can't find a tenant

Member since 2023 · 17 posts · 12 votes

Hi all!

This is my first time posting something here. I'm kind a newbie. I bought my first and only rental 2 years ago in Cleveland (I live in CA). The former PM found a tenant quickly. They left in December (without paying the last month). I had to spend a lot of money to renovate the house and the garage was totally destroyed.

The new PM can't find a new tenant (32 days on the market and 216 view but no application) and right now I am hemorrhaging money.

It is a single family home - 3 bd/1ba - 993 sqft - with backyard. $915/month

Do you have any advice?

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Ned J.Pro Member

Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes

Most common...

Price is too high.... this can be relative to the area and condition of the property

Marketing is poor..... place not clean, renovated, bad pictures, bad listing info, criteria is way off for the class of neighborhood

You have a PM..... what are you paying them for?

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LaTonya Clark
Real Estate Broker · NY · Member since 2020 · 70 posts · 27 votes
3y
@Audrey Peltier
I’m assuming the rent is not too high? Is it in a desirable neighborhood? Is the house in desirable condition? Maybe add a washer and dryer. I know you’re out of state but maybe you need to take a trip and look at your house for yourself and see what other people are seeing maybe there is something going on with this house that you’re not aware of . Or maybe the rent is just too high.
0 Reply
Rick Albert
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
Is it posted in Facebook Marketplace? Most PMs don't post there. I had to post it for them. One of my units that was on the market for two months got rented in a week. It's a part time job handling FB leads, but worth it. Plus some of them will even give you feedback that the property manager may not be telling you.
3 Reply
Jason Sousa
Real Estate Agent · Austin, TX · Member since 2022 · 95 posts · 39 votes
3y
The best thing I have found beyond the price being the lowest, or lower is take amazing picture and write a good copy. When you shop on amazon would you buy a product with terrible photos and a short description? Use emotion in the copy and make the person want to live in your home. Photos should be clear and crisp with good lighting. Use virtual staging software to "furnish" the home.
1 Reply
Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Audrey Peltier- thanks - Consider 1) lowering the price 2) offering an incentive ( like a free month of rent ) 3) talk with other PM / realtors in the area for feedback 4) change the places that its being advertised in ...good luck
1 Reply
James MaraditsPro Member
Real Estate Broker · Cleveland, OH · Member since 2015 · 239 posts · 224 votes
3y
I'm sorry that you're going through this experience!
This is a classic example of the $40k house that looks good on paper but won't perform in reality. These are famous for being money pits with bottomless appetites. Also, just look at the pictures... would you be happy coming home to a disintegrating driveway and house with mismatched siding?
This is a high crime, low income, economically distressed zip code (source: google). This is going to obviously drastically reduce your potential pool of renters since fewer people are going to want to move into this location and the ones that will move in will likely be part that economically distressed group which will make it hard for them to meet your screening criteria.
I'm sorry to say it, but I think you bought wrong or have the wrong expectations. I'm familiar with the management company that you're using and they are one of the, if not the biggest player in the market and seem to run a solid operation -- so I don't think that this is a management issue but rather an issue of the location and property.
I wouldn't keep throwing money into this property. I would highly consider selling, learning from your experience and moving on.
Send me a PM if you'd like, happy to help out in any way I can so you can get back on track.
0 Reply
Nathan FisherBusiness Member
Property Manager · Cleveland, OH · Member since 2020 · 305 posts · 261 votes
3y

Might be a cop out, but it's winter... It's cold.

Rental season doesn't heat up until May. People who move between October and April, HAVE to move. Which could mean low credit or running from eviction.
It really is best to wait it out, and get the right person. And not a crazy tenant who will trash the place.
[email protected]216-245-2901
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1 Reply
Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
3y
Quote from @Audrey Peltier:

Hi all!
This is my first time posting something here. I'm kind a newbie. I bought my first and only rental 2 years ago in Cleveland (I live in CA). The former PM found a tenant quickly. They left in December (without paying the last month). I had to spend a lot of money to renovate the house and the garage was totally destroyed.
The new PM can't find a new tenant (32 days on the market and 216 view but no application) and right now I am hemorrhaging money.
It is a single family home - 3 bd/1ba - 993 sqft - with backyard. $915/month
Do you have any advice?

