Time on market before selling?

Question

Hello,

How long should you generally let a house sit on the rental market before selling it? It's a recently redone house, we've lowered the price, tried to advertise more, fixed a few more things. We're using a property management company long distance. This was my primary house that we've moved out of, and based on several factors, the housing price is very likely to appreciate a good deal over the next three years. The area is getting attention and there are several developments underway, so it would be a shame to sell it at this juncture. However, I also don't want to keep paying for the vacancy every month. Would appreciate any insight!

Drew Sygit · Answer

@Maggie Smith

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:

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

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.

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.

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.

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.

Some more ideas:

1) Is it on the MLS so other agents can show it?

2) Are self-showings being offered for more showing schedule flexibility?

3) Have you reviewed the ad type and pics on your phone (how most prospects will look at) to verify acceptable?

4) What MoveIn Specials are being offered?

5) Is there a 3-D Tour? What about a floorplan, so prospects can envision where their furniture may go?

Ask your PMC a LOT of questions about what they are doing and try to brainstorm fixes.

Please send us any feedback via email, as we do not use the DM feature here.

Also, if you like our response, please don’t be shy about giving us a vote😊

Conner Olsen · Answer

What's the average days on market in that area? You should try to stay below that. My rule of thumb is if there's not 4 showings or 1 offer in the last 2 weeks, it needs a price drop.

Tiamo Wright · Answer

Check the photos of the property management company. I have had long distance investors say that their house wont rent and then you look at the photos and they are terrible, bad angles, dark, etc. Also have had people spell things wrong in the description that make future tenants feel like it may be a scam. Sometimes it is just as simple as the photos or the description that are turning off folks, not the price.

Ika Sargeant · Answer

@Maggie Smith check on the average number of days homes get rented in your area. It sounds like yours is already gone over I assume. did you ask potential renters for feedback-usually very helpful. This can be helpful and useful to see if its price or condition. Place the house on Zillow and pay $29.00- this might help a lot. Good luck.

Michael Dumler · Answer

@Maggie Smith, it depends on the traction you have been receiving since listing as a rental. If it's been a month now, but you haven't received a single application, then something needs to give. Either your listing photos aren't adequate to draw attraction or you're asking too much in rent. Moreover, have you looked at other leased comparables to indicate average days on market? This is a good place to start that your PM should have advised.

Eliott Elias · Answer

As much time as you can afford, if you need the money for a new deal drop the price and be aggressive in the sale. If you are in no rush keep the place rented out.

Brad Hammond · Answer

Great question, it depends on your comfort level.  My opinion is to hold on to the property as long as you can.  In my opinion, the fact that it's vacant is the biggest issue.  I think you need to focus on getting that filled asap.  Talk to your property manager about what the area's vacancy rate is.  If it still isn't renting I would drop the price or give a month of free rent to entice applications.