Panic , Can't rent Townhome

Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes

10y

I dont know your area, however, I would never allow a place to sit vacant for 8 months. Wouldnt you have been better off getting someone in there at $1200 this whole time? Sure, it's under market from your perspective, but the market is what it is. Maybe 3 bedrooms are not sought after right now. If it didn't rent over the summer at that price, you need to drop it asap and just get someone in there.

Do you have it posted on trulia. zillow, craigslist? Is there a major negative to this place? that you can fix?

Either way, do what you need to to get someone in there asap at $1200. Next year raise the rent a little. Hopefully they stay. Best of luck!!

2 Reply

Account Closed

Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes

10y

Where are you getting the comps? What does rentometer tell you? Are you getting showings but not passing background and credit check? At this point you're almost at the "make offer" stage but keep your screening standards high. Good luck.

0 Reply

Jay Dean

Investor · Manvel, TX · Member since 2016 · 133 posts · 54 votes

10y

If your realtor can't get it occupied in 8 months I would say it's time to find another realtor.

3 Reply

Joe Pitrolo

OP

Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes

10y

The identical place across the street rented for 1500 mo. I have lowered the rent

Seems like those that rent know someone.

I would just figure being on the MLS would suffice , I know it posts to trulia and Zillow

0 Reply

Lisa Hoover

Specialist · Charlotte, NC · Member since 2016 · 111 posts · 95 votes

10y

Sounds like your market is college students ... but for a quick tenant and guaranteed rent, check with the insurance agents in the area-- when insured homeowners have a fire or water damage ... the insurance co pays you directly , a HIGH rent --for many months till their house is rebuilt. It's a good networking connection to make. Zillow and Animoto work for me... never had 1 day of vacancy in 14 years (my properties all rent from $1800 to $2500 range). I don't know how to contact you, but you can pull up one of my rentals on zillow (it's rented) 8209 Raintree Lane, Charlotte NC. and here is the video... https://animoto.com/play/qx4EMcpwF2uEcEaxfSu03Q took me 15 mins on the video... it's a one time thing really... when tenants have great looking furniture I add a few pics to add-- so you'll notice different decor throughout) and I use the same music every time too. What tenant can resist a heartwarming video with music... ( If your rental isn't so fabulous-- then add in photos of great places in the area! I always say EVERY home has a story and its your job to find it, create it and share it!) Retired now, but I used to sell over 100 props every year-- very busy, very fun. Hang in there, ditch the realtor, put up GREAT PROFESSIONAL SIGNS and literature boxes NEVER EVER GO PAST A MONTH without rent!!

4 Reply

JD MartinBusiness Member

Moderator

Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

10y

When you can't find a renter there are really only three possibilities:

1. There are no renters in your geographic area;

2. No one knows you have a property for rent;

2. The price to value of your unit is poor compared to other available properties.

Obviously, point #1 is extreme - chances that there are less than 1 renter in your geographic area are almost nil. Certain areas have more renters than others, certain times of the year might have more renters than others, and certain properties might appeal to more renters than others.

Point #2 should be obvious, and sounds like you have many of the basics covered.

Point #3 is probably your culprit. For whatever reason, your property, at that price, compares unfavorably to everything else on the market at that price. Figuring out why that is sometimes takes being brutally honest about yourself & your property. Does it look old compared to other properties? Is it too far from amenities? Does it lack amenities? Does the neighborhood feel unsafe? ETC.

Look at this way: if you put it online up for rent for $1, you'd probably have a line around the block to see it. If you put it up for rent for $1 million, people would just laugh at the ad. So what's the true market value of what you have? Where did you come up with your price? What does the competition look like at that price? How big is the market at that price? Posting up pictures here really doesn't do any good, unless you are hoping that someone from Morgantown will tell you that the carpet color is all wrong and should be Blue and Gold.

It sounds like some field trips might be in order for you at this point. Look at properties for $1000, and look at properties for $1500. If you are truly competitive in that price range, then you need to determine if there's even a market for rentals at that price. College students are typically broke, and I live in a college town as well and can tell you that rentals in that price range would be a hard sell but anything below a grand is hotcakes.

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4 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

I recently purchased a new home and renovated my 2 bed townhome in Morgantown WV, 5 minutes from the college. I added a 3rd bed and bath and the going rate is 1500 mo. This is close to the hospital and University. I have always rented properties for an average rent of $500 to $700 a month and renting such a high cost rental is new territory for me, so I placed the property with realtors to be on the MLS. In addition I have ran print adds and post on CL, even multiple adds. I've even placed fliers at the law and Med schools.The University has added a lot of new housing, so my understanding is the market is a bit saturated; however, I've seen houses close by rent out with no problem. The home was built in 2003 and is in excellent condition. I've tried lowering the rent to $1350. I almost had it rented for $1200 a month when it was a 2 bedroom.

