Utah Property Management – Filling Units in a Tough Rental Market
Minimizing a vacancy is the single largest cost cutting move a rental property owner can make. If an owner is not able to fill a rental quickly, it can affect the bottom line and adversely impact the cash flow generated. When an owner hires a property management company, he/she expects the vacancy to be reduced and a qualified tenant to be placed in the property ASAP.
So what measures does a property management company take to get your property occupied in the shortest amount of time? Below are different tactics that a property manager will use to fill your property in the shortest amount of time:
- Reduce the security deposit – Although it is always prudent to collect a sizable security deposit, requiring too much may limit the pool of prospective tenants. Instead of requiring a tenant to pay a security deposit in addition to first and last months rent, a property management company may consider only collecting a security deposit equal to 1 months rent. This will increase the number of potential tenants interested in renting your property.
- Lower rent to slightly below market value – Although renting your property for less than market value will net you less money each month, having your property vacant for 2-3 months is a loss that you will never make up. Renting your property for slightly less than market value will also generate more qualified applicants, in addition to enticing a tenant to remain renting your property for longer as they are receiving a good deal.
- Utilize good property management software – A comprehensive property management software will allow the property manager to stay on top of all vacancies and have them processed in a timely manor. This also allows the manager to track all rent related costs including marketing, maintenance repairs, and cleaning.
Although paying a property management company to manage your rental property may seems like a cost you would rather not pay, if the company is able to significantly minimize your vacancy, you may want to consider hiring one. If the company can save you 2-3 months of vacancy a year, they have more than covered the fees you will pay.