Home has sat on the market for months
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As @Russell Brazil said, this is a very easy question to answer. If you are trying to sell OR rent your house and it is not moving after 8 months, you are priced too high, plain and simple.
This means that you are priced too high for your location and/or for what you are offering. You didn't give us details but lets say you're priced at $1500/M. Maybe people are willing to pay $1500/M for a unit in your area, but not for a unit on your street. Or not for a unit with your bedroom and bath count. Or not for a unit in your condition. You get the point. If you're priced in line with comps, there is something wrong with your unit that makes it worth less than others in the area.
Remodeling the home, sprucing up the landscaping, or adding amenities could help you get a higher rent rate. But you also don't want to through good money after bad.
Your options are:
1. Rent the place out at the true market rent and lose money every month.
2. Sell the property at a loss.
If you mistakenly bought in a bad area that has no hope for the foreseeable future, it might be best to sell, learn your lesson, and buy better next time...
25 Replies
- 3yJewel B.Pro MemberNew to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
Quote from @Sara C.:
Looking for ideas on how to get my property to move. I have an undesirable unit which is not renting. I am not sure if I should rent less than the mortgage to get it to move or to cut my losses at this point it has been eight months. Property managements do not sound reliable and tell me they do not work with southeast properties. I was receiving many applications but the applicants are unable to afford the unit. I am not attracting the type of tenants I desire who can make payments. I have listed with section 8 as well with little responses.
Where is this located? How/where have you been trying to get tenants? What class neighborhood and property? You mention the rent in comparison to the mortgage...how does the current rent compare to the market? Have you tried offering half off first months rent? Have you tried offering shorter term leases just to get someone qualified in?
- 3yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
You're going to hit hurdles no matter what REI you do.
A. Decide if you want to be an REI investor. Learn from this one. You need more learning and input is what I read before you do more investments.B. This isn’t a don’t give up or quit posts. My commits are get someone local to bounce idea off. Join a group.
C. For better input on this forum you need to give pertinent info and pictures.
D. If you decide to sale look up your tax or GIS map for your city. Look at similar properties. At the bottom look for owners who have a lot of related listings. They are REI investors in your type of property. Ask them for advice or to sell to. Quote from @Henry Clark:
You're going to hit hurdles no matter what REI you do.
A. Decide if you want to be an REI investor. Learn from this one. You need more learning and input is what I read before you do more investments.B. This isn’t a don’t give up or quit posts. My commits are get someone local to bounce idea off. Join a group.
C. For better input on this forum you need to give pertinent info and pictures.
D. If you decide to sale look up your tax or GIS map for your city. Look at similar properties. At the bottom look for owners who have a lot of related listings. They are REI investors in your type of property. Ask them for advice or to sell to.Thanks. I joined the landlord association but am in the same position. Are there any other groups you know of in the DC area?
Quote from @Jewel B.:
Quote from @Sara C.:
Looking for ideas on how to get my property to move. I have an undesirable unit which is not renting. I am not sure if I should rent less than the mortgage to get it to move or to cut my losses at this point it has been eight months. Property managements do not sound reliable and tell me they do not work with southeast properties. I was receiving many applications but the applicants are unable to afford the unit. I am not attracting the type of tenants I desire who can make payments. I have listed with section 8 as well with little responses.
Where is this located? How/where have you been trying to get tenants? What class neighborhood and property? You mention the rent in comparison to the mortgage...how does the current rent compare to the market? Have you tried offering half off first months rent? Have you tried offering shorter term leases just to get someone qualified in?
Located in Congress Heights off Alabama ave across from the IHOP. I believe the unit is priced right. I was advised not to give discounts since the laws are not favorable in DC you may attract the wrong type of tenants. I have tried to offer short term lease. I have parties applying but they are not financially sound. The section 8 applicant I have had only have vouchers for four months. I have not received any for longer term.