At this point, it has been vacant for 8 month. I've also noticed that comparable homes on the MLS had an average listing of 150 days also. I'm paying 2 mortgages and losing big time, almost feel like I need to rent the place for $800 a month or try to sell.

This is new territory for me and I've never had a unit vacant for more the 3 months. Reading some old posts, I've even tried postlets.

The "going rate" is not $1,200. Send me the address in a message and I'll tell you what you should set your listing at. I always list for $100-200 below market for quick lease up. Therefore, I always buy at a low enough price to be able to do that and still generate sufficient cash flow.

Thanks,

jon.

1 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

I recently purchased a new home and renovated my 2 bed townhome in Morgantown WV, 5 minutes from the college. I added a 3rd bed and bath and the going rate is 1500 mo. This is close to the hospital and University. I have always rented properties for an average rent of $500 to $700 a month and renting such a high cost rental is new territory for me, so I placed the property with realtors to be on the MLS. In addition I have ran print adds and post on CL, even multiple adds. I've even placed fliers at the law and Med schools.The University has added a lot of new housing, so my understanding is the market is a bit saturated; however, I've seen houses close by rent out with no problem. The home was built in 2003 and is in excellent condition. I've tried lowering the rent to $1350. I almost had it rented for $1200 a month when it was a 2 bedroom.

At this point, it has been vacant for 8 month. I've also noticed that comparable homes on the MLS had an average listing of 150 days also. I'm paying 2 mortgages and losing big time, almost feel like I need to rent the place for $800 a month or try to sell.

This is new territory for me and I've never had a unit vacant for more the 3 months. Reading some old posts, I've even tried postlets.

Please post your "3rd bedroom" addition room. Are there 1 or 2 bathrooms?

If 1 bathroom that's not good, you're trying to rent a 3/1 and it should be significantly discounted as anyone with three people will expect 1 bathrooms.

If 3/2 good, but rooms need to be at least normal size, not unusually small and layout needs to be decent (not weird).

If 1 bathroom or unusually small rooms, you should significantly discount your rate to attract decent prospects. And even after that, most decent prospects will not stand for it...

0 Reply

Maria Keating

Issaquah, WA · Member since 2016 · 28 posts · 18 votes

10y

Originally posted by @JD Martin:

If you are truly competitive in that price range, then you need to determine if there's even a market for rentals at that price. College students are typically broke, and I live in a college town as well and can tell you that rentals in that price range would be a hard sell but anything below a grand is hotcakes.

I agree with everything you said, but depending on local demographics, undergrads may very well pay that amount. Three bedrooms = three students, $500 a person. You will not get ANYTHING within walking distance to the UW at that ratio in Seattle. My son spent $760/month on a dormroom that he shared with 2 others. These are true dormrooms, not the posh ones with living rooms that some of the private California colleges offer... This year, he and two friends took out a lease on an apartment for $1,900 = 2 bedroom one bath. No vacancies on those properties ever...

Which brings me to my question: how close is it to college, are students truly the target market? What distinguishes your property from the identical one across the street? (I doubt it is identical since you put a third bedroom on... did the other property owner put the same third bedroom on in the exact same way?) In general, there are never identical properties, perhaps identical floorplans, but upkeep, upgrades, views are all distinguishing factors.

1 Reply

Joe Pitrolo

OP

Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes

10y

it's 3 beds and 3 and 1/2 bath Each bed has a full bath or shower

1 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

it's 3 beds and 3 and 1/2 bath Each bed has a full bath or shower

Navigate to Rentometer dot comb. Put in the address and 3br.

Only consider other rentals on the immediate block or within 2 blocks. Average them, then subtract $200. That should be your rental rate.

Average lease-up is 1-3 months. If after first week, no prospects , start dropping rental rate until you obtain a good amount of traffic and some applications. It's likely that your first app will not be approved. Never put yourself in desperate situation so you feel you must accept someone who isn't qualified per you're guidelines.

0 Reply

Jim P.

Investor · Austin, TX · Member since 2015 · 38 posts · 14 votes

10y

It may be tough finding students to move in now since classes have probably already started or are about to, so now you may need to focus on non-students. But in general, I wouldn't bother with MLS for a college town rental. Students aren't using realtors to rent houses. They use craigslist, look at yard signs, and may use rental services. As far as price, the only thing that matters in that kind of market is what the cost is per bedroom.

$500/bedroom sounds high to me if it's a small town, but that might be possible if the demand is high. When you're trying to figure out what the going rate is, keep in mind that listings you see are always going to be mostly ones that didn't already get leased, so they're likely overpriced. I usually look at what similar properties are listed for on Craigslist, and then price mine below that.

