Reducing rent to place a tenant?
Member since 2019 · 144 posts · 46 votes
Reducing rent to place a tenant?
Most Popular Reply
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
2y@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.
70 Replies
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes2y
@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.
- Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes2y
The one month of vacancy already cost you 8.5% (more than $100/mo). If you’re still vacant in another month you could have started $200/mo lower and been in the same place.
You’re problem is either advertising (bad locations to advertise chosen or bad text/pictures) or price, you can only fix one without changing PMs.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Bill B.:
The one month of vacancy already cost you 8.5% (more than $100/mo). If you’re still vacant in another month you could have started $200/mo lower and been in the same place.
You’re problem is either advertising (bad locations to advertise chosen or bad text/pictures) or price, you can only fix one without changing PMs.
So is your answer that it is better to keep lowering my rent no matter how much because it costs less than a vacancy? I don't know what the problem is to be honest. The location seems ok, the PM said they rent " all day" for the price. They advertised on all the major platforms and had a great amount of leads but no applications. one thing I don't like and I don't know if it is normal, is they just put it on a lockbox. They don't check on the property while it is being listed or meet any tenants to show the property. I am attaching a photo of the leads? I don't know I should change PM's, I just signed with them not too long ago but they sure charge a lot of fees and have underdelivered in placing tenants.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Kevin Sobilo:
@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.
My goal is to buy properties that cash flow a little now but will appreciate in 20-30 years when I sell. We used a calculator to say when we should buy a property based on the market rent, vacancy, maintenance, and PM fees. That number I used was $1275 or $1250. If I am only making $1000 a month, then it does not cash flow. I don't think my strategy is wrong? I already put like $6K to get it rent ready but I will look into a washer and dryer hookup.
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes2y
Quote from @Michele Velazquez:
Quote from @Kevin Sobilo:
@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.
My goal is to buy properties that cash flow a little now but will appreciate in 20-30 years when I sell. We used a calculator to say when we should buy a property based on the market rent, vacancy, maintenance, and PM fees. That number I used was $1275 or $1250. If I am only making $1000 a month, then it does not cash flow. I don't think my strategy is wrong? I already put like $6K to get it rent ready but I will look into a washer and dryer hookup.
You have a single family home that doesn't even have hookups for a washer/dryer? I'm sure that alone makes much less desirable than comparable rentals. I mean a family might have to spend $50 or more per month at the laundromat plus the hassle of hauling their clothes.Why invest in a market you don't know for appreciation? When I think of investing for appreciation, I always think "NO WAY!" but I realize people who live in some markets can't find cash-flow where they live and if they want to self-manage then potential appreciation is the opportunity they have. So, I understand that.
What I don't understand is if you are going to invest in a market far away from you, why would you invest for appreciation?
1. Market appreciation is something you cannot control or even predict that well whereas cash-flow is much more controllable based on how you manage the property.
2. Money now is worth MORE than money later! Cash-flow in your pocket today could be re-invested and conversely inflation eats up the value of money that you have to wait 20-30 years to get.
3. Cash-flow is tax advantaged unlike cashing out equity later on.
- 2yKonstantin GinzburgPro MemberMember since 2021 · 376 posts · 242 votes
My general rule of thumb is that if you create a listing and there are no inquires at all within the first 1-2 weeks than the price is likely too high for the market at the time. Getting a tenant is easier in certain times of year. During colder months or the holiday season, people are less willing to move since they are likely more focused on the holidays. People are also less likely to want to move during cold weather since its an added inconvenience. This could be a part of the reason why you might be seeing a softening rental demand in your area. If you are not receiving any inquiries of viewing requests then you might want to consider lowering price to try to minimize your vacancy since high vacancy will destroy your profit margins. If your PM is suggesting a $25 per week reduction, than it might be a good idea to listen to them and regauge the market response each week. Assuming you have a good PM, they should have a solid understanding of the current rental market within your region. Although it might a good idea to ask them about what platforms or marketing strategies they are using. If the rental demand is low because they are not great at creating a good listing, then this is something you might able to help them with. My strategy is usually listing on Zillow and then sharing that listing on various Facebook groups for people looking for housing in a specific market.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Kevin Sobilo:
Quote from @Michele Velazquez:
Quote from @Kevin Sobilo:
@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.