- Member since 2021 · 74 posts · 49 votes3y
REI is a challenge but I think people forget some are is still new to the game. Have you checked the neighboring listings ? Are they renting or selling or just sitting like yours? Be prepared to have to wait. Research other voucher programs and find out what other owners are doing in your area. If we are in different markets we definitely don't understand what's going on in yours. Focus your search to the specific market, city, town that you are in? Try not to get discouraged, the market is ever changing. I listed my property and had no real offers, once it was fully rented - I realized there is no need for me to list it. It's paying for itself. But that was after terrible property management experience, overpriced renovations, and other hurdles that delayed the property being fully rented. We are pivoting to a buyers market again so it's time to get creative. Also speak to wholesalers too.
- Real Estate Agent · Washington DC · Member since 2016 · 847 posts · 656 votes3yThe best in general would be to probably take a loss on the rent, and wait for values and rents to catch up, the only caveat to that is you are in a pretty rough area, if it’s a property you don’t wish to own long term depending on the type of loss you are eating or if you have any equity it’s at least worth thinking about. But if you believe in the property long term you should keep it and rent it for whatever it needs to rent for, keep in mind every month it’s not rented is money out of your pocket so it might make sense to bite the bullet and take less rent. Unfortunately the time of year suck for renting too.
Quote from @Sara C.:
Looking for ideas on how to get my property to move. I have an undesirable unit which is not renting. I am not sure if I should rent less than the mortgage to get it to move or to cut my losses at this point it has been eight months. Property managements do not sound reliable and tell me they do not work with southeast properties. I was receiving many applications but the applicants are unable to afford the unit. I am not attracting the type of tenants I desire who can make payments. I have listed with section 8 as well with little responses.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes3y
The answer is obvious. You are priced too high. 30 days, 60 days..ok sometimes it takes a while to get a place rented. 8 months...thet just means you're priced way too high.
District Invest Group545 Reviews - Investor · Atlanta, GA · Member since 2020 · 33 posts · 14 votes3yWithout knowing anything... I would start by saying make it desirable... Is it about the neighborhood? general location? or is it fixable (rehab)?
No matter what you have, somebody needs it. Given what you have, who can get value out of it? find the best use for your property... section 8? STR, MTR? rent by the room? Explore the options you identify, decide on one, look at comps, like real objective comps and price it accordingly. Also make it look accordingly and match or exceed amenities.
Don't fully rely on property managers, if your property is the ugly child, the only one that loves it is you
If you share details maybe we can brainstorm solutions. let me know Quote from @Sara C.:
Looking for ideas on how to get my property to move. I have an undesirable unit which is not renting. I am not sure if I should rent less than the mortgage to get it to move or to cut my losses at this point it has been eight months. Property managements do not sound reliable and tell me they do not work with southeast properties. I was receiving many applications but the applicants are unable to afford the unit. I am not attracting the type of tenants I desire who can make payments. I have listed with section 8 as well with little responses.
Hi Sandra,
Can you post a pic to show the "Curb appeal" of the unit (or a Google Street view if its the same as now).
A from the other side of the road front shot.
Good Luck!
- Real Estate Agent · Bradenton, FL · Member since 2019 · 21 posts · 6 votes3y
@Sara C. I'm sure you are frustrated, but at least you are taking the steps to reach out. As most people have said focus on your market. Who is living there? what Is the average rent for the area? Rent-O-Meter is a great tool to use. Is there a way to make your home seem more appealing? I stress to not over improve just having a clean space with professional pictures does wonders. Where are you advertising to rent? I wish you the best!
As @Russell Brazil said, this is a very easy question to answer. If you are trying to sell OR rent your house and it is not moving after 8 months, you are priced too high, plain and simple.
This means that you are priced too high for your location and/or for what you are offering. You didn't give us details but lets say you're priced at $1500/M. Maybe people are willing to pay $1500/M for a unit in your area, but not for a unit on your street. Or not for a unit with your bedroom and bath count. Or not for a unit in your condition. You get the point. If you're priced in line with comps, there is something wrong with your unit that makes it worth less than others in the area.
