Need advice: Taking too long to find renters

Baltimore, Maryland
General Landlording & Rental Properties
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Need advice: Taking too long to find renters

Cecilia Ann Jones
Member since 2021 路 5 posts 路 3 votes

Hi, this is my first post since turning BP Pro a few months ago. I closed on my first rental property, a townhouse in the Canton neighborhood of Baltimore on 6/14. I am using a property manager, and there are listings through MLS and many other sites. I thought it would be rented by now, but there have been only 2 showings in 15 days. I fear that people are trying to request showings but there's some type of disconnect in the process. Does anyone have any advice?

If you want to see the listings, Google 800 S Ellwood Ave rent
 
Oh--and I also need a smart tax attorney, does anyone have a recommendation? 

Thanks!

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Scott Mac
Austin, TX 路 Member since 2019 路 5k+ posts 路 5k+ votes
4y

I made an exterior mockup of what I think a more upscale exterior might look like.

Something that (to me) "feels" more a match to the interior.

Should you do this, probably not.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    4y

    Seriously you think 2 weeks is too long? Anyone looking for a July 1st move in will have already have locked up a property before you even closed on a property. Cloaing June 14 you should be planning on having a tenant move in August 1. 

    [email protected]301-893-4635Podcast Guest on Show #192
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    3Reply
  • Jack Seiden
    Real Estate Agent 路 Washington DC 路 Member since 2016 路 847 posts 路 656 votes
    4y
    Quote from @Cecilia Ann Jones:

    Hi, this is my first post since turning BP Pro a few months ago. I closed on my first rental property, a townhouse in the Canton neighborhood of Baltimore on 6/14. I am using a property manager, and there are listings through MLS and many other sites. I thought it would be rented by now, but there have been only 2 showings in 15 days. I fear that people are trying to request showings but there's some type of disconnect in the process. Does anyone have any advice?

    If you want to see the listings, Google 800 S Ellwood Ave rent
     
    Oh--and I also need a smart tax attorney, does anyone have a recommendation? 

    Thanks!


     You are the 2nd highest priced rental in all of canton, high priced rentals and homes take a relatively long time to rent and/or sell and it鈥檚 possible your just too high for that market.

    5Reply
  • Mike Eichler
    Realtor 路 Pocono Pines, PA 路 Member since 2019 路 183 posts 路 108 votes
    4y

    Have you considered trying out a short-term rental strategy (Airbnb, Vrbo, etc, not saying it is best for your area/listing just a consideration, Id be happy to run some numbers for you and analyze your area for free. Reach out if you are curious!

    1Reply
  • Scott Mac
    Austin, TX 路 Member since 2019 路 5k+ posts 路 5k+ votes
    4y

    I second the rental amount (for the neighborhood) because that is a very nice upscale home.

    My other thought is to me it's aimed at (for lack of a better term) Yuppies...higher income folks who like to entertain and show off an upscale living space.

    Are there a lot of those types around or are they few and far between. 

    Is the neighborhood desirable to that type of person(s), such as gentrifying or other upscales living nearby with upscale restaurants and etc..in the area.

    What do you think it would sell for, in that neighborhood? 

    If it were mine (and I were selling it) I  would use the Avocado Green on all of the walls (because it goes well with the floor tone and is retro).

    I would also get rid of the green grass on the sidewalk cracks and have the sidewalk power washed to as white as possible.

    I would also 100% finish the basement to look as polished as the top floors.

    The bath with the glass door fits the unit type, the other two look like 1950's refurbished baths in comparison--kind of, you have to settle for them.

    As far as rentals go I'd call this a class A rental, how many people want class A rentals at this price point in this neighborhood???

    I see this as appealing to probably DINK 40's and 50's (with 3 baths ???) vs a family with kids. Professional types who want to have a showy living space.

    All in all I like it--and my comments are not meant to be suggestions of what to do, just my thoughts on how to package it for sale.

    But still, you need the correct customer for this. A Cadillac in a KIA neighborhood isn't going to go for as much as in a Cadillac neighborhood--Location, Location Location.

    You are offering a high end unit, not a run of the mill Section-8 type unit with waiting lists of renters.

