Can not find tenants

Real Estate Agent
11yFollow

Can not find tenants

Neda Navidnia
Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes

Hey all,

I have listed a property in Katy, TX. It's been on the market for about one month. I believe the price is good according to CMA.

It is a two story, with all bedrooms upstairs, some people say they need at least one bedroom down. It is in a good condition, 2006, 4 bedrooms, 2 and half bath.

Making it short, I don't know what is wrong. Please advise how could I find the problems on my side. The rent was 1350 and we changed it to 1300. But it didn't solve the problem.

So what else should I do.

2Reply
107 views

Most Popular Reply

Mark Del Grosso
Rental Property Investor · Lockport, NY · Member since 2014 · 119 posts · 109 votes
11y

Hang tight. This is the worst months to rent. January is better that December and February is a little better that January IMO. 

Don't make the mistake of renting to just anyone. You will regret it.

9Reply
See this reply in the discussion

87 Replies

Jump to latestLatest
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Rob Gribben:

    Do Craigslist, and re-post often to get your ad toward the top of the board. It gets to be a hassle, but once you are too far down the list, nobody sees your ad.  Hang tight, sure you'll find tenants if it's priced correctly for the market.

     I've done it and I also renew it daily, but most of the times, those applications have been denied even without running background check.

    Today when I explained about landlord's criteria the guy said, hey I'm not buying the house.

    0Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Guy M.:
    Originally posted by @Neda Navidnia:

    If you don't mind me asking, 

    What are you doing for advertising? Such as:

    - Craigslist

    - Bandit Signs

    - Military National Guard/Reserve Centers

    - Automated Housing Referral Network (AHRN.com)

    - Etc.

    In Virginia Beach, bandit signs were very effective (believe it or not) for me. Craigslist, too. Also, advertising on non-local Craigslist sites works just fine. People move into TX all the time I'm sure. I know several people in the St. Louis area from TX. You may snag some out-of-towners looking to move near Katy.

    I do Craiglist, Zillow, Trulia, homes and some other websites that automatically add my listings when I put it on MLS.

    But this is a great idea, I have received phone calls from other states, they are moving to Houston for job.

    I'll keep it in mind. Thank you

    0Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Jay Hinrichs:

    LOwer the rent... .every month its vacant you lose 1200 plus dollar.. so you could lower rent by 100 bucks and fill It quickly and end up at the same place or better if you hold out for higher rent that never comes...

     For sure landlord doesn't like loosing his cash flow. and I did it one time. I will see it as plan B.

    0Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Joseph Chen:

    Are you working on a Realtor? If yes, then ask him/her to list your properties in MLS and other real estate websites. The best way to reach out target buyers nowadays is through internet. Or ask you Realtor if she/he knows prospective buyers of properties.

    Actually I am the Realtor and it is on MLS. I had 3 rentals at the same time and the other 2 are gone. These 3 have been my first listings. I am a new agent.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    11y
    Originally posted by @Neda Navidnia:
    Originally posted by @Rob Gribben:

    Do Craigslist, and re-post often to get your ad toward the top of the board. It gets to be a hassle, but once you are too far down the list, nobody sees your ad.  Hang tight, sure you'll find tenants if it's priced correctly for the market.

     I've done it and I also renew it daily, but most of the times, those applications have been denied even without running background check.

    Today when I explained about landlord's criteria the guy said, hey I'm not buying the house.

    Maybe you should tell us what the landlord's criteria are. Sometimes they are a bit unrealistic, since tenants will likely have some flaws that experienced landlords know can be (almost) safely disregarded. 

    3Reply
  • Tom Yung
    Investor · Winnipeg, Manitoba · Member since 2013 · 303 posts · 321 votes
    11y

    @Neda Navidnia

    I agreed with @Jay Hinrichs LOWER the rent.

    It is better to have the unit occupied than vacant in my mind providing they are qualified tenant. I will only sign a EIGHT(8) months lease; so that the tenant know they are getting a break for the first 8 months & after that the rent will go up to market. At the time; July- August, it will be much easier to find new tenants if you have to.