My goal is to buy properties that cash flow a little now but will appreciate in 20-30 years when I sell. We used a calculator to say when we should buy a property based on the market rent, vacancy, maintenance, and PM fees. That number I used was $1275 or $1250. If I am only making $1000 a month, then it does not cash flow. I don't think my strategy is wrong? I already put like $6K to get it rent ready but I will look into a washer and dryer hookup.
You have a single family home that doesn't even have hookups for a washer/dryer? I'm sure that alone makes much less desirable than comparable rentals. I mean a family might have to spend $50 or more per month at the laundromat plus the hassle of hauling their clothes.Why invest in a market you don't know for appreciation? When I think of investing for appreciation, I always think "NO WAY!" but I realize people who live in some markets can't find cash-flow where they live and if they want to self-manage then potential appreciation is the opportunity they have. So, I understand that.
What I don't understand is if you are going to invest in a market far away from you, why would you invest for appreciation?
1. Market appreciation is something you cannot control or even predict that well whereas cash-flow is much more controllable based on how you manage the property.
2. Money now is worth MORE than money later! Cash-flow in your pocket today could be re-invested and conversely inflation eats up the value of money that you have to wait 20-30 years to get.
3. Cash-flow is tax advantaged unlike cashing out equity later on.
No, it is a quadplex. And it does cash flow. I bought each for $150K and they get $1250 in rent.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Konstantin Ginzburg:
My general rule of thumb is that if you create a listing and there are no inquires at all within the first 1-2 weeks than the price is likely too high for the market at the time. Getting a tenant is easier in certain times of year. During colder months or the holiday season, people are less willing to move since they are likely more focused on the holidays. People are also less likely to want to move during cold weather since its an added inconvenience. This could be a part of the reason why you might be seeing a softening rental demand in your area. If you are not receiving any inquiries of viewing requests then you might want to consider lowering price to try to minimize your vacancy since high vacancy will destroy your profit margins. If your PM is suggesting a $25 per week reduction, than it might be a good idea to listen to them and regauge the market response each week. Assuming you have a good PM, they should have a solid understanding of the current rental market within your region. Although it might a good idea to ask them about what platforms or marketing strategies they are using. If the rental demand is low because they are not great at creating a good listing, then this is something you might able to help them with. My strategy is usually listing on Zillow and then sharing that listing on various Facebook groups for people looking for housing in a specific market.
I am pasting the screenshot of where they advertise and its a multifamily. Do you see any issues? How do I find a facebook group of people wanting to rent in the area?
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes2y
Quote from @Michele Velazquez:
Quote from @Konstantin Ginzburg:
My general rule of thumb is that if you create a listing and there are no inquires at all within the first 1-2 weeks than the price is likely too high for the market at the time. Getting a tenant is easier in certain times of year. During colder months or the holiday season, people are less willing to move since they are likely more focused on the holidays. People are also less likely to want to move during cold weather since its an added inconvenience. This could be a part of the reason why you might be seeing a softening rental demand in your area. If you are not receiving any inquiries of viewing requests then you might want to consider lowering price to try to minimize your vacancy since high vacancy will destroy your profit margins. If your PM is suggesting a $25 per week reduction, than it might be a good idea to listen to them and regauge the market response each week. Assuming you have a good PM, they should have a solid understanding of the current rental market within your region. Although it might a good idea to ask them about what platforms or marketing strategies they are using. If the rental demand is low because they are not great at creating a good listing, then this is something you might able to help them with. My strategy is usually listing on Zillow and then sharing that listing on various Facebook groups for people looking for housing in a specific market.
I am pasting the screenshot of where they advertise and its a multifamily. Do you see any issues? How do I find a facebook group of people wanting to rent in the area?
