Diagnosing Vacancies

What keeps a property from renting?

Tenant turnover cannot be prevented. Renters will eventually move. Although the economy may be taking baby steps toward a recovery with national vacancy rates on the decline, regional rates continue to outpace the average. The national rental vacancy rate dropped to 4.9 percent the first quarter of 2012, its lowest rate since 2001.[1]

While Idaho’s rate has slowly been declining as well, down to 6.2 percent, it is still well above average. Utah jumped from 5.9 percent fourth quarter 2011 to 7.2 at the end of first quarter this year. [2]

Since an empty property does not generate income, what do we do to keep vacancy rates down?

Pay careful consideration to the current environment. If a property is not renting it is typically due to price, presentation, and/or exposure. Our entire team meets weekly to review each vacant property and address each factor for our owners.

Is the price right? - If your property is listed too high then it will take longer to rent and in most cases the extra rent you were trying to get was lost in the time the property was vacant. We run rental comparables for your property and area and use that information to determine a starting price, which we then review weekly and make adjustments as necessary based on the traffic, phone calls, showings, and applications.

How is the presentation? - We make recommendations based on experience and feedback from showings. Obvious maintenance or cleaning issues could repel potential tenants. If the property needs more cleaning or other improvements that will help the presentation, we will discuss these items with you.

Who knows about it? – If renters can’t find information on your property for rent, how will they know it is available? We give our vacant properties maximum exposure through our marketing program. This includes websites, local media, tenant referral program, yard signs, and our own top ranking website. More exposure gives us more options for screening for good tenants, less time vacant, and increased rental income. If you want even more exposure, ask about our marketing fund.

Unlike a lot of property management companies, we do not make money on vacant properties. Our system is designed to reduce vacancy rates and maximize rent potential. Most owners who have switched to our system have seen a decline in their vacancy rates.

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[1] http://www.thedaily.com/page/2012/04/05/040512-news-apartment-vacancy/

[2] The Quarterly Vacancy and Homeownership Rates By State and MSA Table 1: Rental Vacancy Rates by State

Should I Allow Pets?

Should I Allow Pets?

Pets can potentially cause damage to a property; however over 60% of renters have them. If you want to avoid the hassle of worrying over pet damages, it may take you longer to find a renter for your property. Here are some of the pros and cons to help make the right decision for your property.

 A survey conducted by the Foundation for Interdisciplinary Research and Education Promoting Animal Welfare (FIREPAW) found the worst damage reported by landlords averaged $430.

The average damage was $362 for tenants with pets, and $323 for tenants without pets. According to the survey, properties that allowed pets were able to charge 20 to 30 percent more rent than those that didn't allow pets.

Simply allowing pets does not guarantee you’ll be able to charge more in rent, however it does increase your tenant pool and you will likely have more demand allowing for potentially higher rent prices and lower vacancy rates.

Additionally, a tenant with a pet is more likely to stay, because it is harder to find another pet friendly landlord. The FIREPAW survey saw tenants in pet-friendly rentals stayed an average of 46 months, compared to only 18 months for those in rentals prohibiting pets. 

However, there is a reason property owners decide not to allow pets. Pets that have not been toilet trained can cause stains and odors. They may claw or bite carpeting, cabinets, furniture or blinds. Barking, meowing, or other pet sounds can lead to noise complaints from neighbors. Some pets can even be a safety hazard if not controlled or left unleashed as they may bite people or other animals.

Much of the risk of pet damage can be reduced by properly screening tenants, and performing periodic property inspections. To help prevent damage, if an owner decides to allow pets, we recommend a limit of 2 pets with weight restrictions based on the size of the property. We also suggest $300 to $500 per pet additional deposit. 

Our inspection process always includes a thorough search for pet damage and smell. We have found through years of screening potential tenants that pets typically match their owners. Good, clean people have good, clean pets.

For more information on allowing pets or to read the FIREPAW survey in its entirety go to: http://www.firepaw.org/CompanionAnimalRentersPetFriendly.pdf