    4Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Steve Babiak:
    Originally posted by @Neda Navidnia:
    Originally posted by @Rob Gribben:

    Do Craigslist, and re-post often to get your ad toward the top of the board. It gets to be a hassle, but once you are too far down the list, nobody sees your ad.  Hang tight, sure you'll find tenants if it's priced correctly for the market.

     I've done it and I also renew it daily, but most of the times, those applications have been denied even without running background check.

    Today when I explained about landlord's criteria the guy said, hey I'm not buying the house.

    Maybe you should tell us what the landlord's criteria are. Sometimes they are a bit unrealistic, since tenants will likely have some flaws that experienced landlords know can be (almost) safely disregarded. 

     They want: 600+ credit score

    No eviction/felony/criminal

    good rental history and steady job

    but if there is an application with low credit score, they ask for more deposit. or any debt or these kinds of problems.

    0Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Ursula B.:

    Trying staging the common areas, like living room, kitchen and baths. Those areas rent houses, and even a lightly staged home shows better. It may be that prospective tenants cannot see themselves living in the space, so you have to show them how the space can work for them.

    Also offer no application fee. Be sure you screen, screen, screen though, because some folks will apply just because there is no application fee. You still want a tenant that meets your criteria.

     I should even work on photos, you are right, they should see themselves in the house.

    I spend the app fee for screening, maybe I should lower the fee and call it a discount or something like that.

    Thank you for your idea.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    11y

    The credit score is probably going to be the one disqualifying a bunch of people who would be OK as tenants; no criminal and no eviction is quite the norm. 

    Let's say a tenant was hospitalized for a time and had no health insurance. The bills would kill the credit score, but that person would probably pay their rent and pay their utilities - despite the terrible credit score. 

    Just one example of why the credit score itself is not as important as the list of creditors who are owed by the tenant applicant. 

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    11y

    I learned this saying along time ago in the business and it still rings true today.

    Some phrases are timeless and there is a reason behind that.

    " No amount of marketing or money in the world will SELL an overpriced listing."

    What that means if that if you do 1,000 items marketing and it is still overpriced then you will not achieve the desired result.

    The GREAT tenants that have a clean history and pay on time want a deal. They want the best place at the best rent. That is just the way it is. Just like a strong purchaser borrower for a house wants to feel like they got a great deal. If they do not feel that way they move on to other properties. 

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    4Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Steve Babiak:

    The credit score is probably going to be the one disqualifying a bunch of people who would be OK as tenants; no criminal and no eviction is quite the norm. 

    Let's say a tenant was hospitalized for a time and had no health insurance. The bills would kill the credit score, but that person would probably pay their rent and pay their utilities - despite the terrible credit score. 

    Just one example of why the credit score itself is not as important as the list of creditors who are owed by the tenant applicant. 

     I see, I should tell them they need 600+ credit score but we could work on that. I should add this sentence in the email template I send to people.

    Thank you 

    0Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Joel Owens:

    I learned this saying along time ago in the business and it still rings true today.

    Some phrases are timeless and there is a reason behind that.

    " No amount of marketing or money in the world will SELL an overpriced listing."

    What that means if that if you do 1,000 items marketing and it is still overpriced then you will not achieve the desired result.

    The GREAT tenants that have a clean history and pay on time want a deal. They want the best place at the best rent. That is just the way it is. Just like a strong purchaser borrower for a house wants to feel like they got a great deal. If they do not feel that way they move on to other properties. 

     I'm not sure if Zillows comparing numbers is a good reference or not, but it is saying Rent estimate is $1,312/mo . Rentometer showed a range which 1300 was within that.

    I guess the price is fair. Maybe I should talk to an experienced agent about cma.

    0Reply
  • Frankie Woods
    Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
    11y

    Such wonderful advice on this thread!  I think lowering the price, taking quality pictures, and using postlets is your best bet!  Good luck!

