How long does it take to rent out a house?
Renting a property depends on price, condition, location, and the market timing. Our goal is to select a qualified tenant as soon as possible, but no later than 30-days. Since we have access to valuable rental statistics, it’s our job to advise you on price, condition, location, and market conditions so that we can achieve this goal. We can tell you that our average days on market is 8 days like most companies advertise but the truth is that number is very misleading. Days on market only refers to the number of days from listing the property to getting a signed lease. A better question is what the average days is vacant and honestly most companies do not know this number, but it tracks the time from vacant to the time reoccupied. This allows you to understand the true cost, and not someone getting a lease in 8 days and the new tenant not moving in for another 45 days.
Do you offer rent concessions and incentives?
Rent concessions are market driven. When we have a vacancy and other rentals in the immediate area are available, we will shop the competition. If comparable properties are offering a lower rent or move-in incentive, we will either recommend a lower rent or a move-in incentive. Why? Because a majority of the leads come from internet advertising. Most internet listing sites have a search field and list properties matching the tenant’s criteria by order of rent. The first property that meets their needs at the lower rent typically wins. Additionally prospective tenants look for move-in specials and will call on those properties first.
In the current market, Real Property Management Hampton Roads has some standard incentives. One is that we offer to credit the tenant’s application fee back to them, if they submit their application within the same day of the showing and if approved execute a lease with us. What this does is encourages the prospective tenants to apply right then and there, because if they don’t, that provides more opportunity to find something cheaper, maybe something with a move-in special, etc. This incentive has doubled our lease conversion rate upon showing over the past few years.
Another one of our standard practices is to offer lease renewal incentives. Unfortunately, as a tenant’s lease comes close to the end, they like to take a look at listings to see how rents are. Often times they’ll come across a property with perhaps lower rent or worse yet, a large move-in incentive. Their short sightedness tempts them to take advantage of these offers, thinking it will save them money. They forget that if they move, they have to pay another deposit, rent a moving van, pay utility transfers, and all the other costs associated to moving. So three to four months prior to the term of their lease, we offer an incentive to renew. The amount of the incentive changes as market conditions change. But in all cases, the amount of the incentive is a fraction of the cost of a turnover and the possibility of any lost rents between tenants. It is a very successful program.
Real Property Management Hampton Roads has the property owner’s best interests in mind. We know the local market very well. We are proactive, not reactive and that is how we keep our vacancy rate as low as we do.
Lastly, when considering rent concessions and incentives, look long term. A small decrease in rent or move-in credit that gets the property rented 4-6 weeks faster should more than offset the lower rent or incentive.