, broken locks, and landscaping, missing tile, trash everywhere, etc. You want tenants to be proud of the space. Create a property that is welcoming and comfortable. .
Do repairs fast – if a tenant needs a repair or has a problem, get it settled and fixed as soon as possible. Don’t put it off or ignore calls. Your tenants will not want to stay if they feel ignored or have broken lights, locks, appliances, etc.
Keep your rental prices competitive – If your prices are too steep, you won’t attract or keep tenants. Pay attention to your competition and offer reasonable rates.
Be good to tenants – Talk to them. Be friendly and approachable. Don’t raise the rent if you can avoid it. If tenants are happy with you and feel connected, they are more likely to stay.
Give tenants incentive – Give tenants a reason to choose your property over another. Offer paid utilities, reduction in one month’s rent if another lease is signed, free gifts for the space, etc.
Install a security system – If your property is in a questionable area or even a busy area, the security system will help put tenants at ease and make them feel safer.
For Rent Sign – If a tenant is leaving, put a For Rent sign in the window to get attention fast, especially if there is a lot of foot traffic in the area.
Act Fast – The day a tenant leaves, complete repairs and painting needed in the unit – the longer you wait to fix up the space and get it ready, the more money you lose.
Advertise – Find the best ways to advertise for your location, units, and price range. Get the word out there as soon as possible.
Offer longer leases – The longer a tenant is in a place, the likelihood of them staying even longer increases. You can offer a reduced rate off a two-year rental or free cable, etc.
Looking for a Louisville Commercial Property for Sale?
These are just few strategic tips you can implement to keep/attract tenants and lower vacancies. Every landlord’s situation is different, which means you will have to find different ways to keep tenants happy and vacancies at a minimum. Our team believes above list can help you get the most out of your investment in Louisville.
As the biggest and busiest city in Kentucky, Louisville is the perfect place for investing in retail property. Let our team of professionals at HOWE Real Estate help you get started on looking for a Louisville multi-family property or other commercial real estate in Louisville. We work with buyers, sellers, lessors and lessees across all property types in and around Louisville. To contact us, send us an email or call 502-890-4475.