All I use are ones they don't use. I use zillow and facebook marketplace. Also, in most states a property management company needs to be a real estate brokerage. So, they might also be listing rentals on the MLS.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Kevin Sobilo:
Quote from @Michele Velazquez:
Quote from @Konstantin Ginzburg:
My general rule of thumb is that if you create a listing and there are no inquires at all within the first 1-2 weeks than the price is likely too high for the market at the time. Getting a tenant is easier in certain times of year. During colder months or the holiday season, people are less willing to move since they are likely more focused on the holidays. People are also less likely to want to move during cold weather since its an added inconvenience. This could be a part of the reason why you might be seeing a softening rental demand in your area. If you are not receiving any inquiries of viewing requests then you might want to consider lowering price to try to minimize your vacancy since high vacancy will destroy your profit margins. If your PM is suggesting a $25 per week reduction, than it might be a good idea to listen to them and regauge the market response each week. Assuming you have a good PM, they should have a solid understanding of the current rental market within your region. Although it might a good idea to ask them about what platforms or marketing strategies they are using. If the rental demand is low because they are not great at creating a good listing, then this is something you might able to help them with. My strategy is usually listing on Zillow and then sharing that listing on various Facebook groups for people looking for housing in a specific market.
I am pasting the screenshot of where they advertise and its a multifamily. Do you see any issues? How do I find a facebook group of people wanting to rent in the area?
All I use are ones they don't use. I use zillow and facebook marketplace. Also, in most states a property management company needs to be a real estate brokerage. So, they might also be listing rentals on the MLS.
It is on Zillow maybe its one of the syndicated ones? Ill try FB Marketplace :)
- Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes2y
Quote from @Michele Velazquez:
Quote from @Kevin Sobilo:
Quote from @Michele Velazquez:
Quote from @Kevin Sobilo:
@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.
My goal is to buy properties that cash flow a little now but will appreciate in 20-30 years when I sell. We used a calculator to say when we should buy a property based on the market rent, vacancy, maintenance, and PM fees. That number I used was $1275 or $1250. If I am only making $1000 a month, then it does not cash flow. I don't think my strategy is wrong? I already put like $6K to get it rent ready but I will look into a washer and dryer hookup.
You have a single family home that doesn't even have hookups for a washer/dryer? I'm sure that alone makes much less desirable than comparable rentals. I mean a family might have to spend $50 or more per month at the laundromat plus the hassle of hauling their clothes.Why invest in a market you don't know for appreciation? When I think of investing for appreciation, I always think "NO WAY!" but I realize people who live in some markets can't find cash-flow where they live and if they want to self-manage then potential appreciation is the opportunity they have. So, I understand that.
What I don't understand is if you are going to invest in a market far away from you, why would you invest for appreciation?
1. Market appreciation is something you cannot control or even predict that well whereas cash-flow is much more controllable based on how you manage the property.
2. Money now is worth MORE than money later! Cash-flow in your pocket today could be re-invested and conversely inflation eats up the value of money that you have to wait 20-30 years to get.
3. Cash-flow is tax advantaged unlike cashing out equity later on.
No, it is a quadplex. And it does cash flow. I bought each for $150K and they get $1250 in rent.
Are you sure that cash-flows after factoring in ~25% of incoming rent for PM, vacancy, cap ex, and maintenance. That would mean your mortgages, taxes, insurance and any included utilities would need to be under $3,750 total. - 2yKonstantin GinzburgPro MemberMember since 2021 · 376 posts · 242 votes
Quote from @Michele Velazquez:
Quote from @Konstantin Ginzburg:
My general rule of thumb is that if you create a listing and there are no inquires at all within the first 1-2 weeks than the price is likely too high for the market at the time. Getting a tenant is easier in certain times of year. During colder months or the holiday season, people are less willing to move since they are likely more focused on the holidays. People are also less likely to want to move during cold weather since its an added inconvenience. This could be a part of the reason why you might be seeing a softening rental demand in your area. If you are not receiving any inquiries of viewing requests then you might want to consider lowering price to try to minimize your vacancy since high vacancy will destroy your profit margins. If your PM is suggesting a $25 per week reduction, than it might be a good idea to listen to them and regauge the market response each week. Assuming you have a good PM, they should have a solid understanding of the current rental market within your region. Although it might a good idea to ask them about what platforms or marketing strategies they are using. If the rental demand is low because they are not great at creating a good listing, then this is something you might able to help them with. My strategy is usually listing on Zillow and then sharing that listing on various Facebook groups for people looking for housing in a specific market.
