Risks of leaving a property vacant

Written on January 31, 2018 by

communicationYou might not have your properties rented 100% of the time, but you should shoot for them to be occupied as much as possible—and for more reasons than just losing out on rent.

First off, lets clear the air—there’s a huge difference between a vacant property and an abandoned one. An abandoned property quickly becomes an eyesore from neglect and is terrible for a neighborhood, while a vacant property can be well maintained by the owner.

But even if you do maintain your vacant property, it’s not ideal to keep your property vacant. Your homeowner’s or landlord insurance will go sky-high, for one—if you can get insurance at all.

Why?

Because vacant properties are subject to theft, vandalism, water damage, fire, and squatters! Simply locking up or asking a neighbor to keep an eye out is probably not enough to prevent these types of damages.

Vacant properties are subject to theft, vandalism, water damage, fire, and squatters.

You may have good reason for keeping your property vacant. New York City and San Francisco landlords are known for leaving perfectly good apartments empty, so they can convert or sell them to get out from under rent control. But the more common reason for a vacant property is that landlords are between tenants.

Related: The ultimate guide to marketing your rental property

No matter the reason, if you have vacant property, you should know the risks and how to minimize any trouble.

1. Theft and vandalism

You might not be worried about theft with a vacant property. You have nothing in it to steal, right? Not exactly. Burglars steal copper from wiring and air conditioning units, and in doing so, cause lots of damage. They also steal appliances. Sometimes break-ins are purely to cause mischief. Drawing graffiti and causing random damage make for a fun night for some people.

What to do

Install a home security system that allows you to remotely monitor your property. And while you’re at it, use motion and timed lights for the exterior and timed lights for the interior. This makes it appear that someone lives there.

2. Squatters

A vacant home is as inviting to squatters as the smell of freshly baked cookies might be to you—in other words, vacant homes tend to attract squatters. These people figure that since no one is living at the property, they may as well.

The problem is that it can be difficult to remove squatters. Once you discover they’re there, you can ask them to leave. And maybe they will…or maybe they won’t. And if they won’t leave, you’ve got a problem. Why? Because, depending on the circumstances, these squatters may have landlord-tenant rights as holdover tenants. Then, you’d probably need to get the courts involved.

Related: How to get rid of squatters

What to do

That home security system will also catch squatters. And the sooner you catch squatters, the better chance you’ll have of getting them out quickly.

3. Water damage

Water damage tends to happen in vacant properties during winter if the pipes freeze and burst. Another problem is that the hot water heater could leak or burst, flooding the house. And if the house is vacant, your water problem could be going on for a while before you discover the damage.

What to do

Turn off your heating system, and drain your plumbing. This helps prevent damage from freezing. If you don’t want to do that, keep your thermostat on and set no lower than 55 degrees to help keep things from freezing. In the summer months, keep your air conditioning set to no higher than 85 degrees to help prevent mold from growing in a hot and humid environment.

4. Fire

Arson is a common problem with vacant properties. Or if not arson, accidents can happen from unwanted “guests” who light candles in a vacant home with no electricity. Fires can also break out from a heating system that is not maintained.

What to do

Monitor your security system.

Consider hiring a property management company

If you have a vacant property that you won’t be checking on regularly, consider hiring a property management company. Make sure this company will check the inside and outside of your property, and be sure to ask for a report from the company each time someone checks on your property.

The bottom line

It’s best to not have vacant property. But if you will have a vacant property, make sure you take care of it: maintain the yard, check the mailbox often to get rid of junk mail, and turn off outside faucets. Also stop by regularly and install a security system or hire a property management company that will check for any type of damage.

Get our free newsletter

Join 200,000+ landlords

  • ​Tips to increase income
  • Time-saving techniques
  • ​Powerful tools & resources

5 CommentsLeave a Comment

  • Jenny Chien

    Spot on article. I definitely have to agree with squatters taking over property and you will still be held responsible for it. Also, a homeowner’s insurance policy ends once the property is vacant for more than thirty days. It’s best to ask your agent to see how long the coverage lasts if no one is living there.

  • Jenny Chien

    Spot on article. I definitely have to agree with squatters taking over property and you will still be held responsible for it. Also, a homeowner’s insurance policy ends once the property is vacant for more than thirty days. It’s best to ask your agent to see how long the coverage lasts if no one is living there.

  • Gay Floyd

    Upstairs plumbing pipe burst caused extensive damage to home and tenants have gone to hotel which is covered by their renters insurance.

    1. Do I as landlord have to reimburse tenant for their deductible?
    2. Do I as landlord prorate rent for the days the tenants stay in hotel?

    • Laura Agadoni

      Hi Gay,
      I’m not an attorney, but my understanding is that landlords need to reimburse tenants for expenses related to a hotel stay if the rental becomes uninhabitable. And you would also abate the rent for the time your property is uninhabitable. I have a clause in my lease that states the landlord will try to repair and restore premises within 30 days. After that, if the property is still unusable, the lease agreement expires.

      • Gay Floyd

        Thank You Laura
        I appreciate your detailed reply to my question.
        Your information is of great help to me in moving forward with my situation.
        Tenant said they knew there was water dripping a couple of days prior to the pipe bursting but didn’t relay the information to me until after the fact!
        Best regards
        Gay Floyd

Join the Discussion

Your email address will not be published. Required fields are marked *

 characters available. Be short, sweet and to the point.