Top Tips for Reducing Vacancies
When it comes to your property portfolio, having your commercial, industrial or agricultural properties occupied is preferred as this is how you make your money back from your property investments.
South Africa’s tough economic climate is making it trickier to keep your properties occupied. We share some top tips on what you can do to reduce vacancies in your property portfolio.
If you currently have tenants, renew them!
This has to be the easiest and most cost-effective option when it comes to reducing vacancies. Find out when your tenants’ leases expire and start negotiations to renew their leases well in advance. If you have a good tenant, you’ll want to keep them for as long as possible, and it’s cheaper to do this than to have your property empty for a while during the process of finding a new tenant. You’ll also have to pay an agent’s fee on top of it all. Maintaining your property (new carpets, painting, etc.) and reducing rentals to be in-line with what the market pays is a great way to encourage them to stay.
Start marketing your property ASAP!
If your tenant is not going to renew or you don’t have one, you’ll need to start marketing as soon as possible. The longer your property sits empty, the more money you lose. If you’ve recently purchased a property and there is no tenant, get going with your marketing immediately. If you have a tenant, find out as early as possible if they are going to renew at the end of their lease or not, and if not, at least you have given yourself as much time as possible to find a new tenant and can start marketing as soon as possible.
Make sure your rentals are set at market levels
Factors that will influence market rentals include vacancies in the area, the desirability of the property and the current economic and political landscape. Because market rentals differ from property to property in the same area, doing your research will help you to price your property at the right price to attract the right tenant. If you price above market rentals, you are likely to end up with an empty property, and if you price below then you might be missing out on some income.
Once you have found a tenant, be sure to vet them properly before signing any contracts. If you get a bad tenant you are likely going to need to find a new one before long, which then requires you marketing your property again. For further assistance with renting your industrial, agricultural and commercial properties, contact In2assets at [email protected].