How do you all handle vacancy

[Janet Brown]

How do you all handle vacancies? I’ve been trying to rent out this unit for over two months now. I’ve listed it on Zillow Rental Manager and Apartments.com, and I do get inquiries. However, many prospects either stop responding after asking about a tour or they schedule a showing and don’t show up.

I’m curious how other landlords are handling this—are you seeing the same issue, or is there something different that’s working for you?

[Kevin Sobilo]

@Janet Brown, a few thoughts:

1. In addition to those, I also list on facebook marketplace. I do that not only for the additional exposure but because I once didn't do that and a scammer took my listing pics from zillow and posted it on marketplace trying to scam prospective tenants out of application fees up front. By putting my own listing there, it mitigates the risk of them trying to do that again. 

2. With facebook marketplace, the issues you describe are even GREATER! The qualify of the responses generated is LOWER meaning that a higher percentage of folks stop responding or don't show. 

3. However, I don't care about all the people who don't respond or don't show! I'm ONLY TRYING TO CAPTURE ONE GOOD TENANT!

4. There are 3 common routes to mitigate the issues you describe: pre-screening, up front applications, or open house showings. 

5. Pre-screening is common and acceptable way to do business. You send all inquiries a questionnaire that asks them basic screening questions about things like income etc. If the responses indicate they are qualified you schedule a time to show them the property. 

Few people will answer the questions and only people likely to be accepted will be shown the property. So, this may be ideal for people self managing who are a distance from the property where showing it in person is more difficult. 

6. Up front applications are less common. Some landlord take pre-screening to the extreme and require potential tenants to apply in full and to be accepted BEFORE a showing can be scheduled. 

The vast majority of tenants HATE this. With all the scams going on this is a big red flag for average tenants for whom application fees are a cumbersome expense when they have to apply to several places to get a rental. So, this could hamper your tenant search unless your market is really hot for rentals.

7. Open houses! This is my personal go to. I will get MANY inquiries but with this method I can give cut/paste responses with the next open house date and time. So, very little effort and I'm sure I could automate those responses if I choose. 

I personally schedule 2 open houses per week. One on a mid week after day shift ends, maybe 5-7pm, and another on a weekend around mid-day. This accommodates the vast majority of people's schedules. 

I don't care who responds or doesn't, who shows up or doesn't. Since I am putting VERY VERY little work into getting to the point of showing the property they are all weeding themselves out without me doing much of anything. 

Once people see the property, I will review their application if they choose to apply. 

8. Since I self manage, I also generally plan a little work at the property while I am there. So, no matter how many people come to an open hour or don't my time is well spent. 

9. I absolutely would consider pre-screening especially if I was renting something a little higher end where a working class person would not qualify.

10. If you aren't getting any traction, evaluate what you are offering. Obviously price, but I evaluate the whole "value proposition". So, I consider things like whether I offer amenities other landlords don't such as included washers/dryers, allowing pets, etc. 

11. Your title said "vacancy", but really was about "the turnover". They are related, but vacancy is about how many months you don't collect rent for. For example, I budget 5% for vacancy which equates to a turnover every 2 years on average. 

12. I also mitigate vacancy and turnover by focusing on how the value proposition affects it. 

For example, my pricing your rental on the LOW end of market rent and accepting pets you are providing a good tenant with something they cannot replace easily. They can't move and do better because they can't easily find cheaper and its also hard to find a place to accept pets. 

So, if that results in tenants staying twice as long, I MORE than make up for the modestly lower rent by having fewer turnovers and less vacancy. Basically, I collect more months of rent over the same time.