House not renting due to error in operations
I recently listed one of my rentals about a week ago. I’ve recieved 26 applications so I know my price is right. The reason I have not chosen someone is because the previous tenant really left my property in bad shape and I was holding off for rock star tenants. I had one rock star tenant but they didn’t like the overall quality of the house. The mistake I also made was not completely finishing the house before listing. There were still some things that had to be done, ie closet door instillation, lots of landscaping, and minor touch ups. Some applicants said they will show up but they didn’t, other showed up and liked the property but not submitting application. One said she’s having trouble submitting application. The house is in a decent area. Prob B+-B- neighborhood. Out of the 26 I would say probably 22 met my criteria. I will not rent to an under qualified tenant. I will lose money for holding on market before I rent it out to someone who I feel like will maybe be problematic. I guess since I didn’t move quick enough in the beginning of finding the first qualified tenant, what my next step now? Keep it on market until I find someone. Eventually everyone will need to start looking once their leases start to expire. Should I remove the listed and re list once house is 100% ready? Should I keep on market? Should I lower my price? Should I sell (just kidding)
#3 Managing Your Property Contributor
Did you get 26 applications or 26 calls from people wanting to see it? Get the place ready for showing, but if it is almost done, you can show it if needed. With turnover, the key is getting things done quickly, so you can get it rented. There is no point people filling out an application until they've seen the place and are interested. Let them know what the qualifications are for the rental. You will always have people who don't show up. Stack the showings as much as possible so they are back to back and use the time to do things around the house-like landscaping.
A lot of applicants wanted to see the house before they filled out an application. I told them that they must fill out an application to make sure that they are qualified before I do any showings. Majority of them did not like that so they decided not to apply which is fine with me because more than likely they were not even qualified to begin with. One applicant was qualified but they had an infection on their record. When I called the current landlord they said that you do not have an eviction and I found out that the eviction was actually an error. They were not very happy because I did not believe them. Not my fault I was just doing my due diligence. Another I was unable to show when they wanted because I was trying to stack up the showings. I made a lot of errors. I had 26 applications. Lost count how many calls I received.
For me it’s first person who can pass a back ground check by a third party, it is not a perfect system but does flush out a lot of trouble.
I rented to 2 young men who passed a back ground 4 years back they did about $2500.00 damages smoked a lot of weed to the point I had to spray a degreaser on the wall then Killz it then 2 coats of paint. I looked back at the application see that they are 23 years old not sure how they managed to pass a back ground check. The deposit covered $1700.00.
I lick my wounds think it could be worse, I will look at the application closely on the age part I can’t deny based on age BUT make sure they are not slipping through the cracks somehow.
@Nadir M. I would pull the listing and re-list once the house is ready. Develop a process for renting and stick to it. The first contact I have with people I always ask the following questions:
Do you have income?
Do you have any criminal background?
Have you ever been evicted?
Do you have any pets?
If their answers to those questions are acceptable, we'll move to the next step in the process, which is to verify they answered those questions honestly. If they did so, I will show it to them. If they like the unit and want to move in, we do a full background check and income verification. Others may have a better process but this works for us. Once you develop a system and automate it as much as possible it will help you be more efficient and minimize time between tenants. Hope this info is helpful. Good luck.
Yes I always precheck over the phone do they gross 3 times the rent ,do they have felony ,any pets ,they must prove their income that part seems to be the part that gets fudge on a lot .I am back to no pets no longer need to take on the damages .Plenty do not have pets that want to rent . Then move on to the 3 party back ground check if they look a winner .
Quote from @Craig Sloan:I love this strategy. I’m out of state which makes it difficult: I may get one of those keyless entry door locks
@Nadir M. I would pull the listing and re-list once the house is ready. Develop a process for renting and stick to it. The first contact I have with people I always ask the following questions:
Do you have income?
Do you have any criminal background?
Have you ever been evicted?
Do you have any pets?
If their answers to those questions are acceptable, we'll move to the next step in the process, which is to verify they answered those questions honestly. If they did so, I will show it to them. If they like the unit and want to move in, we do a full background check and income verification. Others may have a better process but this works for us. Once you develop a system and automate it as much as possible it will help you be more efficient and minimize time between tenants. Hope this info is helpful. Good luck.
@Nadir M. I manage properties in Las Vegas and Henderson NV. I suggest removing the listing from the market and only put back on the market when it is 100% ready. This way you (1) manage expectations from perspective tenants by letting them know the property is being leased as is and no further improvements will be made. And (2) Your conversion ratio between showings and submitted applications will be higher. I also suggest preparing a qualification acknowledgment form that lists what the application qualifications are specifically. For example, 3x the rental amount, nothing 30 days past due, etc... be sure not to violate any fair housing on the list.
I’m definitely going to develop newer strategies. Also, when going to visit other property to check them out, what mostly are you guys looking for? Anything outside the obvious?
@Nadir M.
