Vacancy Problems with Multi-Unit
Hi just wanted to get some input, not sure what can be done but doesn't hurt to ask . ..
I own a 60 Unit property in the DFW area. I am a newbie, so I made some of the usual mistakes, to be sure, but was not a complete idiot, either.
The problem I have now I'm not sure how to deal with. We had some bad tenants last summer, partly due to the seller's leasing, partly due to my former (non-screening) property manager. I replaced management and we got strong screening in, but we gradually saw vacancies rise, until the building was 50% vacant in October. It is still 50% vacant.
We lowered the rents quite a bit, to where I think they are competitive. I have been on their butts to keep up marketing, and we saw some greatly increased traffic in January with six new leases, but that seems to have slowed again. After six moveouts in the beginning of the year, I still stand at 50%.
The building is in a busy area and is right across the street from a large university. Competing buildings have some vacancies but nothing like mine -- occupancies prolly ranging from mid 80s. My building is not the jewel of the neighborhood but compares favorably with most of the others.
I just don't understand why the traffic is so off. Any suggestions? I am thinking of changing property managers (again), but fear I may be jumping the gun a bit and being too trigger happy. ANy thoughts would be greatly appreciated.