Your Tenant Moved Out. Your Expenses Didn’t.
Happy Thursday everyone. Three more observations from the self-managing side of rental property.
Three Landlord Tips
1. Vacancy can affect your insurance coverage.
Some insurance policies restrict certain coverage after a property has been vacant for a specified period. The rules vary by policy, so know your vacancy provisions before a property sits empty for an extended period.
2. The rent stops. The carrying costs don’t.
Mortgage. Insurance. Property taxes. Utilities. HOA. Lawn care. A vacant property can continue producing expenses every day it sits without a tenant.
3. An empty property needs attention.
A small leak, HVAC problem, storm issue, or security problem can become a much bigger expense when nobody is living there to notice it.
Two Things To Think About
• Know what one month of vacancy actually costs you. Holding out for another $100 in monthly rent can get expensive if it adds weeks to your vacancy.
• Vacancy isn’t just lost rent. It changes the financial and physical risk of the property while you wait for the next tenant.
One Question
When one of your rentals becomes vacant, how quickly are you willing to adjust the rent to get the right tenant in place?
Looking forward to hearing your answers.