As a property owner or landlord, you know you want to fill rental vacancies as quickly as possible in order to maximize your rental income. But is that the only way vacant rentals are costing you? Unfortunately, there is more to lose with empty units than just a steady stream of income. Our Henderson and Las Vegas property management team shares how these vacancies are really costing you.

1. Property Taxes

One of the most obvious costs of owning a rental property are the property taxes. Whether you have paid off the mortgage for the property or not, you still owe property taxes. In addition to that, you have to pay those taxes whether the rental is occupied by a tenant or vacant.

Filling a vacancy with a reliable tenant who pays their rent on time helps to offset the expense of property taxes that all property owners must pay. Depending on where your rental is located, property taxes can be a significant expense. And, unfortunately, property taxes are just one way a landlord will end up paying for a vacant unit.

2. Mortgage

Many property owners finance their rental investments by borrowing from the bank and still owe years (if not decades) worth of monthly mortgage payments. When a rental property stays vacant for months on end, landlords end up paying the mortgage out of pocket, which can really add up.

With a steady income from tenants, it is much more manageable to make these payments and even start to pay off the mortgage earlier than expected. The sooner you can pay off your mortgage on your rental property, the sooner you can benefit from the profits of your investment. A vacant property does the exact opposite when it comes to this particular goal.

3. Insurance

Insurance is important for property owners, especially when a rental is empty and more susceptible to break-ins and vandalism. However, landlord insurance is also a smart investment that protects you against damage to your rental home when the property is occupied by tenants.

A typical landlord insurance policy with property and liability protection covers things like repairs to your rental home, condo, or apartment due to:

• Fire
• Wind
• Rain/Hail
• Flooding
• Vandalism
• Burglary
• Other damage

You can also get coverage for detached structures, such as garages and gates, on some landlord insurance policies.

Remember, many of these insurance policies are in effect whether your rental property is occupied by a tenant or not. Although they can be beneficial in many ways when the rental is empty, the expenses can add up quickly. With no income from rent coming in, it can be difficult to stay on top of these insurance costs.

RELATED: The Benefits of Having Renters Insurance for Both Tenants and Landlords

4. Security Against Thieves and Squatters

Unfortunately, squatters, thieves, and vandals are more common than you might think in empty properties in Las Vegas and the surrounding areas, including Henderson. When a property sits vacant for some time, it is much more likely to experience vandalism or be subject to squatting if property owners are not careful.

Investing in a good security system can help to protect your property from some of these issues. Many systems are easily installed and involve cameras and motion detectors that will send an alert directly to your smartphone when a potential intruder is on the property. However, that does mean you will be paying for these features to keep your property safe without the rental income to offset it.

5. Cost of Maintenance

Of course, there is also the cost of maintaining the rental property. If you want to keep your empty rental clean, organized, and move-in ready, you will want to stay on top of maintenance even when the property is unoccupied. Some types of maintenance expenses you may need are:

• Landscaping/gardening
• Cleaning/dusting
• Preventative HVAC care, including air conditioning tune-ups
• Plumbing and electrical maintenance

Additionally, there could be specific requirements based on Homeowners Association (HOA) rules in the neighborhood to keep the property looking a certain way.

6. Homeowner Association Fees

Homeowner Association Fees (HOAs) can be a good thing in many ways, but they often require members to pay monthly fees to keep the neighborhood amenities and homes in tip-top shape. When your rental home or unit is vacant, you still have to stay current with your HOA fees, which can be a heavy expense when you do not have rental income to make up for it.

Some HOA fees in Las Vegas can range anywhere from only $15 per month to upwards of $600 per month, depending on the neighborhood!

7. Opportunity Cost

Although potential lost income may not seem like a tangible cost right away, it actually represents a significant hidden expense to you as a landlord or property owner. In economics, this potential lost income is considered an opportunity cost. In other words, the missed opportunity to generate rental income is a cost and may reflect poor decisions made along the way.

For example, you may have chosen to avoid advertising your vacant rental home because you felt that the marketing cost was too high. However, by making that decision, you potentially missed out on finding a tenant quicker rather than having your rental remain unoccupied for several months. The overall cost to you during that time ended up being much more than the advertising cost would have been.

Work With a Property Management Company to Fill Vacancies

One way to ensure you are not sitting on vacant rentals that are costing you money for too long is to work with a professional property management company. A property manager can help market your rentals and find quality tenants who are reliable and stay longer.

If you are dealing with rental vacancies and need help filling your rentals in Las Vegas or Henderson, our Black and Cherry property management team has you covered. With our comprehensive property management services, we can streamline your rental process and help you avoid the costs of an empty rental home or condo. To learn more about our services, contact our property management team today!