rental vacancy rates nearly 40 percent
10/17/2012 by Cathy
Successful investment in rental properties often depends on keeping vacancy rates low, both by minimizing tenant turnover and by quickly re-renting properties when tenants do depart.
According to a recent survey conducted by JIL Property Management,
Based on responses from 298 property management companies located in 201 cities across the US, the average annual vacancy rate for a professionally managed property is 5.5 percent, compared to the 8.8 percent national average reported by the US Census Bureau. Respondents cited expert tenant screening, superior customer care during tenancy, swift action against delinquent tenants, and general local market knowledge as reasons for their success in preventing long vacancies.
“Having a full-service management company that knows the ins and outs of property Management, including rental law, maintenance requirements, accounting best practices, and how to effectively market and show a property is critical to maintaining cash flow while preserving the integrity of a rental property investment,” says Richard Riocardo, who, in addition to being CEO of JIL Property Management, owns investment properties himself. “Most first-time landlords have very little understanding of these fundamentals. It’s a steep learning curve.”
Additional survey findings include:
- 67 percent of property management companies can typically fill a vacancy in four weeks or less.
- 51 percent of professional managers can keep the cost of rehabbing a property between renters under $1,000.
- The average uncontested eviction costs around $2,000, including legal fees, lost rent, and property repair costs---emphasizing the need for careful tenant screening.
With a glut of bargain-priced, distressed properties set to come on the market over the next few years and interest rates at historic lows, investors are clamoring to make rental property investment part of their portfolios, making these findings especially relevant to finding a sustainable solution to
the current housing crisis.
All Property Management has the fastest growing, largest and most comprehensive network in the industry with more than 2,000 managers nationwide. Investors and property owners using All Property Management’s network are able to easily navigate and compare management companies located near their properties specifically suited to their needs.
JIL Property Management