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In This Video:

0:10 What is a rental vacancy?
0:20 Three ways to avoid rental vacancy

Good day everyone Daimien here. Today’s blog video is about how to avoid rental vacancy.

What is a rental vacancy? Quite simply, your investment property doesn’t have a tenant and when it doesn’t have a tenant, who is paying the mortgage? You! So how do we avoid it?

Three (3) ways to avoid rental vacancy:

  1. Make sure you buy a property that’s in demand in the market that has a very small vacancy rate (i.e. a property is always going to be popular).

    If you buy a one bedroom, loft apartment with carpeted walls you shouldn’t be surprised when it is not in demand and you have a great vacancy. Commercial property also has its weakness, when you got a tenant who’s great but often the vacancies are quite large. So you want to buy a property that is in the middle of the market that everyone wants. And that is the first step to making sure you always going to find a tenant easily.
  2. Make sure that you set your rent $10-$20 cheaper than the market rate.

    That may sound that you are throwing money away, but you are not. When you think about it, $10 a week is only $500 a year. $20 a week is only a 1000 but if your tenants leave and go somewhere else because they are getting a better deal, then it is going to cost a week rent immediately. The agent will charge you a letting fee to find you a new tenant and every week that the property is vacant, you are going to lose a week rent. It usually takes a week to swap a tenant over, so straight away you’ve lost 2 week’s rent. If you charge $10 less than the market, the tenant you’ve got is not going to leave because they have a week rent with you.
  3. Make sure that your rental manager LOVES YOU!

    Send them flowers, a heap of praise for them. Make sure that they think you are the best thing since the sliced bread. Why? Whenever that they have four properties that are vacant and only one tenant is looking for somewhere to rent, if your rental manager loves you, they’re going to give that tenant to you. If you get cranky with your rental manager, giving them a hard time they are going to put your property as the lowest priority that is going to cost you dearly.

To summarize, three things: Only have a property that is always in demand, make sure that you set your rent below the market rate, so that you can get consistently occupied property and finally, make sure that your rental manager loves you so that they will always make sure you will always get a tenant, the best tenant and you get them nice and quick.

That’s it for me today, if you like it, share it, and tell it to a lot of people about it.

Cheers

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