Vacancies are to be expected; you will have periods of time between one tenant leaving and another moving in. Minimizing those vacancy times is critical, however, because an unoccupied property brings a lot of risk and liability to you as the owner. There are both financial risks and physical risks. We’re exploring those in today’s blog.
Financial Risks of Vacant Noblesville Rental Homes
The lost rent that comes with a vacant rental property is nearly impossible to recover.
It’s not just that money isn’t coming in. You have to pay out of your own pocket for things like utilities, landscaping, and pest control. Repairs and cleaning will be necessary, and you don’t have any rental income to offset those costs.
Your insurance company may require extra coverage when your property is vacant, especially if the vacancy lasts for 30 days or more.
Physical Risks to Your Unoccupied Rental Property
When a tenant lives in your home, it’s less likely to be a target for people with nefarious intentions. Here are some of the things that make it difficult to protect your Noblesville rental property when it’s vacant:
- Thieves and vandals may see an opportunity
A vacant property can be a target for enterprising criminals interested in stealing appliances, air conditioning units, copper pipes, and expensive materials in your property. There’s also the risk of vandalism. You could find spray painted walls, graffiti, and piles of trash in your vacant home. This will add to your cleaning expenses during the turnover period.
- Unauthorized residents can move in
Opportunists and squatters may notice that your property is uninhabited, and assuming you’ve kept your utilities on during the vacancy, you can be providing hot showers and air conditioning to total strangers. It’s a sad legal reality that if squatters take up residence in your property for long enough, they’ll have rights. You’ll need to go to court to get them out.
- Property damage from fire and water
Tenants are quick to tell you about leaking pipes and dripping sinks. Without a tenant in place, a small leak can turn into a total flood. All that unattended water can lead to mold and necessary remediation. Cold Indiana winters can also lead to frozen pipes if no one is in your rental home.
There’s also a fire threat. Faulty wiring, a malfunctioning heating system, and old filters can trigger a fire problem for vacant homes.
Preventing Risks with Noblesville Property Management
The best way to avoid these risks is of course to keep your property occupied. Work with a local Noblesville management company who can quickly turn the property over between tenants and use strategic marketing and professional leasing to get new tenants in place quickly.
Your property manager will also be able to keep an eye on the property while it’s vacant, providing routine security and maintenance checks while the property is being prepared and a new tenant is being screened.
There are a number of ways to protect your investment property, and we’d be happy to share them with you. If you’re worried about the risks posed by a vacant home, contact us at Red Door Property Management.
