My 3/2 has been vacant for about 2 weeks now. The area is a high demand, popular area on the beach in Florida. I asked my PM how long he is seeing for vacancies on properties...he said vacancies are averaging 30-45 days. I was a little shocked as I rented the house myself on the first go around in about 1 week but those tenants have since left and I am living out of state temporarily.
Is 30-45 days to long to wait? at what point do i drop the price to get it filled?
Thanks BP members!
@Mike Abbate I can’t speak to the local market in Florida, but our average DOM in Colorado right now is 28 days and that includes time marketing the property while it is still occupied.
A number of factors contribute to vacancy between units: amount of work needing to be done, if the PM is pre-marketing and showing while is is still occupied, condition of unit and price relative to market.
If a property is vacant for over 30 days with no activity, that tells me we are probably overpriced for the product we are providing.
Look at vacancy cost on an annual basis. Sitting vacant for 30 days at $1,500 is equal to dropping the price $125 a month and leasing it today. Both net you the same rent.
Every market is different, but here it takes no longer than a week or 2 to find a qualified tenant. We get a dozen applications for an opening but 9 out of 10 won't qualify. When you rented your house on the first go around did you screen the tenant? Maybe that's where the delay is coming from...
Well, you said it took you 1 week to fill the vacancy last time. So what changed? Did you get 1 person ASAP and maybe got “lucky”? Was there high interest and you picked the best applicant? Does your PM own properties and gives priorities to their empty units? You definitely need to ask for details on why it takes them so long to fill a vacancy.
To answer both replies, I had a well qualified tenant on the first go around although I didn't have a ton of interest, some luck may have been involved.
@Anthony Wick Those are good questions I hadn't considered. Thanks.
Lots of factors, time of year, competition today, and rent price. 30-45 days does seem long but I don't know that market. Typically it should be 2-4 weeks.
Anything that isn't moving after 30 days likely means it's priced incorrectly or the requirements are too strict for the location (D neighborhood).
Just the information I was looking for. As usual, I came to the right place =)
@Mike Abbate I would rather wait 3, 4, even 5 weeks for a well qualified tenant than getting someone subpar in 2 weeks.
Also, the property manager could be under promising knowing he can in all likelihood over deliver. Property management is a big “well you said” business so they typically do not promise things they don’t have much control over.
@Mike Abbate there are a few metrics you can refer to independently to determine if this is an accurate statement. First, you want to take a good look at your lease rate and property condition versus other properties in your market. Are you in the top 10%, bottom 10% or somewhere in the middle? Next, I would look at the days on market versus vacancy rate...then take this data and compare to the tenant/renter occupied saturation rate versus owner occupied rate. This should give you a good idea as to what the average length of time to rent a property is. If your property is in an area with 50% + rental saturation with a higher vacancy rate...properties may stay on market for a longer period. However, if the saturation rate is lower and you are in a more desirable area with lower vacancy rates...the days on market should be less.