Hard Time to rent my property

Hard Time to rent my property

Member since 2022 · 10 posts · 8 votes

I bought a house SAn Antonio.Its a brand new community with lot of investor homes.My rental  is through a property management company.I have reduced rent 3 times .My zillow contact is 43 totally but only 2 showings so far.My PM suggests to reduce further.I wont have any cash flow with that low rent.what do you suggest.I want to rent it out asap.

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Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
4y

My first impression is there are problems with the listing and the unit itself.

Every single picture except the last four have a giant MYND MANAGEMENT watermark in the center. Are they really that worried about someone stealing their pictures? This watermark needs to be MUCH smaller and located in an area that isn't blocking the main feature of the picture.

The pictures themselves I do not like. Every one was taken at an odd angle. They are distorted and quite honestly, they kind of make me feel dizzy when looking at them. 

There are multiple pictures of what appears to be the same room, but I'm not sure. The pictures need to be labeled. Master Bedroom, Bedroom #2, Powder Room, etc. 

The layout pics are interesting. I love that they say there is a back patio. That 2'x2' concrete slab outside the door is not a patio. That's an insult. And the front door having a porch is a stretch. 

Did the painters run out of paint before getting to the garage? It's a shame to have a house that looks completely done and fail to spend a few dollars to make something look much nicer. Maybe you're going to be a cheap landlord is my first thought. 

The yard looks to be a good size, but with the funky pictures I can't tell. The renter has kids, let them know how big the yard is.

The sod job in the back looks like it was done very poorly. I can tell they're different heights from the pics. Makes me wonder what other poor quality things are in the house.

You have dirt, two trees, and some debris in the back yard. At the very least the debris could have been picked up before the pictures.

The aerial picture shows that the neighborhood is still being build with lots of just started homes around it. This says dirt, noise, and danger to parents.

Where exactly is the home? San Antonio is close in size to Los Angeles. If I advertised a home as being in Los Angeles and gave an address, no one would have any idea where it was without taking the time to look up the address. That's true even if I mention it is close to a golf course. Give me a better indication of where it is. Something like, "located in the historic XYZ district, walking distance from the Alamo, and just 3 miles from the San Antonio International Airport". 

Is there any front yard? I don't see any pics of it if there is one. The further set back from the street, the more palatable to a person with young children.

I know it's not something that you can change, but having 3 bedrooms share one bathroom is not a feature. Right now it reads to me as 3 bedroom and an office and these are renting much lower in price. 

This is a house to be rented to a family. Schools, restaurants, and the golf course are just minutes away from this place you state. The elementary, middle, and high schools that service this location show being rated 2/10. No one moves here for the schools. The neighborhood has a 0/100 walkability score. Governor Abbott has a higher walkability score than this. Transit score of 0/100. Bike score of 22/100. I honestly don't believe that I've ever seen such low scores. Absolute killers for a family rental. 

Your rental terms are a complete turnoff. Maybe they are standard in your area, but in mine they'd be a deal killer. You want a $49 application fee per adult + a $199 move-in fee + a 1% monthly admin fee + $199 pet move-in fee + pet rent + deposit + HOA fees + renters insurance. You talk about fines and federal occupancy guidelines and make it clear if there is an issue you're not fixing it before move-in. The listing ends with "We look forward to connecting with you!". Well, how about your eyes connect with my middle finger, because there is no way in hell I'd ever contact you with this type listing.

On top of this, there are a bunch of homes for rent in your area that look near identical to yours. I'm guessing that you didn't purchase any upgrades when they built the home. Nothing sets it apart. And you have carpet in kids bedrooms! 

You may get $1895 for it if you wait long enough, but if it were mine, I'd move it to $1700 and get rid of the $500 move-in bonus and all the application / move-in / pet fees. Get it rented and let the area settle and you can increase the rent at renewal. 

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  • Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
    4y

    @Nithya Durai

    I am not a fan of the listing. Every picture, I see the PM logo as the standout feature. I understand watermarks, but they are not suppose to be the most important feature in every picture. Also, reading through the description, I really only know there are many fees I will be paying. Bring upfront is needed, but wow, there are a lot of fees. Other than that, price.

  • Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes
    4y

    @Nithya D., that's a very nice home and $1750 seems like a reasonable rent. What is the neighborhood like?

  • Real Estate Coach · LandlordSkool.com · Member since 2017 · 113 posts · 88 votes
    4y

    @Nithya D. I think you should just rent it out yourself. I've been a long-distance landlord for over ten years. If I can place tenants and manage my rentals from Iraq, you can do it too. If you're smart you'll learn the systems that save you time and money. You can do it! I'm telling you, it's not hard. Come on! How do you know if you never try!? Think of it this way, if you have to lower rent, but don't have all the property management fees, you'll probably cashflow. Best part, once you find out how easy it is, you'll never use property managers again. Feel free to message me if you want to talk more. 

