A survey showed that in 2020, leasing properties and marketing vacancies were part of the most demanded property management services by rental owners. Since then, landlords and real estate investors have continued to be on the lookout for well-experienced property management agencies to help them pack their properties with tenants.
The goal of a landlord should be to retain tenants to reduce vacancy rates. Not only does this increase their rental income and profit, but it saves them a ton of time.
How can we now reduce the vacancy rate, especially here in Milwaukee? Here are some practical tips to help property owners mitigate unnecessary vacancies.
SCREEN AND VET TENANTS THOROUGHLY
Some landlords may make the mistake of not properly screening tenants for sentimental reasons. This can result in allowing unstable, late-paying, or destructive tenants in the property. For this reason, effective screening for world-class residents should be a top priority for reducing rental vacancy rates.
For instance, well-employed, high-income tenants in Milwaukee sound like the big fish, but they have a greater propensity to migrate to better places. However, low-income, unreliable tenants can move out because of unemployment or poverty. You can foresee these things from a good tenant screening.
Good property management will entail asking your tenants questions to know more about their employment status, rental history, the reason for moving in, and how long they intend to stay. With their answers, you will have the necessary information about what type of tenant they will turn out to be and their rental needs.
After an interview with them, you can ask for references from former landlords and run credit and background checks on them. Debts, criminal records, past evictions, and a late payment history should be looked out for.
Some records should not completely write a tenant off. By talking with them in person, you can determine if they are trustworthy and stable.
PROVIDE A LONG-TERM LEASE
To engage in a long-term lease means you are ready to lease your Milwaukee property for two years or more instead of the average 12 months. These long-term leases can help you reduce your vacancy rate.
Though it may present some risks, such as keeping a tenant you aren’t happy with for a long time or the inability to raise the rent till the end of the lease term.
You can handle the risk of having to deal with a tenant you’re not happy with by being as professional as possible with the screening process. Using credit and background check services are great resources for tenant screenings.
However, it’s more effective to contact the prospective tenant’s references, former landlords, and employers to know how financially secure they are and whether they’re the right people to live in your property for over a year.
If you intend to increase the rent at some point, it is best to include a clause in the lease stating a percentage increase in the rent after a year. It all depends on your choice timeline. Make sure your tenant understands the clause before they sign and move into the property.
MAINTAIN THE PROPERTY REGULARLY
Tenants live longer in units where the landlord is proactive about maintenance. Leaving all the routine maintenance to the tenants may turn them off and make them want to move out to a better-maintained or newer property elsewhere in Milwaukee.
Repairs should be timely; as soon as something goes wrong in the property. This shows tenants that you care about them. The effect is that customer satisfaction shoots up, and this will influence both current and subsequent tenants.
DEVELOP A GOOD RELATIONSHIP WITH THE TENANTS
Landlords have to realize that proper communication and relationships are priceless when dealing with tenants. Talk to them often to know how they feel about certain things about the property and how you can serve them better.
The ability to communicate warmly with tenants is also one of the key things property owners look out for in a property management company.
Being friendly with your tenant and understanding them is a very practical way to keep them longer. Try to understand your tenants and know the best ways to make them feel at home.
Most tenants have left a property because the manager or landlord acts insensitively towards their needs and complaints. So, keep the vibe upbeat and cordial.
A good relationship with customers is the backbone of a successful business. This is how you can get good referrals from existing tenants and keep your property full.
SET THE RIGHT PRICE
Unreasonable or overly expensive prices may keep your Milwaukee property vacant for a very long time. Before setting your rental price, it is necessary to analyze other rental properties in your area to determine a fair price.
You can research online to find out what rents look like around you or use the services of a real estate expert.
After seeing the price of local rentals, you can set a reasonable price that will both be competitive and help you maximize your return on investment. Setting the price will largely depend on the location of the property and its quality.
USE ADEQUATE MARKETING AND ADVERTISING
Advertising your rental property is a cool way to get your property in front of the right tenants.
Rental advertisements are usually more effective with property management companies because they have more experience and connections to make them work.
When doing that, imagine yourself as the tenant you want to reach. What websites would you visit? Do you use newer or older sites when looking for apartments? These questions and more will help you find out where to place your ads.
The rental business also runs in a cycle, which necessitates marketing your property in Milwaukee when people are looking. For instance, it is easier to get your hands on long-term tenants in spring and summer than it is in fall or winter.
So, try to make your property available for rent when there is a greater likelihood to have the most tenants.
REWARD YOUR MOST PROMISING TENANTS
Homeowners dream about very cooperative and loyal tenants. To keep such tenants, you can offer them incentives during lease renewals. It can be a cable or Netflix subscription, a new device, a household appliance, or a discount on next month’s rent.
Tenants will be grateful that they are rewarded by a landlord who cares about them.
Rewards not only lubricate the landlord-tenant relationship but they motivate tenants to stay longer. After it all, the vacancy rate drops, and your pocket gets bigger during lease renewals.
LET PERFORMANCE ASSET MANAGEMENT HELP REDUCE VACANCY RATES
The tips in this article, if well applied, will bring your property vacancy rate to the barest minimum and get more of that cool cash rolling in. However, hiring a property management company in Milwaukee allows you to do all of these tips in just one act.
Performance Asset Management is the highest-rated property management company in South Eastern Milwaukee. We practice a vacancy-eliminating property management approach and maintain properties to our tenants’ and owners’ liking.
Contact us to discuss how we can help you reduce your vacancy rates today.
