Have you ever wondered why certain storefronts, and apartments, etc. seem to remain vacant longer, than other similar ones which might be owned by different owners/ landlords?
Different owners seem to have differing philosophies, perspectives, and points of view when it comes to key components including: pricing, tenant quality, occupancy rates, and overall cash flow requirements and priorities.
Although there is no such thing as an iron-clad way to manage any particular property, this article will attempt to briefly consider, examine, review, and discuss, some of the options/ approaches including advantages and disadvantages and other considerations.
Pricing
Whenever a property either residential, or commercial, becomes available/ vacant, the specific owner must make many decisions about the best way to proceed. Perhaps, one of key considerations is about pricing it.
It seems many owners, especially those owning commercial buildings/ storefronts, decide to ask as high a price as they believe they can. Because of this, we often witness larger turnovers in some locations than others. What is often confusing is, why they don’t realize or seem to care that every month it remains vacant means it takes, many months or longer to make up that loss of rental income. Some believe it is important to proceed this way because it will set the level of future rents and although this may, perhaps, be true, it only will if they don’t constantly experience turnover and prolonged periods of vacancy!
This is even more true when it comes to residential properties. My wife and I own several residential units, and are pleased we have amongst the lowest turnover and vacancy rates. We would rather price these units more conservatively and lower and maintain high quality, dependable tenants!
Tenant Quality
One of the costliest parts of owning real estate is every time we need to find a new tenant. Doing so often requires additional fees, marketing expenses, maintenance/ repairs/ renovations and time/ hassle! If you find reliable tenants, doesn’t it make sense to try to find common ground and meeting-of-the-minds, to keep them?
Occupancy
Those who maximize their occupancy rates often enjoy far less stress and hassle. Carefully considering the two factors above is a significant factor in your best interests!
Cash Flow
Owning income property produces the least amount of stress, tension and hassle and generally, the best results when there is the best possible focus on maintaining the necessary cash flow to cover monthly expenses, etc.
Being a landlord, might either be extremely profitable or a nightmare. Focus on the bigger picture – don’t be greedy, cherish quality tenants, etc., and you will maximize your possibilities in the longer-term.
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson, for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonLongIslandHouses.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE. Article Source: https://EzineArticles.com.