A lot of people have weighed in on this.
The inside of the home looks rentable to me.
Another at least half bath (at least) would be ideal--but then again you have to dance with the girl you brought to the dance.
Outside, I would never try to rent something that looks like this outside, Why? I believe less renters would be interested in it.
Curb appeal it looks like a don't care just give me the rent money house.
A place someone would have to settle for for some reason, and that to me does not seem like the bulk of the renters would consider it as a place to live---leading to increased time on market.
Lower your price and attract a more sketchy type renter--possibly.
The exterior in the pics looks dirty, maybe pressure wash it maybe paint it.
Why is the back partially painted, run out of paint?
The concrete in the rear looks absolutely dirty, I'd pressure wash that.
The garage with the missing side wall and the broken door, looks like a kids lockjaw danger.
The neighbor does not have a steel door grate, is it needed, or would a standard door do.
If you do decide to fix up more, remember you have to weigh your costs carefully and try not to over spend.
I did some mockups of things I think MIGHT increase the curb appeal a bit. Should you do them, that's up to you.
Maybe its not leasing for some other reason and the curb appeal is good enough for the rent amount in that area (???)
Maybe a little cut in the rent would get a lot of takers, you really need to research this more.
Good Luck!
2 Reply
Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
3y
Also in the backyard it looks to abut a farm field, if you have a fence back there, a gate might be nice.
In farm country kids cut across them to visit schoolmates (and play) when there are no crops.
Also in the mockups I took out those big leaning trees, and put in a pretty red tree.
0 Reply
Dave Charron
Investor · Syracuse, NY · Member since 2010 · 165 posts · 75 votes
3y
A couple things Im thinking-
$49 application in a low income area might be an issue. Can you use a short pre-application to screen them before charging them the $49? Thats what I do.
Water, garbage and sewer not included could be an issue too. In our area (upstate NY), its normal to include these in the rent. Low income renters can sometimes have issues setting up accounts with all these utilities.
Other than that, like others have mentioned the inside looks good but outside lacks curb appeal (landscaping, lawn, fencing) and the non-matching siding out back.
Good Luck
1 Reply
Vadim F.
Investor · Member since 2020 · 337 posts · 213 votes
3y
@Audrey Peltier Looks like you are located in the Lee-Miles neighborhood which is a lower income class neighborhood as I'm sure you are aware. Are you looking for Sec 8 or non sec 8 tenants? I think that may be where the issue is possibly if you are not accepting Sec 8. Look at https://www.cmha.net/hcvp/rent... to get an idea of what Sec 8 may be paying.

1 Reply
Audrey Peltier
OP
Member since 2023 · 17 posts · 12 votes
3y
Quote from @Vadim F.:

@Audrey Peltier Looks like you are located in the Lee-Miles neighborhood which is a lower income class neighborhood as I'm sure you are aware. Are you looking for Sec 8 or non sec 8 tenants? I think that may be where the issue is possibly if you are not accepting Sec 8. Look at https://www.cmha.net/hcvp/rent... to get an idea of what Sec 8 may be paying.

Thank you.
0 Reply
Audrey Peltier
OP
Member since 2023 · 17 posts · 12 votes
3y
Thank you Scott!

Quote from @Scott Mac:

Quote from @Audrey Peltier:

Hi all!
This is my first time posting something here. I'm kind a newbie. I bought my first and only rental 2 years ago in Cleveland (I live in CA). The former PM found a tenant quickly. They left in December (without paying the last month). I had to spend a lot of money to renovate the house and the garage was totally destroyed.
The new PM can't find a new tenant (32 days on the market and 216 view but no application) and right now I am hemorrhaging money.
It is a single family home - 3 bd/1ba - 993 sqft - with backyard. $915/month
Do you have any advice?

