Tips For Low Vacancy In Your LBI Summer Rental
Are you having trouble with vacancy in your summer rental on LBI? Check out these tips below for some ideas on how to maximize your rental abilities and fill your calendar.
Are your rates reasonable? While rental rates skyrocketed over the pandemic, it is important to competitively price your weeks in a way that reflects current demand. Demand for rentals on LBI is steady and proving to be back to “normal” levels after the rental frenzy that occurred over the pandemic, which caused rates to soar and almost every property to fully book. With travel restrictions lifted and the realization of how much rates have increased, people may choose a different option. To avoid this, filling most, if not all of your weeks at a slightly lower rate can prove more advantageous than renting less weeks at a higher rate. This of course also relies on individual goals for your investment property. In my mind, the less vacancy the better!
Are you increasing rates year-over-year without doing anything to the property? While it is typical for rent to increase YOY, I’ve seen many tenants drop out of their repeat rental due to the price increasing too dramatically from the past season. This has been especially relevant after the substantial increase of rates over the pandemic which heavily outpaced typical rent hikes. Obviously, the addition of amenities such as a pool and major repairs/renovations certainly call for a rental rate hike and is reasonable. If you are not changing the property and elect to increase the rent, just keep in mind that there may be a push-back if it increases too much.
Are you a pet-friendly property? If you’re struggling to fill your weeks and the property doesn’t allow pets, it may be in your best interest to allow them. The one type of rental property on LBI with the lowest inventory and highest demand are pet-friendly homes. Many owners who allow pets charge an extra non-refundable pet fee on top of the rent and security deposit. These owners also typically have very low vacancy and book out into the off-season months of September and October. In the instance of property damage (as a rental owner this should be expected in any type of property), the pet fee and security deposit should easily take care of the repairs/cleaning if necessary. About 90% of the time this does not occur and the owner gets to keep the pet fee on top of their rent (who doesn’t like extra cash).
Are you using an agent/agency? Using a rental agent/agency is extremely helpful to a homeowner, taking away much of the stress of renting. Some of the services The Van Dyk Group and I offer are: a customized rental home listing, professional quality photos, home staging consultation, property signage, tenant vetting, lease processing, tenant/owner mitigation, access to our book of recommended island professionals, lease transaction management, and a dedicated vacation rental manager & rental administrator. At Van Dyk, our team of vacation rental management experts will take care of the entire rental process—from listing it, finding tenants and renting it out, to managing all the necessary transactions along the way. Reach out today!
If you are using an agency, are you using just one? While the use of an agency is only advantageous to you, the owner, I find often that some agencies try to keep the listing for themselves. A common mistake is the belief that a real estate agent can see and rent any rental property on the island, however, this is not true! The agent can only see and write a lease for a property that is signed up specifically with their agency. An agency trying to keep the listing for themselves is actually doing the owner a disservice by not allowing for maximum exposure. Therefore, I recommend listing with at least 2 different agencies to simply allow more eyes to view it. Many agencies on island use the same rental management system and will be able to see if another agency takes a week for the property. It also is important to keep in mind that agencies only charge a commission on a written lease, making it no charge to you to simply sign up. More exposure=less chance of vacancy!
If you have any questions or would like some more tips, please do not hesitate to reach out via email or my cell (484-883-6751). Also, check out my website, www.explorelbihomes.com/lbirentals , for more information.
