Have you ever wondered, why certain storefronts, and apartments, etc, apparently remain vacant, longer, than other similar ones, which were owned by different owners/ landlords? Different owners appear to have differing philosophies, perspectives, and points of views, on the subject of key components, including: pricing; tenant quality; occupancy rates; and overall earnings requirements, and priorities. Although, there is absolutely no such thing, just as one iron – clad, way, to handle any particular property, this information will attempt to briefly, consider, examine, review, and discuss, a number of the options/ approaches, including pros and cons, as well as other considerations.
- Pricing: Whenever a property, either residential, or commercial, becomes available/ vacant, the precise owner, must make many decisions, around the best way to proceed. Perhaps, considered one of key considerations, is approximately pricing it. It seems, many owners, specially those owning commercial buildings/ storefronts, choose to ask as high a value, while they believe, they could. Because of this, we sometimes witness, larger turnovers in certain locations, than these. What is often confusing, is, why it doesn’t realize, or manage to care, that, each month, it remains vacant, means it will require, nearly a year, or longer, to generate up, that loss in rental income. Some believe, it is very important proceed using this method, because, it’ll set how much future rents, and although, this will likely, perhaps, be true, it only will, if they do not constantly experience turnover, and prolonged periods of vacancy! This is more true, on the subject of residential properties. My wife and I own several residential units, and, are satisfied, we have now amongst, the minimum turnover and vacancy rates. We would rather price these units, more conservatively, and minimize, and observe after high quality, dependable tenants!
- Tenant quality: One of the costliest regions of owning real estate property, is, whenever, we end up needing, to get a new tenant. Doing so, often, requires extra fees, marketing expenses, maintenance/ repairs/ renovations, and time/ hassle! If you find reliable tenants, doesn’t it seem appropriate, to try and find common ground, and also a meeting – of – the – minds, to make sure they’re?
- Occupancy: Those who maximize their occupancy rates, often enjoy less stress and hassle. Carefully taking into consideration the two factors, above, is often a significant factor, as part of your best interests!
- Cash flow: Owning income property, produces minimal amount of stress, tension and hassle, and, usually the best results, should there be the best possible concentrate on maintaining the necessary cashflow, to pay monthly expenses, etc.
Being a landlord, might, either be extremely profitable, or perhaps a nightmare. Focus on the challenge, avoid getting greedy, cherish quality tenants, etc, and you’ll maximize your possibilities, inside the longer – term.