Rental is getting plenty of showings but only 1 application

San Francisco, California
General Landlording & Rental Properties
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Rental is getting plenty of showings but only 1 application

Robert Coleman
Member since 2023 · 2 posts · 0 votes

Hello!

I need advice on how to get a tenant quickly for an apartment unit in Mill Valley, California. The apartment is a 1 bedroom 1 bath unit located on 30 Central Court, Mill Valley, California. The property management group that is managing the property has told me that the apartment unit has gotten showings but only 1 applicant that fell through. The property has been on the market for a month and I am concerned that it may be several months at this rate before the property is leased.

The listing can be found here: https://www.progressivesf.com/...

The rent for the property is $2,627 a month. I have spoken with a real estate appraiser who used rent-o-meter and they confirmed with me that the price is appropriate based on comparing three other rental units in the Mill Valley, California area.

I am attaching below photos of the unit. The unit was recently remodeled and is in very good condition. There is also a pool and a parking space available and the surrounding area is quiet, safe, and has access to good schools and is closeby the Strawberry Village Shopping Center

Outdoor View

Kitchen

Bedroom

Living Room

Bathroom

Patio

Question

Do I need to lower the rent on the unit in order to get a tenant quickly? If so how much?

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y

Don't rely on computer algorithms. They compare objective facts (square feet, # of beds/baths, etc.), but they can't evaluate subjective facts like the view across the street, the cars sitting in the parking lot, the size of each bedroom, etc.

If you get a lot of showings but no applications, then it's clear the price isn't right for what you are offering. Lower your price, but do not lower your standards. I would drop it $200 and see what happens over the next week. 

In the future, consider collecting feedback from people looking, particularly if they look like a good prospect. 

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  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    Does it smell like fresh paint or other re-hab odor?

    Low VOC can really be your friend.

    0Reply
  • Robert Coleman
    OP
    Member since 2023 · 2 posts · 0 votes
    3y

    No, there is not any smell. I lived in the apartment unit for a year recently and the apartment is clean. I think it is the rental price.

    The only feedback comments from prospective tenants I have heard from the property management company is: (1) the fact the apartment unit is a corner unit which makes it a security risk and (2) the stairs makes transporting furniture into the unit difficulty.

    The door has a good lock on it though and the screen door in the bedroom works properly as well. As to the stairs, I was able to get my furniture in with a professional moving company without too much difficulty.

    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    Offer to pay for their move in. Up to a limit (obviously).

    I did that with two of my rentals, cost me $400 each but it let me stick to that price point which I wanted to post. It made both rentals that were sitting for 30 days +(think 32 and 35 days) get 5-7 legit applicants within 3 days. Had tons of showings before. Both are excellent houses, just I was definitely priced a bit on the higher end.

    Rather pay for move in than reduce price, I want that rental price to post on listings and in historicals as precedence.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    If you are getting that many showings and only one application, I would reassess the price and call the potential tenants back for feedback.

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Robert Coleman:

    Hello!

    I need advice on how to get a tenant quickly for an apartment unit in Mill Valley, California. The apartment is a 1 bedroom 1 bath unit located on 30 Central Court, Mill Valley, California. The property management group that is managing the property has told me that the apartment unit has gotten showings but only 1 applicant that fell through. The property has been on the market for a month and I am concerned that it may be several months at this rate before the property is leased.

    The listing can be found here: https://www.progressivesf.com/...

    The rent for the property is $2,627 a month. I have spoken with a real estate appraiser who used rent-o-meter and they confirmed with me that the price is appropriate based on comparing three other rental units in the Mill Valley, California area.

    I am attaching below photos of the unit. The unit was recently remodeled and is in very good condition. There is also a pool and a parking space available and the surrounding area is quiet, safe, and has access to good schools and is closeby the Strawberry Village Shopping Center

    Outdoor View

    Kitchen

    Bedroom

    Living Room

    Bathroom

    Patio

    Question

    Do I need to lower the rent on the unit in order to get a tenant quickly? If so how much?


     currently in bay area cities, lot of Class A apt is offering 2 months free for one year lease, so 2BR is like $2K....this is perhaps reason you may not getting a bid

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    Don't rely on computer algorithms. They compare objective facts (square feet, # of beds/baths, etc.), but they can't evaluate subjective facts like the view across the street, the cars sitting in the parking lot, the size of each bedroom, etc.

    If you get a lot of showings but no applications, then it's clear the price isn't right for what you are offering. Lower your price, but do not lower your standards. I would drop it $200 and see what happens over the next week. 

    In the future, consider collecting feedback from people looking, particularly if they look like a good prospect. 

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    2Reply
  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    3y

     This feels a little subjective to me. How many showings? Also, can they send you more information? At my company, we look at total inquiries, scheduled showings, and applications received for a particular unit. Then compare those conversion rates to the company average to determine where the problem is. Get more data from your PM before dropping your rent rate, I hate to see rate drops :(

    [email protected]443-812-0357
    Schwartz Realty Group5118 Reviews
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    0Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y

    @Robert Coleman if your doing everything right on the marketing side, getting plenty of exposure, having plenty of interest, but no conversion, that is as @Nathan Gesner pointed out, the market telling you their price opinion, which end of day the only price opinion that matters is the markets. 

    I'd make sure your listing details that applications will be reviewed and considered int he exact order they are received. Than, institute a 10-day pricing strategy. Where every 10 days without app's, yes you drop that price. I say start now by dropping too $2,495, getting just under that $2,500 search. 

    Yeah, some may try to play "how low will it go" but ignore them because once price is right others will act to not loose out, FOMO. 

    If nothing, every 10 days drop it $100

    You CANT rent a place for UNDER market value, because the market set's market value NOT a website or software tool. And what's a month of vacancy cost? Yeah, more then a $100 mnthly rent drop right. 

    Vacancy is the villain, not moving rents to market value. Market value is what a market is willing to pay, not willing to look. I hear people sometimes say "well I see this/that property listed at" and I point out "exactly, LISTED, as in NOT rented, right. Do you want to list OR lease?". 

    0Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    3y

    I can only guess, but it appears to be the price. 

    There is another similar unit in the building listed for $134 less and it appears to have a patio and the pics are of a furnished unit which helps hide its size.

    There are other units available in the same zip code, many of which I think look nicer based on pics alone, that are less expensive.

    I don't know your specific area, but the loud chatter is that demand and prices in SF are falling. Are you asking 2020 prices for the unit in 2023?

    0Reply
  • Chad Hale
    Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 302 votes
    3y
    I'll echo the others, lower the pricing assuming the PM is responding professionally and in a timely manner.  Everything anywhere will rent for the right price.
    0Reply
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