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40 E-mails, 5 RSVP's, 0 Actually Show
We FINALLY listed both of our houses for rent and received an insane amount of interest. I have responded to more than 40 e-mails. Due to the interest, we decided to hold an open house for each of the properties. The nicer and larger one was on Friday night from 6:00-7:30, the small one was today from 11:30-1:00. I hade confirmation from 5 people they would be there. No one showed up at either.
This morning, I received a phone call from a company that finds houses to rent for people and after informing her that we would not be paying a commission, I would be available from 1:10-1:30 but absolutely had to leave by 1:30. She said great and they would meet me there. At 1:20 I called the number and was informed they were still 30 minutes out.
What is going on?
For my recent vacancy, I had a bunch of people call my Google Voice # and leave a message, and I also had inquiries from people submitting emails via listing websites like Zillow.
On Saturday I invited everyone (about 20) who had called to a 2 hour open house, and had about 40% show up.
On Sunday I invited everyone (about 30) who had emailed to a 2 hour open house, and had 0 people show up.
It seems to me that if prospective tenants go through the effort of calling and leaving a message, they are more motivated than the ones who are just sending emails.
Originally posted by @Lucero Sanchez:
I don't answer to emails or text, potential tenants need to speak to me by phone, I than tell them to drive by the property and if they are still intersted to give me a call to set an appointment,
This is exactly what Brandon Turner suggests (for non group showings) in his book on Managing Rentals and he also says to, "Instruct your prospective tenant to call you to confirm the appointment one hour before their scheduled time" (doesn't really have to be an hour someone already mentioned they call 30 minutes before) and if you don't hear from them then don't even go. If they show up and call you at the time of appointment then you know they aren't that good at following directions.
Originally posted by @Michael Wagner:
I apologize if this has been mentioned elsewhere in the thread but I couldn't peruse the whole thing and wanted to offer one tweak which helped improve our "show-up" rate. Simply don't tell them its an open house. Schedule "showings" all at the same time. This way its an open house to you but an appointment to each of them.
Its been a couple years since I was a renter, but the whole "sneaky open house" thing is REALLY annoying. The first time it happened, I walked in and there was another couple talking to the owner/manager and I said, "oops, sorry, don't mean to intrude" and drove off. I assumed (maybe correctly) that the place wasn't actually available. The second time, I showed up early, and two other couples came. We were all confused because they had told us all the same time to be there, it made it look like the owner/manager had no idea what they were doing. I decided to pass on that place as well.
I like the idea of getting applications first, it shows a financial commitment, even if its a small one. I think that in order to do that, you'd need great pics, a low app fee, and a low rent price relative to the market. I think that's the approach I'm going to take when my tenants move out in August.
Originally posted by @Justin Fraser:
On Saturday I invited everyone (about 20) who had called to a 2 hour open house, and had about 40% show up.
On Sunday I invited everyone (about 30) who had emailed to a 2 hour open house, and had 0 people show up.
There you go, if nothing else that certainly shows the relationships between phone call prospects and email prospects.
Originally posted by @Matt Rothwell:
Its been a couple years since I was a renter, but the whole "sneaky open house" thing is REALLY annoying. The first time it happened, I walked in and there was another couple talking to the owner/manager and I said, "oops, sorry, don't mean to intrude" and drove off. I assumed (maybe correctly) that the place wasn't actually available. The second time, I showed up early, and two other couples came. We were all confused because they had told us all the same time to be there, it made it look like the owner/manager had no idea what they were doing. I decided to pass on that place as well.
That's the point. If you passed on both of them, you really didn't have a lot of interest in the first place. Let's face it if your perceptions of both of those places was really high you'd have invested the effort. That's the exact idea, pair the broad numbers down to really interested prospects so you're spending your valuable time with 'buyers'.
With any type of auto-filtering system there is always going to be a small percentage of loss. The idea in business though is nobody can run a business catering to the minuscule percentages, you have to play to the big percentages.
In other words it's like fishing - on Monday you can go out to an area that has 10 ponds. 7 of those ponds have no fish at all 3 have fish. You could spend Monday fishing for 10 hours, spending 1 hour per pond and catch no fish in the 7 ponds that are empty and catch 1 fish in each pond with fish. Your productivity comes down to catching 1 fish per hour.
On Tuesday you go to another spot with 10 ponds, 7 of those ponds have no fish again, but this time you watch the water surface of all the ponds before doing any fishing, you qualify 2 ponds as having signs of fish and 8 that don't. You eliminated 1 pond with fish by pre-qualifying by watching the surface. You then spend 10 hours fishing the 2 ponds with fish. Your productivity is the same you will catch 1 fish per hour, but this time of course you come home with 10 fish since all your fishing was done in ponds with fish. Now you missed all the fish in pond #3 that had fish that you eliminated in your pre-qualification, but you still caught 10 fish in 10 hours one Tuesday where on Monday you caught 3 fish in 10 hours.
