I posted this almost a year ago.
I'm curious now about another new one for me. I bought a foreclosed rental back in April and finished off the rehab that the previous owner failed to finish.
Zillow, Rentometer, and the MLS put this property at $1,250 - $1,300 a month. I started out at $1,275 and now have dropped to $1,250. Four other properties are on the market in the same neighborhood anywhere from $1,200 - $1,250 (craiglsist and zillow). Three of the properties are run by management companies (which suck in my area) and the fourth is at $1,200 but has no pics, because it's most likely not in good shape.
I get contacted several times each day, but all the callers are either section 8, don't even meet 2.5x income, had evictions in the past, or filed bankruptcy (some as soon as last week), and none are really qualified. I took two applications and both were in trouble in regards to credit and income. I even had a sheriff apply who had horrible credit and rental problems. The neighborhood has zero crime and is very quiet.
I tried lowering my credit score requiremtent from 600 to 500 and only got worse quality inquires as expected.
My wife and I have considered dropping the rent amount to $1,175 to see what happens.
Any ideas on what is going on here? I've always rented a place in about two weeks. This has been 30 days now.
Try posting an ad on www.rentals.com.
We attract a lot of high quality tenants through rentals.com and their network of websites.
I've had situations similar to yours, dropped the rent by $25 or $50 and then gotten a whole new bigger and better pool of applicants. Where I am in California, rents are really high. What I've seen is that some of the better tenants have a budget. They know what they can pay for rent and they are not going over that. When I do a Craigslist ad, I always note the following: no section 8, we will run a credit and background check, no evictions. Perhaps you're doing that too. I know around here, I still get people who apply even with lousy credit and an eviction. Some people just hope they can slip through.
Are the other rentals you see listed moving at all? If they are, I'd be curious about what they're doing differently. If they aren't moving it could be the price. I wish you luck. Please let us know how things work out.
I do all the standard checks.
That's what is weird. MLS data has median rent amount of $1,275. The other rentals aren't moving. 1 is probably trashed and the othe 3 are under PM AND those companies generally suck here. It's also prime time for moving season here, so ther is a lot of inventory. Usually, I never have a problem. The entire property is new. But, for some reason it's bringing in the not so best applicants or tire kickers.