Can not find tenants

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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.

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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.

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  • Emma Chen
    Investor · San Diego, CA · Member since 2013 · 87 posts · 17 votes
    11y

    @Thomas Williamson I have heard that it is hard to rent out houses in Atlanta, not only in winter. I am trying to get into the market but got warned that it's hard to find tenants in general even for nice houses. Is it true based on your experience?

    Thanks,

    Emma

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    11y

    If what Chris Vail put up is the property for Ned Nav then that is a bad presentation.

    Lot's of improvement can be made.

    The house itself I do not know if it's just me but looks cheap and ugly. The pictures of the inside are very sterile looking with no life to them. One picture the kitchen light is off in the distance making the room look very dark. Another the chandelier light is off.

    I think as investors a mistake made many times is we are technical on the numbers when posting ads. That is great for analysis but regular home owner buyers and renters do NOT think that way.

    When you present a property you have to EMOTIONALLY SELL the potential tenant or buyer. There is nothing in the description about views, schools, quiet street, culd-de-sac, sunset views, etc.

    You have to paint a picture with words and then have great pictures to round out the story.

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    3Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    11y

    Emma Chen it's a broad statement about hard to rent out properties in Atlanta.

    For investors looking to GA I want you to understand something. There is Fulton county where the city of Atlanta resides. In Fulton there are some nice areas and then some really, really bad crap holes that you wouldn't even drive down the street with the windows up and the doors locked.

    For Atlanta we have the MSA ( metropolitan statistical area ) that encompasses over 20 counties. You have urban core and than suburban to more rural areas.

    So you have the location, tenant base, and time of year as factors for renting. If you are talking lower end type housing with lower rents those will be in rougher areas here. In the nicer areas many investors buy at 1% to 1.5% rent ratio to sales price. They hold long term for property payoff and for retirement so they are willing to accept less yield today for quality areas and properties. If you buy a vacant property in a good area and then put money into fixing it up and rent out you could increase your rent to sales price ratio paid a little more.

    Good properties go fast here. What you need Emma is local people that have lived here all their life to tell you like it is and not sugar coat it. Then you will see expected returns for the area.

    I do commercial real estate so do not mess with the houses.

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    0Reply
  • Thomas Williamson
    Investor · atlanta , GA · Member since 2012 · 287 posts · 148 votes
    11y

    @Emma Chen you have heard correctly.  I personally feel it's difficult to rent properties in the Atlanta market.  I have properties in four counties and the rents range from 750.00 to 1200.00.  Most of my rents are on the lower end.  I don't take section 8 and I don't allow smokers or pets.  I know that cuts down on my pool greatly, but I just can't bend on that.  One thing that has really surprised me in the nearly five years we've been renting property is how very, very, very few people Ive screened even have ok credt.  These days I'm happy to see a 500 score.  It's not solely what I use for the final decision, but it does make wonder about this entire market.  I've also thought about selling everything and buying in stronger markets.  Hope that helps

    0Reply
  • Emma Chen
    Investor · San Diego, CA · Member since 2013 · 87 posts · 17 votes
    11y

    @Thomas Williamson It helps a lot. Thank you and good luck with all your properties. 

    0Reply
  • Andy Robison
    Investor · Kansas City, MO · Member since 2013 · 465 posts · 170 votes
    11y

    BEAUTIFUL 2 STORY HOME... NEW AND SPACIOUS HOME WITH CERAMIC TILE FLOORS IN ALL LIVING AREAS, KITCHEN, AND BATHROOMS. MAKE YOUR APPOINTMENT TODAY AND COME SEE THESE BEAUTIFUL HOUSE.

    Thats it? If that is the listing I would have clicked next in about 10 seconds. see below for something better but not great.

    Beautiful 2 story home in highly desired (abc) school district. Walking distance to (bus stop, park, ??) Is tile flooring what is "in" in that area? New tile floring through house, beautiful manicured back yard with off street parking and 1 car garage. Come see this beautiful house today!

    3Reply
  • Jesse T.
    Herndon, VA · Member since 2014 · 1k+ posts · 324 votes
    11y

    It looks like there is a lot of inventory of SFH for rent in your area. Unless you are getting a ton of potential deadbeats, I would keep qualification requirements out of the MLS listing.

