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Landlord Lessons, Vacancy Rate, Lancaster County

I’ve owned properties for several years now, and can share what I’ve learned. In fact, reading what I learned the hard way could save you some money. I’ve had many ups and downs in owning property, but mostly ups. The good definitely out weights the bad. So get out they’re and invest in some property, but first read what’s below.

A key component to establishing what an apartment building could literally cost you per year, is your vacancy rate. How long with the pile of bricks and mortar site vacant this year? How much that pile of bricks and mortar will run you while it does. In my local market, I use about a 5-6% vacancy rate to figure out what I can look forward to eating in carrying cost. The equation is a simple is as follows;

Example: Rent per unit(Gross monthly Rent) x 12 months(Gross annual Income) x .05%(vacancy rate) = vacancy cost / 12 months = monthly vacancy cost.

This can vary area to area, you should speak with a professional who personally owns several and can speak from experience. This past year my vacancy rate was lower than 5%, but when I buy or review the budget, I like to stand on the financial conservative side. Being a landlord is a great way to make money if you have the stomach for it. You will have ups and downs, just financially prepare and you should be fine, good luck!

Don’t let this market paralyze you, now is the time.

Alexander Reedy Lancaster County Pennsylvania Lancaster Pennsylvania Real Estate Site