Owning investment property in Kansas City can be challenging. Especially in the winter time. If your income property is vacant in November, there is an excellent chance it will remain vacant at least until February. No one wants to hear it. But it’s true.
Yes. You can rent a house in December or January. But it’s much tougher. So what do you do?
First, if you are buying an investment property going into the winter make sure your numbers work knowing you may very well be holding the property through 3-4 house payments before any income begins to flow. Happily, this was my advice to a buyer whose property is still vacant now going on 58 days. But we bought so significantly below market that he is still way, way ahead.
Second, if you are unlucky enough to have a tenant leave or skip you can get real agressive with incentives. Maybe you could offer:
- Second month free.
- 1/2 price rent for months 2 & 3.
- 1/2 security deposit.
- Landlord pays utilities for first 3 months.
Those are just some thoughts. But don’t forget that you do not want this same situation next year. So if you sign a new tenant up in January, offer them a little something to get them to sign a 13 or 14 or 15 month lease. There’s no law that says a lease has to be 12 months.
Get creative. And make it happen. Make your Kansas City real estate investing business both profitable and stress free. Do you have any suggestions?