A vacant unit can quickly turn a solid investment in to a major pain. While most property investors understand that having a unit sit vacant will not bring in any income, many do not think about all the costs involved with a vacant unit. Despite no income coming in, taxes and mortgage payments are still due and the unit is at a higher risk of damage. A good property management company will seek to minimize the amount of time a property sits vacant and minimize the cost of having a unit sitting vacant.
Taxes/Mortgage: As an old saying goes, there are few guarantees in life; but taxes are guaranteed. A vacant property or unit’s taxes are still the responsibility of the property owner and mortgage payments still need to be made and made on time. It is important to take these costs in to account when considering a rent increase on a current tenant and when setting a monthly rent price. Scaring away a current tenant with a dramatic rent increase or setting a monthly rent price too high for the area can be detrimental to a properties return-on-investment (ROI).
Damages: A vacant unit is always at risk of break in and damage. There are certain very high-risk areas in Chicago and a good property manager will suggest the right plan to protect the property while vacant. This is something that property investors should take in to account before investing in a property and something to be aware of during the leasing process. Damage to a unit can be detrimental to a properties value and cause the unit to need repairs while the unit is sitting vacant.
Prevention: A good property management company in Chicago will be aware of the true cost of having a unit sit vacant and will work to get the unit filled fast. The best property management company will offer a higher compensation for getting a unit filled and have connections with leasing agents in the area. Depending on the area in Chicago, an experienced property management company can suggest steps to minimize damages and threat to a unit. Getting a unit filled is one of the most strategic parts of investment property ownership and utilizing an experienced property management company can ensure your property gets filled and gets filled with the best candidate in the quickest possible time.
If your current property manager does not seem to truly understand the full cost of a unit sitting vacant or you are having trouble getting your units filled in a timely manner, contact us today. Our experienced property management staff will work to maximize your unit’s profitability and minimize your properties expenses.