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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  • Roshan K.Pro Member
    Oklahoma City, OK · Member since 2017 · 258 posts · 215 votes
    7y
    Originally posted by @Pedro Padierna:

    HI @Kenneth Garrett

    Thank you so much for your quick reply and your idea to call the city code. We have done showings daily, but none of the potential tenets have mentioned the car and bins next door. I already lower the rent $26, I was thinking of putting a fence but is a +1k CAPEX.

    Best,

    Pedro P.

     You should be lowering rent by $15 to $25 until you get 3 turned in applications a week. Guarantee you if you keep lowering the rent, someone will take it. 

    $26 in a month is too slow for lowering rent. You're not at market value. 

    2Reply
  • Tanner Marsey
    Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes
    7y

    It’s ALWAYS price.

    1Reply
  • Haseeb M.
    Real Estate Agent · Hoffman Estates, IL · Member since 2017 · 90 posts · 68 votes
    7y

    It's almost always the rent and what else is available around at that given point that provides more value than yours. Even if you were getting this amount in the past, surplus inventory can tip the scale some months. 

    I would spend some time on zillow, craigslist etc. and analyze your competition. I try and talk to prospective tenants about why the extra $s are justified compared to a house down the street. Create value (think clean common areas, flower pots, clean laundry room, lawn that looks good etc.) and tenants are usually happy to pay for convenience.

    1Reply
  • Carey Nelson
    Rental Property Investor · Seattle, WA · Member since 2018 · 4 posts · 6 votes
    7y

    A few people might care about the truck but there will be a good number who don't. I find what might be a deal killer for some tenants is inconsequential to others. If people are showing up to look but not renting they may potentially think the house and/or amenities are not worth that rent. 

    2Reply
  • Jessica G.
    Investor · Dallas, TX · Member since 2014 · 177 posts · 213 votes
    7y

    @Pedro Padierna Dude lower the rent by $50 today and get it rented already. Every single week that goes by, you are losing way more than that. Even if someone signs a lease with you today, they probably can't actually move in for a few weeks after that. I think you are wasting too much time on the wrong things.

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

    @Dennis Cosgrave Thank you for your comment. I've been updating the ad using recommendations from the BP COMMUNITY. So I hope it's okay. I checked the comps and rentometer, and 1350 seems to be ok. I think it is the value for money of the property once the prospects visit.

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

    @Dena Schrimsher Thank you for your comments. I'm planning to give gift cards in exchange for feedback. Hopefully, we will get more info on what is the issue and either fix it or lower the rent

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

    @Roshan K. Thank you for your comments. Yes, we will start lowering. But before we do, we are offering a move-in special to see if we get any leads.

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

    @Tanner Marsey thank you for your comment. I think it is value for money. But you are right; I might be higher than the market is willing to pay.

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

    @Haseeb M. Thank you for your comments. I like the idea of additional market research on the competition. Maybe I will find things I can improve or if it's just price what needs to be adjusted.

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

    @Carey Nelson thank you for your comments. You are right. I have a value issue I need to fix, either by improvements or price.

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

    @Jessica G. Thank you for the candid and pragmatic comment. I have a move-in special right now (50% off the first full month with a 13mo lease) if this doesn't work I will lower the rent.

    1Reply
  • Juan Mendoza
    Rental Property Investor · San Antonio, TX · Member since 2017 · 25 posts · 9 votes
    7y

    @Pedro Padierna I currently have a property on the market for rent as well in 78213 and the feedback I'm getting from my agent is that people were asking for appliances. I only had a range included but 90% of them were asking for a fridge and they didn't submit an application because of that.

    I decided to include a fridge and my agent called them back to let them know and they are already applying.

