I'm having trouble finding a tenant for my rental

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I'm having trouble finding a tenant for my rental

Pedro Padierna
Member since 2019 · 68 posts · 16 votes

Dear BP community,

 I recently bought and rehabbed my first rental, we left it in great shape and its ready to rent. The property is in a nice neighborhood and a good school district. But unfortunately, we are struggling to get a tenant; it has been in the market for 29 days (already more than the average for the area), and since then, every single day we have done a showing, but no one has applied yet.

I have one theory: The next-door neighbor decided to start a hobby of reconstructing old trucks, and one partially destroyed truck is sitting in their driveway next to the entrance of the property (there is no HOA to regulate the area). So when people visit the property, they might get turnoff by this sight.

Do you have any ideas of what can I do to help get a tenant? 

If you are curious, here is a link to the property, and picture of the truck in the driveway.

Thank you in advance for your thoughts.

Best,

Pedro P.

1Reply
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Most Popular Reply

Diane Tycangco
Member since 2019 · 120 posts · 26 votes
7y

Hi I am a newbie to all this but would to offer my two cents.  When I clicked on the link you provided and looked at the property info, I noticed that the Zestimate rent for this property is $1295.  If I were looking for a rental and don't know anything about real estate, comparing that to your rental price will give me pause - you are too expensive.  Secondly, I entered your address into Rentometer and it did come up with $1376, which I think is how you came up with your price, but if you look at the comps below, most of the properties upon which Rentometer based their median recommendation are a lot bigger than yours.  The property closest in size and location to yours at Purlane and Blanco 1056 sq ft .98 miles away is only renting for $1150.  It also has 3b2b.

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  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Cliff H. Thank you for both of your comments. Yes, I'm using a property manager, I have another property (my second property), and they rented it for an excellent price in three days (in another part of the city), so so far I don't have a reason to change them. I completely agree with you about the price being the lowest common denominator, and before lowering the rent, I instead add value. My biggest issue is I don't have any feedback on why potential tenents show up but then don't apply. I do get a weekly report from the PM, but it always comes back saying that the prospects did not provide any feedback. So to better understand my market, I need to start gathering some information.

    0Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Account Closed Thank you for your comment. You are right, I should focus more on making sure the property is a good value, and the rent requirements are the right ones for the market. 

    0Reply
  • Mario Am
    Specialist · Nashville, TN · Member since 2019 · 187 posts · 83 votes
    7y

    @Pedro Padierna I live in apartments rentals and paid 3k+ a month even (but usually 2000-2500)

    For the last 5 years so I consider myself a rentohilic lol I will give you my exprience.

    First off great photo and adds.

    I get turned off by renters that ask for more than the 1st month deposit, so I wouldn’t ask for more. (No cleaning fee)

    If the tenant will leave the apt nasty just take it off the deposit.

    I do not think 1 abandoned truck in my neighbors property will affect me that bad if the whole neighborhood looks decent.

    However I do look at Zillow rental zestimates, and you are 50$ over by that, and when I see stuff like that it makes me check more houses, so what I do is take off cleaning fee and just 1 month deposit, reduce the price 1295$.

    It will rent great, keep us updated.

    1Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Mario Am Thank you for your comment. You are right; clearly, I have to revise the deposits. Before lowering the rent, I would like to explore other options to add value and see if I can keep the asking price. But if I can rent it in the next couple of weeks, I will lower it. 

    0Reply
  • Mario Am
    Specialist · Nashville, TN · Member since 2019 · 187 posts · 83 votes
    7y

    @Pedro Padierna honestly I think the rent is fine, for me 50$ wont break the deal, but I am easy sucker for comfort and would rather pay for more for it. And I am single too.

    On the other hand you have 3 bedroom, u are aiming for families and *** a business owner I know how mid class families try save as much as they can.

    I do not think u need to add value to justify the rent, I would just rather lower it just to get it going at least at first:-) plus, 50$ rent a year is 600$, if the value you will be adding will cost you 350$+ I wouldn’t even bother.

    And honestly Zillow is not always accurate but this is the only “mid class renter” tool to make sure if price is right.

    1Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Mario Am Fair enough, you bring a good point. Anless I can add value at a very low cost, probably its easier to lower the rent.

    1Reply
  • Judy Parker
    Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
    7y

    Pedro, the house looks beautiful.

