Las Vegas - it's not only the city of lights and dreams, but it's a city where you can become a landlord and start building your financial freedom lifestyle.
However, being a landlord in Las Vegas does come with a set of financial considerations that extend beyond the absence of rental income. A vacant apartment not only impacts the landlord's bottom line but also involves various costs associated with maintenance, utilities, and potential loss of value.
In this article, we will explore the expenses landlords may incur when dealing with vacant apartments in Las Vegas.
Property Maintenance Costs
Even when an apartment is vacant, landlords must ensure that the property remains well-maintained to attract potential tenants. This includes routine repair tasks such as landscaping, cleaning, and addressing any wear and tear.
Regular maintenance is crucial for preserving the property's appeal and preventing potential issues. It makes lease renewals easier.
Security also becomes a priority for vacant apartments to prevent vandalism, break-ins, or unauthorized occupation. Installing security measures such as monitored alarm systems, secure locks, and proper lighting can incur additional costs for landlords.
Utility Expenses
Landlords are often responsible for covering basic utilities, even if the apartment is vacant. This includes expenses for water, electricity, and gas. While usage may be lower in a vacant unit, these costs still contribute to the overall financial burden.
Maintaining insurance coverage on vacant apartments is crucial. Insurance premiums remain a recurring expense for landlords, protecting against potential risks such as fire, vandalism, or other unforeseen events.
Marketing and Advertising
Landlords often invest in online listing platforms and advertising to find new tenants. These costs include fees associated with listing the vacant apartment on popular rental websites and creating compelling advertisements to showcase the property.
To make the vacant apartment stand out in a competitive market, landlords may opt for professional photography services. While this upfront cost may enhance the property's visual appeal, it is an additional expense during periods of vacancy.
Property Depreciation
Prolonged vacancies can affect the perceived value of a property. Potential tenants may view long-term vacancies as a red flag, impacting the market value of the apartment. Landlords may need to invest in updates or renovations to maintain or enhance the property's value.
Holding Costs
Property taxes remain an ongoing expense for landlords, regardless of occupancy. These taxes contribute to the overall holding costs of a vacant apartment.
If the landlord has a mortgage on the property, mortgage payments continue even when the apartment is vacant. Meeting monthly mortgage obligations without rental income can strain a landlord's financial resources.
A Vacant Apartment Can Cost You Big
It's crucial to avoid having a vacant apartment in your roster as much as possible. Do all the marketing, showing, and managing as best you can.
If it's all too much for you, consider hiring a rental property management service that will take care of the rental business for you. Avalon Realty and Oaktree Management have been in business since 1993 taking the gamble out of property management for landlords in Las Vegas and out-of-state investors.
Get a free rental analysis done on your property in Vegas today.
Bonnie is the visionary that has driven the company and culture of Avalon since 1993. Her passion is improving procedures and practices; incorporating technology and value added services for both our clients and tenants.