The length of tenancy and the rental vacancy rate can influence considerably how much revenue you derive from your rental property investment in the greater Charlotte area. Whether you own a single-family property that you manage yourself, or you are a rental investor ready to expand your portfolio, it is crucial to take into account these two factors and their development over time to make an informed decision about your next business step. Will you invest in a new rental property? What is the best type of rental you could acquire, and where?
We have come up with a few insights into how you can use the average tenancy and vacancy rate in the Charlotte NC area to boost your rental business. If we have not done it yet, let us detail once more why these rates are so important for you.
Why should you care about average vacancy and tenancy in Charlotte NC?
The number one threat for rental income is a prolonged vacancy. Consider your property rents for $1000 a month, your tenant moves out, and it remains empty for two months. Not only will you spend money on turnover repairs before a new tenant moves in, but you will also lose the rent for as long as the property is empty. Assuming that there are no other large expenses you incur, your rental property would generate $3000-$4000 less than when it is continuously occupied.
Understanding what are the vacancy risks related to the type of property you own or plan to buy, and the area in which it is located is crucial for planning your business development.
What are the vacancy rates in the Charlotte Metropolitan Area?
Vacancy rates fluctuate over time with market conditions. Over the last few years, about 5-6% of rental properties in urban areas and about 6-7% of those situated farther in rural areas were empty at any given time. In 2019, however, there has been a sudden increase of apartments listed for rent in and around Charlotte’s Uptown, and the change is likely to modify the vacancy rates for the period to come.
The vacancy rate is a particularly useful tool for investors that own multi-family rental complexes. Vacancy rates measure the number of vacant units at any given time and they can be used to predict rental income over time. If you just own one or a few single-family