Occupancy is a key metric when you’re renting out a property in Philadelphia. To earn as much cash flow as possible and to increase your return on investment (ROI), you need to maintain high occupancy levels and low vacancy rates.
When your rental property consistently has tenants living in it, you can count on steady and recurring rental income. Those rental payments contribute to your mortgage, insurance, taxes, and other expenses associated with the investment. Eventually, you’ll earn enough that what you bring in more than covers the expenses, and you have a little cash leftover every month.
Vacancies will stop that momentum in its tracks.
Ongoing vacancies can lead to your own financial loss. A property that isn’t rented disrupts what you earn and easily costs you more than just the lack of rent. When a property doesn’t have a tenant, you’re the one paying for utilities. There are also bills for maintenance, cleaning, and marketing the home.
Good tenant placement strategies will avoid this particular pain point.
Here are some of the ways that proactive tenant placement will lead to less vacancy loss.
Tenant Placement Reduces Turnover
Vacancy when you’re initially renting out a home is difficult enough. Even worse, however, is vacancy that’s a result of turnover. Finding and placing high quality tenants is critical to what you earn as a Philadelphia real estate investor. Even more important than placing those tenants, however, is retaining them.
One of the keys to reducing vacancies is by minimizing tenant turnover. Good tenant placement involves a detailed screening process that allow you to select tenants who have stable jobs, acceptable income, and a good rental history. When you have well-screened tenants in your rental property, they are more likely to stay long-term, reducing the possibility of having a vacancy at the end of a lease term.
Remember that while screening tenants, you must follow all fair housing laws. You cannot discriminate against one application, and you have to treat every applicant consistently.
When you’re establishing your rental criteria, include a requirement that the applicant’s rental history is positive. You don’t want to see a history of evictions. You don’t want to see a string of broken leases.
When you talk to former landlords, confirm how long they were in place. To avoid vacancies, you’re looking for tenants who want a long-term home and are likely to renew their lease agreement.
Good Tenants Tend to Take Care of the Property
Proactive tenant placement allows you to put residents into place who care about your property. Good tenants will help you maintain the home, keep it clean, and take pride in how it looks. When they become emotionally attached to the property, they’ll be less likely to leave it when the lease is over. They’ll want to stay in place, and that will reduce your risk of vacancy.
Provide a great property when you begin marketing the home. When you can offer a well-maintained home that has been recently upgraded and updated, you’ll attract a larger pool of renters, giving you an opportunity to screen rigorously and avoid a longer vacancy.
Make sure the home shows well. When you set a high standard, the tenants you place will be inspired to meet it.
Better Tenant Relations Increase Engagement
Increase retention and avoid vacancy by establishing great relationships with the tenants that you place. Proactive relationship building is good for your property, good for on-time rent collection, and good for your tenant retention.
When you have effective communication, increased engagement, and a more positive relationship with your tenant, it encourages them to stay longer.
Make the showing, leasing, and move-in process easy for the tenants you place. By establishing a great relationship even before they become tenants, you have a better chance of filling your vacancy quickly and keeping your property occupied.
Pre-Screening Philadelphia Tenants Reduces Risk and Cost
Another good way to proactive place excellent tenants is to do a bit of pre-screening before you even schedule a showing. This can help you reduce your own risks and costs, and it will save you the time of spending hours with an unqualified tenant.
Ask when they’re moving. If they aren’t planning to move for a month or more, they’re not going to help you reduce your vacancy. Ask why they’re moving. If they’re being evicted or they’re involved in a dispute with their landlord over rent payments or property damage, you might not want to pursue these residents. When you pre-screen each tenant, show your property only to tenants who are on the same timeline and likely to meet your screening requirements.
Mind Your Marketing Strategy
The way you market your home will impact vacancy and tenant quality.
Are you sticking a For Rent sign in the yard and hoping for the best? You can probably expect a longer-than-average vacancy. You need to be online, posting a fantastic listing that gets the attention of good tenants. Focus on:
- High quality photos. A professional photographer would be great, but you can probably take good pictures on your phone. Include as many as you can post; tenants will want to see the bedrooms, kitchen, bathrooms, and the living area. Don’t forget a picture of the front of the property and any outdoor space.
- A concise but informative description. Sharp bullet points are a good way to share the important details about your property, including square footage, number of bedrooms and bathrooms, location details, and whether pets are allowed. Don’t forget pertinent information such as rental amount.
- Contact information. Tenants will need to know how to contact you.
With a great marketing plan, you’ll be able to attract good tenants quickly.
Having stable rental income from consistent occupancy, minimizing tenant turnover, and building relationships, are only a few benefits that come with good tenant placement. Building a strong tenant/landlord relationship will allow you to keep your best tenants longer, which in turn will result in lower vacancies and more money for you.
We can help find these great tenants. Contact us at TCS Management.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware, Nashville, Tennessee and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
