Meta Description: Maintaining low vacancy is crucial to success as a property manager. Explore these five approaches to help property managers keep vacancy rates down.
Maintaining low vacancy rates is at the heart of every property manager's to-do list, a task that never seems to end. To maximize their profitability, it's essential to keep rental units full and limit the amount of vacancies on a monthly basis.
Simple concept, but easier said than done. Fortunately, there are various approaches and methods that property managers can and should utilize to reduce vacancy rates. Here is an overview of five different methods property owners and managers can take to reduce vacancy rates and optimize success.
Understanding the Renter's Needs
Property managers and property owners can help reduce vacancy rates by putting themselves in the renter's shoes. By viewing the rental from a resident’s eye, managers can better understand the renter's needs and identify what they are looking for in a rental. For example, modern-day renters may be looking for one or more of these common amenities:
- Smart devices (such as a programmable smart thermostat, smart lock entry, etc.)
- Common areas with workspaces, offices, lounge spaces
- Gym, spa, pool, health, and wellness amenities
- Apps or websites that bring rental communities together
Identifying the amenities offered by the rental competition in the area is another way to gauge what renters are looking for. Meeting the renter's needs can help keep vacancy rates at a minimum, making units more appealing to renters. Landlords who want more insight into renters' "wants" and "needs" can also collect data using surveys from existing and prospective tenants.
Using Standby Deposits
Using Standby Deposits can help property managers rent their units faster, thereby reducing the number of vacancies at any given time. Standby Deposits simplify the process for property managers and residents to reduce administrative hassles and make renting easier.
Utilizing Standby Deposits is an attractive method for property owners as it provides residents with a more affordable option for security deposits. Rather than paying a large upfront sum, if a resident is approved for a Standby Deposit, they are able to trade in their traditional cash deposit for a low monthly or annual payment that guarantees the full amount of their deposit. At move-out, the property team simply uses the Standby Deposit to pay for any damages and fees outlined in the lease agreement, and the resident pays Standby Deposits back for anything that was covered. Using Standby Deposits can lower the financial burden of deposit fees at move-in and help attract renters who don't want to or don't have the cash upfront for a significant deposit. Plus, Standby Deposits can help save time for property managers because each Standby Deposit is managed separately from the property’s finances, eliminating the need to process cash deposits, track interest, and verify repayments upon lease termination.
Mindful Maintenance
For property managers facing a multitude of expenses, ignoring necessary maintenance throughout rental units can be tempting. However, the condition of rental units matters a great deal to renters. Right from the start, the condition of an apartment will be the first thing potential renters will notice.
This also means it could be an immediate deterrence that can significantly impact vacancy rates. This includes not only the rental's interior but other types of maintenance, such as exterior property maintenance and landscaping. While property managers may frequently overlook many aesthetic-based upgrades, these upgrades make a huge difference in the eyes of potential renters.
Offer Competitive Rate Rents
While there are many things to consider when a renter is looking for an apartment, money often rises to the top as a motivating factor. Keeping a close eye on competitor rates can help you maintain competitive rates. Keeping rates too high is often a cause for high vacancy rates, driving prospective tenants to look nearby for cheaper options. Managers and owners must consistently review market rates, which often change quickly.
Not only do competitive rates matter greatly, but flexible lease terms can also help set a property apart from the crowd. Prospective tenants may seek flexible lease arrangements, such as short-term leases, which can offer a personalized approach depending on their unique situation.
Utilize Effective Advertising
Marketing vacant units is key in helping to reduce vacancies for property managers and owners. The most effective approach is a multi-faceted approach to marketing, which uses many methods of advertising to help enhance overall success. Remember, photos are also key to include in advertising as they will capture the eye of potential renters.
This might include posting flyers, posting in groups or social media websites, or listing units on websites designed for apartment-seekers. It may take some trial and error to determine the best type of advertising method for each geographic location.
Reduce Vacancy Rates and Step Into The Future of Renting
Maintaining low vacancy rates is a primary goal for all property managers and owners. By using one or more strategic methods to help reduce vacancy rates, managers can help set themselves up for optimal success. Taking time to identify the renter's potential needs, research market rates, and develop effective advertising methods can go a long way.
However, a key way to reduce vacancy rates is to take an innovative and easy approach to deposits. Switching to using Standby Deposits can help give your rental property a leg-up over the competition and attract more renters. Learn more about how to use Standby Deposits with Standby.io today.
