If your leases end at graduation, chances are good you’ll be staring at three months of vacant units until students return.
8. STREAMLINE WHAT YOU CAN
The administrative cost of rental properties can eat into your profits. Automate administrative tasks such as rent collection and responding to tenant complaints. Check in with suppliers to negotiate more favor- able rates for long-term contracts and bulk purchases. 9. KEEP UP APPEARANCES If you are cutting costs during a recession, it can be tempting to elim- inate landscaping services or other property maintenance. Do not give in to this impulse. Regular mainte- nance prevents more costly repairs or purchases in the future. Keeping your property in top shape also attracts more prospective tenants. 10. CONSIDER OTHER RENTAL OPTIONS Diversifying your tenant base is another way to reduce vacancy rate and expand the use of your rental property. If your single-family rental isn’t moving, consider medium-term furnished rentals (or short-term, if you’re in a hot vacation market). You might also rent one room at a time. This is a high-return strategy that might be just what you need to get through a recession, especially if your rental property is in an area with an abundance of individual tenants (i.e., a college town) or if you’re trying to attract people who are relocating and looking for temporary housing. Keep in mind that local laws may not
to ease the pinch. Allow partial payments for a period of months or provide a discount for early or multi-month payments.
favorable terms. You might reduce the rent for the first six months, returning it to a market rate over a two-year period.
3. REDUCE EXPENSES When a recession is on the horizon, put off optional upgrades and improve- ments. Focus on what’s absolutely necessary. If you haven’t already, take a look at your monthly expenses for the past three months and determine what costs you can reduce or eliminate. Then bank that cash for emergencies. 4. GO SHORT Potential tenants may hesitate to sign long-term leases when they aren’t sure of their financial future. Offer short- or medium-term leases with the potential to convert to a lon- ger lease to appeal to these tenants.
6. LEVEL UP MARKETING It’s time to shout the benefits of your rental property from the roof- tops. Focus on any features that add value, especially during a recession. These features might include easy public transportation, proximity to grocery stores and shopping, or amenities such as an in-house gym. Don’t forget to highlight price adjust- ments or flexible rental periods too. 7. MIND YOUR VACANCY RATE Keep an eye on the bottom line: your vacancy rate. Be proactive in your search for new tenants and be responsive to the needs of existing ones. One strategy for keeping vacancy rates low, especially in a university town, is planning rental periods so they do not coincide with the end of the school year.
5. GO LONG On the other hand, consider offering longer leases with more
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