Owning an investment property can be a fantastic way to build wealth and create passive income, but it only works if your property stays rented. Vacancies are costly, and every month without a tenant is money out of your pocket.
Fortunately, there are proven strategies you can use to keep your rental property occupied and cash flowing.
Here are five tips to help ensure your property stays rented year-round.
Tip #1: Hire a Property Management Company
If managing your rental property is starting to feel like a second full-time job, or if you’re struggling to keep it rented, it might be time to hire a property management company. A good property management company can handle all aspects of keeping your property rented, from marketing and tenant screening to handling maintenance requests and lease renewals.
One of the biggest benefits of working with a property manager is their ability to streamline the tenant acquisition process. They’ll create professional listings, handle showings, and thoroughly vet potential tenants to ensure you’re renting to reliable individuals. They can also help with setting competitive rental rates based on their knowledge of the local market.
By outsourcing the day-to-day tasks, you free up time to focus on other areas of your life or business, while still ensuring your investment property stays rented and well-maintained.
Tip #2: Keep Your Property in Great Condition
One of the easiest ways to keep your investment property rented is by making sure it’s always in tip-top condition. Tenants want to live in a space that feels clean, updated, and well-maintained. If your property starts to show signs of wear and tear, potential renters will notice, and current tenants may look for a reason to move out.
Regular maintenance is key to preserving the value and appeal of your property. This includes everything from keeping the exterior clean and well-landscaped to addressing minor repairs before they become major issues. Fix leaky faucets, replace broken appliances, touch up paint whenever necessary, etc.
A well-maintained property doesn’t just attract tenants – it helps retain them. Tenants are more likely to renew their leases if they feel the property owner cares about the condition of their home. And remember, the cost of routine maintenance is far less than the cost of extended vacancies.
Tip #3: Price Your Rental Competitively
Your rental price plays a huge role in whether or not your property stays rented. If your rent is too high compared to similar properties in the area, you’ll struggle to find tenants. If it’s too low, you might attract renters, but you’ll miss out on potential income.
Do your research on local rental prices and find out what similar properties are charging. Look at factors like square footage, number of bedrooms, location, and amenities. Set a competitive rent that reflects the value of your property while making sure it fits within the local market.
Keep in mind that pricing your rental property isn’t a one-time task. The market can fluctuate, so it’s important to review your rent regularly. When demand is high, you may be able to raise your rent. During slower periods, it might make sense to offer a discount or promotional rate to attract new tenants.
Tip #4: Market Your Property Effectively
If people don’t know your property is available, they can’t show interest. That’s why it’s important to have a solid marketing strategy in place – even when the property is occupied.
When the property is vacant – or you know you have a lease coming to an end – create a detailed listing that highlights the best features of your property. Take high-quality photos and write a compelling description that emphasizes its unique selling points. Potential renters want to know why your property stands out.
- Does it have a spacious backyard?
- Is it located near public transportation or good schools?
- Are there recent updates and upgrades?
In addition, make sure your listing is on the major rental websites. You can also share it on social media and in local community groups. The more visibility you give your property, the better your chances of attracting a qualified tenant.
When the property is occupied, you can still make people aware of it by having a social media presence and building a list of interested applicants ahead of time. This allows you to go straight to these renters as soon as you know there will be a vacancy. (Hopefully, allowing you to line up the next renter without any downtime in between tenants.)
Tip #5: Build Strong Tenant Relationships
Good tenants are a valuable asset – they pay rent on time, take care of the property, and are more likely to renew their lease if they’re happy with their living situation.
Start by being responsive to their needs. When tenants report a maintenance issue, address it promptly. Check in with them periodically to make sure everything is going well, and make it easy for them to communicate with you. If you show that you care about their experience, they’re more likely to stay for the long term.
You can also offer incentives to encourage lease renewals. This could be as simple as offering a small discount on rent if they renew for another year, or upgrading an appliance or adding a fresh coat of paint to make their home feel new again. A happy tenant is less likely to leave, saving you the cost and hassle of finding someone new.
Do the Little Things Well
Keeping your property rented year-round doesn’t require some expensive or complicated strategy. It ultimately comes down to the small details. And if you can get these details right, everything else will fall into place!