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No Application, Rental property
Hello -
I have put my house on the market for the past 16 days on the MLS for rental. It's also on zillow, redfin, realtor, trulia and facebook market place.
It's fully furnished. I added a 25% premium compared to comps in the area because of that.
I have had 0 applications or contacts.
Wanted to have a second opinion on my listing see if I'm missing something.
https://www.zillow.com/homes/22139-Cressmont-Pl-Boca-Raton,-...
Thank you
You are over-priced for a one-year rental.
1. Most people looking for a one-year lease have their own furniture. By renting yours furnished, you limit yourself to renters that don't have furniture. That's a small market and it will be hard to find someone.
2. Even if you do find someone, why do you think your furniture is worth $2,000 - $2,500 a month? I could get a personal loan for $50,000 to furnish your home and the monthly payment would be less than $1,000. Your price indicates the furnishings are worth $100,000 - $150,000.
3. Many renters don't want to take responsibility for your furniture, particularly if they have kids or animals. Why pay $2,000 more and then run the risk of damaging the kitchen table or spilling wine on your white chair and having to pay for a replacement?
I would drop your rent rate to match the market and advertise it as unfurnished. As you speak to potential renters, you can let them know they can also rent it furnished for a higher rate. I doubt you can get more than $500 - $1,000 extra with a fully furnished home on a long-term lease.
Thank you so much for your answer. I totally see your points and it makes sense.
Based on the comps I found. Rent unfurnished seems to be $4,700 per month. Did you find something else?
I don't even need to look at the listing- if it's been 100% quiet, it's one of two things:
-There's no market for the product you are offering.
-You are overpriced.
The general rule of thumb is that if you are getting inquiries but no applications, you're probably around 5% too high. If you are getting total silence, you are 10% or more over market price.
What is the vacancy rate in your market? What is the average rent- actual, signed leases, not Zillow or FB ads, for a product like yours?
#3 Starting Out Contributor
- Rental Property Investor
- Ellsworth, ME
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#3 Starting Out Contributor
- Rental Property Investor
- Ellsworth, ME
I don't know a thing about your market, so my advice is probably worth what you paid for it.
I always like to put myself in the tenant's shoes. I look at a 12 month commitment with a rent of $5850 + a $5850 security deposit. You're asking a tenant to commit $76k plus utilities for 12 months of housing. Anyone with that budget can probably afford to buy a home. If it's a 30-60-90 day lease, maybe you can make a case that a family in transition might pay up to get by for a short time. I can't make a case that it's a good deal for a 12 month lease though.
The Zillow search results for a budget of $3500 with 3 bedrooms shows 31 listings in your immediate area. I'm sure that street by street dynamics can affect pricing, but it appears that there are a lot of good options for a much lower rent rate.
Rentometer shows $5000 average in this community, there is a rent comp that closed in February for $4600 with less updates and less square footage
22324 Rushmore Pl, Boca Raton, FL 33428
I've heard a couple people comment that they have had trouble getting applications filled out and received when using RentRedi application process. I don't have any personal experience myself.
Your house is beautiful!
Quote from @Jonathan Pechmajou:
Zillow shows a house on Lexington for $4,600. All the other homes within a half mile are listed around $3,100 - $3,500. I can tell they are not as nice, but it's still a huge disparity for anyone searching the market.
The nicest house in an average neighborhood will not rent for as much as an average home in the nicest neighborhood.
@Jonathan Pechmajou It is a beautiful home but I think overpriced if you are getting absolutely no interest in it. I'd consider lowering the rental rate a bit to see if it picks up. Also, have you noticed homes in that area renting unfurnished? That may be the way to go. You have it listed in all the right places so it has to be one of those 2 problems.
I definitely think that the price is a bit high for this property. Sometimes as well properties that come furnished tend to be a turn off espeically if it isn't a short term lease. This definetely varies by area but I would recommend to see if anyone else is offering fully furnished rentals.
Team, one update I dropped the price to $4,700 / month unfurnished and got a tenant the next week.
Thanks yall for all your advice. This community is awesome :)
Quote from @Jonathan Pechmajou:
Team, one update I dropped the price to $4,700 / month unfurnished and got a tenant the next week.
Thanks yall for all your advice. This community is awesome :)
Well that was easy! Unfortunately (or fortunately) south Florida rents have been coming down. I am sure at 4,700, you're still getting a solid cash flow.