How to Cope with Poor Economic Conditions in the Rental Market

During these tough economic times, it is more critical than ever that property owners look for ways to minimize the effects of a weak economy and a soft housing market.

Now more than ever the rental market is experiencing an ever rising vacancy rate and declining rental rates that are creating cash flow challenges for property owners. The high number of available properties has created a fierce competition for qualified tenants.

To meet the challenges of a soft market, we must turn to some of the basics that have proven effective in times such as these; marketing strategies that can give you an edge against your competitors. You’ve probably heard the old adage “you only get one chance to make a first impression.” This has never been more important than now. Curb appeal of your property is key. The lawn should be well cared for, the shrubs trimmed and the exterior of the home in good repair. Skimping on minor repairs and cleaning could be the deciding factor for a prospective tenant. The Henderson Properties Maintenance Division can help ensure that your property’s first impression is a positive one.

Another basic consideration is competitive pricing. With so many available properties out there, property owner and property manager must work together to make sure the property is priced in line with the market. One way to remain competitive is to offer incentives. Concessions such as half off the first months rent, flexible lease terms, reduced or waived application fees etc. can be very attractive to prospective tenants. Incentives can make your property more affordable to those who have been impacted by the slow economy.

For example, dollars off the first month’s rent will reduce the amount of upfront money needed to make a move. The current buzz phrase these days is “Some money is better than no money”. When setting rental rates and deciding on what incentives to offer, consider the impact to the effective income of your property. The loss of rental income may be less if you are willing to accept a lower monthly rental rate in order to lease the property sooner rather than allowing your property to remain vacant an extra month while trying to get that extra $50 in rent.

For more information on Charlotte Property Management, please visit our site.