A necessary aspect of managing rental property is to engage in practices that will lower your vacancy rate. With the availability of sophisticated tracking software, properties managers are in a better position than ever to determine the rental market trends in their area. This information can be used to plan for a consistent rental income flow, as well as to efficiently schedule move-in preparation expenses. Triumph Property Management uses the latest technology to provide our clients with comprehensive and timely reporting. The information we deliver to our property owners helps them to make the best financial decisions to ensure a higher ROI.
Here are 5 tips on how to stagger your leases.
1. Offer leases of differ lengths at the initial time of renting and for lease renewals. The traditional method of offering 6 month and 12 month leasing options are often not the best for your cash flow. People rent most often during certain times of the year, which means many leases end at the same time. Periods where a high percentage of people move are not good for your business. To counteract this problem, offer 9, 13, or 15 month leases, with rent reducing incentives for lease periods that are the most beneficial to you.
2. Schedule your leases to end during the “high” season of rental activity – usually spring through summer. This is the highest % of people look to change living places, making it easier to rent your properties. When renting to students, offer leases that expire at the of semesters when new students are looking for rentals.
3. For move-outs that scheduled to expire in January (traditionally a slow month), at the time of the initial lease or at lease renewal, offer leases that will expire at the end of March through the end of October. Demand is much higher at that time, which will reduce the time that a property is vacant.
4. Offer month-to-month options at the lease end. Many people will be happy to stay a few extra months. When the economy is strong, you can increase the rent amount substantially. In times of a depressed economy, we recommend only a modest increase in rent or now increase at all. These month-to-month arrangements are will still require a minimum move-out notice.
5. Give your tenants plenty of advance end-of-lease notice. This way you will have a better idea if the property will be vacated, and you can efficiently schedule your make-ready needs. You will also know when you should start advertising the upcoming vacancy.
With the cost of doing business rising, it is important to be knowledgeable and proactive with your investment management decisions. Savvy property owners turn to Triumph Property Management to handle these issues. With our experience and state-of-the art rental property software, we can help you make the best financial decisions for your investment.