Rental vacancies are a common thing when there is tenant turnover. The length of vacancy can be just a day to months. A lot of it depends on your property manager and how good they are.
This is a cost to homeowners that is rarely given consideration when interviewing property managers. Good property managers can find tenants who will sign a multi-year lease. When this happens, you’re protected against vacancy cost because the same tenant is going to occupy the home for a longer period of time.
Just as an example, let’s say you’re renting a home for $2,000 per month, and the average vacancy time for an area is 2 weeks. Finding a tenant who signs a 3 year lease vs. a tenant who signs a 1 year lease means there is a difference of 2 vacancy periods by the time the 3 year lease is up. Those 2 vacancy periods with an average of 2 weeks each comes out to almost a full month’s rent – $2,000. That’s equal to 10 months of property manager fees at 10% per month. This situation can turn a profitable property into a loss.
How fast is your property manager at filling vacancies? This can depend on a lot of things, all of them revolving around your property manager’s organization and abilities. Finding better tenants to begin with means a shorter turnover period simply because the home is going to be in better condition when possession is given back to the property manager. Using professional photos, and/or doing open houses can also help reduce the time.
Right now we can turn over most homes in 2 days. There are reasons for our ability to find and place great tenants. We have clear expectations on what we expect from tenants. Our company is very proactive in all searches for new tenants. We have a team of people ready to go for any necessary repairs and upkeep between tenants. The way our leases are drawn up there is a lot of protection to ensure seamless transition between tenants.