While you shouldn’t expect a property to have a zero percent vacancy rate, it’s important to have an idea of what a ‘reasonable’ vacancy rate is for the current market, so that you can ensure that your property doesn’t remain vacant for longer than would be expected.
According to an article on www.localpropertynews.net, most experienced residential property owners have found that a reasonable vacancy rate is at around 3% which equals to about 10 or 12 days out of a 365 day calendar year.
If you’re experiencing a vacancy rate above 3% then it is worth asking yourself why that is. It’s possible that it is simply a tenant’s market where there is more supply than there is demand, and if this is the case then you may need to look at whether or not the rent you’re charging is too high or whether you need to make improvements to your property.
If you’re vacancy rate is lower than 3% though, then it is a landlord’s market and therefore it should be easier to hold out for higher rents.
It’s always a good idea to keep up with current rental market trends in the area you’re investment is in, as you could be missing out on potential profits if your residential property is staying vacant for longer than it needs to be, or if you are charging low rental rates.
If you would like any advice about rental market in Fairfield then please don’t hesitate to get in contact with one of the Professionals Fairfield Real Estate team for more advice.