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Vacancy Kills Profit: Here’s How to Keep Your Nashville Rentals Occupied
Lee Blackburn
Are you losing money on vacant rental properties?
We need to stop the bleeding. Keeping your Nashville rental property occupied is the best way to ensure consistent cash flow, recurring rental income, and impressive long-term ROI. Often, owners feel like they’re at the mercy of the market when it comes to occupancy levels. The market does have something to do with how easy it is to attract and retain good tenants, but smart rental property owners will provide a property that’s competitive in any market.
Let’s look at ways to increase occupancy and earnings.
Quick Overview:
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Vacancy Hurts More Than You Think
Imagine you own a rental that normally brings in $2,000 a month. A single month of vacancy wipes out $2,000 of potential profit.
But that’s not all. Factor in utilities you might be covering, advertising costs to re-list the property, and the possible expense of refreshing the unit. Turnover costs will include cleaning, painting, minor repairs, and even upgrades. That vacant month could easily cost you $3,000 or more.
When vacancies stretch on longer than anticipated, the financial hit snowballs quickly. And in a market like Nashville, where demand is strong but renters have plenty of options, tenants won’t wait around for you to make your property appealing.
Minimizing vacancy needs to be a top priority.
Price Your Nashville Rental Strategically
One of the biggest reasons properties sit empty is mispricing. If your rental rate is higher than comparable homes in the area, prospective tenants will move on to look for better deals. But that doesn’t mean you should offer bargains. Pricing too low can fill a vacancy fast, but it also leaves money on the table and makes it harder for you to raise those rents to market level at renewal time.
Here’s how to strike the right balance:
- Conduct a Market Analysis. Look at similar properties in your Nashville neighborhood. Those are homes with a similar size, comparable amenities, and equal condition.
- Stay Flexible. The rental market shifts throughout the year. Summer may bring higher demand, while winter can slow leasing. Adjust your rent according to demand and competition.
Make the Most of Marketing Strategies
Vacancy depends largely on marketing. You might have the best property on the Nashville rental market. But if no one knows about it, you won’t have an easy time renting it.
Every listing is starting to look the same. Have you noticed? Make sure yours stands out with fantastic photos. Be clever and concise in your description. Let tenants know if you allow pets.
Optimize your listings with the kind of information that matters to prospective tenants. Are you close to downtown? Do you offer smart home features like wi-fi thermostats or keyless entry systems? These are the things to showcase.
Expand your reach. True and full syndication to online rental sites are an excellent starting point, and professional management companies can expand that reach tenfold by utilizing their Multiple Listing Service.
Reduce Turnover and Invest in Tenant Satisfaction
The best way to avoid vacancy is to keep your current tenants from leaving. Every lease renewal saves you money on marketing, screening, and turnover costs. Moving can be expensive and stressful, so tenants are only going to look for a new home if they have a good reason to.
Retention starts with the tenant experience. Be responsive. Maintain the property. Tenants don’t want to follow up on basic maintenance requests over and over again. Communicate clearly and transparently.
Offer renewal incentives when the time comes. Upgrades help. Gift cards for local coffee shops are a great idea. Keep the rental increase reasonable and market-driven.
In a city like Nashville, where tenants often weigh their housing options annually, building loyalty can be the key to reducing turnover.
Stay Ahead with Preventative Maintenance
Turnovers and vacancies can drag on when there’s a lot of work that’s needed between tenants. Reduce these extra vacancy days by paying attention to preventative maintenance when the rental home is occupied.
- Schedule seasonal inspections.
- Make updates as you go. Gradual improvements can be made even while tenants are in place.
- Keep vendor relationships strong. This will help you speed things up at turnover time.
The smoother the transition between tenants, the less downtime you’ll face.
Work with a Professional Property Manager
For Nashville landlords who want to minimize vacancy but don’t have the time or expertise to handle every detail, partnering with a property management company can make all the difference.
A skilled property manager will:
- Accurately price your property for the market.
- Market with professional-grade tools and wide reach.
- Screen and place high-quality tenants.
- Handle maintenance quickly to keep tenants satisfied.
- Proactively encourage lease renewals.
Owners who partner with professional property managers in Nashville report reduced vacancy and improved tenant retention.
The Nashville rental market offers plenty of opportunity. With steady population growth, a stable job market, and a reputation as one of the country’s hottest cities, demand for rental housing remains strong. But landlords must recognize that competition is just as strong. Renters have choices, and they won’t hesitate to move on if a property doesn’t meet their expectations.
Reducing vacancy and staying competitive requires good management, through smart pricing, effective marketing, strong tenant relationships, and streamlined turnover. When you keep vacancies short and renewals high, your rental properties stop being just investments and start being steady sources of profit.
Let’s talk about the factors that are especially frustrating to you when it comes to dealing with vacancies. We’ll suggest some strategies that are specifically designed for you and your properties. Contact us at Omni Realtors & Property Management.