2 Reply

Andrew Fredrickson

Investor · Morgantown, WV · Member since 2016 · 34 posts · 8 votes

10y

Hi Joe, I'm really shocked it's been sitting so long. I don't think you have overpriced it, I've seen many 3BR townhomes that look almost identical that rent for $1500 in Morgantown/Suncrest area. How close to the stadium and campus are you?

One thing that might be hurting your listing is the photography, those images looked pretty poor. Are there more photos that you didn't show? Can you post a link to your listing? You really should consider using a wide-angle lens to show more of what the property has to offer.

Did you ever have trouble renting it out as a 2BR, what was the price before you did the addition?

I know there's been a lot of new apartment complexes and student housing in Morgantown, and I get the feeling that they're driving the rent down a little, but I couldn't imagine being vacant for 8 months.

1 Reply

Lawrence Moore

Heath, TX · Member since 2016 · 39 posts · 12 votes

10y

I think they're still grieving from the showcase Thomas Walkup put on against WVU

0 Reply

James Triano

Pittsburgh, PA · Member since 2015 · 179 posts · 115 votes

10y

@Joe Pitrolo

I'm very familiar with the Morgantown market and live near here. You're not going to find college students by posting your property on the MLS. You need to generate traffic to your property by signs around campus, posting on the bulletin boards in the Mountainlair and posting ads in the Daily Athenaeum for student housing if that's what your going for. I'd be happy to reach out to some folks in Morgantown to help get your place rented if you'd like. Just PM me. Good luck man but there's no reason you should be vacant for 8 months with how blown up this town has become.

0 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

I recently purchased a new home and renovated my 2 bed townhome in Morgantown WV, 5 minutes from the college. I added a 3rd bed and bath and the going rate is 1500 mo. This is close to the hospital and University. I have always rented properties for an average rent of $500 to $700 a month and renting such a high cost rental is new territory for me, so I placed the property with realtors to be on the MLS. In addition I have ran print adds and post on CL, even multiple adds. I've even placed fliers at the law and Med schools.The University has added a lot of new housing, so my understanding is the market is a bit saturated; however, I've seen houses close by rent out with no problem. The home was built in 2003 and is in excellent condition. I've tried lowering the rent to $1350. I almost had it rented for $1200 a month when it was a 2 bedroom.

At this point, it has been vacant for 8 month. I've also noticed that comparable homes on the MLS had an average listing of 150 days also. I'm paying 2 mortgages and losing big time, almost feel like I need to rent the place for $800 a month or try to sell.

This is new territory for me and I've never had a unit vacant for more the 3 months. Reading some old posts, I've even tried postlets.

Joe,

I did some research. I'd say your at $1,100 max, but it should lease at $1,000 pretty fast. Are you showing this yourself or you got a leasing agent/property manager?

Drop price immediately to $1,100 and post 2-4 Craigslist postings per day with great photos. If no, calls within two days, drop it again to $1,000 even. You should get calls.

Leasing is a numbers game. Focus on (1) getting good traffic, (2) pre-screen (credit score a+ income) to eliminate those with no chance of qualifying, and (3) high conversion ratio (conversion ratio of prospects to applicants).

Conversion ratio can be improved by...

immediately getting driver bys attention with a red door, bright colorful flowers or something else that sticks out a makes a good positive impression (aka. sex appeal). If you plant bright flowers, fill in with black mulch to contrast and bring out color
there must be no bottleneck from when a prospect drives up to when they leave. The house exterior and interior must meet their expectations and provide something unique that other rentals don't.
attract them in, then keep their attention with updated lighting, (if red door, you can install red sconce lighting or some other matching lighting to keep red theme or have one thing (lighting or other) to get prospects to say "wow! this place is nice, I have to live here!"
If there are any issues with the house that cannon be cured/addressed, you should drop price. Price is by and large the most common reason that rentals sit...

1 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

I recently purchased a new home and renovated my 2 bed townhome in Morgantown WV, 5 minutes from the college. I added a 3rd bed and bath and the going rate is 1500 mo. This is close to the hospital and University. I have always rented properties for an average rent of $500 to $700 a month and renting such a high cost rental is new territory for me, so I placed the property with realtors to be on the MLS. In addition I have ran print adds and post on CL, even multiple adds. I've even placed fliers at the law and Med schools.The University has added a lot of new housing, so my understanding is the market is a bit saturated; however, I've seen houses close by rent out with no problem. The home was built in 2003 and is in excellent condition. I've tried lowering the rent to $1350. I almost had it rented for $1200 a month when it was a 2 bedroom.

At this point, it has been vacant for 8 month. I've also noticed that comparable homes on the MLS had an average listing of 150 days also. I'm paying 2 mortgages and losing big time, almost feel like I need to rent the place for $800 a month or try to sell.

This is new territory for me and I've never had a unit vacant for more the 3 months. Reading some old posts, I've even tried postlets.