Remodeling the home, sprucing up the landscaping, or adding amenities could help you get a higher rent rate. But you also don't want to through good money after bad.
Your options are:
1. Rent the place out at the true market rent and lose money every month.
2. Sell the property at a loss.
If you mistakenly bought in a bad area that has no hope for the foreseeable future, it might be best to sell, learn your lesson, and buy better next time...
- 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Pull the listing, take new photos and relist it at a lower price. Having it set empty for 8 months vs renting it $100 less per month, do the math and you'll see that you're better off getting it rented.
Your priced too high and if a decent pm doesn't want to go there the reason is the asset quality is too low for them. Your options are price it lower and manage it yourself. Dont try to dump this on someone else it will not work. If you get a good long term tenant great but if it becomes too much of a hassle to self manage I would sell it and by something probably for more money or in another city where your money can go further in regards to asset quality.
- South Holland, IL · Member since 2017 · 376 posts · 432 votes3y
@Sara Clark
Because you didn’t give many details on the property I will safely assume the property is an apartment in a D class neighborhood. I’ll also assume it’s a 3 bedroom apartment. Your best bet is Sec 8 but not with a 3 bedroom applicant. Try listing the property as a 2 bedroom. 3 bedroom voucher holders want houses and they can get them. While a 2 bedroom VH will be happy to have the extra room.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
It can be incredibly daunting when you're new to the REI game. Don't forget that others in your area might be just as new as you are! Take some time to research other voucher programs and see what works for property owners in your local market. To get ahead, focus on understanding the specific city or town you're investing in - it's the best way to get a clear picture of what's happening. Don't give up if you don't have any offers straight away - the market is always changing and your property might take off when you least expect it! Good luck!
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes3y
That is a straight up ****** neighborhood. I never solicited a PM in DC but have tons of experience with class D communities. My entire portfolio was low income at one point. In my Baltimore and St Mary's units PMs would not touch them. I was forced to manage them myself. One I managed from Afghanistan. Fact is, in too many cases this may be 10 percent of a property manager's portfolio but they have to spend 90 percent of their time dealing with chaos over there. Believe me, I'm a better manager than most of those people you can hire and in so many cases this is true. In most instances, if you find someone willing to mange them they tend to be incompetent bottom feeders. I've had my share of those fools. I'm under the impression that you are priced too high. Also, the condition of your unit needs to be assessed. In that area you would have to filter through several tenants with a strict screening to get the right one. That takes time in many instances. Also, regardless of the neighborhood, that good tenant will require a nice looking place with desirable amenities. In terms of lowering rent; you may have to assess what the accurate market rent should be. If you are above that you may not have a choice. In good conscious, I must tell you that if you chose to manage this yourself and you don't understand the culture or community, you can be in for an extreme rude awakening. In terms cutting your loses this is a tough business. If you encounter your first series of problems in this business and are ready to quit this may not be the business for you. If you continue to operate in these kinds of communities this can be the tip of the iceberg. I have experienced that and a thousands times more. If it comes to that and you really feel this isn't the space for you, don't walk away. Reach out to people here and maybe you can off load it to someone else where you both can benefit. Good luck in the future.
- Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes3y
You’re obviously not cut out for this. Sell it and retire from real estate investing.
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes3y
I hope Michael is joking because we can all learn from our experiences.
There are two reasons why a property doesn't rent/sell.
1. The price.
2. The agent marketing it.
If you feel like the agent/PM is doing everything reasonable in their power to get it rented, then it is the price. If you don't, then find someone else. For example maybe the PM isn't posting on Facebook Marketplace or Zillow where there are generally a lot of rental leads.
Quote from @Sara C.:
Looking for ideas on how to get my property to move. I have an undesirable unit which is not renting. I am not sure if I should rent less than the mortgage to get it to move or to cut my losses at this point it has been eight months. Property managements do not sound reliable and tell me they do not work with southeast properties. I was receiving many applications but the applicants are unable to afford the unit. I am not attracting the type of tenants I desire who can make payments. I have listed with section 8 as well with little responses.