    As has been mentioned by others

    a) call the local Building Dept regarding the neighboring eyesore. There must be some property maintenance issues being violated (unregistered uninsured vehicle in defective condition)

    b) when a property isn't moving, lower the price 

    c) lose the "cleaning deposit." Nobody asks for that here in New Jersey and that may be why people aren't biting.

    d) somehow you need to get feedback from the prospective renters. The house is beautiful, so its either the neighbor or the financial.

    Best of luck to you.

    1Reply
  • Matt P.
    Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
    7y

    @Pedro Padierna lol lowering rent $26 is nothing. Seriously, drop the rent. If it sits empty 2 months because your priced to high you lose more money than if you would have rented it quick with a lower price.

    4Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Judy Parker Thank you for you comment. I will talk to the neighbour first and see if we can come to an agreement, otherwise I will escalate the matter to the city. I already lowered the price, but maybe I have to lower it more. Valid point on the cleaning deposit, although I have another property that got rented in three days with this deposit. And completely agree with you, feedback is key, I need to get it

    0Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Matt P. If I don't rent it in the next few days, I will lower it more. 

    0Reply
  • Aaron Bihl
    Investor · San Antonio, TX · Member since 2017 · 344 posts · 268 votes
    7y

    Pedro, 

    Like many others are saying I think it should be lowered, if its priced right it will rent.   Especially since it's summer and this is the time of the year everyone is looking for a new place.  Let me know if you need someone to run some rental comps and see what other houses in your neighborhood are renting for and what DOM looks like.

    2Reply
  • Michael Glaspie
    Real Estate Consultant · Fayetteville, NC · Member since 2017 · 151 posts · 144 votes
    7y

    Property managers are worth their weight in gold when you find a good one!

    1Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Aaron Bihl Thank you for your comment and your offer. You are right lowering the rent seems like the popular choice. I will give it a couple of days, and if it doesn't rent, I will take your offer on the comps.

    0Reply
  • Michael Ablan
    Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    @Pedro Padierna  Inability to rent usually comes down to a couple things

    1.) Price

    2.) Location

    3.) Condition of the property

    Price usually trumps all 3.  People will put up with some crap if the price is cheap enough.  If your location is good (school district, neighborhood) and the house looks nice then you're probably too expensive.

    2Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @Michael Ablan Thank you for your comment. If i cannot rent it in the next couple of day, I will lower the asking price. 

    0Reply
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    7y

    @Pedro Padierna,

    It's usually said that the price / rent needs to reflect the condition of  the property.

    I looked at the listing and the pictures. It's a nice looking house, but tell me ... where is the laundry room?

    That's kind of a pricey house for still having to go out to a laundromat ...

    My $0.02 ...

    1Reply
  • Pedro Padierna
    OP
    Member since 2019 · 68 posts · 16 votes
    7y

    @David Dachtera Thank you for the your comment. The washer and dryer are in the garage.  Maybe I need to add a picture of them

    1Reply
  • Adrienne Green
    Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
    7y

    I think the photos look great, and that's a nice house. I have several rentals and here are my main thoughts:

    -Update the Zillow listing to remove the part about move-in 6/11, that is a red flag to renters that it's been available for nearly a month. 

    -Description on listing isn't great. Sell the house more. State "pet friendly" instead of "pets allowed with approval" -obviously you'll have to approve them, but sound more inviting up front.

    -Ask for feedback like prior posters have stated. "What's your favorite thing, and what might keep you from renting here?" If they seem interested but don't submit an application, call and email and ask why.

    -What lease terms are you offering? You mention schools, if you have families interested, maybe offer a 2 year lease?

    -Certain times of year places take longer to rent, the annual average isn't a great measure due to seasonal variability. Are other rentals on the market getting rented? How much supply is on the market? If there isn't much for rent, stick to your price and someone will take it. If there's a lot on the market, lower your price.

    1Reply
  • Randall Weatherall
    Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
    7y

    As someone who also likes to bring vehicles back to life (but mine are usually running and look decent) try to turn it around and acknowledge it. Have the leasing team or whoever is showing have a few lines about 'how the neighbors can afford to have such hobbies, oh, what a great neighborhood!' etc... If it's not a junkyard and just one truck the guy's working on, then it's not a stretch I wouldn't think.

    If you can't control the situation, control the conversation.

    1Reply
  • Derrick E.
    Investor · The Creek, WV · Member since 2014 · 890 posts · 1k+ votes
    7y

    When I first looked I just assumed the rent was $1,549/month because that's the deposit. You might be missing out on a lot of other showings because of this. Who sets their deposit to be more than the first months rent? Is that normal in your area? Also what is up with the $300 cleaning deposit? I've never heard of this before.

