5 Risks to Consider in Having a Vacant Rental Property

As a landlord, an unwanted but inevitable thing is bound to happen—a vacant rental property. Tenants don’t usually stay forever, and that’s normal. All you have to do is find new ones. 

However, if this concern takes time, you need to work doubly hard. Failing to find a new tenant   and maintain residential property management can lead to the following risks:

1. Fires May Damage the Property

You might not be around to supervise the vacant home or take care of the regular maintenance. If a fire isn’t dealt with in time, there can be severe damage to the property and its infrastructure. It’s not to say that all fires are preventable, but if you’re around, you can reduce the risk.

2. Insurance Issues Might Show Up

Insurance is vital to a landlord’s business. You need to get insurance for the property and the tenant so that you both are covered in case of accidents and injuries. The tenant may be already out when there is a vacant home, but the policy is still active. This can lead to cases of coverage denial. As a landlord, it’s essential to notify the insurance company regarding any vacancy.

3. Water Damage Might Ruin the House

After the tenant moves out, you need to make sure that you check for damages or moisture. You can’t simply assume that things will be okay. You have to check regularly for leaks or any other problems that might be present. This can be too risky since you’re not physically present in the home.

4. Thieves and Vandals Might Invade the Property

When the house is unoccupied, it’s more vulnerable, and there is a higher chance of break-ins. Thieves and vandals will steal anything they can, such as fixtures and appliances. They might even break the house’s structure by vandalizing it. You have to be extra careful when you travel since you can’t be in two places at once to supervise the house.

If you’re not expecting anyone to visit the house, you can install a security system. You must follow the security protocol.

5. Squatters Might Illegally Occupy the Rental

Some people will find ways to stay in homes even if they don’t rent or own them. They can claim that they’re paying rent or mortgage, or perhaps call it a mortgage. If you don’t carry out regular checks, this might happen. Settlers can also cause damage to the property.

If you’re going to have a vacant rental, remember that you have to stay alert at all times. It’s an inevitable part of the business, but it can have disastrous effects if you don’t watch out. Vacant homeowners are prime targets for criminals, so you need to keep everything in check.

6. You Lose Valuable Rental Income

It is vital to watch out for your bottom line as a landlord. If a home is vacant for too long, you will lose a lot of income. You have to be prepared to see your profits shrink. In some cases, it can lead to a net loss.

Final Thoughts

Vacant homes are a risk for a do-it-yourself landlord. You might have to deal with insurance problems, high vacancy costs, and even legal issues, so you must be careful. To avoid these risks and complications, you need to watch your vacant property and the property itself.

Stay on top of residential property management when working with us at Quest Real Estate. Through our services, you can get help in leasing and managing your rentals and ensuring you get support in marketing, maintenance, rent collection, coordination, and so much more. Contact us today to discuss further.