Property rental can be a great way to earn a passive income. However, merely buying a rental house and putting it on the market for rent is not enough to guarantee that you’re going to make money. Holding onto a vacant property might cost you more than you think. Let’s take a closer look at some of these hidden costs of a low occupancy rate.
Higher Maintenance Costs
An inhabited home requires regular inspections and maintenance works. Some things will inevitably break and will require attention. If you ignore small issues, they may become more significant problems. If you want to avoid costly repairs, you need to address all most minor issues as they arise.
Tenants living in a rental property will tend to it. They will want to enjoy their comfort, so they will fix all these minor problems as soon as they occur. Even if you may have to pay for some of these repairs, the cost will be much lower compared to having a vacant property in perfect condition.
Additional Monthly Bills For Utilities
A vacant property generates costs nobody will pay. You’ll need to heat it during the winter months to prevent mold and mildew growth. You’ll also need to take care of the plumbing system, as pipes may freeze and break, creating huge problems that will cost you a small fortune to fix. You can’t just lock a vacant property and wait for new tenants to arrive. There is a cost to maintaining a home even when nobody lives inside it. This is a cost many real estate investors in Atlanta GA tend to overlook.
Home insurance is usually the responsibility of the tenant. Guess who’s going to pay for it in the event of not being able to rent it out for long periods of time. You can’t afford to give up your insurance coverage, so keep in mind that you’ll need to put up with this hidden cost for as long as your property stays vacant.
Marketing And Advertising Costs
If you want to find tenants for your property, you need to make sure that people know it is available. This means that you’ll need to promote it online, on real estate classifieds websites, on social media, and in various groups and online communities where potential tenants congregate. If you don’t want to spend money on this promotion, you may never manage to rent it out. You can spend time posting in Facebook groups and in real estate discussion forums. However, if you don’t have a lot of time on your hands, the only solution to let people know of your vacant property is to buy advertising.
These are a few hidden costs of not finding tenants for you renal property. Even though all of these are real, you shouldn’t give up your dream of earning money by renting out a house. The main thing to learn from this article is that not all real estate investments are successful, so you should be very careful when choosing what homes to buy.
If you find that your property is sitting vacant for months on end then its in your best interest to sell quickly. There are many cash house buyers throughout the great city of Atlanta that would be happy to buy your vacant property. Start the process by doing a quick search on Google for a local property buyer (sellmyhousefastinatlanta.com), will allow you to sell it from the comfort of your couch.