    Just my 2 cents.

    2Reply
  • Scott Mac
    Austin, TX 路 Member since 2019 路 5k+ posts 路 5k+ votes
    4y

    I made an exterior mockup of what I think a more upscale exterior might look like.

    Something that (to me) "feels" more a match to the interior.

    Should you do this, probably not.

    5Reply
  • Leo R.
    Investor 路 Member since 2021 路 591 posts 路 695 votes
    4y

    @Cecilia Ann Jones I went to college near Baltimore, and have spent plenty of time around the city; it's got some fun neighborhoods!

    Generally speaking, if a rental is taking a long time to rent, it's often because A). it's not being marketed correctly, B) it's priced too high, and/or C) whoever's managing it isn't doing a good job responding to inquiries/setting up viewings.

    Based on what others have said, it sounds like you may be priced too high.  But, it's also possible that the property isn't being marketed correctly and/or that you PM isn't doing a good job, so I'd say it's worth looking into those issues as well...

    It's a good-looking A- to A property, and it looks like you've got professional photos...the presentation is good...but, as others have mentioned, even the best-looking property might not attract tenants if something about the property (its rent, its location, the types of tenants it attracts, etc.) is out of sync with the market...

    It's worth considering: who is your target consumer? Is it three young professionals splitting the rent? Is it a wealthy couple who want to have a lot of extra BRs and BAs? Is it a family with a kid or two?  ....considering that it's got 3 bathrooms, I'm guessing it would work best for three young professionals (and if you rented it by the room, you'd be more likely to hit or exceed your rent target).

    Good luck out there!

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 路 15k+ posts 路 11k+ votes
    4y

    If it is a higher end property, it may take longer to rent.  If you aren't happy with it, why not try to rent it yourself?

    0Reply
  • Jon KellyPro Member
    Investor 路 Bethlehem, PA 路 Member since 2016 路 929 posts 路 951 votes
    4y

    @Cecilia Ann Jones price is usually the #1 factor. You're at the top of the market in or Canton... Are you willing to wait for the right tenant or lower it $200? 

    Luxury rentals have a higher risk/reward with them. Be patient. 

    0Reply
  • Cecilia Ann Jones
    OP
    Member since 2021 路 5 posts 路 3 votes
    4y

    Thanks everyone! It's good to hear the collective experience of our community. I really appreciate it! Yes, it's priced a little high. I looked at other recently-rented units with similar square footage, and it's in the range, but on the high side. Canton is a nice, fun and trendy neighborhood near the water, with lots of good restaurants and bars. Rents are going up. We think the place will appeal to young professional roommates, or a couples with children and/or an in-law. The main-level bedroom/bathroom suite is rare.

    Perhaps the most significant drawback is that there is only street parking. One prospective tenant gave us that feedback, something we already had realized. There always seems to be plenty of free, unrestricted street parking very close to the front door, but many similar units have one off-street parking space.

    I still wonder how reliable the process for collecting and routing inquiries is for all the websites? I can't help feeling that we're not hearing from all the interested prospective tenants. I've gotten reports showing high numbers of views and clicks, yet only 4 inquiries and 2 showings so far.

    @Scott Mac, I definitely agree about getting rid of the green grass out front; I only first noticed it when I was there yesterday and I'll bring my gardening gloves and take care of it on my next visit. I liked your mock up too. Shutters and an awning would be great additions.

    1Reply
  • Matt Bishop
    Rental Property Investor 路 Dallas, TX 路 Member since 2020 路 161 posts 路 88 votes
    4y

    @Cecilia Ann Jones, i looked on Zillow and searched for 800 south Ellwood in Canton, Ohio and says Location Can't Be Found.

    1Reply
  • Michael Plante
    Deland, FL 路 Member since 2017 路 2k+ posts 路 1k+ votes
    4y
    Quote from @Matt Bishop:

    @Cecilia Ann Jones, i looked on Zillow and searched for 800 south Ellwood in Canton, Ohio and says Location Can't Be Found.


     https://www.zillow.com/homedet...

    0Reply
  • Cecilia Ann Jones
    OP
    Member since 2021 路 5 posts 路 3 votes
    4y

    @Michael Plante it's Baltimore, Maryland. The neighborhood is called Canton.