I am pasting the screenshot of where they advertise and its a multifamily. Do you see any issues? How do I find a facebook group of people wanting to rent in the area?
I have used Apartments.com and rent.com in the past and that generated some inquires but the overwhelming of our tenants have been through zillow.com so I am not sure why your property manager has that platform unchecked. I would advise them to begin using zillow as well. Also, take a look at their actual listing and make sure that it is well put together. How do the pictures look? Is the property described well in the listing as well as having all amenities included in the listing. There are a lot of facebook groups where people list their vacancy openings. Do a facebook group search for rental listings in the area you are trying to rent. Here is an example of a facebook group looking for rent in the Atlanta area:
https://www.facebook.com/groups/197422767389467 - Real Estate Agent · Denver CO · Member since 2019 · 209 posts · 332 votes2y
Try Zillow and FB Marketplace. Also, join local housing groups on FB Marketplace and proactively reach out to people. Set a goal to reach out to X people per day..."I saw your post about a SFH in ABC and I have a beautiful home that you'd love...". Takes some work but I've had success with this.
Consider dropping the price more than $25 a week. If you're at $1,275 to hit the next batch of people looking you likely need to get under $1,200. So you may need to move in $100 increments.
- Realtor · Southern Maine · Member since 2020 · 24 posts · 19 votes2y
Quote from @Michele Velazquez:
I am relatively new to investing. I have 2 quadplexes in Atlanta being managed by a PM since I am in California. I bought these units because the PM said the rent in the area was $1250 and they believe I could get between $1250-$1275 a month per unit. So I bought these units assuming these numbers as that would make me cashflow. However, the unit has been on the market for one month and now they are saying to lower the rent $25 every week. My question is, how low do I go? Do I go down past $1200 where I won't cash flow every month but it's better than no tenant? I would love to hear feedback from the seasoned investors. Thank you.
Trust but verify, I would message a few PMs and perform my own due diligence on the rental market (look at comps on Zillow,etc). I know this isn't the answer to your question, but I would make sure that the apartment is cross-listed to as many websites/platforms as possible to get the most exposure. If still no activity, then consider dropping the price... probably by a more significant increment. Also, I would make sure that the photos taken and listed are taken by a professional real estate photographer ~$200... it makes a big difference.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Konstantin Ginzburg:
Quote from @Michele Velazquez:
Quote from @Konstantin Ginzburg:
My general rule of thumb is that if you create a listing and there are no inquires at all within the first 1-2 weeks than the price is likely too high for the market at the time. Getting a tenant is easier in certain times of year. During colder months or the holiday season, people are less willing to move since they are likely more focused on the holidays. People are also less likely to want to move during cold weather since its an added inconvenience. This could be a part of the reason why you might be seeing a softening rental demand in your area. If you are not receiving any inquiries of viewing requests then you might want to consider lowering price to try to minimize your vacancy since high vacancy will destroy your profit margins. If your PM is suggesting a $25 per week reduction, than it might be a good idea to listen to them and regauge the market response each week. Assuming you have a good PM, they should have a solid understanding of the current rental market within your region. Although it might a good idea to ask them about what platforms or marketing strategies they are using. If the rental demand is low because they are not great at creating a good listing, then this is something you might able to help them with. My strategy is usually listing on Zillow and then sharing that listing on various Facebook groups for people looking for housing in a specific market.
I am pasting the screenshot of where they advertise and its a multifamily. Do you see any issues? How do I find a facebook group of people wanting to rent in the area?
I have used Apartments.com and rent.com in the past and that generated some inquires but the overwhelming of our tenants have been through zillow.com so I am not sure why your property manager has that platform unchecked. I would advise them to begin using zillow as well. Also, take a look at their actual listing and make sure that it is well put together. How do the pictures look? Is the property described well in the listing as well as having all amenities included in the listing. There are a lot of facebook groups where people list their vacancy openings. Do a facebook group search for rental listings in the area you are trying to rent. Here is an example of a facebook group looking for rent in the Atlanta area:
https://www.facebook.com/groups/197422767389467It is on Zillow, I think Zillow Group maybe is something else? Here is the zillow listing. I think it looks ok? https://www.zillow.com/homedetails/1743-Hunting-Creek-Dr-SE-... I am checking out FB thanks for that tip!