    4 BRs is a selling point for this home.  If one of them is small, suggest use as a den/office.  There are only 6 pictures, most of the competition has at least 12 some as many as 30.  At the very least I would add a picture of the Master Bedroom and the bathrooms.  Also I would like to see a view from the back of the house.  The garage should probably be mentioned in the description.  The square footage is good, so it might help to list room dimensions.

    I think the house looks better vs. competition with the $50 reduction.  If it was in the mid 1200s, it probably would get even more interest.

    2Reply
  • Rick SteinPro Member
    Investor · Austin, TX · Member since 2014 · 248 posts · 181 votes
    11y
    Originally posted by @Neda Navidnia:

    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.

    When you say it has been on the market, do you mean with a real estate agent? I don't know your area at all. Does it lend itself to lower income. Or special needs tenants. In NJ I use a website:  socialserve.com in which I can say I accept people with disabilities or Sec 8 which is a form of housing assistance. I also use Rentlinx.com as well as Craigslist. They serve me well. I hope that helps and good luck

    2Reply
  • Roberto Andrade
    Austin, TX · Member since 2014 · 45 posts · 18 votes
    11y

    @Neda Navidnia 

    Great ideas in this post.

    My 2 cents. Try a "cool" front door color to make your front entry more attractive/different, and add some inexpensive landscape improvements, like mulch, to boost the curb appeal.

    Godspeed!

    2Reply
  • Jerry Robinson
    Investor · Atlanta, GA · Member since 2014 · 54 posts · 5 votes
    11y

    @Neda Navidnia 

    I know how you feel, I have a condo in Atlanta that shows well and people have come by to look at it but no one is ready to commit. Its going on a month for me as well, and my PM said that is not a surprise considering the time of the year and its in a mid income to low area and its customary for people to wait till after the holiday and maybe tax returns to afford rent + security dep.

    I wish she was wrong but I'm have the same luck with a house I renovated and put on the market almost two months ago that still has not moved.

    Good Luck 

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

    @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.  

     Yes this is my listing. I am going to take more photos, and also we should find a better description as you said so.

    0Reply
  • Joseph Chen
    Houston, TX · Member since 2014 · 62 posts · 23 votes
    11y

    @Ned Nav I see. But I agree with @Jay Hinrichs also. If you lower the rent, there is a possibility that your property will attract buyers easily. Try to  make low offers. As a new agent you have the same advantage as a first-time buyer when it comes to negotiating a discount. If lowering the rent does not still work, try to look into your marketing strategies. Do you have a website? If yes, then, improve its on line presence to reach out wide target clients.

    1Reply
  • Dawn BrenengenBusiness Member
    Moderator
    Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    @Neda Navidnia When you take new pictures, turn on all the lights in the home, and try to line up the sides of the camera frame with straight, vertical lines in the house. Also, take a TON of pictures. Our MLS allows 25 pictures, and I use up every space I can with multiple views of the same room, taken from different ends of the room.

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

    @Neda Navidnia When you take new pictures, turn on all the lights in the home, and try to line up the sides of the camera frame with straight, vertical lines in the house. Also, take a TON of pictures. Our MLS allows 25 pictures, and I use up every space I can with multiple views of the same room, taken from different ends of the room.

     I would, I should go in day time for better lights.

    Thanks

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

    @Ned Nav I see. But I agree with @Jay Hinrichs also. If you lower the rent, there is a possibility that your property will attract buyers easily. Try to  make low offers. As a new agent you have the same advantage as a first-time buyer when it comes to negotiating a discount. If lowering the rent does not still work, try to look into your marketing strategies. Do you have a website? If yes, then, improve its on line presence to reach out wide target clients.

     I am going to do so.

    Thank you

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

    @Neda Navidnia 

    I know how you feel, I have a condo in Atlanta that shows well and people have come by to look at it but no one is ready to commit. Its going on a month for me as well, and my PM said that is not a surprise considering the time of the year and its in a mid income to low area and its customary for people to wait till after the holiday and maybe tax returns to afford rent + security dep.

    I wish she was wrong but I'm have the same luck with a house I renovated and put on the market almost two months ago that still has not moved.

    Good Luck 

     So we can understand each other, I need it is not the best time of the year, but I receive calls and applications continuously, during this topic I got great ideas, I am solving them one by one.

    I wish both of us find the qualified tenants soon.

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

    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!

     Great idea, I am going to do that this weekend.

