Desperate for Tenants in Memphis

General Landlording & Rental Properties
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Desperate for Tenants in Memphis

Bill Manassero
Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes

Bought a duplex in Memphis with two 3bd/1ba units, nicely rehabbed, from a turn-key "passive" investment firm. The units are going for $650 each and the market is around $750. I have not had a tenant in either unit since purchase (over 6 months ago). I am in the process of trying to find a third property management firm. I am desperate here and not quite sure what to do. Reduced price to $595 per unit but still no tenants. Any suggestions.

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Derrick Craig
Memphis, TN · Member since 2013 · 969 posts · 524 votes
11y

@Bill Manassero 

Here is an update for you and the BP family on the duplex/townhome that you have here in Memphis. I know you were having such a hard time with the last PM and a lot of naysayers were giving you a hard time and or telling you to cut your losses....

 GREAT NEWS-  :))))))))

I rented  3420 Bruntonwood Cove to a mother of 4, a Section 8 tenant for $797.00 she has moved to Memphis from Connecticut to be closer to her family. One down one to go hopefully I will have the other side rented for you before the end of the month... Keep your head up everything is going to be just fine as @Melodee Lucido would say!! LOL!!

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  • Ron Drake
    Investor · San Diego, CA · Member since 2014 · 180 posts · 72 votes
    11y

    Sorry you are having this issue. Must be frustrating.

    Have you visited the area your self? Are you sure that even $595/ month is market or below rent? I don't know Memphis, but are there $500 month areas? Just from the outside, seems as if rents are too high or units are below average for area or they should be renting. 

    0Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    11y

    Location?

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  • Account Closed
    Residential Real Estate Broker · Member since 2014 · 45 posts · 14 votes
    11y

    Posting some pictures of your pictures used for marketing could help. Usually there is a reason why your rental isn't renting. Also, expounding on "third property management company" would help. What happen to the first two?

    0Reply
  • Stephen Akindona
    Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
    11y

    I am a licensed realtor here in Memphis as well as investor, and it really will depend on location of the duplex. I'm curios to know what area of town the duplex is located. We have never had a problem getting houses or units rented if we were not overpricing the rent. It could be that your rent estimate is way off for your location or you may not be in a strong rental area. Marketing is also important, how are you currently marketing the property. 

    0Reply
  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    Wow!  I'm thrilled at the quick response.  It is located at 3418-20 Brutonwood Cove.  The first PM was from the seller and quit because of issues with the seller.  The second still has another one of my properties (section 8) and is doing well with that one but couldn't rent this one.  I'm not sure he was marketing it all that well.  He posted on their web site, Craig's list, Zillow, Trulia, etc. but didn't want to post a sign in front because of potential break-ins.  I have visited the area and it seemed to be a nice family neighborhood and I also asked around, however, I don't live in TN.  No outwardly undesirable signs in the neighborhood.  I'm willing to cut rent and even do some curb-appeal upgrades but am not sure now about the area.

    0Reply
  • Joe Moore
    Rental Property Investor · Los Angeles, CA · Member since 2010 · 804 posts · 230 votes
    11y

    Are your property in a war zones, someone murdered there, a dope house, and have very bad element for neighbors.  Craigslist has always plenty of prospective tenants.  You can also use Backpage and Pennysaver.    You can get in contact with Section 8.  What is reason they are not renting?

    0Reply
  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    What do I have to do to get section 8?  i'm a new investor.

    0Reply
  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    I have never spoken with tenant applicants (turn-key) but wish I had.  i don't know why they are not interested.

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  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    Here is a link to pictures: 

    http://www.lpmproperty.com/memphis-homes-for-rent#ad/727301

    0Reply
  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    I don't know about murders, drugs, etc. at the house or neighborhood.  Anyone from Memphis know the area?

    0Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    11y

    who is the turnkey provider who sold them to you?  What is the address, I can give you a better idea of what I think market rent should be. 