As others have already stated, if it has not rented in 8 months your rent ask is too high for the property.
However, you have another problem. If your current rent ask is basically the same as mortgage, you have a huge negative cash flow renting the unit for less. There is vacancy (you have too much experience with this), maintenance/cap ex, PM (even if self managing you deserve compensation for this task), miscellaneous (portion of accountant, tax nan, office expenses, umbrella policy and/or LLC, etc). Negative cash flow gets old fast.
There is a lot of missing information. Is this a new acquisition? What was the plan? Do you have experience in this class of area? Did you do a pro forma?
With the little information that I have, I question if your best move would be to sell and ditch this unit. Seems like too many challenges for your level of experience and frankly not enough upside to justify the work and stress.
Good luck
- 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
There are really only two main reasons a property doesn't rent out:
1) Not enough exposure to the right target audience
2) The audience doesn't like the price-value relationship
To drill down on what the problem is:
How many views are you getting?
---Not enough is a sign that the property is not getting enough exposure, has a bad initial view or is priced way to highHow many inquiries are you getting?
---If a decent amount of people are viewing it, but not inquiring for more info or a showing, then they are not liking what they see when they view the ad. Either price is too high for what it is, or has bad pics or bad description or not enough showing availability.How many showings are being scheduled?
---Not enough is another sign that price is too high for what it is or has bad pics or bad description or not enough showing availability.What percentage of showings actually happen?
---If too many showings are cancelled, curb appeal may be an issue or may be part of the market and more confirmation is needed.Lots of showings but few applications?
---Usually a sign that price-value is perceived to be out of line. Need to lower price or improve the product.Some more ideas:
1) Is it on the MLS so other agents can show it?
2) Are they offering self-showings?
3) Have you reviewed the ad type and pics on your phone (how most prospects will look at) to verify acceptable?
4) What MoveIn Specials do they suggest?
5) What Along with 3-D Tour, what about a floorplan?
Ask your PMC a LOT of questions about what they are doing and try to brainstorm fixes.
Logical Property Management4.9460 Reviews Quote from @Jewel B.:
Quote from @Sara C.:
Looking for ideas on how to get my property to move. I have an undesirable unit which is not renting. I am not sure if I should rent less than the mortgage to get it to move or to cut my losses at this point it has been eight months. Property managements do not sound reliable and tell me they do not work with southeast properties. I was receiving many applications but the applicants are unable to afford the unit. I am not attracting the type of tenants I desire who can make payments. I have listed with section 8 as well with little responses.
Where is this located? How/where have you been trying to get tenants? What class neighborhood and property? You mention the rent in comparison to the mortgage...how does the current rent compare to the market? Have you tried offering half off first months rent? Have you tried offering shorter term leases just to get someone qualified in?
It is located off Alabama Ave in Southeast. I have tried offering shorter leases but am not finding eligible tenants. I receive applications and inquiries for the price. Something strange is the address is listed they view the unit and say they like it but not the neighborhood. I am not sure why they are looking if they do not want to live in the area.