    2Reply
  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    11y

    Believe it or not, some people will turn away from the number 13, especially times 100! Time to find the sweet spot at mid market and renegotiate with the owner to allow you to drop the rent so you will be competitive. Do a six month lease if you want to discourage a turnover during the holidays. Raise the rent a tad at lease renewal time. Many good points  made by others. Let us know what ends up working for you!

    0Reply
  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    11y

    I will jump in with some suggestions:

    You said it in MLS. Have any other agents shown the property ? If not, you are probably overpriced or not offering a large enough co-broker fee to entice them. Talk to the owner about a $250 bonus to the leasing agent on an 18 month lease

    Craigslist in a large area like Houston is almost worthless posting once a day.  You would need to post 4-5 times at a minimum and at strategic times like 8am and 6-7 pm

    Get on Facebook and find group pages from the neighborhood and post there.  Group members will know people looking for homes to move into.  This has been my most effective marketing in the last 6 months

    Postlets is not really necessary as long as your company or you are not opting out of syndication within your mls

    Good luck and be diligent with your marketing

    3Reply
  • David Oldenburg
    Lender · Granite Bay, CA · Member since 2014 · 456 posts · 454 votes
    11y

    @Neda Navidnia When real estate doesn't sell, or doesn't rent, it is almost always the price!  I have proven this to sellers and landlords many times in my career.  However, the better question to ask is this, "why do I need to lower my price when others haven't?"  It could be the bedrooms upstairs, but I doubt that is the only reason.  I would ask others, who are not your friends, to look at the home and give you their honest opinion.  I am guessing there is something you are missing, because you are involved in the deal. 

    I get this all the time with sellers.  They call me and say, "I just don't get it, my house is really nice, it's in a great location, the price is right, but it's not selling or renting!" I then go over there and in less than 5 minutes I identify the problem. Usually it is something they are aware of, but to them it wasn't that big of a deal, but to others it is a deal breaker. In that situation, the easiest way to remedy the problem is a change in price.  Price will trump all issues and problems!  I have found if the price is right, people will buy or rent in almost any situation, no matter how much it bothers them. Good luck!

    3Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Frankie Woods:

    Such wonderful advice on this thread!  I think lowering the price, taking quality pictures, and using postlets is your best bet!  Good luck!

     I've done postlets, I am going for the other 2.

    I would post the results.

    Thank you

    1Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Greg H.:

    I will jump in with some suggestions:

    You said it in MLS. Have any other agents shown the property ? If not, you are probably overpriced or not offering a large enough co-broker fee to entice them. Talk to the owner about a $250 bonus to the leasing agent on an 18 month lease

    Craigslist in a large area like Houston is almost worthless posting once a day.  You would need to post 4-5 times at a minimum and at strategic times like 8am and 6-7 pm

    Get on Facebook and find group pages from the neighborhood and post there.  Group members will know people looking for homes to move into.  This has been my most effective marketing in the last 6 months

    Postlets is not really necessary as long as your company or you are not opting out of syndication within your mls

    Good luck and be diligent with your marketing

     Yes agents call me and ask for showing instruction, they will get half of one month rent, I should mention this bonus to owner.

    These are great idea, of course it is hard to keep in mind about re-posting on craigslist, but I would do my best. I am going to find groups in facebook as well.

    Thank you so much for great ideas.

    0Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @Marcia Maynard:

    Believe it or not, some people will turn away from the number 13, especially times 100! Time to find the sweet spot at mid market and renegotiate with the owner to allow you to drop the rent so you will be competitive. Do a six month lease if you want to discourage a turnover during the holidays. Raise the rent a tad at lease renewal time. Many good points  made by others. Let us know what ends up working for you!

     I got a lot of great ideas. Sure I will keep everybody updated.

    Thank you.

