Vacancy rates will be the determining factor that makes or breaks your investment property. If your vacancy levels remain high for an extended period of time then it is likely that you will be losing money. This is why reducing your vacancy rates is critical.
This is why it is absolutely crucial to employ techniques that will help to attract more tenants and encourage those people to stay in your building long term. Below you will find three case studies of properties that were able to turn things around with the professional guidance of Braden Equities.
Case Study One
Braden Equities currently manages a building in the McDougal area of Edmonton. This is a location that has traditionally had higher vacancy rates due to the tenant profile that lives in and migrates to the neighbourhood. For this reason the community of McDougal is seen as a “C” rated rental market. In spite of these challenges, and with our direction, this specific owner has continued to have low vacancy over the past six years (around one percent versus an average of eight percent for the area). We have achieved this through a strict rent structure and a vigorous maintenance program. For example, this Landlord recently went ahead and approved new common area carpeting and painting to be done to ensure the building retained a fresh, modern appearance. This helped to retain current tenants, and attract new ones, which in turn kept the vacancy to an absolute minimum.
Case Study Two
When we first took over this property, which is located on 156 Street, it had a bad tenant profile, high vacancy, and the previous owner had tried to achieve top of the market rents. The common areas were also dated and smelled of stale water. After submitting our recommendations, future forecast for the building, and necessary work needed to the owner (which he approved) we turned the property around and reached our forecast for rents and low vacancy. We achieved this by not pushing rents, and by providing a clean, safe and modern place to live for the tenants. In the four years he has been with Braden Equities he has maintained a very low vacancy rate compared to the surrounding buildings in the area.
Case Study Three
One particular out of town property that we manage required a specific one-year new rent restructuring plan when we first took it over. This building had five vacancies at the time. With a new rental strategy in place and some minor improvements to the property, including proper visible signage, landscaping and new attractive balcony railings, we were able to attract a valuable new tenant profile to the building. This resulted in a low acceptable vacancy rate for the property.
Read more: How to Diversify Your Portfolio
Are you a Resident Manager? How do you help your residents like where they live?
Share the wealth — Leave a comment.