Avoiding those 7 ponds with no fish in them through pre-qualifying is the same thing you do with a pre-qualification technique with tenants, you might toss out a couple good prospects, but it doesn't matter as you've gave yourself the opportunity to spend your time productively with just good prospects so the ones you tossed out don't really matter.
I schedule showing every 15 minute. That way people have an actual time and feel a sense of commitment. It also helps that when they see other people waiting for their time or to come in, their is pressure. While still allowing me to focus on each client. Still I love no shows.
Originally posted by @Mike F.:
Originally posted by @Jim C.:Remember, all it takes is 1 good application.
This ^^^
That's exactly right, why even mess around with 20 people who won't rent your unit if you can whittle that down to just dealing with 3? No emails, no text. Talk to them on the phone, qualify them, only set up showings with the best of the best, forget the rest, let them go waste someone else's time.
This in not a numbers game as so many unfortunately think, it's not about throwing it all at the wall and seeing what sticks, it's about dealing only with real buyers of the product you are selling.
I agree that it is not a numbers game. This thread is making me feel really old (school). As soon as online ads with email inquiries became a thing I was frustrated by the supposed interest v. follow through, for both rentals and houses I was selling. Took me a few years but I eventually eliminated responding to initial email or text inquiries. My ad says calls only. This eliminates 99% of tire kickers. It may well limit my tenant and buyer pool as well, but I only need one serious applicant or buyer. I have two millennial children and they prefer and use email and text for everything. But even they have rented their apartments, and one just bought a house, by calling on ads, setting appts and showing up on time, both in very hot real estate markets (LA and Bay Area).
My feeling is that I am doing business with these people. If they can't call me (or find a translator or family member to help), then that's not a business relationship I want. I need buyers that can show up with funds and deal with escrow requirements, I need tenants that can communicate about finance and property issues. Requiring initial phone contact works as a filter for me.
Originally posted by @Mike F.:
Originally posted by @Matt Rothwell:Its been a couple years since I was a renter, but the whole "sneaky open house" thing is REALLY annoying. The first time it happened, I walked in and there was another couple talking to the owner/manager and I said, "oops, sorry, don't mean to intrude" and drove off. I assumed (maybe correctly) that the place wasn't actually available. The second time, I showed up early, and two other couples came. We were all confused because they had told us all the same time to be there, it made it look like the owner/manager had no idea what they were doing. I decided to pass on that place as well.
That's the point. If you passed on both of them, you really didn't have a lot of interest in the first place. Let's face it if your perceptions of both of those places was really high you'd have invested the effort. That's the exact idea, pair the broad numbers down to really interested prospects so you're spending your valuable time with 'buyers'.
I think a lot of people will have trouble understanding this point. Indeed, a truly interested and motivated tenant or buyer doesn't drive away just because there is a lot of other interest. They stay in the game until they are eliminated or they realize they no longer want it. This paring down to serious tenants and buyers makes all the difference in my world.
Originally posted by @Dawn Anastasi:I've been stood up before. I will have 20 calls/emails and get 10-15 people who say they will be there, then only like 3-4 show up. If it rains or snows, then no one will show up. People can be very rude and don't care if they waste your time. Those aren't the kinds of people who you want as tenants.
Haha. Yes, this happens all the time. Usually you can tell over the phone if the are likely to no call/no show, so I will schedule those further out so I can schedule 3 or 4 back to back and not make a special trips for nothing, although sometimes all 4 don't show up.
We have a lot of window shoppers that want me to drop everything and run up to a building to show it simply because they are standing in the parking lot and would like to see what the units look like. I no longer do this even though I used to.
I tell all my prospective tenants that we only show units to people that have filled out an application. Our Website has video and photos of all our buildings and an online application as well so it makes sense for them to go there anyway.
When we finally do agree on a time to meet, I ask the prospective tenant to give me a call 30 minutes before the showing so we both know that the meeting is still on. If I don't get that phone call, they don't get to see the apartment and I haven't invested one single, solitary second of my time.
Life is a whole lot easier since I started doing this...
Originally posted by @Ian Walsh:
I have always found that open houses when renting take 2 to 3 confirmation reminder calls. Even then less than half usually show up.
So you are not a landlord, but instead a prospective tenant stalker? How about making them jump through hoops to do business with you. I think you'll find tenants who work to get into your properties will stay longer and take better care of them. I have many tenants at the 5 year mark and several past 10 years still with me.
