Vacancy concerns - Posted by S.R.

Real Estate Investing Real Estate Gurus
1

Posted by JA-FL on December 01, 1999 at 15:45:06:

Rob. Good opinion! “Keep the Best and shuck the Rest”

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Vacancy concerns - Posted by S.R.

Posted by S.R. on November 28, 1999 at 22:26:24:

I am a beginning investor with fears of buying properties and not finding tenants. Any advice? Please help.

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Re: Vacancy concerns - Posted by DS

Posted by DS on November 30, 1999 at 21:37:05:

S R

We have had 15 or 20 rental units over the years, so I…can speak from actual experience. If you are afraid of being a landlord, I always suggest people purchase a duplex and live in one unit. Rent out the other side and see how you like it. Do a credit check and get references. Get the deposit in CASH, write them a receipt and hand them the keys.

If your units are clean, they will rent.

location, location, location

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Re: Vacancy concerns - Posted by Rob FL

Posted by Rob FL on November 30, 1999 at 13:45:31:

I make sure that any rentals I have are in good locations. Close to highways, employment, shopping, etc. Low crime and decent schools. Of course the rent and property must be comparable to other properties in the area. This should keep vacancies to a bare minimum.

Only carefully selected properties should become rentals. The rest should be turned over. At least in my opinion.

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Knowledge is the Key - Posted by Bill K. (AZ)

Posted by Bill K. (AZ) on November 29, 1999 at 24:31:50:

S.R.,

Fear is natural. Understand that you can make money in any market. The more you know about your particular RE market, the better prepared you will be to make money in it.

As a start, here’s what I would do:

  1. Determine the rental rates for those areas in which you are interested in buying. You can do that by looking in the “Apartments/Homes For Rent” section of your local paper. Sometimes the prices are listed; sometimes you’ll have to call the owner/manager. Make sure that you compare apples to apples.

  2. Get a feel for the vacancy rates in those areas. Again, look through your local paper. If you see a lot of “perks” being offered (ie: free or reduced rent, free cable TV, etc.), then you can be assume that the rental market is a little soft at the moment. No need to worry though. Just figure in an acceptable vacancy rate when determining your income.

  3. Finally, see if there isn’t something that you can offer tenants that would entice them to rent from you as opposed to the “other guys”. Many times, a useful perk doesn’t have to cost a lot of money.

As you can see, it’s all in what you know about your market. Keep at it, and you’ll reap the rewards.

Also, try posting this question on Newsgroup I. You might get a larger number of responses.

I hope this helps.

Bill K. (AZ)