    If you are willing to accept pets then just leave it at that. Of course the pet has to be approved. People will pay extra in order to have their fur babies with them. 

    The truck is not the issue. Don't be a pesky neighbor to the guy. You will want to have a good relationship with your neighbors. Don't be that guy.

    Last, but most importantly, you are over priced. You keep claiming the price is not the issue because people are showing up to look at it. There is something with the house/yard/neighborhood, etc that is making the asking price be to much. It's not a knock on your remodeling or the house its self. It could be anything really, but the bottom line is, the place is over priced. I guess you could refuse to lower the price and let the house continue to sit on the market. You have already missed out on one months worth of rent by being over priced. I always list my units below market rent so I get a lot of applicants and get them rented faster. 

    Best of luck!

    1Reply
  • Grant Delmonte
    Rental Property Investor · WA · Member since 2019 · 60 posts · 15 votes
    7y

    Ask your community how to deal with the abandoned cars. And your rent seems too high. Maybe if you low down your rent a little bit will bring potential tenants who are interested in your property.

    1Reply
  • Kyle Wells
    Realtor · Lake Stevens, WA · Member since 2018 · 122 posts · 91 votes
    7y
    Have you ran any rental comps and priced accordingly to the market? I would recommend taking a look at rentometer if you haven't yet. I would ask for feedback from the potential tenants you did showings for and ask what ultimately drove them not to rent your unit. It does look like you need to do some work on the landscaping for the curb appeal at your price point. Other homes listed in your area with similar size seem to be priced between $1,295-$1,375, but appear to have better landscaping. The back porch also doesn't look great. The interior actually looks better than the surrounding homes for rent. 

    Originally posted by @Pedro Padierna:

    Dear BP community,

     I recently bought and rehabbed my first rental, we left it in great shape and its ready to rent. The property is in a nice neighborhood and a good school district. But unfortunately, we are struggling to get a tenant; it has been in the market for 29 days (already more than the average for the area), and since then, every single day we have done a showing, but no one has applied yet.

    I have one theory: The next-door neighbor decided to start a hobby of reconstructing old trucks, and one partially destroyed truck is sitting in their driveway next to the entrance of the property (there is no HOA to regulate the area). So when people visit the property, they might get turnoff by this sight.

    Do you have any ideas of what can I do to help get a tenant? 

    If you are curious, here is a link to the property, and picture of the truck in the driveway.

    Thank you in advance for your thoughts.

    Best,

    Pedro P.

    1Reply
  • Matt Urbas
    Contractor · Painesville, OH · Member since 2018 · 11 posts · 11 votes
    7y

    @Pedro Padierna

    A couple things that I noticed that may or may not have any bearing in ppl not applying.

    - cleanliness. The vents in the ceiling look really dirty. It may be just the pics but I’d clean them if they were.

    - looks dirty around the bottom left of tub in pic w tan clamshell sink. Clean the house.

    - it annoys me when all the outlets and switches don’t match the colors of the room. In your case they should all be white. It annoys me more when they don’t even match each other. Attention to detail. Same w the hinges in the kitchen. They should match the knobs.

    $300 cleaning fee? Are u charging someone to clean before they come on or clean when they move out? Get rid of this. If you need a bigger deposit ask of first month, last month and sec deposit.

    The whole thing looks like it’s an inexpensive house. I’m not sure you will get top tier rents w average finishes. Probably going to have to lower your rent, or make some changes.

    1Reply
  • Daniel DiGiacomo
    Rental Property Investor · Baltimore, MD · Member since 2011 · 83 posts · 35 votes
    7y

    First, house looks great. I actually know the are as well... it's not bad at all. I've read quickly through some other replies and I'm not sure I have too much more to add. I'll just say that some of the things that have been pointed out have worked for me in the past.... they include giving people a "deal" and asking for some feedback on the showings. Even if it means you pick up the phone and call the walkthroughs back and ask them for feedback. Another reason i would keep track of showings is so you can text/call/email them when you decide to lower the price or offer a deal. 

    I've had success with "first month free" on a 2 year lease. Assuming the tenant is qualified. 

    Also, I do think the deposit being more than the monthly rent is a little much. And I'm not sure a cleaning deposit is normal in this price range. 

    Just my two cents. Best of luck! 

    1Reply
  • Kalanie Tran
    Rental Property Investor · Member since 2019 · 62 posts · 46 votes
    7y

    @Pedro Padierna since you’re an out of state investor and is not too familiar with the local market there. How about just pay a Local PM to fill the vacancy for you? Worth all the headache

    1Reply
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