Small Multifamily, how long are your vacancy on average?

Question

Hello BP Family,

I recently purchase a quadplex that currently has one vacant unit (2br/2bath).I have a PM to screen and find a tenant. I am worried about an extended vacancy. We have not listed the unit yet, we're taking pictures tomorrow.

The unit is in an "C" class area with a community of small multifamily, duplex and quadplex. I looked on Zillow and Hotpad and there are about 7 other listings that are for rent. I august/September a hard time to find renters?

People with quadplex in a multifamily community, how long are your typical vacancy?  But, should I be concerned about finding a rental. My price point is about average for the area "700". I have no intentions on lowering my standards in terms of background check, etc.

Being my first rental and vacancy i am very nervous and concerned. Wish me luck!

Robert Hernandez · Answer

@Josh Bakhshi How is September? I listed it on the 21th August so it will be approaching 2 weeks. From last week I got an update of 2 walk through, 8 phone calls, and about 30 email inquires, but no application that I am aware of as of yet.

How are these numbers, should I lower my asking price?

Clark Kirkpatrick · Answer

@Robert Hernandez OP is right... it'll probably be just fine. I use my smart move for screening, and that's worked well for me. A professional photographer (if they're good) will do wonders for making the unit look attractive, so that's definitely a good idea. I generally look for a 600 credit score or better, and I look at as many factors as I can find before approving someone - calling prior landlords, verifying employment and pay, making sure they make 3x the rent, looking them up online to see what comes up, etc. I like to advertise on HotPads because if a tenant finds me there, they can probably also communicate via email and pay rent online. These are characteristics I prefer in a tenant.

I wouldn't worry too much, there is always going to be some competition but you don't need a ton of customers. You just need one good tenant, and I bet there are more prospective tenants in your market than there are vacant apartments.

Josh Bakhshi · Answer

Robert,

Relax and take a breath.  You haven't even listed it yet and you are already nervous?  Give your PM time to do their job and earn their money.  It it is vacant after 4 weeks and no showings, then you need to look and see what the problem is.  Also, Aug is a good time for rentals.  Nov-Jan are the bad times.  You will be fine

Josh Bakhshi · Answer

Robert, August are typically when people move most for schools.  (May to Aug).  Another time is Feb-March b/c people get their tax returns.  Good luck

Robert Hernandez · Answer

@Josh Bakhshi Thank you for the advice. You said august is a good time for renters, why is that?

@Clark Kirkpatrick That is the plan, we hired a professional photographer. I appreciate your advice. That is a great way to screen your tenants. And I like how you mentioned that we are in a renter market. And you only need 1 tenant! Thank you

Robert Hernandez · Answer

@Clark Kirkpatrick What platform do you use to find tenants? And what are your screening criteria? My PM is scheduling a professional photographer and the unit is clean and in decent shape. Should I be worried about the competition,  Do you have any other advice?

@Bjorn Ahlblad Wow, that is a excellent way of putting it. I never though about it that way. I guess being my first renter i'm very anxious. Wish my luck!

Bjorn Ahlblad · Answer

@Robert Hernandez A 4 plex is 48 rental months per year. At 5% vacancy that would equal 2.4 months of vacancy per year.

Clark Kirkpatrick · Answer

I have rentals in a market that sounds similar to yours and have not found issues with this. We make the units look decent and take excellent photos, and usually have someone good within a couple weeks.

Small Multifamily, how long are your vacancy on average?

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