    @Matt Bishop

    0Reply
  • Christina M.
    Rental Property Investor 路 PA 路 Member since 2017 路 69 posts 路 60 votes
    4y

    @Cecilia Ann Jones

    Your home appears well maintained and very clean this is key. Although I noticed the washer and dryer area does not match the rest of the house. At this level of rent attention to every detail is key.

    To me your rental says young professionals versus family with children because the Baltimore Schools are a big 馃槵. Some Parents do send their children to private schools although at higher rents it's an added advantage to be in a good/great school district. Is the house Pet Friendly? Young Professionals without children usually have pets. Is there a park or yard?

    We had 2 units go up on the same day one home and one apartment, two realtors, two different but great locations, school districts (both great) and two different type of renters and price points. The house had 3 showings one after another same day (2 applications 3rd wanted to look at one more house before making decision) and the apartment rented to first showing on first day listed.

    We have been through many rentals markets since the mid-90s but have not seen a market like this one.

    Although people always need a place to live perhaps ask your Realtor for feedback from the showings? Did you review other rentals in your area for comparisons? How did you arrive at your monthly rent? Do you clearly list everything included in the rent? Is there a professional colored pictures that highlights the home and what is included in the rent for people to take with them?

    1Reply
  • Michael Plante
    Deland, FL 路 Member since 2017 路 2k+ posts 路 1k+ votes
    4y
    Quote from @Cecilia Ann Jones:

    @Michael Plante it's Baltimore, Maryland. The neighborhood is called Canton.

    @Matt Bishop

    Yes that is what I linked 
    0Reply
  • Manco Snead
    Investor 路 Spokane, WA 路 Member since 2015 路 238 posts 路 133 votes
    4y

    If possible, ditch the property manager and manage it yourself. There is a learning curve, but once you know what you're doing you'll almost always manage it better than a PM. And you'll save money.

    0Reply
  • Gary L Wallman
    Rental Property Investor 路 Beavercreek OH 路 Member since 2018 路 422 posts 路 970 votes
    4y
    Quote from @Cecilia Ann Jones:

    Hi, this is my first post since turning BP Pro a few months ago. I closed on my first rental property, a townhouse in the Canton neighborhood of Baltimore on 6/14. I am using a property manager, and there are listings through MLS and many other sites. I thought it would be rented by now, but there have been only 2 showings in 15 days. I fear that people are trying to request showings but there's some type of disconnect in the process. Does anyone have any advice?

    If you want to see the listings, Google 800 S Ellwood Ave rent
     
    Oh--and I also need a smart tax attorney, does anyone have a recommendation? 

    Thanks!


     Cecilia,

    I think your rental is absolutely stunning! That being said, rentals at that price point often take months to rent. Most families that can afford nearly 4k a month prefer to own, so rental prospects slim way down.

    I'd simply be patient, knowing I have likely the nicest rental property available in your market.

    Gary

    1Reply
  • Pamela W.
    New to Real Estate 路 Burlington MA 路 Member since 2022 路 26 posts 路 15 votes
    4y

    It is a lovely place, and I see why you might not want pets to wreck it, but alot of folks love their cats or dogs, especially if they don't have children yet. You might widen your pool of applicants by accepting pets. 

    1Reply
  • Curtis Mears
    Property Manager 路 Raleigh, NC 路 Member since 2014 路 729 posts 路 596 votes
    4y

    @Cecilia Ann Jones

    Property looks good. So, what about location and price? Is it comparable to other properties? If so, and rent is in the general range, then give it time. I generally, list it for 2 weeks, then lower the rent by $50 til I get a tenant. I do not get a lot of apps and showings for properties because my process causes potential tenants to self screen. I would prefer 1 or 2 qualified applicants vs 20 and only 1 or 2 are qualified.

    2Reply
  • Chris John
    Member since 2020 路 671 posts 路 937 votes
    4y

    @Scott Mac

    Can I send you some pics of my house and yard so you can mock up some stuff for me?  haha.  You're very talented and I love your vision!  

