Property Waiting List... Is this real?

Question

I find myself with a unique problem. I recently chose to not extend an inherited tenant's lease. Soon after, several people in the neighborhood have made it their business to move in. For a week or so, my tenants were being harassed to give up my information. So, I posted a sign. I let everyone know that it will be available soon and i will accept applications.

Well now after checking my mail, people are adding letters to their application. In several, they requested to be put on a waiting list if their application was too late. I never published that I had any type of waiting list!! I have never heard of this! Does anyone do this and if so are there possible problems that I can run into doing this?

To be honest I don't understand why there is so much demand for the place. The rent is not low compared to the other rentals in the area. I don't even provide laundry facilities .  Is it normal to have a place in high demand in a "C" grade neighborhood?

Marie S. · Answer

@Bryan Vince and J. Martin

How much or what do you reward for referrals?

I do believe that people saw me removing old carpet. Maybe they believe that I'm doing some major renovations. I'm just keeping the place in clean working order. Nothing fancy by any means.

@Garrett Grove It is a 4-plex. You don't think it would cause a problem if two tenants in the building are paying 5-10% less than the other two?

Brock Siebert · Answer

I know someone in my area that has ALOT of rentals and their company has a waiting list of 50+. They also have a 0% vacancy, this allows them to move someone new in within a week. The interest you are seeing is a blessing, although it may currently seem like a curse...

Jason Munck · Answer

Even if the very first candidate you look at is good and you go with them it will be worth your time to look at the other applicants.  Having an idea of how many VIABLE candidates you can drum up in a short period of time will give you a sense of whether you should consider raising rents for the whole building and/or how quickly you could raise rents.  Knowing how quickly you can fill vacant units is great information to know.  Look at this as a data-gathering exercise also.  It would be more work but the info could save you time and headaches in the future (not to mention increasing your income!;).

Marie S. · Answer

I will hammer out all of the details in the apartment by next week and get to marketing at the higher rate. I will post an update on how it goes.

@Adam Brandt

I'm not too close to Ambrose but not far. I've gotten one college student the entire time I've been here so I'm not getting the university traffic like the places right on Locust. My place is on the bus line. It's a couple minutes west of downtown Davenport, about 5 min. from the Putnam Museum, and less than 5 min to the river.

I would love to hand it off to a property manager but everyone I have contacted cannot handle the load right now. If you know someone, send me a message.  I am biased. There is one particularly popular RE company that I will NOT do business with under any circumstance.

I honestly only need someone to show the place during the morning hours. Although, I won't fight too much about giving up control of the day to day stuff as long as he/she continues to use the maintenance people and contractors that I have sought out and with whom I have negotiated for extremely reasonable service charges.

Adam Brandt · Answer

@Marie Sanders Where in davenport? Are you near Ambrose?

Sounds like a good problem to have. Maybe you can pass them off to other properties you are having trouble filling, or other property managers.

John Rooster · Answer

Mostly it is the market. But, I suspect you will find that most of the people that are interested in renting your place before it is even advertised for rent have issues that make it hard for them to qualify for a rental. And they are hoping that they can tie the place up before you advertise it for rent, and/or hire a professional property manager, because they know that they will not compare favorably to other prospective tenants.

Roy N. · Answer

Marie:

It happens all the time. We have a property where a long-term tenant is 14% below the other rents in the building - he was 25% below market when we took possession.   We are slowly working him up closer to market rent.

Also, with respect to your original post, word does spread in communities.  We have a couple of student houses which are probably the most energy efficient and amongst the classiest {for a student rental} in "universityville".   Last year we had them rented six months before they became available.

While I was reading your original post yesterday, I received an e-mail from a group of four graduate students who asked to be put on a waiting list for either of these properties in the event the incumbent tenants elect not to renew when their lease comes due in August 2014.

I sent the ring leader of the group a copy of our application form and two have already responded with completed applications.

Garrett Grove · Answer

Rates have to go up sometime right? Try to increase rates for every on your next lease. If they dont rent, bring them back down.

Our apartment complex will rent the same unit for anywhere from 800-1150 in a 2 year span depending on current market conditions.

Elizabeth Colegrove · Answer

@Marie Sanders

I would increase rents.

Garrett Grove · Answer

If its not on the market yet, just raise your list rent price by 5-10% and see what happens?