We often mention the importance of having your property occupied to ensure a steady revenue. However, sometimes having a vacant property is inevitable, and this can mean more than just a temporary loss of income and make your property vulnerable to several risks that can compromise your investment’s value and cause you more than a headache. In this blog, we’ll discuss the hidden risks vacant rental properties may face and what you can do to protect your property while it’s waiting for its next tenant.
The Unforeseen Dangers of Having Your Rental Vacant
1 – Theft and Vandalism
A vacant property is a magnet for criminals. Thieves are constantly seeking properties that seem unoccupied to break in to steal appliances, fixtures, or other valuable materials like copper wiring and plumbing to minimize the risks of getting caught.
Properties where it’s obvious no one is living are also the predilect targets of vandals that might damage the exterior with graffiti, break windows, or destroy landscaping. Even small acts of vandalism can lead to costly repairs and reduce the overall appeal of the home, making it harder to attract future tenants.
2 – Squatters
Adverse possession or “squatter’s rights” was a common law statute that allowed a person who had occupied property or land owned by another person for a specific period of time to apply a claim in court to get legal ownership. This concept was abolished in Alberta in 2022, meaning that squatting under any circumstance is illegal, but unfortunately, that doesn’t deter squatters from occupying a vacant property.
For landlords, squatters can be a major headache. Evicting them often requires going through a similar process as a standard eviction, including serving a 14-day notice to vacate or, in case the unauthorized occupants refuse to comply, applying with the Residential Tenancy Dispute Resolution Service (RTDRS) or with the court to request a possession order to legally compel the squatters to leave the property. Once the order is issued, a civil enforcement agency (Sheriff) will carry out the eviction. In case the property suffers damage, you also have to file a court application to seek compensation.
3 – Unnoticed Maintenance Issues
One of the biggest risks of a vacant rental property is that small problems can go unnoticed and become major issues by the time landlords or new tenants discover them. Without regular activity, issues like plumbing leaks, roof damage, or HVAC malfunctions can quietly worsen over time and become an expensive repair on top of the lack of income during vacancy.
4 – Property Deterioration
Unoccupied homes can deteriorate faster than most landlords would think. Homes are meant to be lived in, so when no one is using the plumbing, running the HVAC system, or opening windows for airflow, a range of minor issues can quietly develop and compound, including dried-out pipe seals and corrosion, humidity build-up than can cause mold and damage to the paint and other materials like wood and finishes, debris accumulation in the HVAC system’s ductwork and vents that can reduce its efficiency, or the rust and degradation of its moving parts for lack of use.
5 – Pest Infestations
When a property sits vacant and is not visited frequently, it becomes an inviting shelter for unwanted pests. A dark, undisturbed and humid environment gives rodents, insects, and even birds the perfect opportunity to settle in, and once they do, it becomes a messy and expensive problem to deal with. The mess caused by droppings, nesting materials and carcasses can turn into contaminants that can be pushed through the HVAC system’s ductwork once it’s turned back on, spreading foul odors and allergens throughout the home. In severe cases, pest infestations can also pose health risks to future tenants and cause liability.
Our Recommendations to Keep Your Vacant Property Safe
Keeping a vacant property safe needs a mix of safety measures and smart hacks to make the place look occupied and protected. Here’s how:
- Visit the Property Frequently: Visiting the property weekly is essential to keep the property safe and catch maintenance issues quickly. You can conduct the visits yourself, your property manager or a person you trust. During these visits, run the water, open the windows to let fresh air in, flush the toilets and run the HVAC system while you’re checking the rooms. You can also ask a neighbour to keep an eye out for any unusual activity during the week.
- Continue Your Regular Maintenance Schedule: Keeping your property well-maintained not only is smart to have it rental-ready, but it will also prevent deterioration.
- Secure All Entry Points: Install strong deadbolt locks on the exterior doors and use window locks or security bars to obstruct forced entry. If your property has sliding doors, reinforce them with rods or track locks.
- Manage Utilities and Fire Hazards: Shut off unnecessary utilities like gas and water to prevent leaks, and disconnect appliances and remove flammable materials from the property.
- Keep the Exterior Well-Lit: Install motion-sensor lights near entrances and dark areas, and check regularly if the lighting in pathways and the front of the home is working to discourage intruders.
- Set Up a Security System: Install security cameras with remote access so you can check on the property more frequently, preferably with a motion alerts feature. If investing in a security system is out of your budget, dummy cameras can be a helpful deterrent.
- Make the Property Look Occupied: Some ideas to make your property look occupied include using light bulb timers, rotating the way you configure the light to turn on/off and keeping the blinds and curtains partially open to mimic daily activity.
- Keep the Exterior Well-Maintained: Nothing says “no one lives here” like a neglected yard. Keep mowing the lawn, clearing snow, and removing flyers or mail whenever you go visit.
- Talk to Your Insurance Provider: Inform your provider as soon as your property is vacant to assess your options, as most home insurance companies consider the coverage void if the property is left unoccupied and may require increasing your premium. Keep in mind that your coverage options will vary depending on the company’s policies for vacancy. For example, they could request a specific schedule for visits, or even not offer vacancy coverage at all.
Protect Your Investment, Occupied or Not
As a landlord, protecting your investment means staying proactive, even when the unit doesn’t have tenants. With good security measures, regular maintenance, and occasional check-ins, you can reduce the risks we discussed, maintain your property value, and ensure you’re ready to welcome the next tenant without costly surprises. If you own a vacant rental property in the Calgary area and want help to keep it well-cared for, whether it’s occupied or not, and speed up tenant selection on your behalf, hiring a property manager is the best option. Contact us to get a free quote.