A lot of people have weighed in on this.
The inside of the home looks rentable to me.
Another at least half bath (at least) would be ideal--but then again you have to dance with the girl you brought to the dance.
Outside, I would never try to rent something that looks like this outside, Why? I believe less renters would be interested in it.
Curb appeal it looks like a don't care just give me the rent money house.
A place someone would have to settle for for some reason, and that to me does not seem like the bulk of the renters would consider it as a place to live---leading to increased time on market.
Lower your price and attract a more sketchy type renter--possibly.
The exterior in the pics looks dirty, maybe pressure wash it maybe paint it.
Why is the back partially painted, run out of paint?
The concrete in the rear looks absolutely dirty, I'd pressure wash that.
The garage with the missing side wall and the broken door, looks like a kids lockjaw danger.
The neighbor does not have a steel door grate, is it needed, or would a standard door do.
If you do decide to fix up more, remember you have to weigh your costs carefully and try not to over spend.
I did some mockups of things I think MIGHT increase the curb appeal a bit. Should you do them, that's up to you.
Maybe its not leasing for some other reason and the curb appeal is good enough for the rent amount in that area (???)
Maybe a little cut in the rent would get a lot of takers, you really need to research this more.
Good Luck!

1 Reply
Vadim F.
Investor · Member since 2020 · 337 posts · 213 votes
3y
Quote from @Audrey Peltier:

Quote from @Vadim F.:

@Audrey Peltier Looks like you are located in the Lee-Miles neighborhood which is a lower income class neighborhood as I'm sure you are aware. Are you looking for Sec 8 or non sec 8 tenants? I think that may be where the issue is possibly if you are not accepting Sec 8. Look at https://www.cmha.net/hcvp/rent... to get an idea of what Sec 8 may be paying.

Thank you.

I would highly suggest looking into it. If you aren't opening it up to Sec 8 tenants in that neighborhood, you will need lower the monthly rent quite a bit for it to be affordable to a non sec 8 tenant. The screening process is the same for sec 8 or not, so I wouldn't let that deter you. Also, you have to know your potential tenants in the area your rental is. If they are making 2k a mo, they can't afford $915mo rent plus all the extras that are mentioned in the ad, so they are viewing it and moving on. If you lower it to $700 I'm sure it will get rented but then your cash flow is low. So, get it Sec 8 approved and you'll be reaping the rewards. Screen your tenants properly and all will good. No guarantee a non sec 8 tenant won't destroy your home like many like claim sec 8 will.
0 Reply
Audrey Peltier
OP
Member since 2023 · 17 posts · 12 votes
3y
Quote from @Vadim F.:

Quote from @Audrey Peltier:

Quote from @Vadim F.:

@Audrey Peltier Looks like you are located in the Lee-Miles neighborhood which is a lower income class neighborhood as I'm sure you are aware. Are you looking for Sec 8 or non sec 8 tenants? I think that may be where the issue is possibly if you are not accepting Sec 8. Look at https://www.cmha.net/hcvp/rent... to get an idea of what Sec 8 may be paying.

Thank you.

I would highly suggest looking into it. If you aren't opening it up to Sec 8 tenants in that neighborhood, you will need lower the monthly rent quite a bit for it to be affordable to a non sec 8 tenant. The screening process is the same for sec 8 or not, so I wouldn't let that deter you. Also, you have to know your potential tenants in the area your rental is. If they are making 2k a mo, they can't afford $915mo rent plus all the extras that are mentioned in the ad, so they are viewing it and moving on. If you lower it to $700 I'm sure it will get rented but then your cash flow is low. So, get it Sec 8 approved and you'll be reaping the rewards. Screen your tenants properly and all will good. No guarantee a non sec 8 tenant won't destroy your home like many like claim sec 8 will.

the last tenant let the house in a poor state and they weren't Sec 8.
0 Reply
Vadim F.
Investor · Member since 2020 · 337 posts · 213 votes
3y
Quote from @Audrey Peltier:

Quote from @Vadim F.:

Quote from @Audrey Peltier:

Quote from @Vadim F.:

@Audrey Peltier Looks like you are located in the Lee-Miles neighborhood which is a lower income class neighborhood as I'm sure you are aware. Are you looking for Sec 8 or non sec 8 tenants? I think that may be where the issue is possibly if you are not accepting Sec 8. Look at https://www.cmha.net/hcvp/rent... to get an idea of what Sec 8 may be paying.

Thank you.

I would highly suggest looking into it. If you aren't opening it up to Sec 8 tenants in that neighborhood, you will need lower the monthly rent quite a bit for it to be affordable to a non sec 8 tenant. The screening process is the same for sec 8 or not, so I wouldn't let that deter you. Also, you have to know your potential tenants in the area your rental is. If they are making 2k a mo, they can't afford $915mo rent plus all the extras that are mentioned in the ad, so they are viewing it and moving on. If you lower it to $700 I'm sure it will get rented but then your cash flow is low. So, get it Sec 8 approved and you'll be reaping the rewards. Screen your tenants properly and all will good. No guarantee a non sec 8 tenant won't destroy your home like many like claim sec 8 will.

the last tenant let the house in a poor state and they weren't Sec 8.