26 inquiries is COMPLETELY different from 26 applications. People typically don’t apply until they KNOW they want the unit. On Zillow I don’t allow people to apply until they answer some pre-walk thru questions and subsequently an in person interview. I know from experience that expressed interest from seeing the ad can completely turn around to 0 interest after visiting the property.
De-list the property and re-list it once it’s completed. It’s the only way to get quality tenants. By the time you re-list, you’re correct in assuming a new batch of applicants will be entering the market. You only need 1.
Quote from @Nadir M.:
I recently listed one of my rentals about a week ago. I’ve recieved 26 applications so I know my price is right. The reason I have not chosen someone is because the previous tenant really left my property in bad shape and I was holding off for rock star tenants. I had one rock star tenant but they didn’t like the overall quality of the house. The mistake I also made was not completely finishing the house before listing. There were still some things that had to be done, ie closet door instillation, lots of landscaping, and minor touch ups. Some applicants said they will show up but they didn’t, other showed up and liked the property but not submitting application. One said she’s having trouble submitting application. The house is in a decent area. Prob B+-B- neighborhood. Out of the 26 I would say probably 22 met my criteria. I will not rent to an under qualified tenant. I will lose money for holding on market before I rent it out to someone who I feel like will maybe be problematic. I guess since I didn’t move quick enough in the beginning of finding the first qualified tenant, what my next step now? Keep it on market until I find someone. Eventually everyone will need to start looking once their leases start to expire. Should I remove the listed and re list once house is 100% ready? Should I keep on market? Should I lower my price? Should I sell (just kidding)
Be realistic. 80% of renters are decent renters and will leave the home in good condition. You may have to use some of their deposit to cover additional cleaning or minor repairs, but you won't lose any money with them. I don't know what you consider a "rock star" but I doubt you'll find one when you're offering an unfinished product.
Get it turned around completely, put it back on the market, set your standards, then rent to the first person that meets your qualifications.
Quote from @Quincy Lockett:
@Nadir M.
26 inquiries is COMPLETELY different from 26 applications. People typically don’t apply until they KNOW they want the unit. On Zillow I don’t allow people to apply until they answer some pre-walk thru questions and subsequently an in person interview. I know from experience that expressed interest from seeing the ad can completely turn around to 0 interest after visiting the property.
De-list the property and re-list it once it’s completed. It’s the only way to get quality tenants. By the time you re-list, you’re correct in assuming a new batch of applicants will be entering the market. You only need 1.
I will do just this!!! Thanks you for your expertise
Quote from @Nathan Gesner:
Quote from @Nadir M.:
I recently listed one of my rentals about a week ago. I’ve recieved 26 applications so I know my price is right. The reason I have not chosen someone is because the previous tenant really left my property in bad shape and I was holding off for rock star tenants. I had one rock star tenant but they didn’t like the overall quality of the house. The mistake I also made was not completely finishing the house before listing. There were still some things that had to be done, ie closet door instillation, lots of landscaping, and minor touch ups. Some applicants said they will show up but they didn’t, other showed up and liked the property but not submitting application. One said she’s having trouble submitting application. The house is in a decent area. Prob B+-B- neighborhood. Out of the 26 I would say probably 22 met my criteria. I will not rent to an under qualified tenant. I will lose money for holding on market before I rent it out to someone who I feel like will maybe be problematic. I guess since I didn’t move quick enough in the beginning of finding the first qualified tenant, what my next step now? Keep it on market until I find someone. Eventually everyone will need to start looking once their leases start to expire. Should I remove the listed and re list once house is 100% ready? Should I keep on market? Should I lower my price? Should I sell (just kidding)
Be realistic. 80% of renters are decent renters and will leave the home in good condition. You may have to use some of their deposit to cover additional cleaning or minor repairs, but you won't lose any money with them. I don't know what you consider a "rock star" but I doubt you'll find one when you're offering an unfinished product.
Get it turned around completely, put it back on the market, set your standards, then rent to the first person that meets your qualifications.
I agree. The only bad tenant I had were the ones placed by my PM. I’ve since fired them and took over. I plan on learning the ins and outs to the best of my ability then hand it over to a new PM
Quote from @Nadir M.:
Quote from @Craig Sloan:I love this strategy. I’m out of state which makes it difficult: I may get one of those keyless entry door locks
@Nadir M. I would pull the listing and re-list once the house is ready. Develop a process for renting and stick to it. The first contact I have with people I always ask the following questions:
Do you have income?
Do you have any criminal background?
Have you ever been evicted?
Do you have any pets?
If their answers to those questions are acceptable, we'll move to the next step in the process, which is to verify they answered those questions honestly. If they did so, I will show it to them. If they like the unit and want to move in, we do a full background check and income verification. Others may have a better process but this works for us. Once you develop a system and automate it as much as possible it will help you be more efficient and minimize time between tenants. Hope this info is helpful. Good luck.
I’ve developed this process. I ask them the questions regarding my requirements then if they answer yes then I’ll show them properly. If they like then they need to apply.