We buy houses in Helotes TX and offer cash for houses in Helotes, Texas. We know that you might be curious about what the hidden costs of a vacancy will really cost you actually being a rental property owner. There are many ways in which it will affect your rental income bottom line. Find out more in our latest post!
Calculating the cost of vacancy or COV is critical when deciding to keep or sell your vacant rental property in the Helotes TX area. As homebuyers in Helotes TX, you will inevitably have a vacant property at one point or another, and it is wise to be financially prepared for it. As you think about all of the ways owning a vacant property can cost you, keep in mind that it can be more than you first assume. It isn’t just the loss in rental income, but also the hidden expenses you will need to manage that your tenant would normally take care of. Keep reading to learn more!
1. Lost Income in Your Texas Rental Property
The most significant and most obvious hit you will take is the loss of income. If you are like most landlords and you still have a mortgage on the property, you will need to be sure you are able to make the monthly 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. According to the St. Louis Federal Reserve Estimates, rental vacancy rates are rising in 2018 and this should be taken into account when deciding how much reserves you will need.
2. Utility Bills in Your Helotes Rental Property
If you are trying to get new tenants in the door, you will need to have the utilities on so they can see the house. Most likely, your tenants paid for these services in the past, but now they are your responsibility. In addition to your own monthly expenses, you will now need to assume the water and electric expenses for your vacant rental. With nobody in the house, your bills shouldn’t be too expensive but cannot be forgotten.
3. Marketing to Attract New Helotes TX Tenants
Naturally, you will want to get your property rented out as quickly as possible. To do so, you will need to get the word out about the new availability. Online advertising, getting quality photos of the rental, and creating virtual tours of the property will all add up. Additionally, you may need to pay a fee to a property management company if they find you a new tenant. Keep these costs in mind when you are calculating how much a vacancy is truly going to cost you.
4. Screening TX Tenant Applicants
Screening new tenants is another fairly significant expense you will have to deal with. Even though it is costly, it is well worth every penny. Background checks, credit checks, employer and income verification, and calling references (yes, you should call references) will take you a considerable amount of time and money. However, now is definitely not the time to get frugal. Having bad tenants in the house due to lack of screening will absolutely cost you more than a short-term vacancy or the time and cost of extensive screening ever could. We wrote a separate post addressing only this issue for landlords. You can check it out here.
5. I Value My Time in Texas; Do You Value Yours?
As the saying goes, time is money and I place a high value on my time as I’m sure you do yours. The entire process of dealing with a vacant rental house, advertising the rental, and properly screening new tenants is often exhausting and time-consuming. This time you could be spending on other things that are important to you. Your job, your family, and your free time just scratch the surface here.
6. A Good Helotes Texas Tenant – Yes, Please!
There is nothing better than your rental property being occupied by a high-quality, well-screened, and respectful tenant. In a perfect world, you would want someone who can remain for the long term. To keep a tenant in place for the long haul means you have to do your part and be a good landlord. The tenant needs to want to continue living there. Address any maintenance issues as they come up and splurge on an upgrade or two as needed to increase the value of the property in your tenant’s eyes.
Had enough? Thinking about selling your vacant rental?
Sell My House in Helotes TX
If your property is vacant for a little while, and you want to take advantage of the situation in a different way, you may be thinking to sell your house in Helotes TX. Not having tenants in the property will make for the best time to allow Helotes TX home buyers to see the home without having to schedule around tenants. Perhaps the previous tenant wasn’t too kind to the house and left it needing lots of repairs. We have seen it all at Capstone Homebuyers. We buy houses that have been left in rough shape by the tenants. We also buy properties that still have tenants (whether they are paying or not). If you would like to find out what a cash offer looks like on your property, give us a call or fill out the information form here on our website. We have tips for selling your rental property that are free and zero pressure.