Quote from @Mark Cruse:
That is a straight up ****** neighborhood. I never solicited a PM in DC but have tons of experience with class D communities. My entire portfolio was low income at one point. In my Baltimore and St Mary's units PMs would not touch them. I was forced to manage them myself. One I managed from Afghanistan. Fact is, in too many cases this may be 10 percent of a property manager's portfolio but they have to spend 90 percent of their time dealing with chaos over there. Believe me, I'm a better manager than most of those people you can hire and in so many cases this is true. In most instances, if you find someone willing to mange them they tend to be incompetent bottom feeders. I've had my share of those fools. I'm under the impression that you are priced too high. Also, the condition of your unit needs to be assessed. In that area you would have to filter through several tenants with a strict screening to get the right one. That takes time in many instances. Also, regardless of the neighborhood, that good tenant will require a nice looking place with desirable amenities. In terms of lowering rent; you may have to assess what the accurate market rent should be. If you are above that you may not have a choice. In good conscious, I must tell you that if you chose to manage this yourself and you don't understand the culture or community, you can be in for an extreme rude awakening. In terms cutting your loses this is a tough business. If you encounter your first series of problems in this business and are ready to quit this may not be the business for you. If you continue to operate in these kinds of communities this can be the tip of the iceberg. I have experienced that and a thousands times more. If it comes to that and you really feel this isn't the space for you, don't walk away. Reach out to people here and maybe you can off load it to someone else where you both can benefit. Good luck in the future.
You are spot on. After purchasing I found most property managers want something which will not take up their time. They mainly tell me nothing in Southeast is accepted. I bought into the hype of gentrification and saw all units have families ect. Any suggestions on how to learn the neighborhood? My rent for a 2/1 property is priced right. I am finding mostly locals want to live in the area and they know what it was like twenty yeas ago. They ask if it is still bad like it was before. Any groups or resources you know of where I can get assistance with my options for this property?
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes3y
@Sara C. gentrification is hitting SE but you have to know where. Anacostia is clearly marked for it and things will go up. You are talking about Congress Heights. This is one of the few last pockets of the city where most of the low income has been cramped into. They have eliminated most of the housing projects so either those residents have been forced out of the city or they are shoved into areas like Congress Heights or parts of Deanwood. Unfortunately things have took a turn for the worst. These places have low employment, high crime, drugs and guns all pushed in to corners where many have no hope. It's a pushed into small pockets like that. In essence they cleared them out of the rest of the city and pushed what they deemed all their problems way over there. You are in this area. Now, there is still tons of room for gentrification and it will come, but you will have to wait several years. I would like to pick up something in areas like this but I can navigate the problems. I lived there many moons ago and I invest/operate there often. You have a great group or resource right here. I know all of DC and specifically I'm well educated on where you are. I understand the culture and have been a landlord in similar areas for well over a decade. Feel free to run any questions, suggestions or ideas past me. PS; you will get people who tell you to abandon it because it impossible to be successful. Ignore silliness like that. You are communicating with one of thousands who without question have made it work. You must decide of you want to make it work because it gets sticky.
- 3yJewel B.Pro MemberNew to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votesWell maybe they don't know the neighborhood by name but upon driving down the street there, see undesirable signs. Could be graffiti, gang signs, boarded up houses, loose dogs, undesirable neighbors (for example if people are out on their porches and look less than appealing or are outside screaming and fighting), lots of trash all over, a bunch of ancient vehicles, a nearby business or something that omits a bad odor, etc. Seeing where it is on a map is not the same as in Google Street View is not the same as in person. What do the houses and street look (and sound and smell) like 7 houses in each direction from you?
Quote from @Sara C.:
Quote from @Jewel B.:
Quote from @Sara C.:
Looking for ideas on how to get my property to move. I have an undesirable unit which is not renting. I am not sure if I should rent less than the mortgage to get it to move or to cut my losses at this point it has been eight months. Property managements do not sound reliable and tell me they do not work with southeast properties. I was receiving many applications but the applicants are unable to afford the unit. I am not attracting the type of tenants I desire who can make payments. I have listed with section 8 as well with little responses.
Where is this located? How/where have you been trying to get tenants? What class neighborhood and property? You mention the rent in comparison to the mortgage...how does the current rent compare to the market? Have you tried offering half off first months rent? Have you tried offering shorter term leases just to get someone qualified in?
It is located off Alabama Ave in Southeast. I have tried offering shorter leases but am not finding eligible tenants. I receive applications and inquiries for the price. Something strange is the address is listed they view the unit and say they like it but not the neighborhood. I am not sure why they are looking if they do not want to live in the area.
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