“Vacancy rate is affecting my bottom line as far as dollars go as my vacancy rate is only 1 of the effects I need to consider when I have an empty unit.” -Christina Suter
Today I am talking about vacancy rates and how they affect your investing. On average a building at any given time can have at least a 5% vacancy. As investors no vacancy is best, but it does happen and can affect your overall investment in a property. When a unit is vacant you’re not bringing in cash and it brings up the cost for marketing, maintenance cost, open house cost, property management cost and more. I am not saying you cannot have vacant units, what I’m saying is that if you are not anticipating vacancies, there are things that can be done to help your turnaround stay as low as possible.
Topics Covered in this episode:
- What is a vacancy rate and how does it affect investing
- %5 average vacancy at any point in time
- Vacancy stops cash from coming in
- The multiple effects of vacancies
- How do tenants rights and the security deposits play into that
- Why do you need to do rent increases
- Why you should include vacancies in your anticipated cost
The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every week and learn everything you need to know to invest in real estate education and create real wealth for a lifetime.
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