    0Reply
  • Neda Navidnia
    OP
    Property Manager · Houston, TX · Member since 2014 · 128 posts · 24 votes
    11y
    Originally posted by @David Oldenburg:

    @Neda Navidnia When real estate doesn't sell, or doesn't rent, it is almost always the price!  I have proven this to sellers and landlords many times in my career.  However, the better question to ask is this, "why do I need to lower my price when others haven't?"  It could be the bedrooms upstairs, but I doubt that is the only reason.  I would ask others, who are not your friends, to look at the home and give you their honest opinion.  I am guessing there is something you are missing, because you are involved in the deal. 

    I get this all the time with sellers.  They call me and say, "I just don't get it, my house is really nice, it's in a great location, the price is right, but it's not selling or renting!" I then go over there and in less than 5 minutes I identify the problem. Usually it is something they are aware of, but to them it wasn't that big of a deal, but to others it is a deal breaker. In that situation, the easiest way to remedy the problem is a change in price.  Price will trump all issues and problems!  I have found if the price is right, people will buy or rent in almost any situation, no matter how much it bothers them. Good luck!

     I should find an experienced person to have a look at the property, the reason that I am posting in this forum is getting help from other people, I have received great ideas so far, I also need someone to see the property.

    Thank you for the great ideas

    1Reply
  • Chris Vail
    Investor · Sacramento, CA · Member since 2014 · 308 posts · 94 votes
    11y

    @Neda Navidnia 

     is this the listing ? http://www.homes.com/property/6371-scothwood-dr-ka...

    if so I don't see any pictures of bathrooms on the listing and your description of the property is not very enticing.  

    1Reply
  • Taylor Chiu
    Real Estate Agent · Salt Lake City, UT · Member since 2014 · 473 posts · 230 votes
    11y

    Have you asked the neighbors for referrals? If they have friends that are looking for housing, I'm sure they'd like to have them in the neighborhood. Good luck!

    2Reply
  • Chris Vail
    Investor · Sacramento, CA · Member since 2014 · 308 posts · 94 votes
    11y

    @Neda Navidnia 

     Also just from looking at the area around Katy and what is available on the site from the map view (I have no understanding of the area as I live in California) there are numerous rentals that are with in 25-50 dollars a month +/- of your price that from the pictures on line look way nicer and more appealing.  Which means that all of those would need to be rented before I would even consider going and looking at this rental.  I am assuming that the link I have above is your listing as it is the only 4 bed 2 bath rental for 1300 that came up on my search of the area.  Have you gone and looked at what the other rentals in the area are offering?  How do they look when you walk them? 

    2Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    11y

    When I ran ads in Houston the response was decent but definitely not great. Do you have a video walk thru? So ads read...See VIDEO! Also, just a thought but you could add FREE TV! 40 INCH FLAT SCREEN. These are around $250 on sale. Thx

    1Reply
  • Thomas Williamson
    Investor · atlanta , GA · Member since 2012 · 287 posts · 148 votes
    11y

    @Neda Navidnia I feel your pain right now. I've got one (Atlanta suburb) we purchased in August and rehabbed it. It's been on the market for rent since mid September. It's a 4 bedroom 2 bath, over 2000 square feet. We purposely bought the house because of the school district it's in. Other homes of this size routinely rent for 1300, 1400, or even 1500 in the area we're in. We started out at 1300.00, and have since lowered it to 1200. My wife is a real estate agent, and it's been on the MLS since mid September as well.

    I post new ads almost daily on Craigslist, and have tons of ads on Postlets, as well as all the other outlets, and a video tour on YouTube, and signs in the yard.  We've only had a few people show up for showings, one said she wanted it, and took the application.  After she left, I never heard from her again.  We're even offering other agents 650.00 if they bring us a qualified applicant.

    I'm in agreement with what others have said, right now I think it's just the time of the year. We're determined not to throw just anyone in there to cover the mortgage, like others have said as well, I've been through several ugly evictions.  I wouldn't wish that on anyone.  Good luck to you, I know it will rent soon as ours will.

    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free