1st Choice Property Management
June 2013: Vacancy Checklist

Different circumstances can lead to a vacancy. The tenant gives notice; it is necessary to give the tenant notice; there is a legal eviction; different emergency/disasters can happen such as fire, flood, or tornado; there can be the unexpected or unwanted trauma - crime, untimely death, suicide, etc. The reason for a vacancy can impact how long it takes to rent a property.

Every investor and/or property manager wants a zero vacancy period. There are times when everything works perfectly with a qualified tenant ready to move in as the previous tenant moves out. Unfortunately, this does not always happen. To give you some perspective on this subject we put together a checklist of items and projected time it can take to re-rent a property. It may be useful to you in the future when your property is vacant.

No vacancy period, the ideal situation - 0 days

  • The property is vacated in good condition with zero or minimal repairs
  • The demand is very high for the rental area in question
  • The asking rent is right for the area, market, and property condition
  • Any necessary maintenance does not delay a new tenant move in
  • Nothing impedes the showing of the property during the notice period
  • There can be one or many applications for the rental unit but at least one is a qualified applicant ready to move in when the former tenant moves out

Low vacancy period - rents within 10 days

  • The property is left in reasonable condition but some maintenance may be needed before moving in the new tenant
  • The demand is reasonable for the rental area in question
  • The asking rent is comparable to the rental area rents in question
  • Something may impede showing of the property during the notice period
  • There can be one or many applications for the rental unit but one is a qualified applicant, accepted shortly after the former tenant moves out

Medium vacancy period - up to 21 days

  • The property may require repairs prior to a new tenant taking occupancy
  • The property may have deferred maintenance that requires a vacated unit
  • The supply of available rental properties is very high for the area
  • The asking rent may be too high for the competitive market
  • The property may not show well during the notice period or the current tenant may not cooperate
  • There can be one or many applications for the rental unit but many are not qualified for the property and it takes more time for a qualified applicant

High vacancy period - more than 21 days

  • The unit may require extensive maintenance or major improvements prior to a new tenant taking occupancy
  • Delays in maintenance can extend the vacancy period
  • There are too many similar properties available in the area
  • The asking rent may be too high for the area, market, and property
  • A poor property condition can discourage good applicants
  • There may be area problems such as drugs, burglaries, bad schools, etc.
  • There can be one or many applications for the rental unit but it takes a long time to receive one with a qualified applicant

Extreme vacancy period - an undetermined time

  • There may be an unusual supply of rentals competing with the unit
  • The asking rent is unreasonably high for the current rental market
  • The property is in distress due to crime, untimely death, suicide, or other circumstance which discourages any application

How long will your property be vacant? If you have a pending vacancy, we would love to guarantee you a zero vacancy or that we can tell you it won't take long to rent the property. Unfortunately, we do not have a crystal ball available that will give us an answer.

We are well aware a vacancy affects your bottom line. We also know you can reduce or even eliminate a vacancy period by following landlord/tenant laws (particularly Fair Housing), by asking comparable rents, and by providing well-maintained properties. Remember, having a zero vacancy is not always the answer – instead, waiting for the right tenancy can prevent future problems and/or another unwanted vacancy.

Serving You

Darryl Kazen, MPM® RMP®
Broker
darryl@1stchoicepm.com

Rob Kazen
Property Manager

rob@1stchoicepm.com

Angela Brainard
Property Manager

angela@1stchoicepm.com

Lynnette Sibley
Assistant Property Manager

Lynette@1stchoicepm.com

Leslie Kazen
Assistant Property Manager

Phone: (817) 281-1300

Website: 1stChoicePM.com

Street Address
5750 Rufe Snow Drive, Suite 160
North Richland Hills, TX 76180

Our Associations

The material provided in this newsletter is for informational and educational purposes only. It is NOT legal advice.
Although we believe this material is accurate, we cannot guarantee that it is 100% without errors.

Services Provided By Property Management Newsletters