The time is here…SUMMER!! It’s a great time here in the Hill Country to go tube the Comal or Guadalupe Rivers and enjoy outdoor activities with the family. It is also the time when the rental market turns to burns all the way up! The market is HOT!! Rentals only stay on the market 1-14 days typically, with quick turnovers and an abundance of potential tenants.
But is your property ready to shine amongst all the others on the market? Before summer starts it is important to make sure the curb appeal is in tip-top shape. Make sure the HVAC system is checked on for optimal performance (nothing is worse than no AC during the summer). And…if possible, retain your excellent tenant for another year!
I know, I know…if the market is up, why not jack the rent up, have the tenant leave and find a new tenant to pay me more money! Well, that is a great positive (more rental revenue), but did you remember the downside in doing so? Leasing fee, utilities, make-ready expenses, vacancy costs, mortgage payment, taxes, insurance, etc. etc. Most often these expenses will eat your lunch compared to renewing an already good tenant at a slightly higher rate, but still under the market. By renewing your good tenant, you are deferring any major make-ready expenses (flooring replacement, painting) on for another year while concomitantly increasing your rental revenue. WIN-WIN? I think so.
It is important to remember what your costs will be during a vacancy so you can adequately prepare for them during the year to make sure your rental is in the best shape when it comes time to market! Nothing costs an investor more than the costs associated with a vacancy!