Richardson, TX · Member since 2013 · 20 posts · 0 votes
My duplex unit has been posted on craigslist, zillow, and trulia for about 2 weeks. I've also got a sign out front. I've gotten many calls and emails showed the place to about 10 interested parties. After showing the unit, people say that they like it and they're interested in applying and I send them an application but I've only received 1 back.
This unit has never been rented before as it was owner-occupied. I set the price based on comps from craigslist and zillow. I assume the call volume means the price is OK, so why is no one filling out an application?
I've created a fillable pdf to make it easier for people to apply. The application fee is $40 which is about average for the area.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
13y
Why don't you have them fill out the application while they are there? $40 application fee sounds expensive to me. Are you sure that is typical. Or is it just typical for other units that are un-rented LOL?
Real Estate Investor · Davenport, IA · Member since 2013 · 71 posts · 17 votes
13y
It seems that your potential clients do not want to pay 40$ for you to politely tell them "no way in heck are you living in my property". The application fee is for sure a way to weed out some iffy tenants, but the price could take out some major players as well. This is always a tough one to overcome, and one I too am trying to get right...or as right as right can get in my market.
Minooka, IL · Member since 2013 · 353 posts · 85 votes
13y
I run a 25 dollars credit check but I state very clearly that the fee will be waived if a lease is signed. It weeds out the tire kickers but brings in the serious ones.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
13y
There can be a ton of reasons as to why the property is not renting. It may be the neighborhood, the price, a smell in the house you are used to and not noticing, outdated appliances, scary toilet, etc. You might have a friend run through it and get their feedback, or even call someone who looked and did not rent and ask them for feedback. It may be the $40 fee, or it may be something else. I live in a small town and have never run a background check on anyone before, and its definitely not normal in my area but I am sure it is common in some areas. To the best of my knowledge no Landlord in my town does background checks.
Richardson, TX · Member since 2013 · 20 posts · 0 votes
13y
Thanks for the suggestions. According to my comps the application fee ranges from $35-50. I pay $30 for credit + background check, $8.95 for eviction check.
I'm going to try your ideas and say there is NO application fee but a $40 fee for credit/background/eviction checks if the application looks OK. I will also offer to credit this fee to the first month if a lease is signed.
Investor · buffalo, NY · Member since 2008 · 354 posts · 23 votes
13y
I agree it could be pricing as well if I show a place and tons of people are interested but no is willing to step up and rent it usually means the price is too high. I also believe the application fee doesn't help.