My house won't rent. HELP!

San Diego, CA · Member since 2016 · 7 posts · 1 vote

Looking for advice. We currently own a 4bd 2ba single family home. We constructed the home to add a granny suite. So now it's a 3bd 1ba and studio granny suite. It's time to put on the market and we can't get the home rented. Potential customers are saying, they don't like the other unit in the back, they don't like the 1 bathroom, or don't like the location.

the house had been on the market more than 30 days. I need advice on how to get it rented out.

I have no issues sending the ad to whomever wants to see. Please help.

Military housing won't take it because the house is on one meter and say thd tenants will complain of the cost of utilities. Section 8 is paying to low.

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Nathan GesnerBusiness Member

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

Quote from @Juneka Roswell:

I guarantee it will rent. People don't want to rent it at the current price. Lower the price and you'll find renters that will accept the unit in back, the 1 bathroom, or the location.

Everything has a price.

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Trevor Richardson
Real Estate Broker · Reno, NV · Member since 2023 · 267 posts · 297 votes
3y
I don’t think market rate tenants have a lot of needs for a granny unit. It’s unique so may take longer to rent.
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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
3y
3 br 1 bath SFH with another rental in the backyard, a studio.
Everything will rent at some price point.
I wonder how low you will have to go.
3 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
I assume you’re using a PM so you didn’t just price it wrong or use bad pictures. Ask them what they think he problem is, how long they think it will take to find a qualified tenant and how much lowering the price would help.
If you’re not using a PM I’m going to guess price or marketing (pictures or sites chosen). This is still a possibility with the PM especially with a “unique property”. But at lest it’s not your fault then.
Can I ask why you built such a niche property? Was the plan to rent it out and then move in later? It sounds like you spent more to make it less desirable. Can you “unconvert” it?
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Juneka Roswell
OP
San Diego, CA · Member since 2016 · 7 posts · 1 vote
3y
Quote from @Trevor Richardson:

I don’t think market rate tenants have a lot of needs for a granny unit. It’s unique so may take longer to rent.
We're renting the home as 2 different units. So a studio and a 3db 1 bath. Although the thought for a 3/1 with granny suite isn't a bad idea, the area isn't priced high enough for me to rent it as such. I hope that makes sense. Thank you for responding.
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Juneka Roswell
OP
San Diego, CA · Member since 2016 · 7 posts · 1 vote
3y
Quote from @Bill B.:

I assume you’re using a PM so you didn’t just price it wrong or use bad pictures. Ask them what they think he problem is, how long they think it will take to find a qualified tenant and how much lowering the price would help.
If you’re not using a PM I’m going to guess price or marketing (pictures or sites chosen). This is still a possibility with the PM especially with a “unique property”. But at lest it’s not your fault then.
Can I ask why you built such a niche property? Was the plan to rent it out and then move in later? It sounds like you spent more to make it less desirable. Can you “unconvert” it?

The PM suggested to continue to lower the price. Any lower and we aren't able to afford a PM.
when we purchased the house as a 4/2 renting it as such wouldn't rent high enough to cover the mortgage. But converting into 2 units would cover the mortgage and would make enough to make a profit if priced right.
The complaints about the property are also mentioned above: 1 bathroom, area, and another tenant in the back. Both units have there own backyard and entrance. However they do share a wall.
i hope that made sense.
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Juneka Roswell
OP
San Diego, CA · Member since 2016 · 7 posts · 1 vote
3y
Quote from @Scott Mac:

3 br 1 bath SFH with another rental in the backyard, a studio.
Everything will rent at some price point.
I wonder how low you will have to go.
Great question and thank you. So I just want to be clear on the make of the house. It's 2 units, shared by a wall. Private entrance and private backyard for both.
As a 4/2 the house was priced too low for renting but as 2 seperate units we could pay the mortgage, other expenses and make a profit. Currently if we go any lower something would have to give and the PM would be the first to go. This would be unfortunate as this is our first time doing this and scary to tackle on our own in a tenant friendly state
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Look into affordable housing, HUD & section 8.
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Juneka Roswell
OP
San Diego, CA · Member since 2016 · 7 posts · 1 vote
3y
Quote from @Eliott Elias:

Look into affordable housing, HUD & section 8.

I guess my post was too lengthy lol I apologize for that. At the bottom of my posts it says section 8 is priced too low. I will look into HUD. Thank you
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Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
3y
Assuming you've considered short term rentals? Long term tenants may be put off by being close to the other unit, but short term guests probably not so much. Or if you can't STR due to restrictions, what about medium term furnished? You can share your listing here and get more specific feedback.
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Juneka Roswell
OP
San Diego, CA · Member since 2016 · 7 posts · 1 vote
3y
Quote from @Steve K.:

Assuming you've considered short term rentals? Long term tenants may be put off by being close to the other unit, but short term guests probably not so much. Or if you can't STR due to restrictions, what about medium term furnished? You can share your listing here and get more specific feedback.