Exactly! Also sec 8 tenants hold on to chose vouchers like they are gold. The last thing they want is to lose it.
0 Reply
Patti RobertsonBusiness Member
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
3y
Am I seeing this right that someone replaced white siding with beige? Anyone looking at this photo is going to come to the conclusion that whoever does these repairs bandaids and doesn't do quality work.
757-472-2547
2 Reply
Nader Shariff
Detroit, MI · Member since 2020 · 150 posts · 68 votes
3y
What reasoning is your PM giving you. I would have a conversation with them and see the kind of feedback they are getting back.
Not sure where in Cleveland you own the property but that rental rate does not seem unrealistic based off experience.
1 Reply
Todd Jones
Member since 2023 · 243 posts · 199 votes
3y
I see. It’s on one of the side streets of Lee and Miles.
I wouldn’t put too much blame on the PM. While that street has comparable bungalows, Cleveland is a “land of giants”. You’re competing with +2500 sqft homes built in the 1920s at that price range.
As a renter, I would view it because of the price. But then, I’ll see it’s a 3 br at less than 1000 which is borderline too tight. Then, I’ll see the grassy driveway, the siding mismatch, and a description filled with just instructions, I would think “the landlord just want the check and won’t fix anything broken. Are those interior pics real as the description doesn’t mention if it’s an update”
This is why there are 300 views. However, hope is not lost!!
1) It’s not that bad of an area. Folks tend to oversimplify saying “if zip code is 44xxx, then bad”. It’s per street, not per city. Ask the PM to post on multiple sites. Use Facebook as suggested as well.
2) I know you put up a fair amount of $$$ in this but you will need to either put more gravel on the driveway and de-weed it or pave it. Yup, got to paint the back of the home. Sorry. Put weed-n-feed in the grass to green it up.

You want the outside to look so good in pics, folks will say “oh, wow!!! And man, look at that interior. Eh, it’s small but it’s better than living in those other bigger dumps with slumlords. This person cares. Let me hurry up and get this!”
3) Try $899 for the 1st year, going below the $900 mark.

4) Update the description with much more enthusiasm as another person suggested. Mention how it’s been updated. If the PM did the description, they can update it.
5) You can vet only so much with tenants so it’s not so much the PM’s fault. However, shop around for another PM if steps 1-4 fail.
Hope this helps!
1 Reply
Orkeem Davis
Real Estate Agent · Englewood, NJ · Member since 2017 · 93 posts · 31 votes
3y
Not familiar with the area, but I understand how to address your rental ASAP.
1. Hire a new PM.
2. Take some time to reach out to the local Section 8 program for potential tenants.
3. Make sure you physically visit your investment property.
4. Post on Affordable housing websites.
Good luck!
1 Reply
Nicolas Looman
Real Estate Agent · Member since 2023 · 38 posts · 35 votes
3y
I think that there are a ton of suggestions pointing into the right direction. What is the expectation set from your PM in how is the property being marketed to get that vacancy take care of? Is the PM still collecting even though it is vacant?
Firing your PM is not necessarily the right move there may be more to this and pointing the finger at the manager isn't exactly productive.
You need to analyze if this property will continue to be a sound investment in the future. Would getting certified for section 8 be the route in solving the vacancy? Look at your neighborhood market and see that is the person who will rent from you. Is the median income 30k a year or 130k a year. You stated it may be in a c to d neighborhood so perhaps a reduction may be the route to cut your losses.
Someone mentioned incentivizing the tenant. Maybe cover the first month of rent if they show zero eviction history and good credit.
There are a hundred ways to go about this finding your level of comfortability is your first step.
3 Reply
Ke Nan Wang
Developer · St. Augustine, FL · Member since 2018 · 311 posts · 384 votes
3y
Someone gave a great advise before:
If no showing, price way too high;
If showing but no signing lease, price a little high.
If people are coming to see your place, that means the marketing is on point (presentation + pricing). If nobody is coming to see it, fix marketing.
If I'm in your shoes, and I'm having showings, I would offer someone some kinda incentive on the spot to secure an application. For me, my first incentive is offering yard maintenance. My listing is always marketed Tenant maintains yard. That's $80-100 a month expense and it's something makes sense in my area. If still no luck to get an application, I would politely ask feedback from them why they aren't interested in renting our property. Some will and some won't. But any feedback is good.
The PM should be doing this for you and providing feedback to you. If all they are doing is listing it on the market and fire and forget, find another one.
1 Reply
Carla Kordab
Property Manager · Cleveland, OH · Member since 2022 · 80 posts · 48 votes
3y
Hey Audrey,