  • Rental Property Investor · Member since 2021 · 335 posts · 193 votes
    4y
    Quote from @Nithya D.:

    I bought a house SAn Antonio.Its a brand new community with lot of investor homes.My rental  is through a property management company.I have reduced rent 3 times .My zillow contact is 43 totally but only 2 showings so far.My PM suggests to reduce further.I wont have any cash flow with that low rent.what do you suggest.I want to rent it out asap.

    I’m on SA. Which part of town? I’d undercut the area by $50-$100 to get demand going. 
  • Member since 2022 · 10 posts · 8 votes
    4y
    Quote from @Allen Wu:
    Quote from @Nithya D.:

    I bought a house SAn Antonio.Its a brand new community with lot of investor homes.My rental  is through a property management company.I have reduced rent 3 times .My zillow contact is 43 totally but only 2 showings so far.My PM suggests to reduce further.I wont have any cash flow with that low rent.what do you suggest.I want to rent it out asap.

    I’m on SA. Which part of town? I’d undercut the area by $50-$100 to get demand going. 
    I have added my listing above , I have reduced my rent to 1750 . It’s in the South east
    part . 
  • Rental Property Investor · Dallas, TX · Member since 2022 · 10 posts · 5 votes
    4y

    @Nithya D. During these times. Look into someone renting it out for airbnb/short term rentals.

  • Rental Property Investor · Lehigh Valley, PA · Member since 2017 · 200 posts · 191 votes
    4y

    Drop the price and fire your PM.  If the PM had any value they would have stopped you from overpricing it.  I looked at the listing and the photos and description are fine.  I know RE is local but 60+ days on market is unacceptable.  

    List it yourself. Don't pay to make zero money, you can do that for free all day.

    Some advice in RE investing- Hire slow, fire fast

  • Member since 2018 · 7 posts · 4 votes
    4y

    It is not that expensive for that size but need to consider the area and the market. Nevertheless, the property management is not doing a good job. I would get involved to some work for house/yard/listing first.

    Jen

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    Watermarks would turn me away from the pics. Sod installation looks awful. I would run the comps on bed and bath and go in slightly lower. SF on rentals depends on many factors. On condos and smaller units its important but on homes a 3/2 1800sf house and a 3/2 1900sf house may not get any increase at all. 

    I would speak to a new PM and ask them how would they market the property, and do it differently, and if you like them make the switch.


    As others mentioned each month costs you $ where if you lose $100/mo its still better than a full month of vacancy.

    7e investments53 Reviews
  • Houston · Member since 2018 · 55 posts · 24 votes
    4y

    @Nithya D. Perhaps try a different market? Can furnish it and list on Furnished Finder and rent to travel medical (and other) professionals. You’ll be able to get more than the typical long term market rate. Assuming you’re relatively close to major hospitals. Also list on Airbnb.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Yes, you do lose money by not having a tenant in there.. but anything is better than a bad tenant, so do not get desperate and rent to just anyone....

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Nithya D.

    There are really only two main reasons a property doesn't rent out:

    1) Not enough exposure to the right target audience

    2) The audience doesn't like the price-value relationship

    To drill down on what the problem is:

    1) How many views are you getting?
    ---Not enough is a sign that the property is not getting enough exposure, has a bad initial view or is priced way to high

    2) How many inquiries are you getting?
    ---If a decent amount of people are viewing it, but not inquiring for more info or a showing, then they are not liking what they see when they view the ad. Either price is too high for what it is, or has bad pics or bad description or not enough showing availability.

    3) How many showings are being scheduled?
    ---Not enough is another sign that price is too high for what it is or has bad pics or bad description or not enough showing availability.

    4) What percentage of showings actually happen?
    ---If too many showings are cancelled, curb appeal may be an issue or may be part of the market and more confirmation is needed.

    5) Lots of showings but few applications?
    ---Usually a sign that price-value is perceived to be out of line. Need to lower price or improve the product.

  • Member since 2022 · 10 posts · 8 votes
    4y

    @David Lambert @Greg M.  and all of you who took time to add your valuable comments.I have rented the property out.Thank  you.

  • Member since 2022 · 41 posts · 20 votes
    4y

    Well tell us how you did it!! Did you make any changes or did you just wait it out and find a renter? Congratulations either way!!

  • Member since 2022 · 10 posts · 8 votes
    4y
    Quote from @David Lambert:

    Well tell us how you did it!! Did you make any changes or did you just wait it out and find a renter? Congratulations either way!!

    I reduced the rent by 150$. That increased the prospects from 2 to 12  and the first person who saw signed the contract.
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