One of the most frustrating things about owning rental investment property is having it sit vacant. Expenses continue like monthly condo fees, taxes, utilities, placing ads in papers and on the internet etc.
In Medellin, you can drive around and see literally hundreds of “arrienda” signs in windows and if you pay attention, they stay there month after month after month. Many are listed with multiple agencies and yet, they still stay empty.
There are several reasons this phenomenon exists:
1) They are asking too much money for rent (but refuse to lower it). It is an interesting part of the culture here. They would rather sit on it, vacant, paying the monthly services, taxes and utilities than take 1 dollar less than they think it is worth per month??
2) Most owners here will not fix up a place until it is rented so many do not show very well. If they only realized a little sprucing, cleaning and painting would help their place show better, they would have money coming in each month instead of money going out!
3) One of the biggest hurdles is the infamous “Feador” system that is in place. To rent an apartment, you must have 2 Colombian residents…with good credit….to guarantee your rent should you fail to pay or; you may be required to pay up to 6 months in advance plus a security deposit! Probably out of the reach of the average person in Colombia and foreigners wishing to rent do not have Colombians that will co-sign for them.
4) Lastly, many building administrations will not allow foreigners to rent in their buildings! Yes, you heard that right. No discrimination laws here preventing them from doing so either!
There is an evergrowing presence of ex-pats moving to Medellin Colombia that are buying up property and converting them to furnished and unfurnished rentals. They are targeting their offers to visitors who want short term Medellin Accommodations as well as long term furnished and unfurnished apartments. They are clever enought to use all the free and low cost vehicles for advertising and marketing their properties including having their own web sites, pages on other peoples web sites, free ads on Craigs List and more. They know how to use Poor But Happy, WordPress and other Blog sites to get their property noticed and keep it occupied.
On Medellin Travel Guide, we have over 15 furnished Apartments and Penthouses listed. Some are private owners while the lions share of them are listed by realtors. These properties have had over 90% occupancy for the past 90 days. Several are currently leased on long term agreements. To say the rental market here is brisk would be an understatement.
But what about those of you that have properties that are sitting vacant. Are you frustrated? Thinking of throwing in the towel and selling? Finding it difficult to manage the property from a long distance?
If you want to see some action on your property and increase your occupancy levels, you should place it in the hands of a competent local property management company who will advertise it, show it, collect rents, keep it maintained, meet and greet tenants attend to cleaning after departure and get it ready for your next guest.
Medellin Travel Guide highly recommends First American Realty Medellin for these services. A trusted and reliable American owned operation that really does give “First Rate” service.
Secondly, if you already have someone that is performing these services for you but you just want a little more exposure to boost your occupancy performance, then you should consider placing your property on the Medellin Travel Guide Apartments listing page and having your own separate page on the site. It is inexpensive and provides you coverage from the largest English Language portal about Medellin Colombia in existence. You get your own page, your own photos, links from 22 other MTG pages and 14 other Medellin property, Medellin realestate, Medellin apartments and Medellin Penhtouses related web sites that all drive traffic to your individual page.
Worth a look, wouldn’t you say? How much more profit would you make with a 5-10-20% or more increase in your occupancy? Even moreso now that we are offering special pricing for property listings and pages on the site. Check it out at www.medellintravelguide.com/medellin_advertising.html