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

    @Thomas Williamson I have heard that it is hard to rent out houses in Atlanta, not only in winter. I am trying to get into the market but got warned that it's hard to find tenants in general even for nice houses. Is it true based on your experience?

    Thanks,

    Emma

     Well, I had 3 of them and the other 2 rent out in about 10 days. One of my friends who is an agent found tenants in 3 days. So I guess it's not true. Of course I am talking about Houston, TX. I have no idea about Atlanta.

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

    If what Chris Vail put up is the property for Ned Nav then that is a bad presentation.

    Lot's of improvement can be made.

    The house itself I do not know if it's just me but looks cheap and ugly. The pictures of the inside are very sterile looking with no life to them. One picture the kitchen light is off in the distance making the room look very dark. Another the chandelier light is off.

    I think as investors a mistake made many times is we are technical on the numbers when posting ads. That is great for analysis but regular home owner buyers and renters do NOT think that way.

    When you present a property you have to EMOTIONALLY SELL the potential tenant or buyer. There is nothing in the description about views, schools, quiet street, culd-de-sac, sunset views, etc.

    You have to paint a picture with words and then have great pictures to round out the story.

     That is so true, I have seen the property, I never looked at the photos as a tenant. 

    You are absolutely right, I would take more photos this weekend.

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

    BEAUTIFUL 2 STORY HOME... NEW AND SPACIOUS HOME WITH CERAMIC TILE FLOORS IN ALL LIVING AREAS, KITCHEN, AND BATHROOMS. MAKE YOUR APPOINTMENT TODAY AND COME SEE THESE BEAUTIFUL HOUSE.

    Thats it? If that is the listing I would have clicked next in about 10 seconds. see below for something better but not great.

    Beautiful 2 story home in highly desired (abc) school district. Walking distance to (bus stop, park, ??) Is tile flooring what is "in" in that area? New tile floring through house, beautiful manicured back yard with off street parking and 1 car garage. Come see this beautiful house today!

     This is a great description, I used to copy and paste, previous agent's descriptions.

    But with this one, I clearly see the difference, English is my second language, so I need more practice in this area.

    Thank you so much, it was a great help

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

    It looks like there is a lot of inventory of SFH for rent in your area. Unless you are getting a ton of potential deadbeats, I would keep qualification requirements out of the MLS listing.

    4 BRs is a selling point for this home.  If one of them is small, suggest use as a den/office.  There are only 6 pictures, most of the competition has at least 12 some as many as 30.  At the very least I would add a picture of the Master Bedroom and the bathrooms.  Also I would like to see a view from the back of the house.  The garage should probably be mentioned in the description.  The square footage is good, so it might help to list room dimensions.

    I think the house looks better vs. competition with the $50 reduction.  If it was in the mid 1200s, it probably would get even more interest.

     I had totally forgot about the great view from the master bedroom. 

    Photos are one of the mistakes I've made in this listing, unfortunately I used the landlord's photos which were taken with  rush and without enough attention.

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

    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.

    When you say it has been on the market, do you mean with a real estate agent? I don't know your area at all. Does it lend itself to lower income. Or special needs tenants. In NJ I use a website:  socialserve.com in which I can say I accept people with disabilities or Sec 8 which is a form of housing assistance. I also use Rentlinx.com as well as Craigslist. They serve me well. I hope that helps and good luck

     Yes, I am the listing agent, one of the problems with this property is about people with physical disabilities or even older people.

    And we don't accept section 8. I mean the landlord.

    I am going to use that website, Thank you for your suggestion.

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

    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

     I have found a great app, Magisto, as soon as I got the photos I would make a video.

    Thank you

    1Reply
  • Bob E.
    Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    We are realtors and get our best tenants off our MLS listings.

    1Reply
  • Doug Spartz
    Houston, TX · Member since 2013 · 24 posts · 6 votes
    11y

    I have 7 units I own and rent in the Houston area with rents ranging from $500 to $1200/mo.  I even have one just south of this listing in Katy off of Clay road.  In addition to all the excellent suggestions already provided, you should consider advertisting in the Greensheet.  It normally costs me $15 for an ad covering one distribution area for a week.  These days the Greensheet provides both a hardcopy newspaper style circular and an online ad.  I get queries from both.  From my experience I get more traffic from the Greensheet then any other source, though I cover my bets with Postlets and a sign in the yard.

    1Reply
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