Having a hard time finding tenants for my rental my unit.

Investor · Member since 2020 · 49 posts · 34 votes

Dear BP investors,

I have a duplex in Ohio and I put an 1/1 unit on the market for rent. It has been on the market for more than a month, my PM told me to consider decreasing the rent, but I see competitors in the area charging the same amount for the same type of unit. My question is: what strategies do you usually employ to get tenants in situations like this? and how long do you wait to see if a strategy is working or not (2 weeks)? Thank you.

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

@Diana Costta if Rentometer is telling you the property is worth $XXX, then see if they'll rent it from you.

You're basing expectations on a computer algorithm. That computer does not know the size of rooms, layout, noise levels, condition of the yard, smells, paint colors, or the other 72 variables that impact a renter's decision-making process. Are the others higher quality? Better location? Better layout? Larger square footage? Across from a park? Walking distance to the local watering hole? Do they include some utilities? Maybe they include a washer/dryer whereas you only have hookups (or nothing)?

You "estimate" your rental is worth $XXX. It sits vacant in a HOT market for two weeks without a single qualified applicant. That's a good indication you're priced too high. You may see other rentals that appear comparable to yours, but there's obviously something that attracts renters to something else, so you need to figure out what that is or reduce your price to make yours more attractive.

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Barry Robinholt
Investor · Cleveland, OH · Member since 2020 · 17 posts · 10 votes
4y
Hi Diana,
Cleveland is a great market to be in so you made a great decision there. Some strategies I’d consider would be knocking the rent down $25 or so (depending on rent) for an on time payment. This will incentivize the tenant to always pay on time. Also, maybe include the water bill and grass cutting as part of the landlord responsibilities if not already. I’d see how it goes after 1 week and then adjust.

2 Reply
David M.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
4y
@Diana Costta
Those other competitors, are their units similar quality / finishes? How were those properties marketed? Are they really close by? The neighborhoods really similar? Are those units 1/1?
Are you getting an inquiries and/or showings? That would be most telling. In this market, rentals are going crazy. Something is detering potentially renters. Usually a big factor is the price/rent.
3 Reply
Garrett Swan
New to Real Estate · Member since 2020 · 13 posts · 16 votes
4y
@Diana Costta
Not sure what the rental market is like in Cleveland- as for my rentals in Albany NY, I will post vacancies on Facebook marketplace, Realtor and Zillow with a short description of what the unit is like as far as beds/baths, if parking is included, if it is pet friendly or not and what i pay as the landlord such as water and what bills will be in the tenant's name such as electric. I also mention local attractions within walking distance such as parks or farmers markets and mention local schools and any major highways that are within a short commute of the property. Lastly, I always take good quality resolution photos to show what the property looks like both inside and out because most of my competitors don't upload photos (description only) or they upload blurry iPhone pics, I've had great success in beating my competition this way and hope this helps you out.
Best,
Garrett
8 Reply
Justin Moy
Investor · Kansas City, MO · Member since 2020 · 400 posts · 278 votes
4y
I'd think of LASAL...Leads, Appointments, Showings, Applications, Lease.
Are you getting any leads? If not, you may need to adjust price but if your competitors are truly having a similar or worse product then it's likely a marketing issue. How many impressions are your listings getting? Clicks?
If you're getting leads and those leads are touring the property but not putting in an application, I'd ask if you're truly comparable to the market for the price you're asking, or your manager might be off-putting during the showing or the property isn't showing well, might need cleaning or some type of decor or possibly additional lighting.
Price solves most challenges, if your competitors are also listed at your rental price, have they been vacant for long? Maybe it's the blind leading the blind in terms of setting comps.
4 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
4y
Try lowering the rent some.
1 Reply
Brock Dowis
Investor · Member since 2021 · 203 posts · 124 votes
4y
What sort of actions are the PM taking to fill the vacancy?
5 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
Quote from @Barry Robinholt:

Hi Diana,
Cleveland is a great market to be in so you made a great decision there. Some strategies I’d consider would be knocking the rent down $25 or so (depending on rent) for an on time payment. This will incentivize the tenant to always pay on time. Also, maybe include the water bill and grass cutting as part of the landlord responsibilities if not already. I’d see how it goes after 1 week and then adjust.

@Barry Robinholt My PM recommended running a special of $250 off the deposit. Let's see how that goes. Landlord is already responsible for water and grass.
1 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
@David M. yes, one property came up last week on the same street of my property. Also a 1/1, so if they get to rent that one faster than mine. That will tell me, there's a deterrent to mine.
In terms of leads I got 65 leads, 9 showings and 1 application for that unit which it was denied because of credit and income. I am hesitant to reduce rent because rentometer and BP rent estimator tells me that the current rent for that area is what is being announced at my property.
1 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
@Garrett Swan will try FB marketplace and see how that goes. Thank you!
3 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
@Justin Moy yes, I got 65 leads, 9 showings but only 1 application which was denied. The competitor just put the his unit last week so let's see how that goes. My property has been vacant for more than a month.
I am now running a special on the deposit and hopefully that will help. Thank you.
2 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
@John Underwood yeah, that might be an option.
0 Reply
David M.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
4y
@Diana Costta
Any feedback from the 9 showings? Guess not??
1 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
@Brock Dowis they have the property showing on their sites and partners such as redfin and apartments. They also do showings too.
0 Reply
Rodney Sums
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
4y
Quote from @Diana Costta:

Dear BP investors,
I have a duplex in Ohio and I put an 1/1 unit on the market for rent. It has been on the market for more than a month, my PM told me to consider decreasing the rent, but I see competitors in the area charging the same amount for the same type of unit. My question is: what strategies do you usually employ to get tenants in situations like this? and how long do you wait to see if a strategy is working or not (2 weeks)? Thank you.

