February 23, 2024

We’ve Had Vacancy Rates Below 2% for Over 15 Years—Here’s How We’ve Done It

Since 2006, my team and I have delivered almost 500 Las Vegas investment properties (> $130 million). The properties had an annual appreciation of 15% and annual rent growth of 7% (2013 through December 2023), and our average vacancy rate stayed below 2%, including during two major economic turmoils:

  • 2008 housing crash: Zero decline in rent and zero vacancies.
  • COVID pandemic eviction moratorium: No impact.

So why did our clients’ properties perform when most others did not?

The Key to Reliable Rental Income

Income reliability is not a function of the property but of the tenant who occupies it. To maximize your rental income, your property must be continuously occupied by a reliable tenant. 

A reliable tenant is someone who:

  • Pays all the rent on time.
  • Takes care of the property.
  • Stays for many years.

Before I talk about income reliability, I will talk about tenant segments.

property manager, the odds are high that you will have a reliable income.

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.

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