10 Dec Strategies for Reducing Apartment Vacancies
When an investment property is located in an overbuilt market such as Annapolis, the marketing effort must have good planning and direction. While many investors rely on advertising, we often find this is not enough and keeping local brokers who specialize in leasing consistently updated about the amenities of a certain property tends to yield better results.
Here are some additional ideas for reducing vacancies in apartment buildings:
- Choose your property management company carefully. The agency must be professional enough to market the building as though it is the only property represented, and they must truly know the unique benefits of the building and be enthusiastic about it.
- The outside appearance and landscaping are critical. Too many developers make the mistake of cutting
the landscaping budget when construction costs soar. That is the single worst thing that they can do. Before anyone can see the inside, they see the outside and it has to be inviting.
- Stay away from quick fixes, such as free rent. This is the “kiss of death” and can result in potential tenants shying away. A better approach is to stress the positive features of a building and work with potential tenants to match the criteria the tenant feels are most important to him.
- Contact all tenants in nearby buildings and invite them to compare this building to their current location. There are always some who are nearing the end of their lease and have just not had time to look at any other rentals. This is the time to make a “money” offer. It is more acceptable to offer to pay for part of a new tenant’s move by a small rent concession than to offer free rent.
- The management company must use imagination and do unconventional things to periodically get the building into the spotlight of local news.