    1Reply
  • Matthew Paul
    Severna Park, MD 路 Member since 2013 路 7k+ posts 路 7k+ votes
    4y

    @Cecilia Ann Jones  Nice looking place .  You are worried about it not renting quick . Using the baseline of 3 times the rent for income to qualify . The tenant would have to make close to $150K a year  to qualify . You have no parking , if they have kids the schools are terrible unless you go private . Luxury apts with door men and parking can be had for the same or less with views , pools and work out rooms .  If they have that high an income and a good credit score , they will buy a house . If and when you do find a tenant , they will be there maybe 2 years , most likely less . Those tenants are recent transfers and need a place while they settle in and look to buy . 

    For the price you are asking or less , a tenant could rent a 4 bed house in Severna Park in a water priviliged community with blue ribbon schools , a yard , a garage and a driveway .

    0Reply
  • Scott Mac
    Austin, TX 路 Member since 2019 路 5k+ posts 路 5k+ votes
    4y
    Quote from @Chris John:

    @Scott Mac

    Can I send you some pics of my house and yard so you can mock up some stuff for me?  haha.  You're very talented and I love your vision!  


     Sure, post them in here and quote this, and I will see what I can do.

    Or just put the address for a street view if the look is current.

    But quote this with the quote button, so I know it's there.

    0Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent 路 Baltimore, MD 路 Member since 2016 路 1k+ posts 路 782 votes
    4y

    If you have 2 showings in 2 weeks, you are basically over price the unit.

    2 weeks is too long to show only two times, this is summer season, you should be getting many interest to look at it.

    If nobody wants to see it, it is over their budget.

    0Reply
  • Mark Cruse
    Investor 路 Fort Washington, MD 路 Member since 2014 路 1k+ posts 路 1k+ votes
    4y

    I'm not that familiar with Canton but we have enough gurus in here who should be able to tell you if that price is decent. With my limited scope on the dynamics of that area, if its near the Harbor its a chance its a decent community. However, within my personal line of thinking it seems like this kind of rental will take longer regardless. For that price point, the person with that income can live nearly anywhere they want in Baltimore. In addition, they most likely have a vast degree of resources where they can purchase their own property with a mortgage less than that rent. At least that is what I would do. These kinds of people are unrestrained where they can live and if you are not offering much more than everyone else, it could take time.  Baltimore schools suck ***. No matter what, crime is not far. For this price I'm sure there are vast offerings of condos with secure parking, pools, hot tubs, rec rooms, gym etc. Id seriously assess my price points and see if its well within the realm of other stuff they can obtain for that price. Good Luck! 

    2Reply
  • Joe Norman
    Property Manager 路 Baltimore, MD 路 Member since 2014 路 1k+ posts 路 1k+ votes
    4y

    You should ask your PM what their funnel is for capturing leads and converting them into showings - if they don't give you a detailed answer then you should look for another PM.

    That said, I agree with everyone on here that you're probably priced too high. $3800 is the high end for Canton, and while some of the rooms in this unit look high end, others do not. I suggest either 1) a cosmetic rehab to bring all of the rooms up to meet this lux price, or drop the price to better match the home.

    Good luck!

    1Reply
  • Sean MonahanPro Member
    Real Estate Agent 路 21224 路 Member since 2018 路 98 posts 路 61 votes
    4y

    Hi Cecilia.  I live and work in this area and I have six rentals in the area.  You're home is incredible and Canton is a wonderful part of Baltimore but that price is too high.  Airbnb does not work unless it is your primary residence here in Baltimore.  One option you may want to consider is a longer short term rental (those greater than 90 days) to comply with Baltimore legal standards.  

    As an example I have helped two clients use a strategy I like to do.  I rent to traveling professionals.  Mostly travel nurses.  Their contracts are 13 weeks (91 days).  They pay a premium due to the short nature of their stay. If you price right, many like to stay for up to a year decreasing the amount of vacancy.  The draw backs are you need to furnish the property and cover the bills (water, electricity and gas).  Factor that in.  This has allowed me to buy nicer properties in better areas, cash flow them with the traveling professionals until rental increases come up to make it make sense at a full 12 month lease rental.  

    Let me know if I can answer anything else for you!

    Happy Investing!

    0Reply
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