Hey everyone! About two years ago I invested in my first rental in Denison, Texas and in September closed on my second property in Denison as well. It's been sitting on the market for a little over two months now and I've had some struggle getting much interest.
The house is clean, great pictures, great listing description, and I think the price is pretty fair. It was originally listed at 1,50 for a 3/1 at ~1,300 square feet, but I just dropped the price to 1,495. Can you help with why the property might be sitting for so long? Is this just a tough time to find new tenants so close to the holidays? Is it worth offering concessions even further?
I've also started looking for my third rental now that prices have come down, but I'm hesitant to start looking without the second one rented. Should I hold off looking for a third rental?
The market typically tells you what "fair" rent is. I would say if it is sitting several months and no interest the simple answer is to drop it to where interest starts to generate. $5 a month I don't think is going to do much for most people.
I always try and remember that for every (1 month rent a unit is vacant divided by 12) you just already lowered rent by that amount. For example in your situation, 2 months empty at 1,500 = 3,000. (3,000 / 12 = $250 a month). So you already lost $250 a month in rent for the year. Which is double the loss of if you would have just rented it day one at $1,375.
Just my thoughts, plus you can always raise rents after 6M or a year to match the market if it picks up. (whatever the lease terms you choose are)
Just one mans thoughts though, best of luck brother and congrats on the 2nd and possibly 3rd unit!
I'm not sure how your market typically performs, but in our area, November and December tend to be slower months due to the holidays. Have you considered running any specials, such as offering a half-month of free rent, to incentivize new leases? Also, when signing any new leases, I recommend ensuring the term is slightly longer than one year. This helps us avoid having lease renewals come up during this slow holiday season in the future.
The market typically tells you what "fair" rent is. I would say if it is sitting several months and no interest the simple answer is to drop it to where interest starts to generate. $5 a month I don't think is going to do much for most people.
I always try and remember that for every (1 month rent a unit is vacant divided by 12) you just already lowered rent by that amount. For example in your situation, 2 months empty at 1,500 = 3,000. (3,000 / 12 = $250 a month). So you already lost $250 a month in rent for the year. Which is double the loss of if you would have just rented it day one at $1,375.
Just my thoughts, plus you can always raise rents after 6M or a year to match the market if it picks up. (whatever the lease terms you choose are)
Just one mans thoughts though, best of luck brother and congrats on the 2nd and possibly 3rd unit!
Benji, this is why tenant pool is so important and often overlooked. It doesn't matter how nice a property is fixed up if none of the locals can afford it. Before you buy a 3rd property, consider the area and how much demand there is to live there. Higher demand in better areas. Best of luck.
Hey Benji, thanks for sharing. Sounds like you’ve been making some solid moves.
A few thoughts that might help:
Seasonality is real. Many markets tend to slow down in late fall and early winter, especially around the holidays. So part of this could just be timing.
Price sensitivity might be playing a role too. If it’s been sitting for two months with minimal interest, the market may be telling you something. Even if the price seems fair based on comps or your expectations, tenants are the final judge. You might test a more noticeable price drop to get some traction, or like others mentioned, offer a concession like a free half-month or a gift card to bring in attention.
Photos and listing. Even if you feel the photos and description are strong, it can help to have someone else take a fresh look. Sometimes small tweaks can make a big difference.
Tenant pool and demand. As Eric mentioned, if the local tenant pool can’t support the rent you are asking, that becomes a challenge regardless of how nice the property is. Reviewing local income levels and rent comps in that specific neighborhood could help guide your pricing now and also inform your third purchase.
As for the third property, I would personally want to stabilize the second one first. You will likely be in a stronger position both financially and mentally before jumping into another project. That said, you do not need to lose momentum either. Just make sure each step is backed by clear data and a solid plan.
Hi Benji, sometimes timing and local demand can slow rentals, especially near the holidays. One strategy many investors use is to diversify into Midwest markets—lower entry costs, strong cashflow, and less competition make it easier to scale while your current property is sitting. That way, you can keep growing your portfolio without waiting for the second property to rent.
Benji, a clean house and great photos are a good start, but if it’s been sitting for two months, the market is telling you something. In most cases it comes down to one of three things: price, product, or exposure.
A few things to check:
1. Price is almost always the culprit.
If you were originally at 1,550 and are now at 1,495, that may still be above the true market for a 3/1 at 1,300 sq ft in that pocket. I’d pull comps on what actually rented in the last 30–60 days and see where you fall. Even a $50–$75 mismatch can stall activity.
2. Check the listing exposure.
Where is it posted? Zillow, FB Marketplace, Apartments.com, HotPads?
Great pictures don’t matter if the listing isn’t being pushed everywhere tenants are actually looking.
3. Pay attention to your inquiry-to-showing ratio.
If you’re getting views but no inquiries → price is too high.
If you’re getting inquiries but no showings → description or screening barriers might be the issue.
If you’re getting showings but no applications → something inside the property is turning people off.
Each one points you to a different fix.
4. Holidays absolutely slow leasing down.
Demand drops from mid-November through early January. You’re in the slowest window of the year, so interest will naturally be softer.
5. Concessions can help, but only temporarily.
Small incentives like “first month $100 off” or “$300 move-in credit” bring more traffic without permanently lowering rents. If I’m trying to fill a vacancy in December, concessions beat price cuts.
As for starting the search for property number three, personally, I wait until the current one is stabilized unless the deal is outstanding. Vacancy burn + a new acquisition can stretch your cash reserves more than you expect.
Get the unit rented, tighten your process, then move on to the next one with confidence.
Two months is rough, especially heading into winter. One thing that helped me turn around a slow property: check if your listing is showing up in local Facebook groups and Nextdoor, not just Zillow/rental sites. Also worth calling a few property managers in Denison to see what similar 3/1s are actually renting for vs listing for. Sometimes the market data is off by $50-100. Are you marketing it yourself or using an agent?
Have you hired a PM yet? You’re already paying more in vacancy than a PM would charge you. 2 weeks has been a long vacancy for me. But pretend it would have taken them a month. They would charge your second vacant month over a year but you would have saved the utilities and be slightly ahead. If it takes you another 2-4 weeks to find a tenant you’re paying to play PM.
If you’re lucky your self-inflicted long vacancy will only result in the obvious rent loss. But it could lead to you subconsciously lowering your standards, higher move in expenses from things sitting unused or worse yet squatters.
Rent coming in from a qualified tenant fixes all problems.
@Benji Halpern — we manage in Denison and Sherman, and yes, it’s competitive right now.
There are a lot of accidental landlords in that market. Everyone heard about the chip plants, Lake Texoma growth, industrial expansion… and jumped in. Supply went up faster than tenant demand.
If it’s sitting 2+ months, the market is telling you the price is off. A $5 drop won’t move the needle. In this market, you can’t get greedy. A slightly lower-paying tenant today is better than a no-paying tenant for three months. You can raise rents later. Vacancy is permanent loss.
We’ve had to get creative — stronger syndication, local Facebook groups, targeted ads, and sometimes small concessions instead of headline price cuts.
I would stabilize this one before buying #3 unless it’s an absolute steal. This is a long game. Protect cash flow first, then scale.
