What to do if rental property is vacant for a long time?

Unoccupied rental homes pose a challenge for many property owners. One of the significant ways it can impact the landlord is the potential loss of rental income. If a rental property remains vacant for a prolonged period, it can pose more financial challenges for the owner, including higher maintenance costs and a decrease in property value. In this guide, we explore the various strategies a property owner can adopt when a rental property has been vacant for an extended period.

Analyse the reasons for vacant rental property

If the residential property has been lying vacant for a long time, it is crucial to first analyse the key reasons for this situation. Determining the actual reason can help the owner come up with the right strategy. Some of the key reasons a rental home may not be attracting tenants are:

• Overpricing: Rental rates much above the market average, especially in an affordable or developing locality, may deter potential tenants from approaching the landlord. 
• Old property: An old construction property without adequate maintenance may not appeal to potential tenants owing to the outdated fixtures, dull interiors and potential structural issues.
• Undesirable location: If the neighbourhood lacks proper infrastructure, connectivity and amenities, it can be a possible reason why the property is not attracting tenants.
• Strict rules: If the property owner or the housing society has laid down rigid rules for tenants, such as a no-pet policy, it can limit the number of potential tenants for the property. Besides, such information could be shared by potential tenants, leading to negative reviews.
• Ineffective marketing technique: This could mean listing the property on one or two platforms. In some cases, landlords may not be tech-savvy and prefer offline marketing methods, which can prolong the process of finding the right tenants. 

Click to read in detail the key reasons a residential property is not renting

Assess the rental rates

Competitive pricing is crucial to attract the right tenants, as overpricing can deter potential home seekers from showing interest in the property. Moreover, a vacant property for a prolonged period may work against the landlord in fetching a good deal. That is, they may be forced to lower their rental prices in order to get a tenant. Landlords should consider offering competitive pricing and offers like flexible payment terms to secure tenants. At the same time, they need to strike a balance between their incurred costs and rental pricing. 

If the property remains vacant for many months, the landlord should consider conducting market research to determine if there have been any changes in the average rental rates. Utilise online property platforms and compare similar listings in their area. Consider properties of similar type and configurations and various other aspects such as area, age, facilities like lifts, etc. This will give a clearer view on pricing. 

Inspect and upgrade the property

Landlords must ensure that the property is well-maintained, even if it has been lying vacant for a long time. Merely posting appealing photos of the property may not be a good idea. Regular maintenance and keeping the property ready for a new tenant can make a good impression on potential tenants. Moreover, property owners should not overlook the potential for issues such as leaky faucets or faulty fixtures. Inspecting the property will help them identify such issues and make timely repairs if required. Moreover, adding a fresh coat of paint or making small upgrades, such as installing lighting, can increase the property’s visual appeal and rental value. 

Furthermore, if the neighbourhood has a higher demand from working professionals, a property owner can consider fully furnishing the house. Fully furnished apartments appeal to busy individuals or families looking to quickly relocate. It will save them the cost and effort of interior design while significantly boosting the rental income for the landlord.

Relook the marketing strategy

Various aspects of marketing a property, such as pricing, platforms used, photos or video tours, description, etc., may need to be revisited if the current method is not working out for the landlord. More importantly, if the owner is only adopting offline methods, then switching to online portals to list and advertise the property may be beneficial in finding tenants quickly. 

If the owner already has an online presence, they must ensure they are reaching out to potential tenants through all available channels, such as social media, online rental platforms, and real estate websites. Additionally, they can check within their existing network and leverage the benefits of word-of-mouth marketing. Offering incentives to their contacts for finding new tenants can be an effective strategy. 

Putting up ‘For Rent’ signage on the property and advertising in local newspapers can be additional help to speed up the process of finding tenants.  

Get professional assistance

If a property owner has been unsuccessful in finding tenants and they do not want to lose more time and potential rental income, getting professional support is a wise idea. Approaching a local property management company in their area will make the job much easier. These companies specialise in providing property-related solutions, such as searching for home seekers, tenant screening, and running targeted online campaigns. Additionally, they also provide property maintenance services, inspections and documentation. Alternatively, a property owner can consider hiring a local and experienced broker who can find reliable tenants through their channels. 

Explore alternative rentals

An effective technique of attracting tenants is having flexible lease terms for short-term rentals. Renting out the property on portals such as Airbnb or as service apartments for short-term tenants can work effectively if the area sees a lot of working professionals or high-end home seekers. Other alternative methods could be renting out individual rooms for co-living or paying guest (PG) accommodation. This can work in the landlord’s favour, especially if the locality witnesses a significant demand for the student population. 

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The time a rental property remains vacant depends on several factors, including pricing and marketing strategies adopted by the owner. It is crucial to revisit all these aspects to identify the right reason for the prolonged vacancy and find the right solution based on the specific situation. In the process of finding tenants, potential landlords must ensure they look after their property to avoid incurring additional costs. Furthermore, staying approachable through calls or messages, being punctual with property visits, showcasing the unique selling points (USPs), and posting the latest pictures or videos of the property are some proven ways to win the trust of potential home seekers. 

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