5 Ways to Decrease Delinquencies & Vacancies

June 26, 2017 | Blog
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    There are many real estate investors who make the mistake of looking at their apartment building acquisition as a stock or bond, instead of a business that requires strategy and attention. One active way to ensure that your multifamily investment remains profitable is by taking the time to decrease the costs that are associated with collections, lost rent, vacancy, and tenant turnover. While collection and vacancies are an unfortunate aspect to being a landlord, there are steps you can take to reduce their impact on your investment. Here are 5 effective ways to decrease delinquencies and vacancies:

Conduct Background Checks

While it is often overlooked, background/criminal checks can provide vital information on the potential tenant. Make sure to also look at the applicant’s eviction history as it can indicate future rent payment behavior.

Verify Tenant Income

Another way you can reduce the likelihood of a resident having a payment problem payment, and therefore resulting in eviction, is by verifying the potential tenant’s income. Make sure that the potential tenant can afford the monthly rent.

Turn Empty Units Quickly

A vacant rental unit will costs you money for every day it sits vacant, so it’s important to reduce that time an empty unit sits between qualified, paying tenants. Make sure that you know how much each vacant unit will cost you each day that it is empty.

Evict Non-Paying Tenants Quickly

If you have a tenant that has stopped paying his or her rent, you need to evict them as soon as possible. Waiting to evict a non-paying tenant will cost you even more money than simply having a vacant unit, especially if the tenant has caused damages to your property.

Encourage Renters to Renew

The best way to decrease or even prevent delinquencies and vacancies is by keeping good tenants happy and encouraging them to renew. Tenants that pay on time, don’t cause damages to your property and don’t bother their neighbors can help your apartment building stay profitable.

At 100units.com, we have delivered unparalleled results to commercial real estate owners and investors for over 10 years. Our experienced multifamily property investment advisors have closed more than $100 million in multifamily property transactions. If you are interested in selling or acquiring an apartment building in Central Florida, contact us today and allow us to tell you exactly how we can get you the best results for your investment.