Are your comps based on rents advertised and active or what rent the comparable units closed for?
1 Reply
Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
4y
I'm in Akron about an hour south of you. The rental market is very tight here. I get many qualified applicants for my upgraded units everytime we have a vacancy. I marketed one apartment in July and rented that unit and pre-rented two unfinished units in two weeks. My children all live in the greater CLE area, though only the youngest still rents and has a friend group that mostly rents. He tells me that nice apartments in desirable areas are hard to find and command a premium. If you are in a decent area, you might consider upgrading your unit. Do you have a link to your listing?
2 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
@Diana Costta if Rentometer is telling you the property is worth $XXX, then see if they'll rent it from you.
You're basing expectations on a computer algorithm. That computer does not know the size of rooms, layout, noise levels, condition of the yard, smells, paint colors, or the other 72 variables that impact a renter's decision-making process. Are the others higher quality? Better location? Better layout? Larger square footage? Across from a park? Walking distance to the local watering hole? Do they include some utilities? Maybe they include a washer/dryer whereas you only have hookups (or nothing)?
You "estimate" your rental is worth $XXX. It sits vacant in a HOT market for two weeks without a single qualified applicant. That's a good indication you're priced too high. You may see other rentals that appear comparable to yours, but there's obviously something that attracts renters to something else, so you need to figure out what that is or reduce your price to make yours more attractive.
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10 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
4y
HI, this should rent in a few days , to and EDEN or CMHA tenant. ( I PM 500 or so doors in the Cleveland markets ) My phone rings daily and we rent places right away. Your PM is not doing their job, you should not be involved at all. Tenants are the easy part.

Good Luck
4 Reply
David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
4y
Quote from @Barry Robinholt:

Hi Diana,
Cleveland is a great market to be in so you made a great decision there. Some strategies I’d consider would be knocking the rent down $25 or so (depending on rent) for an on time payment. This will incentivize the tenant to always pay on time. Also, maybe include the water bill and grass cutting as part of the landlord responsibilities if not already. I’d see how it goes after 1 week and then adjust.

My landlord does something similar. The actual rent here is $950. However, if the rent is paid on-time, I get $100 off, so $850. He does not charge late fees. There's a legal reason for that, but it works out well for him and his tenants.
My $0.02 ...
3 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Diana Costta:

Dear BP investors,
I have a duplex in Ohio and I put an 1/1 unit on the market for rent. It has been on the market for more than a month, my PM told me to consider decreasing the rent, but I see competitors in the area charging the same amount for the same type of unit. My question is: what strategies do you usually employ to get tenants in situations like this? and how long do you wait to see if a strategy is working or not (2 weeks)? Thank you.

Do the units look alike that you are saying they are charging the same amount of rent for? Is it in a similar area? I often will go check a place out if it is not getting rented and see if I was going to rent this property what would make me want to or not? Surprisingly, a lot of times there is still some work that needs to be done or just some added bounces that would be nice. I do that first then I will lower the price if I am still not getting any bites. Pending on the season I will wait a month and sometimes a few weeks. In the winter months, it is often harder to rent a place, rather in the summer they go fast.
1 Reply
Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
4y
@Diana Costta
Where is your PM advertising the property for rent? Please let us know where it is being advertised that might play a role in why it's not getting traction. It should be up on Zillow, aparements.com, Trulia and hot pads. If no traction, try the Facebook marketplace. Did the leasing agent have any feedback from the other showings as to why they didn't apply? In regard to the price, if all other items have been addressed, it most likely could be the price I would recommend lowering every 2 weeks or week depending on the traction you get after lowering it.
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Matthew CrivelliBusiness Member
Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
4y
Who is showing the house? I've had times in the past where I've looked at rentals and the PM/Owner REALLY rubbed me the wrong way causing me to walk out. Sometimes PM's are terrible to deal with and people won't have it. Especially if you are charging top dollar. @Diana Costta
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5 Reply
Sergey A. Petrov
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
Comparable units aren’t always comparable. Little details matter. Paint color, trim, blinds, outlets and outlet covers, the flow of the unit,etc. Number of bedrooms and bathrooms goes only so far in comps do if you are not renting something is putting people off. I would never reduce the deposit. You could try “free rent until the end of the month” or “free early move in” to generate traffic but at the end of the day if people are put off by something you need to fix that (and yes being overpriced as compared to similar properties is the most common one)
2 Reply
Scott Henninger
Real Estate Agent · Chicagoland · Member since 2020 · 7 posts · 3 votes
4y
@Diana Costta I’ve had great success with posting vacancies on Facebook Marketplace, at least in my area near Chicago. That’s typically pulled a lot of interest. I’m not sure where you’re currently advertising but trying expanding your posting a bit more.
I saw a couple other suggestions of doing small price reductions which could work. Are the competitors getting tenants at their pricing or are they also sitting on the market?
Two weeks seems like a decent amount of time before shaking things up a bit - price/advertising. Run the numbers with how much it costs you to have a vacancy for two months vs dropping the price ($100-$200) and getting a tenant right away.
2 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
@Rodney Sums I believe they are based on rents advertised.
0 Reply
Diana Costta
OP
Investor · Member since 2020 · 49 posts · 34 votes
4y
@Steven Foster Wilson good point on the seasonality. will check that.
1 Reply

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