    1Reply
  • Kyle Wells
    Realtor · Lake Stevens, WA · Member since 2018 · 122 posts · 91 votes
    7y
    Good luck with everything, Pedro. Ultimately, if you have time come down to $1,300 for rent, that's only $600 in lost rental income for a year. That's equivalent to less 1/2 month's vacancy, so don't keep the price too high if that's what is deterring potential tenants. Then raise rent $50/month on the lease renewal if market rents allow you to.

    Originally posted by @Pedro Padierna:

    @Kyle Wells Thank you for your comment. Yes, I got the comps and rentometer and the $1350 mark seems to be spot on. But you are right, I need some landscaping. 

    1Reply
  • Jarrod Murrell
    Rental Property Investor · Rochester, MI · Member since 2018 · 9 posts · 2 votes
    7y
    @Pedro Padierna I had almost 130 people come through my first before somebody signed. It takes patience! I waited about 40 days. I used an agent as well to show the property, maybe that would help?
    1Reply
  • Mario Broughton
    Atlanta · Member since 2018 · 20 posts · 4 votes
    7y

    @Pedro Padierna maybe you can install a privacy fence in both sides of the property as to insulate the tenant from the neighbors.

    1Reply
  • Myriam Mourani
    SoCal · Member since 2019 · 39 posts · 20 votes
    7y

    I would lower the asking rent, too. Tenants would tolerate the crummy neighbor if they knew they were getting a good deal on the rent.

    1Reply
  • Fred Cannon
    Rental Property Investor · St Augustine, FL · Member since 2019 · 265 posts · 279 votes
    7y

    I would not rent your property either if I had to look at the junk pile next door. Go to Lowes or Home Depot and contract to install a fence.  You can get 12-18 months no interest most likely. Its a tax deduction and it does away with one more objection I would also hire a lawn service guy and add that cost into the rent.  I have never had a tenant take proper care of a lawn or a pool. After about three tenants of lawn care neglect i started with lawn service Now everyone is happy and my lawn always looks great. It’s $130 a month in my area (Florida). A tenant is not going to do a good job if it’s in the 90’s and the humidity is just as high

    1Reply
  • Derrick E.
    Investor · The Creek, WV · Member since 2014 · 890 posts · 1k+ votes
    7y
    Originally posted by @Carey Nelson:

    A few people might care about the truck but there will be a good number who don't. I find what might be a deal killer for some tenants is inconsequential to others. If people are showing up to look but not renting they may potentially think the house and/or amenities are not worth that rent. 

    Thank you. That's what I was trying to say. People are coming to look, but the house is not worth the price. It's truly that simple. 

    Could be a number of different reasons as to why. Could be a lot of properties on the market right now, could be the lay out, could be landscaping etc. Realistically most investors get hung up on trying to squeeze out maximum rent on a property. He could have already had the place rented for $1250/month. Instead he is missing out on 2 months rent which would be $2,500 (at $1,250/month) just because he is trying to get $1350/month. Over the course of a year that extra $100/month will bring in a whopping $1,200. 

    You literally just spent $2,500 in hopes of making $1,200. This never makes sense to me. 

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

    @Juan Mendoza thank you for your comment. You are right, I forgot to buy put a microwave, and this is probably one of the reasons we didn't get many applications

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

    @Kyle Wells thank you for your additional comment. I offered a move-in special, 50% off the first full month and we got our first application. So, yes the price is King

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

    @Jarrod Murrell Thank you for your comments. I have a PM who is doing the showings, so far I think they have done an excellent job. What helped, I offered a move-in special, 50% off the first full month and we got our first application.

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

    @Mario Broughton thank you for your comment. Yes, I got a quote, but I’m negotiating with the neighbor to move it or cover it before spending more

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

    @Myriam Mourani Thank you for your comment. What helped, I offered a move-in special, 50% off the first full month and we got our first application.

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

    @Fred Cannon Thank you for your comment. I'm negotiating with the neighbor to either move it or at least cover it. If this works, I can save the cost of the fence. Also, I think it's a good idea the lawn service I believe is a win-win for both tenant and landlord

    0Reply
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