Just like with any other business, time is money in the property management world. Every week that a property is empty costs the property owner, and cuts into profit margins. Even long-term tenants move on eventually, so a property owner does need to allow for some down-time.
The question is: how much time should a landlord allow for to find a new A1 tenant?
(And notice that we’re talking about A1 tenants here, not just any old tenant. That’s an important distinction to make.)
Generally speaking, the amount of time it takes to find a new A1 tenant depends on the socioeconomic area you’ve invested in. If your property’s in a desirable area, then your search for a new A1 tenant may take one or two weeks.
To let a property in a less desirable area, it is likely to take longer to find that same A1 tenant. (And yes, A1 tenants do exist in less desirable areas… you just need to find them.)
But what if you’ve always struggled with finding an A1 tenant?
If a property investor has previously struggled to find good quality tenants, then a prudent first step would be for them to review their marketing techniques and tenant application process. (And you’ll find plenty of tips on what to do on this website.)
If the marketing and tenant application process seems in order, then it would be wise for the property owner to market the property longer and perhaps more aggressively to locate that desirable tenant.
So instead of re-letting the property in the shortest time possible, a more cautious approach is likely to pay big dividends. An extra two weeks’ vacancy would be a good insurance against taking on unsuitable or marginal tenants. With more marketing time and a larger marketing budget, you’ll have a far better selection of tenants to choose from.
After all, a two or three week vacancy (after a tenant vacates) is a very small cost if it avoids tenancies that will create high levels of wear and tear and damage.
Another consideration in finding A1 tenants is to make the property appealing and attractive. Read on to find out how to give your rental the ‘wow’ factor.
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