Cannot find a rental tenant: Ohio City, Cleveland, Ohio

Cannot find a rental tenant: Ohio City, Cleveland, Ohio

Member since 2023 · 3 posts · 4 votes

Hello,

I recently acquired my first rental property in a nice part of Ohio City, Cleveland 44113. It's a 2bd (with a large office as well), 1.5ba upscale unit in great shape, very well-maintained, and very close to bars, restaurants, and transit. The pricing for the unit is higher than surrounding 2bds, but is also in much nicer shape and much more spacious. I'm also charging less than Rentometer suggests I should.

There are a few equally nice units a few blocks away that charge comparable rent. The unit has been on the rental market for about 4 weeks now (Zillow, Redfin, Facebook Marketplace, Craigslist), and I've had some inbound interest, but not nearly as much as I expected. Only a few showings, which have gone well, but not one person has actually applied yet. I know it's off-season right now, but this feels way too low.

I guess my questions are:

1) how long do units usually sit on the market without getting rented out this time of year?

2) Is price the main lever I should look to pull? I know Id probably get a bit more interest if I lowered rent, but I'm not sure if pricing is really the reason for low interest. The potential tenants that came for showings did not seem remotely put off by the rental price. 

Any help is greatly appreciated. Thank you!

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Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
2y

The market - not a rent meter - determines the price.  If you have over-improved the unit for the market, it is highly unlikely that you will reap a higher rent price...the market just doesn't support it.  You can spend more money on photos and staging but those do not override market price either.  What you might consider is renting it for six months (if legally possible) rather than a year at a lower price (using the highest price near-comp to yours) and then raising the rent at lease end when the market is high.  Timing does play a role here and you may just want to hedge your position, start the cash flowing, and then revisit a higher rent when the market is humming.

Hope this helps...

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 512 votes
    2y

    We are headed into some slower times for rentals. If a unit is priced and marketed correctly, generally, you should have an approved rental application in 30 days. This can extend out in November and December. 

    I have seen professional photos or professional looking photos help with renting out a property. You want to get people interested enough to call. 

    Price is definitely a factor but if you think it's comparable to what's out there, I would try the photo change first. I've seen that make a difference. 

  • Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    2y

    The market - not a rent meter - determines the price.  If you have over-improved the unit for the market, it is highly unlikely that you will reap a higher rent price...the market just doesn't support it.  You can spend more money on photos and staging but those do not override market price either.  What you might consider is renting it for six months (if legally possible) rather than a year at a lower price (using the highest price near-comp to yours) and then raising the rent at lease end when the market is high.  Timing does play a role here and you may just want to hedge your position, start the cash flowing, and then revisit a higher rent when the market is humming.

    Hope this helps...

  • Member since 2023 · 3 posts · 4 votes
    2y

    Thanks for the replies. I don't believe the unit is overpriced, especially relative to comparable units nearby. I'll test moving price down a bit and see if that raises any interest. I'll also be looking for a 6mo lease to get back onto the standard cycle. Will reply on this thread when I have updates.

  • Member since 2023 · 2 posts · 2 votes
    2y
    Quote from @Dillon Morrison:

    Thanks for the replies. I don't believe the unit is overpriced, especially relative to comparable units nearby. I'll test moving price down a bit and see if that raises any interest. I'll also be looking for a 6mo lease to get back onto the standard cycle. Will reply on this thread when I have updates.

    What part of Ohio City?  There was a property listed that the ad was taken down in less than a week.
  • Member since 2019 · 104 posts · 72 votes
    2y

    Most, if not all, Northern cities are going to be slower in winter; I mean, who wants to move in the snow? 

    If you're not overpricing yourself relative to the competition, and the unit is nice (clean, in good shape, etc.), then the only thing left it could be is your marketing. Are you listed on Zillow, Avail, Apartments.com, and TurboTenant? With that combination, you will be syndicated on almost all the apartment-listing websites.  Also, before you do so, re-examine your existing ads. Unless your photos and copy are professional quality, consider retaking and re-writing them, or just having a professional do it for you.

     I would also throw in Facebook, and spring the extra money for the promotion. You'll get a lot of leads (although the majority will be low-quality leads), but you'll at least have something to work with. 

    Also, in the future, put a clause in your leases restricting ending the lease in winter, and you won't have this problem next time...

  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    Due to the fact it's winter you will likely have to have low rents for the first few months and keep tenants on a month to month lease. With the knowledge that their rents will be raised after a period of time. 

  • Member since 2023 · 2 posts · 2 votes
    2y
    Quote from @Samuel Diouf:

    Due to the fact it's winter you will likely have to have low rents for the first few months and keep tenants on a month to month lease. With the knowledge that their rents will be raised after a period of time. 

    Thank you.  If potential tenants know this they may be hesitant to rent during the winter months.
  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    2y

    Cold weather, snow and holidays- no one wants to move right now unless they have no choice. If you want it filled ASAP your are going to have to lower the price. Demand helps set the market price and the demand right now is not high

  • Member since 2023 · 3 posts · 4 votes
    2y

    FYI - I ended up coming down on price a bit, and the unit went pretty fast. I was pricing at a premium since it's a premium unit. Once a took that down to market average, the unit went within 2 weeks. We did standard marketing - postings on zillow, redfin, etc.

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