@Alex Rehman is your guy to help out.
1 Reply
Erik E.
Rental Property Investor · Orlando FL /Cleveland OH/Detroit MI · Member since 2019 · 52 posts · 32 votes
3y
Quote from @Audrey Peltier:

Quote from @Gary L Wallman:

Quote from @Audrey Peltier:

Hi all!
This is my first time posting something here. I'm kind a newbie. I bought my first and only rental 2 years ago in Cleveland (I live in CA). The former PM found a tenant quickly. They left in December (without paying the last month). I had to spend a lot of money to renovate the house and the garage was totally destroyed.
The new PM can't find a new tenant (32 days on the market and 216 view but no application) and right now I am hemorrhaging money.
It is a single family home - 3 bd/1ba - 993 sqft - with backyard. $915/month
Do you have any advice?

Decent house with the exception of the horrible look of patched-in siding on the rear of the house, pictured no less. Garage is also a mess. I would re-side the back of the home and clean up the garage.
Pricing seems fine compared to others in the area but the listing is very poorly done. I'm always amazed at how many property owners and managers have no idea on how to write an add. It's supposed to help you sell your property to perspective renters, not scare them away. Why would any property manager list every utility the tenant has to pay separately? Just say utilities not included. What's with the $129 fee and $30 monthly tenant benefit package? You're trying to rent a C class home, not a room at the Plaza. Get rid of all the legalese and junk fees and you'll be fine.
IMHO,
Gary

The garage is being renovated entirely.
I tried to make the PM change the ads but they won't move.
Look at their answer:

All of our rental listings are listed in the same format, to make prospective tenants truly aware of all costs, processess, etc that go into securing a home. We have never had an issue or complaint with the set-up of our marketing ads. I apologize for the inconvenience, but I'm unable to adjust the listing. We have also found that most tenants appreciate the full transparency, so they can fully get a breakdown of costs before viewing a unit/signing a lease.

Yea. I went through this before with my current PM & exactly why I'm moving on. I need communication & action/results not to be simply told no I can't do something. I have a good referral for that PM also. So maybe its just a miscommunication error. Is that the listing agent your messaging? Try to speak with an higher up of the company sure he wouldn't tell you what this listing agent did.
1 Reply
Laura Stayton
Property Manager · DE · Member since 2023 · 248 posts · 133 votes
3y
Quote from @Audrey Peltier:

Hi all!
This is my first time posting something here. I'm kind a newbie. I bought my first and only rental 2 years ago in Cleveland (I live in CA). The former PM found a tenant quickly. They left in December (without paying the last month). I had to spend a lot of money to renovate the house and the garage was totally destroyed.
The new PM can't find a new tenant (32 days on the market and 216 view but no application) and right now I am hemorrhaging money.
It is a single family home - 3 bd/1ba - 993 sqft - with backyard. $915/month
Do you have any advice?
Are people applying and just not qualified? If you aren't getting applications and the home is in good shape - it's almost always price.
0 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Audrey Peltier:

Hi all!
This is my first time posting something here. I'm kind a newbie. I bought my first and only rental 2 years ago in Cleveland (I live in CA). The former PM found a tenant quickly. They left in December (without paying the last month). I had to spend a lot of money to renovate the house and the garage was totally destroyed.
The new PM can't find a new tenant (32 days on the market and 216 view but no application) and right now I am hemorrhaging money.
It is a single family home - 3 bd/1ba - 993 sqft - with backyard. $915/month
Do you have any advice?

FIRE YOUR PM, this should rent in two days. I get 20 calls a week, tenants are the easy part. BTW, a 3br will ren for 1100 1300, AGAIN fire your PM they are clueless
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