    Curt Davis - KAIZEN Realty538 Reviews
    WebsiteView Page
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  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    OVG out of Singapore

    0Reply
  • Account Closed
    Residential Real Estate Broker · Member since 2014 · 45 posts · 14 votes
    11y

    Don't want to be negative, but the pictures could use improvement. The front picture has a rotten stump in the yard. The yard is overgrown. What appears to be a water heater tank is in the yard. The pictures are grainy. To start, improve the pictures. Perhaps you can pay someone to take some quality pictures for you since you aren't local. Tho photos are the first impressions for your tenants. If choosing a property management company then you will want to look at their pictures of their currently listed properties and see how they compare.

    5Reply
  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    Negative is OK.  I just need some truth here to try to get on track.  Great point about the PM's photos.

    1Reply
  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    11y

    It looks like maybe your turn-key seller might have led you astray on the market rent.  I know it's too late now, but this is one of the dangers of buying recently rehabbed multis (ask me how I know).  Often, the property doesn't have a long enough history since the rehab to really know what the rents and expenses are.

    1Reply
  • Kendall T.
    Real Estate Investor · Fort Pierce, FL · Member since 2014 · 132 posts · 57 votes
    11y

    great pics are extremely important

    0Reply
  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    11y

    @Bill Manassero 

    I think your duplex should rent from 550-650 a month.. You definitely need more up to date pictures and no pictures of boards on the windows and or graffiti on the walls.. Also if you can get some good photos of the kitchen and bathroom that will help out a lot... Tenants love to see the Kitchen and Bathrooms before they come out to visit a property..

    Also I never heard of a company out of Singapore selling homes in Memphis and not sure why they didn't already have a tenant in the property for you if they are a turnkey provider??? I wish you luck and if you need any other help just let me know.

    Good Luck

    Derrick

    1Reply
  • Joe Moore
    Rental Property Investor · Los Angeles, CA · Member since 2010 · 804 posts · 230 votes
    11y

    http://memphisha.org/    This is their website.

    0Reply
  • Eric McCully
    Rental Property Investor · Memphis, TN · Member since 2014 · 57 posts · 33 votes
    11y
    Bill Manassero List your home on tnhousingsearch.org. That's where the housing authority directs Section 8 voucher holders to look. If one contacts you, then you work through the housing authority to get it inspected and approved. I live in Memphis. Not a real fan of that area, wouldn't touch it, just don't think I would get the kind of tenant that I like there but I work mostly with homes in the $950-1150 rent range. The turn keys seem to be in your area a lot but I can't imagine many people would even see a sign in your yard in that cove, plus the part about break-ins is legitimate. I hope someone with experience in that area of town will chime in. I wouldn't think that $595-650 is outlandish for a 3bedroom there, though. Feel free to privately message me anytime, Bill.
    1Reply
  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    11y

    I don't know about the Singapore thing either.  The county property tax site lists the address of the previous owner as being in Cordova.  You can back-track that address to a name.

    0Reply
  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    Eric-Great info!  Yes, i have spoken to a few others that won't touch the area.  I suppose that's why I got such a good deal.  I will list on that site and see if I can get the section 8 in process.  Thanks for the invite to contact you.  I will take you up on that.  I really like Memphis but am still learning and am very early on the learning curve.

    0Reply
  • Jesse T.
    Herndon, VA · Member since 2014 · 1k+ posts · 324 votes
    11y

    Pics, price and marketing are the keys to getting a tenant.  Real estate agents are generally the most expensive way to rent a house(1 month+ rent, depending on lease term), but it might be a good option.  I would be clear in interviewing agents that your priority is to get the place rented to a quality tenant vs. getting top rental dollar.

    1Reply
  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    11y

    Southwest Property Partners LLC

    Previous owner

    0Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    11y

    Have you thought about listing the house yourself? Than organizing the showing with the tenants. Than after the showing you follow up with the tenants? This would give you more control over the situation and be able to figure out where the issue is located.

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  • Bill Manassero
    OP
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    11y

    OVG has a big following of investors from China and the middle east.  They have backed out of Memphis a bit saying the rental market is saturated.  There were two tenants when I purchased the property that both left weeks after I signed the purchase agreement.  Luckily the turn-key had a 6-month rent guarantee that I have since collected.  Now, however, i'm on my own.

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