Vacant Property Problems?
St. Louis property management companies face this a lot. They use the same method in marketing every property, but some properties will be rented right away while some will stay for a long time in the market. Property owners will start calling their property management companies when their property stays vacant, to ask why their property is not rented yet. Most property management companies will let the owners of these vacant property that they have been showing their property to those who enquire about it, and those who call make inquiries about the properties available for rent, they tell them about all their vacancies. Sometimes, most owners will want these companies to rent the available space.
If you are property owner, and your property stays long in the market without getting rented, below are three major reasons that could keep it vacant for a long time.
The condition of your property
Most property management companies will advise owners that if they want higher revenue on their property, then their property has to be in the best shape and quality always. The condition of your property is usually one of the things that make a property stay vacant. Has the spaced being vacuumed or swept recently? Do all the light bulbs work? Is the smoke detector chirping constantly or has the batteries of the smoke detector stopped working? Most property managers do think these things do not matter, but potential tenants do notice. For instance, if your property has a hole in the wall where refrigerators will be installed, you might think that the space would stay hidden when the tenant put their refrigerator, and you might not want to spend money fixing it. Because of that and other small things you wouldn’t fix on your property, then the property will stay vacant for a while.
Is the rent you’re asking fair market value?
If as a property owner, and the rate of your rent is more than other properties like your own, then your property will stay vacant for a while. Your property might be nicer than others, and thou you might find some people willing to pay extra, however, not everyone will pay extra. This means that you already have the market narrowed. The rate of your rent should be set at the current rate in the market. In Missouri for example, property owner’s upsets Saint Louis property management companies because the rent rate suggested by them is not what they would like. Most owners would want their rent rate according to their wish, but unfortunately, the rent rate is dictated by the market, not their wish.
Is the property functional?
In real estate, there is a term called “functional obsolesce”. What the term mean is, does your property meet the expectation of today? For instance, most older homes have a closet that is small. For some reason known to them, people around 75 to 100 years didn’t have a need for a closet space like we do. Therefore, a home with a four-foot-wide closets is functionally obsolete. Will potential tenants rent a home that is functionally obsolete, yes, but you shouldn’t expect them to rent it the same price as a house with a walk-in closet.
Also posted on LinkedIn at https://www.linkedin.com/pulse/three-reasons-why-your-property-still-remains-vacant-edward-o-daniel/
If you are interested in Renting your Vacant Property in the St Louis area, please contact us at: St. Louis Property Management