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Marcus R.:
Try Zillow and FB Marketplace. Also, join local housing groups on FB Marketplace and proactively reach out to people. Set a goal to reach out to X people per day..."I saw your post about a SFH in ABC and I have a beautiful home that you'd love...". Takes some work but I've had success with this.
Consider dropping the price more than $25 a week. If you're at $1,275 to hit the next batch of people looking you likely need to get under $1,200. So you may need to move in $100 increments.
Ok thank you for that tip!
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Kevin Sobilo:
Quote from @Michele Velazquez:
Quote from @Kevin Sobilo:
Quote from @Michele Velazquez:
Quote from @Kevin Sobilo:
@michele Velaquez, you bought a place because you anticipated just $50 cashflow?
How do you define "cash-flow"? Are you including budgeting 10-15% total for capital expenses, vacancy, and maintenance? If you are defining cash-flow as just meeting your hard costs like mortgage, taxes, insurance, PM, etc then that isn't good at all.
Are there any changes you can make to get the rent you planned? Adding a washer/dryer instead of just hookups. Allowing pets with additional pet rent and pet deposit. There are lots of possibilities.
My goal is to buy properties that cash flow a little now but will appreciate in 20-30 years when I sell. We used a calculator to say when we should buy a property based on the market rent, vacancy, maintenance, and PM fees. That number I used was $1275 or $1250. If I am only making $1000 a month, then it does not cash flow. I don't think my strategy is wrong? I already put like $6K to get it rent ready but I will look into a washer and dryer hookup.
You have a single family home that doesn't even have hookups for a washer/dryer? I'm sure that alone makes much less desirable than comparable rentals. I mean a family might have to spend $50 or more per month at the laundromat plus the hassle of hauling their clothes.Why invest in a market you don't know for appreciation? When I think of investing for appreciation, I always think "NO WAY!" but I realize people who live in some markets can't find cash-flow where they live and if they want to self-manage then potential appreciation is the opportunity they have. So, I understand that.
What I don't understand is if you are going to invest in a market far away from you, why would you invest for appreciation?
1. Market appreciation is something you cannot control or even predict that well whereas cash-flow is much more controllable based on how you manage the property.
2. Money now is worth MORE than money later! Cash-flow in your pocket today could be re-invested and conversely inflation eats up the value of money that you have to wait 20-30 years to get.
3. Cash-flow is tax advantaged unlike cashing out equity later on.
No, it is a quadplex. And it does cash flow. I bought each for $150K and they get $1250 in rent.
Are you sure that cash-flows after factoring in ~25% of incoming rent for PM, vacancy, cap ex, and maintenance. That would mean your mortgages, taxes, insurance and any included utilities would need to be under $3,750 total.Correct, my mortgage is under that. And some of the units are at $1300.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Dominik Porobic:
Quote from @Michele Velazquez:
I am relatively new to investing. I have 2 quadplexes in Atlanta being managed by a PM since I am in California. I bought these units because the PM said the rent in the area was $1250 and they believe I could get between $1250-$1275 a month per unit. So I bought these units assuming these numbers as that would make me cashflow. However, the unit has been on the market for one month and now they are saying to lower the rent $25 every week. My question is, how low do I go? Do I go down past $1200 where I won't cash flow every month but it's better than no tenant? I would love to hear feedback from the seasoned investors. Thank you.
Trust but verify, I would message a few PMs and perform my own due diligence on the rental market (look at comps on Zillow,etc). I know this isn't the answer to your question, but I would make sure that the apartment is cross-listed to as many websites/platforms as possible to get the most exposure. If still no activity, then consider dropping the price... probably by a more significant increment. Also, I would make sure that the photos taken and listed are taken by a professional real estate photographer ~$200... it makes a big difference.
I do think the pictures are kinda whack. They didn't offer me that option but maybe I should suggest that.