I sent a message to the PorchLight Real Estate Group contact you sent above. The message contained the listing of the home. I have not tried medium or short term rental or room rentals. I was thinking about this but would prefer some guidance in this area before exploring. A property manager that specializes in this area would be ideal.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Juneka Roswell:

I guarantee it will rent. People don't want to rent it at the current price. Lower the price and you'll find renters that will accept the unit in back, the 1 bathroom, or the location.
Everything has a price.
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
3y
Sub meter the electric for the rear unit . If I were renting the main house I certainly wouldnt want to pay the other tenants electric .
The market sets the rent price , too high and it wont rent , lower the price and it will . Right now its making zero dollars . You can lose thousands a month or hundreds a month . Pick one
5 Reply
Juneka Roswell
OP
San Diego, CA · Member since 2016 · 7 posts · 1 vote
3y
Quote from @Matthew Paul:

Sub meter the electric for the rear unit . If I were renting the main house I certainly wouldnt want to pay the other tenants electric .
The market sets the rent price , too high and it wont rent , lower the price and it will . Right now its making zero dollars . You can lose thousands a month or hundreds a month . Pick one

How does the submeter work? I will have to look this up to understand. The submeter would seperate the usage, i understand. But would the utilities stay in my name or go in the tenants name? How would the other unit be alerted for how much they owe?
if there is a seperation for electricity shouldn't there be one for water as well? Which im assuming works in the same way.
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
@Juneka Roswell
I’ve got 3 like this I rent by the room. There’s a huge demand by single people wanting to rent by the room. You’ll be surprised how easy it is to rent out individual rooms to people on fb marketplace on a month to month basis.
2 Reply
Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
3y
Quote from @Juneka Roswell:

Quote from @Matthew Paul:

Sub meter the electric for the rear unit . If I were renting the main house I certainly wouldnt want to pay the other tenants electric .
The market sets the rent price , too high and it wont rent , lower the price and it will . Right now its making zero dollars . You can lose thousands a month or hundreds a month . Pick one

How does the submeter work? I will have to look this up to understand. The submeter would seperate the usage, i understand. But would the utilities stay in my name or go in the tenants name? How would the other unit be alerted for how much they owe?
if there is a seperation for electricity shouldn't there be one for water as well? Which im assuming works in the same way.

If the second unit has its own breaker panel , an electrician puts a private meter in before it . You keep electric in your name , you get bill for the electric and go over and read the second meter and calculate their usage . Then bill each tenant their portion . Water may be similar depending on the layout .
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Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
3y
Quote from @Juneka Roswell:

Quote from @Steve K.:

Assuming you've considered short term rentals? Long term tenants may be put off by being close to the other unit, but short term guests probably not so much. Or if you can't STR due to restrictions, what about medium term furnished? You can share your listing here and get more specific feedback.

I sent a message to the PorchLight Real Estate Group contact you sent above. The message contained the listing of the home. I have not tried medium or short term rental or room rentals. I was thinking about this but would prefer some guidance in this area before exploring. A property manager that specializes in this area would be ideal.

Your listing looks really good! Nice professional photos, plenty of info etc. According to Rentometer, the rental comps are showing $3,400 for the 3/1 and $2,400 for the studio, so you're technically a little under market rent with the current listing. One thing is that all of the requirements may be a little bit daunting for some people. You might loosen those up (at least in the advertising, then ask for those things once you start getting applicants). Those might be scaring some people away? You might also try some staging for the photos (not that common for rentals but wouldn't hurt). I'm not too familiar with the exact location. Is there anything about the location that is undesirable? Next to a highway or something? Sorry can't be more helpful, I don't think the listing is the problem here, and rent seems quite reasonable (unless there is something about the loavtion that is not evident from the listing). Maybe you just need to wait a bit longer, advertise on different platforms, or if you can't get what you need to cover your expenses as an LTR, look into furnishing it and using it as an STR (if allowed, check regulations) or an MTR (30+ days).
1 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
3y
I have many rental units in San Diego. They virtually always rent in the first open house. It has been ~5 years since an open house failed to produce a qualified tenant (during covid showing restrictions, open houses were not allowed and units took much more time to rent). The vacancy rate is real low in San Diego.

