How to Keep Rental Property Vacancy Rates Low

It can be a tricky proposition keeping tenants these days, as houses have not been cheaper to buy in a very long time. Even with credit markets still unstable, many former tenants have taken advantage of the significant drop in housing prices. That said, there are still plenty of people who have no choice but to rent, however you'll need to work just a little harder to keep them happy and reduce your overall turnover and vacancy rates. You aren't making any money on vacant properties, and in many cases they can even cost you money. It only makes sense to minimize vacancy rates, so read on for a few tips to do just that.

It is not a stretch to say that there are lots of poor quality tenants out there; it is more than likely that we've actually rented to a couple of them. It is probably safe to assume that you have adopted your own standards regarding who to rent your apartments to. My advice is to skip the credit checks, as the vast majority of renters have poor credit. As landlords, we need to understand that, because if you wait around for a tenant with good credit your unit will likely be vacant for a substantial amount of time. Conversely, spend your time and energy calling previous landlords and employers for references. These points of contact will give you a much better idea of how the person is as a tenant.

Minor conflicts between the tenant and landlord can easily flare up into situations that neither party really wants. If you as the landlord see a problem that you have to address with the renter, make sure you're calm and rational. If your temper flares, you really shouldn't be surprised if you're met with an equally abrasive attitude. This isn't saying you should never be assertive. This is our business, and as such we are accountable for making sure all conditions are met; however, far more flies are caught with honey than with vinegar, so keep that in mind at all times.

There is a fine line between checking on your property and invading your tenant's privacy. In today's world, privacy is hard to come by. Renters expect to have it at home just as much as someone who owns their own home. Yes, you should make sure your property is not abused, but tenants do not want to feel like they are being spied on. The best way of avoiding that is to simply keep the tenant in the loop. Let them know that you drive-by and/or conduct random inspections periodically, before they even sign the lease.

Additionally, remember that the vast majority of renters who are late on their monthly rent actually do want to pay you. Be sympathetic with what they are going through, but still require clear communication. From time to time just about everybody has paid something late, but you as the landlord must still demand that the tenants communicate with you if they are going to pay late. Your goal is to keep the rental payments coming in, whether late or not. Remember that once the property is vacant it's not making you any money, and long term tenants are always the best ones to have.