Originally posted by @Mike F.:
Originally posted by @Matt Rothwell:Its been a couple years since I was a renter, but the whole "sneaky open house" thing is REALLY annoying. The first time it happened, I walked in and there was another couple talking to the owner/manager and I said, "oops, sorry, don't mean to intrude" and drove off. I assumed (maybe correctly) that the place wasn't actually available. The second time, I showed up early, and two other couples came. We were all confused because they had told us all the same time to be there, it made it look like the owner/manager had no idea what they were doing. I decided to pass on that place as well.
That's the point. If you passed on both of them, you really didn't have a lot of interest in the first place. Let's face it if your perceptions of both of those places was really high you'd have invested the effort. That's the exact idea, pair the broad numbers down to really interested prospects so you're spending your valuable time with 'buyers'.
The point is that I left with a lower opinion of the property than I did when I went into the process. Is that the goal when you're trying to market something? How about when you're selling something?
Open houses are for selling houses. If you want to lease houses, hire a Realtor. Here in New Jersey the Tenant (not the Landlord) pays the commission. As a Landlord, why waste your time - let the Realtor find you a pre-qualified Tenant.
Originally posted by @Steve Vaughan:
@Aaron Mazzrillo- thank you for another no nonsense, comedic post. You're funny!
If I may ask - how do your applicants scan/e-mail the app fee to you?
How do you get the desperate/crazy that now have your phone number once you call them to stop calling you if it doesn't work out?
Thanks, bud!
I don't collect an application fee. If I collect a fee, I need to send them a letter explaining why they didn't qualify. I don't want to open that can of worms. After speaking with them on the phone and thoroughly vetting them, I let them see the house. Once I get the application back, I do my due diligence. If everything checks out and they look like a good fit, I will then run their credit and background check. I'm not worried about losing $15. I don't step over old, wrinkled $100 bills to pick up shiny, new nickels. At the lease up, I collect the sec deposit, 1st month's rent and app fee. I also make them pay it in cash. I don't take personal checks, cashier's checks or money orders. After this payment, they can pay rent via any of those methods, but the lease up is a cash transaction.
As for the crazies, I've not really ever had anyone call me more than a few times and once in a while someone will call month's later asking if it is still available. I just tell them it is leased, I have no other vacancies and good look with their search.
I get at least 2-3 robocalls a day from someone who obviously doesn't know how to use a calculator, trying to sell me a $50,000 solar system so I can save $75/month on my electric bill. A crazy person would be a nice break!
#1 Personal Finance Contributor
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#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
Thanks for the clarification @Aaron Mazzrillo. I charge a small app fee as a gauge to see if they'll whine about $25/$35 or if they'll just stroke a check (bonus if they actually have a checking acct!). The 'hey- do you care about credit? Accept felons?' usually comes out when it's payment time.
BTW- if you press 2 when getting robo-called, they will usually remove you from their list. Cheers!
Originally posted by @Steve Vaughan:
Thanks for the clarification @Aaron Mazzrillo.
BTW- if you press 2 when getting robo-called, they will usually remove you from their list. Cheers!
It is way more fun to quickly hit add call on your phone, then dial: two one four 666 43 two one, and then hit conference call. It is a voice activated computer program that will string the salesperson along. It can be quite hilarious. If you have time for that sort of nonsense.
I am an absolute believer in taking an application fee. One, I make money from people who have wasted my time telling me a lie that they have never been evicted. Two, people have a stake in the game. Three, if you don't have $25 to pay for me to check you out I don't want you in my property. But don't think just because you don't charge a fee that you don't have to send an AAL letter. If you apply for a car loan and it doesn't go through, they still have to send you the reasons why you were denied. Anytime you pull a credit report and background check you have to send a letter if they don't qualify.
Not to beat a dead horse, because, well, PETA :) But along the lines of my previous post, just YESTERDAY I posted an add to have some trees we'd purchased planted. After unloading 20 from a trailer myself, I decided this was a job better suited for someone else. Within 10 mins of posting a CL add, there were 5 calls/texts. My partner, who is female was going to be meeting the person(s) alone, and for her safety we requested a snapshot of an ID with sensitive information redacted to protect their privacy. No response. Following morning after a 5am start and 35 min drive to the property, no returned texts or phone calls. Ghosted. So we hit our backups. Point is, we're all someone's backup. If someone who opts in and makes the effort to contact you will disappear, those you simply have to click a button are sure to have a higher flake rate. Maybe this person didn't have a proper ID or had some other concerns surrounding it, but I've seen it time and again. I always have a staggered 1 and 1a.
We charge an app fee and only show it a few hours once a week. In the very beginning appts had a 50% no show rate.
I find it annoying that Trulia/Zillow allow someone to just click a button to ask for "more information"...to 99% of those I respond to I get no response after, although 1 time I got good tenants that way.
I didn't realize the Jolly Robot number was publicly available for us to use...turns out there is a whole youtube page of recordings by the Jolly Roger Telephone company....