Do you know how many people have inquired about the property? I get about 5 inquiries for every person that comes to open house. I get about 3 people looking for every application received (even though nearly 100% say they are going to apply). We get about 2 applications for every one that meets our standards (and this is after verbalizing our standards and charging $35 application for each adult - I question if they are simply hoping we do not check credit and references).
No qualified applicants in 30+ days indicates something is not good. Is the granny flat a legal unit (an official ADU)? Was it designed by a professional? Professionals are good at making things look as they should. How did you derive the rent? Are the pictures near professional quality? What tools is PM using? On what platforms is property listed? Zillow rental manager will post on may platforms but not Facebook Marketplace or Craig's list (CL has fallen far in it value as a good source but I still post there because 1) I am old school and remember a time when it was a good source 2) you never know where the qualified candidate will come from).
Good luck
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Bryce Nurding
Investor · United States · Member since 2021 · 42 posts · 16 votes
3y
I think it is less that you can't afford a PM and more that you can't afford to have the place sit empty. I endorse the Facebook Marketplace room rental model if you have the time to figure that out and clean common spaces at a minimum of weekly. You will make way more money. This would be best self managed.
I agree with the comments here and think that you should prioritize putting studio on separate meter if able to.
Having negative cash flow in San Diego is normal to my understanding.
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Laura Stayton
Property Manager · DE · Member since 2023 · 248 posts · 133 votes
3y
Quote from @Juneka Roswell:

Quote from @Scott Mac:

3 br 1 bath SFH with another rental in the backyard, a studio.
Everything will rent at some price point.
I wonder how low you will have to go.
Did you get advice from a property manager before putting money into your renovation? Who told you this was the best way to cover your expenses? I'm just confused. I imagine if you had kept the money from the renovations you did and lowered the price a little your overall net income would look better and it would've rented quickly. Definitely don't recommend not using a property manager, especially given your experience and the unique situation. Is it separately metered for utilities?
Great question and thank you. So I just want to be clear on the make of the house. It's 2 units, shared by a wall. Private entrance and private backyard for both.
As a 4/2 the house was priced too low for renting but as 2 seperate units we could pay the mortgage, other expenses and make a profit. Currently if we go any lower something would have to give and the PM would be the first to go. This would be unfortunate as this is our first time doing this and scary to tackle on our own in a tenant friendly state

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Twana RasoulBusiness Member
Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
3y
More than likely you are priced too high unless there is something very obviously wrong with the post. To be on the market that long in San Diego, it is usually something way over priced. If there is a property manager that chose the pricing, you might want to consider other property management companies and I'm happy to recommend some if you'd like. Good luck!
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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
3y
Utilities that aren't separated are always an issue. Why did you do that?

One solution would be for you to cover the utilities and bake it into the rent. This leads to lack of conservative usage but otherwise tenants are going to feel like they're not paying the right amount.

The price is too high for what you're renting is why it's still vacant. Anything will rent at some price. You need to base the asking rent on what the market will pay, you can't factor in your expenses or investment as that really has no bearing on the market rent price.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
3y
@Juneka Roswell

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.
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Kenneth Donaghy
Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
3y
@Juneka Roswell, I have a couple ideas, but I need to know more about the property and location. reach out if you are still looking for a solution.
1 Reply
January Johnson
Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
3y
I have a house like this. A 3/1.5 in the front and a 2/1 in the back. Connected only through the garage where I have 2 washers and 2 dryers. Each house has a separate entrance. I currently have the back rented to a military guy and the front rented to a small family of 3 adults, one of them is a travel nurse but they are "local" also (husband is a teacher). To top it off, the utilities are connected, so there is only 1 thermostat (in the main house), but the back house has window units and space heaters to regulate temp if needed (the front house is on a schedule and I have a Nest thermostat there that I can control if needed).

I was using this propert as a STR (both units), and it has been a MTR in the past. Currently, it's a LTR but at great rates. Since you are in SD, could you rent to military folks? (Homes.mil). That's a great place for STR, MTR, or LTR listings, but of course, with the first 2, you would need to furnish and carry utilities.
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January Johnson
Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
3y
Quote from @Juneka Roswell:

Looking for advice. We currently own a 4bd 2ba single family home. We constructed the home to add a granny suite. So now it's a 3bd 1ba and studio granny suite. It's time to put on the market and we can't get the home rented. Potential customers are saying, they don't like the other unit in the back, they don't like the 1 bathroom, or don't like the location.
the house had been on the market more than 30 days. I need advice on how to get it rented out.
I have no issues sending the ad to whomever wants to see. Please help.
Military housing won't take it because the house is on one meter and say thd tenants will complain of the cost of utilities. Section 8 is paying to low.

I don't see how you would get complaints about utilities if it was STR or MTR - those would be baked into the rental cost.
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