Joe,

There's nothing sexy about the photos you've posted. It looks pretty grey and boring. Did you put in any unique feature that will attract people in and keep them impressed (ex. nice lighting, nice appliances, colorful door, nice landscaping with lots of color, etc.)?

0 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

I recently purchased a new home and renovated my 2 bed townhome in Morgantown WV, 5 minutes from the college. I added a 3rd bed and bath and the going rate is 1500 mo. This is close to the hospital and University. I have always rented properties for an average rent of $500 to $700 a month and renting such a high cost rental is new territory for me, so I placed the property with realtors to be on the MLS. In addition I have ran print adds and post on CL, even multiple adds. I've even placed fliers at the law and Med schools.The University has added a lot of new housing, so my understanding is the market is a bit saturated; however, I've seen houses close by rent out with no problem. The home was built in 2003 and is in excellent condition. I've tried lowering the rent to $1350. I almost had it rented for $1200 a month when it was a 2 bedroom.

At this point, it has been vacant for 8 month. I've also noticed that comparable homes on the MLS had an average listing of 150 days also. I'm paying 2 mortgages and losing big time, almost feel like I need to rent the place for $800 a month or try to sell.

This is new territory for me and I've never had a unit vacant for more the 3 months. Reading some old posts, I've even tried postlets.

Here are a few of my rentals...

0 Reply

Joe Pitrolo

OP

Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes

10y

Jon

Thanks for the research and ideas. How did you arrive at the $1100? I have it reduced to $1150, very few calls. Really has me confused. As I mentioned there are 22 home in the Hoa and all are similar and I know the median price is $1500 mo. When people see it there is some attraction but just not enough numbers.

I'll keep trying or maybe list for sale

0 Reply

John P.

Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes

10y

Maybe raise it back to $1,500 and have an open house, tons of ads, new photos, etc.... maybe you'll get lucky!? Good luck.

0 Reply

Account Closed

Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes

10y

Cough, cough, burn it, cough, insurance money, cough

2 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

Jon

Thanks for the research and ideas. How did you arrive at the $1100? I have it reduced to $1150, very few calls. Really has me confused. As I mentioned there are 22 home in the Hoa and all are similar and I know the median price is $1500 mo. When people see it there is some attraction but just not enough numbers.

I'll keep trying or maybe list for sale

Like I said, I suggest doing the things i mentioned above and drop it to $1100.

It's been sitting for 8 months, a loss of over $8,000 and you're worried about $100 or 200 a month? Does that make sense? A $200 lower rate per month = $2,400 a year. You just lost $8,000. Think man!

Vacancy is a much more costlier problem than a lower rate. Always set your rents below market for quick lease up. Mine average 1.5 months.

You could have listed it at $900 and you would've been better off than letting it sit for 8 months at too high a rate. What are you thinking? It's either there's a problem with the house or a problem with the rate or both, obviously.

$1100 because it's set $100 below market, but that's still probably too high to get a lot of traffic, which is what you need.

If no calls for a day or two drop it to $1,000. If you can't make money at that rate, you paid too much for it.

1 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Where are you listing it? At a minimum post 2 adds a day on CL with nicer photos than what you've posted above. Install higher watt bulbs and open all blinds when you take photos. You want the house as bright as possible. Currently, it looks boring and dark, nothing to attract people in.

0 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @Joe Pitrolo:

I recently purchased a new home and renovated my 2 bed townhome in Morgantown WV, 5 minutes from the college. I added a 3rd bed and bath and the going rate is 1500 mo. This is close to the hospital and University. I have always rented properties for an average rent of $500 to $700 a month and renting such a high cost rental is new territory for me, so I placed the property with realtors to be on the MLS. In addition I have ran print adds and post on CL, even multiple adds. I've even placed fliers at the law and Med schools.The University has added a lot of new housing, so my understanding is the market is a bit saturated; however, I've seen houses close by rent out with no problem. The home was built in 2003 and is in excellent condition. I've tried lowering the rent to $1350. I almost had it rented for $1200 a month when it was a 2 bedroom.

At this point, it has been vacant for 8 month. I've also noticed that comparable homes on the MLS had an average listing of 150 days also. I'm paying 2 mortgages and losing big time, almost feel like I need to rent the place for $800 a month or try to sell.

This is new territory for me and I've never had a unit vacant for more the 3 months. Reading some old posts, I've even tried postlets.

Oh, and if you're using a leasing agent or property manager...fire him or her immediately! They're not doing their job. Lease it yourself or get someone better.

1 Reply

Jon Q.

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

10y

Originally posted by @John P.:

Maybe raise it back to $1,500 and have an open house, tons of ads, new photos, etc.... maybe you'll get lucky!? Good luck.

Very unlikely to "get lucky" when you're working against the market. With experience you learn never invest not set prices that are not according to market. The fastest way to bankruptcy.

0 Reply

Panic , Can't rent Townhome

Panic , Can't rent Townhome

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