What A Vacancy Will Cost You In Orange County

As a rental property owner, you might be curious what a vacancy will cost you. There are many ways in which it will affect your rental income. Learn more in our latest post!

Calculating the cost of vacancy or COV is critical before buying any rental property in the Orange County area. You will inevitably have a vacant property at one point or another, and it is wise to be financially prepared for it. Think about all of the ways owning a vacant property will cost you. It isn’t just the lost income, but also the expenses you will need to cover that your tenant would usually be taking care of. Keep reading to learn more!

Lost Income

The biggest hit you will take is the obvious loss of income. If you have a mortgage on the property, and typically rely on your tenant’s rent payment, you will need to be sure you will be able to make the payments while the property is empty. You don’t want to default on the loan or begin missing payments because your tenant suddenly moved out. Have a plan in place to pay the mortgage and get a new tenant in there quickly.

You Will Have To Pay The Bills

If you are trying to get new tenants in the door, you will need to have the lights on so they can see the place. It is likely your tenants paid these costs in the past, but now they are your responsibility. In addition to your own set of monthly bills, you will now need to take on the water and power expenses for a vacant property. Luckily, with nobody in the house, your bills shouldn’t be too high.

Marketing To New Tenants

Obviously, you will want to get the place rented out quickly, which will require you to get the word out about its availability. Running ads online, taking quality photos of the place and creating virtual tours of the property will all add up. Keep this in mind when you are calculating how much a vacancy is going to cost you.

Screening Prospective Tenants

Screening new tenants is another fairly large expense you will have to deal with. Background checks, credit checks and reviewing it all will take you a considerable amount of time and money. However, this isn’t something you will want to skimp on. Having bad tenants in the house will cost you more than a short-term vacancy ever could.

Your Time

As they say, time is money. The process of dealing with a vacant property, advertising and screening new tenants can be extremely time-consuming. This is time you could be spending on other things. Your job, your family and your free time are all very important.

The Importance Of A Good Tenant

There is nothing better than having your rental property occupied by a high-quality and respectful tenant. Ideally, you will want someone who can stay long term. To keep a tenant in place for a while means you have to do your part by being a good landlord. They have to want to continue living there. Take care of all maintenance issues as needed and splurge on an upgrade or two as needed to increase the value, or perceived value, or the property.

On The Bright Side…

If your property is vacant for a little while, try to take advantage of the situation. Not having tenants in the house will make for the best time to upgrade, make repairs and do and maintenance work that you have been putting off.

Are you ready to buy a Orange County investment property? Make sure you learn more about what vacancy will cost you! Send us a message or give us a call today! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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