Days on Market: What It Means for Your Rental Property’s Success

Days on Market: What It Means for Your Rental Property’s Success

The length of time your property spends on the market—commonly referred to as “days on market” (DOM)—is a critical metric for rental property owners. Every additional day without a tenant represents not just lost income but also increased carrying costs and missed opportunities. Understanding the factors that influence DOM and how property managers like Atlis Property Management can help reduce it is key to maximizing your rental property’s profitability.

Why Days on Market Matter

1. Lost Rental Income:
   • A vacant property generates zero income. For instance, a rental with a monthly rate of $2,500 loses approximately $83 per day. If it stays vacant for 30 days, that’s a $2,500 loss.
2. Carrying Costs:
   • Even without tenants, landlords must cover expenses like mortgage payments, property taxes, insurance, and utilities. These costs can easily add up to hundreds or even thousands of dollars per month.
3. Market Perception:
   • Properties with high DOM can become less appealing to prospective tenants. Long-standing listings may signal potential issues, such as overpricing or poor property condition.

What Influences Days on Market?

1. Rental Price:
   • Overpriced properties often linger on the market, while underpriced ones may not maximize your income. Striking the right balance is crucial.
2. Market Conditions:
   • Local demand and seasonality affect how quickly properties are leased. For example, summer months generally see higher tenant activity compared to winter.
3. Property Condition:
   • Well-maintained, move-in-ready properties lease faster than those requiring repairs or updates.
4. Marketing Strategy:
   • Listings with professional photos, detailed descriptions, and targeted advertising reach more qualified tenants and lease faster.
5. Tenant Screening Process:
   • A slow or inefficient screening process can delay move-in dates, increasing DOM.

How Property Managers Minimize Days on Market

Partnering with a professional property manager like Atlis Property Management can significantly reduce DOM through strategic actions:

1. Accurate Rental Pricing:
   • Atlis conducts in-depth market analyses to set competitive rental rates, ensuring properties attract tenants quickly without undervaluing their potential income.
2. Professional Marketing:
   • Listings crafted by Atlis include high-quality photos, compelling descriptions, and optimized placement on major rental platforms. This strategy increases visibility and tenant interest.
3. Seasonal Timing:
   • Understanding the local market’s seasonality allows property managers to time listings strategically. For example, listing during peak rental periods can reduce DOM by up to 50%.
4. Streamlined Tenant Screening:
   • Atlis employs advanced tools for fast yet thorough tenant screenings, ensuring move-ins occur as quickly as possible while maintaining high tenant quality.
5. Enhanced Property Presentation:
   • Recommendations for minor upgrades or repairs can make a property more appealing, reducing its time on the market. For example, a fresh coat of paint or updated fixtures can significantly boost tenant interest.

Case Study: Reducing Days on Market with Atlis Property Management

A landlord in West Palm Beach, Florida, struggled to lease their two-bedroom condo, which had been vacant for 60 days. After partnering with Atlis Property Management:

• The rental price was adjusted based on market analysis, leading to a 15% increase in inquiries.
• Professional photos and an optimized listing were created, resulting in twice the average views.
• A qualified tenant was secured in just 14 days, saving the landlord approximately $3,500 in lost income.

The Financial Impact of Lowering DOM

Reducing DOM not only saves money but also improves the overall profitability of your rental property:

1. Steady Cash Flow:
   • A property that leases quickly ensures consistent income, which is essential for covering expenses and generating profits.
2. Reduced Marketing Costs:
   • Shorter DOM means fewer relisting efforts and lower advertising expenses.
3. Preserved Property Value:
   • Vacant properties can deteriorate over time, especially if maintenance issues arise during the vacancy period. Quick leasing ensures regular upkeep.
4. Higher ROI:
   • Properties that lease faster achieve a higher return on investment (ROI) by minimizing downtime and maximizing rental income.

Best Practices for Reducing Days on Market

1. Price Competitively:
   • Research market trends or work with a property manager to set an optimal rental rate.
2. Invest in Curb Appeal:
   • Ensure your property looks attractive both inside and out to make a strong first impression.
3. Market Aggressively:
   • Use multiple channels to advertise your property, including online platforms, social media, and local networks.
4. Offer Flexible Lease Terms:
   • Consider shorter lease terms or incentives like move-in discounts during slower seasons.
5. Partner with a Property Manager:
   • Professionals like Atlis Property Management have the tools, expertise, and networks to minimize DOM effectively.

How Atlis Property Management Boosts Profitability

By reducing DOM, Atlis Property Management not only saves landlords from financial losses but also boosts overall profitability:

• Faster Leasing: On average, properties managed by Atlis lease 30% faster than self-managed ones.
• Optimized Pricing: Strategic pricing ensures maximum income while attracting tenants quickly.
• Improved Tenant Retention: High-quality tenants are more likely to renew leases, reducing turnover costs.
• Comprehensive Support: From marketing to maintenance, Atlis handles all aspects of property management, allowing landlords to focus on growing their investments.

Days on Market and Your Property’s Success

Every day your rental property remains vacant is a missed opportunity for income. High days on market can signal inefficiencies in pricing, marketing, or management. By partnering with a professional property manager like Atlis Property Management, landlords can reduce DOM, secure reliable tenants, and maximize their rental income.

Whether you own a single property or a portfolio, Atlis Property Management provides the expertise, tools, and strategies needed to minimize vacancies and achieve long-term success. Contact Atlis today to learn how they can transform your property management experience and improve your bottom line.