Strategy for finding a tenant in December?
Hey folks,
I’ve had my first LTR property in Jacksonville, NC listed for about 10 days now. It’s a townhouse listed for slightly over the average market rent for comparably sized townhomes, which I did because it’s also a nicer example than what’s typical to the area.
So far no takers, and my gut tells me that if dropping the rent by $75 would get me a tenant sooner, that’s better than missing out on $1,075 of potential income due to vacancy.
Does starting out in the slow season likely mean that I need to be less ambitious with rent prices, or is 10 days on the market without a finding a tenant reasonable?
Thanks!
It could be the slow season, or it could be supply and demand. You rent being slightly higher could deter some, but not having any request to see the property sounds to me like you are likely in a higher supply area and with your rent being on the top range you are likely lasted to be considered. I would hold out till Mid January and if I am still getting crickets then lower the rent. Also, what are you asking for up front? If you are asking for 1st, Last and a deposit and it being XMAS you may be losing tenant opinion because of amount of money needed to move in. Considering only Deposit and 1st months rent may help get more looks too.
Thanks Joseph,
I definitely am in an area with lots of supply, that makes sense. We’re asking for one month’s reserve plus a deposit; I hadn’t even thought about Christmas being an issue, but I could definitely see that. It’s not a very high income area, and there’s lots of young single income families just getting started in their military career.
Quote from @Joseph Beilke:
It could be the slow season, or it could be supply and demand. You rent being slightly higher could deter some, but not having any request to see the property sounds to me like you are likely in a higher supply area and with your rent being on the top range you are likely lasted to be considered. I would hold out till Mid January and if I am still getting crickets then lower the rent. Also, what are you asking for up front? If you are asking for 1st, Last and a deposit and it being XMAS you may be losing tenant opinion because of amount of money needed to move in. Considering only Deposit and 1st months rent may help get more looks too.
Quote from @Manuel Melendez:
It's common for the rental market to slow in the winter, particularly around the holidays. A couple tricks:
1. Lower your price, but never lower your standard.
2. Offer a month-to-month lease or a 6-month lease. This can attract more potential renters to get you through the winter months, then you can rent it for a full year and get in on the spring/summer cycle.
3. Offer an incentive like a % off their second month of rent. I don't recommend discounts on the first month because you don't want someone moving in cheap and then they can't afford the second month of rent.
4. Increase exposure by marketing on multiple platforms.
5. Make sure your pictures are good, your description is well written, and try to add a walk-through video that makes it easier for viewers to get an idea of layout, neighborhood, etc.
Thanks Nathan, those are some great options to consider. I’ll think more about the 6 month option, it certainly would be an advantage to get onto a summer cycle
Quote from @Nathan Gesner:
Quote from @Manuel Melendez:
It's common for the rental market to slow in the winter, particularly around the holidays. A couple tricks:
1. Lower your price, but never lower your standard.
2. Offer a month-to-month lease or a 6-month lease. This can attract more potential renters to get you through the winter months, then you can rent it for a full year and get in on the spring/summer cycle.
3. Offer an incentive like a % off their second month of rent. I don't recommend discounts on the first month because you don't want someone moving in cheap and then they can't afford the second month of rent.
4. Increase exposure by marketing on multiple platforms.
5. Make sure your pictures are good, your description is well written, and try to add a walk-through video that makes it easier for viewers to get an idea of layout, neighborhood, etc.
@Manuel Melendez I agree with all that @Nathan Gesner recommended. We lowered the rent a little and utilized that 6 month strategy on one of our fourplexes to get into a better cycle. Once we hit the 6 month mark with that tenant we required a year lease. We were straightforward with the tenant up front about our plan to go to 12 months lease after the initial 6 months.
As far as your question about 10 days on the market being reasonable, that is going to be very area specific. The property that I referenced above was on the market for 3 weeks (which was about a week longer than it should have been), then we did the rent reduction ($50 under the market rent) and the shorter term lease. The property rented quickly after that.
Good luck on finding a great tenant! Let us know how it goes.
Quote from @Nathan Gesner:
Quote from @Manuel Melendez:
It's common for the rental market to slow in the winter, particularly around the holidays. A couple tricks:
1. Lower your price, but never lower your standard.
2. Offer a month-to-month lease or a 6-month lease. This can attract more potential renters to get you through the winter months, then you can rent it for a full year and get in on the spring/summer cycle.
3. Offer an incentive like a % off their second month of rent. I don't recommend discounts on the first month because you don't want someone moving in cheap and then they can't afford the second month of rent.
4. Increase exposure by marketing on multiple platforms.
5. Make sure your pictures are good, your description is well written, and try to add a walk-through video that makes it easier for viewers to get an idea of layout, neighborhood, etc.
Nathan again with the gold. Thanks for sharing this