Are you at increased risk of vacancy? 3 key figures that give you the answer
Housing companies have historically had low vacancy rates and it is difficult to say anything about the risk associated with this when we only look at vacancy rates. This is why we at Homepal recommend that you create a holistic view of your rentals to better understand your market and where there is a risk of vacancy.
The trend for cancellations
By keeping track of the termination date of your historical leases, you can see whether the trend for terminating a lease is going up or down in different areas, price ranges or sizes of the stock. This gives you a good overview of which areas and types of properties tenants are more or less comfortable in.
The trend of queue points
By looking at the average number of points needed to buy a property over time, you can measure the attractiveness of different areas, price ranges, and sizes in your portfolio. However, it should be noted that a queue does not guarantee low vacancy rates.
The trend in the number of applicants
Looking at the total number of applicants for a property over time gives you a measure of the level of demand in different areas, price ranges, and sizes of the stock. Where is the demand? Which target group is looking for a certain property type in a particular area? Does it differ between areas?
These are three metrics that individually give you good insight into where vacancy risk is increasing, but the real power comes when you put them in relation to each other.
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