How long to find a tenant

Question

We are generally having a tough time finding tenants. We have listed our property a month ago. Every week, we do 5 to 10 showings. They seem excited at the showing and ask us to send an application and it does not go further.  Either their other applications get accepted or they are not interested. We used to ask for the last 3 paystubs, W2, bank statements along with the application. Now we stopped asking for those and are asking for only the last 3 pay stubs and a copy of ID along with the application.

Our house is clean, priced a little lower than comps, shows well, and has good amenities nearby. Appliances, flooring, rooms, closets, ventilation, parking, cleanliness, backyard, community, neighborhood, schools - I looked at every aspect and I can't find anything wrong. I think a few things are going on - maybe we need to make a few more changes, or we are still not in peak renting season or we are a brown family and there is some unconscious bias not in favor of us from non-brown tenants(all but one has been non-brown). In that case, I am thinking it is better to go with an agent to find the first tenant.

I guess I wanted a place to speak out.

John Teachout · Answer

lying to potential tenants sets a precedence. Why the need for deception?

Quincy Lockett · Answer

@Pal Sa

I too am a “brown” investor and I’ve noticed I’ll just say “interesting” reactions when prospects realize that I am the owner. This includes prospects of EVERY race. There most certainly is some “baked-in” bias from some. Regardless, I NEVER disguise the fact that I am the owner. You only need ONE qualified tenant to rent from you (Not the whole world). You probably need to lower the price of the unit. The market determines value not the investor. Hiring a property manager will probably cost more than the rent  reduction.

Axel Meierhoefer · Answer

@Pal Sa I agree with what @Daniel Umstead suggested.

In addition I suggest to do a comparative analysis. If I were you I would just visit some of these properties in your area that you say are comparable and similar to yours. That way you can see what other landlords or property managers offer and what their paperwork looks like. When you can look through the eyes of a tenants, maybe you can find things that apply to your property that make it less attractive than you think.

John Brodeur · Answer

@John Teachout, agree! The tenants will find out eventually and then you have proven to be distrustworthy. If you don't want to be the one showing the property or don't have the skills to show and screen tenants you should source this part of the business either with an agent or with a PM.

John Bartlett · Answer

@Pal Sa It might help if you say the location in this post. There is something wrong, some where. You'll need to find out what is it.

I would start by saying you are the property manager, not owner, this is just your job but your property. People will treat you differently.

Before showing the home, pre-qualified them, ask for their credit score, income etc.

When you schedule a showing, try to schedule a few back to back. Also ask for the full application and app fee when showing and say, you have 2 more people interested as well and you want to make sure they get it. (This creates urgency).

Ask them after showing if there is anything they think should be improved. You are the PM not owner but you'll pass it on to the owner.

John Teachout · Answer

Generally this is a more difficult time of year to fill a property. Do the prospective tenants know all your requirements and criteria prior to the showings? If not, do that so you're not wasting your time. Not sure what you're referring to about "brown". Is that a race thing? I doubt that's the problem. Most likely the price.

Martin T. · Answer

First, you need to get a dialog going with those who are walking through - you can have requirements and also be friendly and conversational.  I tell people I am the owner up front, and share how long I've owned the property, and that it's important to me to find a tenant who will take care of it (among credit and income requirements, but I don't mention that until after they have walked through and ask about the process).

If you can be conversational with folks, you can also get feedback at the first showing (ie: out of curiosity, how does this compare to other properties you are looking at?).  For instance, in one of my rentals, the primary bathroom was TINY, and everyone commented on that.  I did a few updates to it (new tile, vanity and mirror), now everyone comments on how beautifully updated it is.

If you had a good dialog going at first, you can also get feedback later in the process - ie:  "Would you be comfortable telling me why you ultimately decided to rent another property?  Was it the property itself, location or other factors?  Feedback helps me to be well priced and competitive, so if you are comfortable sharing I'd appreciate it!"

Also, nothing beats looking at other listings online AND in person.  Compare requirements, ad language, photos and the property in general.  Go to other open houses too if you can.

Pamela Gordon · Answer

@Pal Sa, I agree with @John Bartlett, I do not say I am the owner, from the very beginning I say that I am the property manager.  I did a showing yesterday and when I mentioned that I was the property owner the prospect said "oh good, because I do not feel like dealing directly with the owner".  My experience is that when you say you are the Property Manager the potential tenant is a little more honest and will tell you right up front what they liked and what they didn't like and it's great to know what might be a turn off or questionable to tenants, because it might be something you completely overlooked.  There's no reason anyway for them to know who you really are, it helps take the emotions out of it all, and this way you never feel like you are being put on the spot.  It's nice to make them feel like it's not up to you to make the ultimate decision and that there is a standard process you have to follow and that the owner makes the final decision.  This approach really works well for me, plus it helps me not to deviate from my own process.

Maksu Ize · Answer

Usually takes me a month to get my units rented.

Meaning my unit is overpriced. Works for me, but not for all.

If you can't find a tenant, it's simple as that, your overpriced. The demand is not high enough for your unit.

Dave Charron · Answer

If your sure its not overpriced then I would say its something about the property. Maybe something your overlooking?  Parking? Odd floorplan? size of bedrooms?  Sometimes an odd feature will result in needing a price reduction.  Not saying thats whats going on here, just trying to give you some possibilities.

How long to find a tenant

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