- Real Estate Investor · Columbus, GA · Member since 2017 · 24 posts · 7 votes2y
@Michele Velazquez Hey Michele! I recently bought a duplex in Atlanta. I also bought in Atlanta to try to ride a lot of appreciation the next few years. I had inherited tenants but the pm I hired have been great so far. Let me know if you would like to know who I use. Curious to know what part of Atlanta you bought in.
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Cristian Portillo:
@Michele Velazquez Hey Michele! I recently bought a duplex in Atlanta. I also bought in Atlanta to try to ride a lot of appreciation the next few years. I had inherited tenants but the pm I hired have been great so far. Let me know if you would like to know who I use. Curious to know what part of Atlanta you bought in.
I’d love to know who you use. Mine has a lot Of fees and I’m not sure about it. I bought in Conyers and Austell Closer To Murrieta. You?
- Real Estate Investor · Columbus, GA · Member since 2017 · 24 posts · 7 votes2y
The pm I use do also have a lot of fees but I believe it's worth it. I use Aramis Realty. I bought in downtown Atlanta in Ashview Heights. It's gentrifying there and I personally believe Atlanta still has a lot of potential so hopefully we're both right lol.
- Architect · Portland, OR · Member since 2023 · 66 posts · 39 votes2y
Michele,
I took a look at your listing and I think you are correct about some of the photos . . . a couple of them are rather blurry. The 3D tour does help. The interior looks ok, the exterior looks like it could use a little yard cleanup. The bricks at the planting beds at the front door are a bit messy and there are vines in the back and some other plants near the AC that need trimmed. Easy fixes, but may be red flags on the amount of care that your tenants can expect from renting there.
I would not drop the rent by $100. I was able to move my rental property by dropping it $50. However, the biggest thing is that Zillow will round up. So, since yours is listed for $1250, it will show up as $1300 on the map. I haven't verified, but I think you could list for $1249 and it might round down. You could try dropping it by $25 and see what happens!
Another thing is that your PM is charging and additional $50 fee for some items that may or may not be desired by potential tenants. Just something that may raise the overall cost for them. It definitely does not read like its optional.
Lastly, it looks like you might have AC, but the listing says "contact manger" There may be some potential applicants filtering by whether or not it has it. I assume in GA this is desirable.
Good luck!
-Cathy
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Cristian Portillo:
The pm I use do also have a lot of fees but I believe it's worth it. I use Aramis Realty. I bought in downtown Atlanta in Ashview Heights. It's gentrifying there and I personally believe Atlanta still has a lot of potential so hopefully we're both right lol.
I just sent you a DM!
- Member since 2019 · 144 posts · 46 votes2y
Quote from @Cathy B.:
Michele,
I took a look at your listing and I think you are correct about some of the photos . . . a couple of them are rather blurry. The 3D tour does help. The interior looks ok, the exterior looks like it could use a little yard cleanup. The bricks at the planting beds at the front door are a bit messy and there are vines in the back and some other plants near the AC that need trimmed. Easy fixes, but may be red flags on the amount of care that your tenants can expect from renting there.
I would not drop the rent by $100. I was able to move my rental property by dropping it $50. However, the biggest thing is that Zillow will round up. So, since yours is listed for $1250, it will show up as $1300 on the map. I haven't verified, but I think you could list for $1249 and it might round down. You could try dropping it by $25 and see what happens!
Another thing is that your PM is charging and additional $50 fee for some items that may or may not be desired by potential tenants. Just something that may raise the overall cost for them. It definitely does not read like its optional.
Lastly, it looks like you might have AC, but the listing says "contact manger" There may be some potential applicants filtering by whether or not it has it. I assume in GA this is desirable.
Good luck!
-Cathy
Thank you so much for looking at it. Your feedback was amazing. I really appreciate it. I am going to ask about these things.
- Investor · Colonial Heights, VA · Member since 2015 · 78 posts · 53 votes2y
@Michele Velazquez
Is your PM accepting Zillow applications? A lot of potential tenants who use zillow are only going to use the Zillow application since you just need to pay the application fee once and you can apply to as many properties as you want in a certain time frame.
If the “competition” in your area is doing that and your PM is not accepting Zillow applications and instead charging an application fee per adult it would make sense why your leads are not converting into applications.
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