Panic , Can't rent Townhome

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Panic , Can't rent Townhome

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

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.

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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!!
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  • Christina McManaway
    Designer/Contractor from Riverside, CA · Member since 2015 · 56 posts · 26 votes
    10y
    Hey Joe, What is the typical amount per bedroom that 2 bedrooms go for? You'll need to beat that to make a two college students look to take on another roommate. Your ideal tenant market is very narrow because of that! Does your unit have a washer/dryer in the unit? Your competition is sfh's and parking at a 3 bedroom town home might be a problem for them. Are you walking distance, do they need to ride a bike or drive?
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  • Joe Pitrolo
    OP
    Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes
    10y

    thanks for all the thoughtful responses. I truly appreciate the advice.

    Here is a link to several cl adds. You can see I have run variations with lower price points. 

    I also have a a yard sign out front and just out one on the deck.

    http://morgantown.craigslist.org/apa/5756078945.html

    http://morgantown.craigslist.org/apa/5756081152.html

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  • Maxwell Cummons
    Investor · Morgantown, WV · Member since 2016 · 3 posts · 0 votes
    10y

    My house in Morgantown is currently on the market. Once it sells, I would gladly pay $1000/mo. I know that's less than you want, but that just happens to be the price range I am looking for. Figured it can't hurt to give you the option. (FYI no offers on the house so far so it would likely still be a bit till I could take it)

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  • Mark B.
    Engineer · Allentown, PA · Member since 2014 · 105 posts · 64 votes
    10y

    No offense but like others said... your pictures are somewhat horrible and unappealing.  As someone who recently rented for college, i wouldn't call about that apartment either.  

    i would try to get pictures like Jon S. has.  they are beautiful! I'd imagine that would help a ton to get people in the door.  Also, like someone else mentioned, if its a college area, you probably missed your rental window and not many people will need an apartment till next september.

    Good luck ! subscribed for updates!!

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  • Jeff Bridges
    Investor · Hyattsville, MD · Member since 2012 · 822 posts · 441 votes
    10y

    I'd go ahead and get the bedroom carpets cleaned and re-take photos of bedrooms. Then clear everything off the kitchen counters and close the cabinets and take a full kitchen photo from the corner by the back door. Turn on all of the lights before taking photos next time. Pro-tip: turn on all indoor lights and close the blinds so you don't throw off your camera light meter. If you can't do this, hire a photographer who can (you can find photographers specializing in real estate on CL or through your network). Your photos give the appearance that the place is not well-cared for or cleaned and that a hurricane hit the kitchen. If I get that impression, your prospective applicants certainly did and chose a more appealing listing.

    1Reply
  • Jon Q.
    Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    10y
    Originally posted by @Jeff Bridges:

    I'd go ahead and get the bedroom carpets cleaned and re-take photos of bedrooms. Then clear everything off the kitchen counters and close the cabinets and take a full kitchen photo from the corner by the back door. Turn on all of the lights before taking photos next time. Pro-tip: turn on all indoor lights and close the blinds so you don't throw off your camera light meter. If you can't do this, hire a photographer who can (you can find photographers specializing in real estate on CL or through your network). Your photos give the appearance that the place is not well-cared for or cleaned and that a hurricane hit the kitchen. If I get that impression, your prospective applicants certainly did and chose a more appealing listing.

     Good tips Jeff!

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  • Jon Q.
    Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    10y
    Originally posted by @Mark B.:

    No offense but like others said... your pictures are somewhat horrible and unappealing.  As someone who recently rented for college, i wouldn't call about that apartment either.  

    i would try to get pictures like Jon S. has.  they are beautiful! I'd imagine that would help a ton to get people in the door.  Also, like someone else mentioned, if its a college area, you probably missed your rental window and not many people will need an apartment till next september.

    Good luck ! subscribed for updates!!

    Thanks Mark! 

    It's about serving the customer.  Your photos get the prospect to drive by the property.  Curb appeal gets them in.  Some nice interior feature (ex. modern lighting, etc.) will get them to complete an app. Like buying, leasing is mostly emotional and driven by the women (if it's a couple).

    0Reply
  • Jon Q.
    Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    10y

    All: As an investor it is not setting a lower rental rate that kills you, it is vacancy loss. As a SFR investor, every vacancy will cost you 1-3 months in lost rent and $3-4K in carpet/paint and repairs. If that's about $5K, you're much better off renting below market and keeping your units filled forever by stretching out your lease for 2-3 years each with no rent increases.

    Analyze the numbers and you'll confirm that this is correct.

    0Reply
  • Steve Moody
    Portland, OR · Member since 2008 · 123 posts · 73 votes
    10y

    As the others have mentioned the pictures aren't great. I initially didn't specifically notice the junk on the counters and cabinet doors open, but my first glance through left a feeling that the place was old and not in good condition. (FYI, I usually spend 2 seconds per pic when looking at stuff on CL and only look in more detail if it's interesting) Going back over the pictures, the kitchen isn't bad, just messy looking. The other pictures are odd and leave that feeling of being unprofessional (closet doors open, a pic of the corner with a bathroom door slightly open, etc). I'm not great at taking pics myself so I'd probably find someone to do it for me. You're in a college town, so maybe advertise to a local student to take the pics. 

    Also one of the ads is confusing and almost seems like a scam ad you see on CL. It's listed as a 3br for $1150, but in the ad text is says "$1,350 mo plus utilities (avg $175 mo) ... 2 bed for $1150"  And you have an ad for the same place also on CL for $1400, with no pictures by almost identical text. As a renter these would be red flags that the place either a) is fake and is some sort of scam, or b) isn't managed well as the owner can't advertise it properly with different prices in multiple places. 

    Like others have said, I would get rid of these CL postings, get better pictures (take them or hire someone to) of clean rooms, and advertise heavily. You might also have to drop the price a lot just to stop bleeding money and figure out what to do next school year. 

    Good luck

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    antidotaley  this is one of the biggest boo boo's I see land lords make.. they stick to a rent price and leave homes vacant for 1 to 3 or 4 months.

    so lower the rent by 100.  get it rented right away.. or leave it vacant and lose 1000 a month for 4 months. that's 4k.. you will need 40 months at the higher rent to make up what you lost..

    makes no sense. but I see it every day.

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  • Joe Pitrolo
    OP
    Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes
    10y

    Rentometer says avg rent is $1292. I'm going to try $1,100.   I have had $1,150 for a while.  Regardless of the price it just seems the calls are minimal. I have 1 and 2 bedroom apts for avg around $600 mo and always get calls regardless of how professional my pics are.

        My realtor says a lot of LL are suffering because the University just built hundreds of affordable units and they have access to students emails and they only have 40 to 50 % full. I'm thinking we have a bit of a bubble in our town. 

    Another issue which I may be overlooking, I am the HOA President and our HOA has a security Cam to cover the parking lot and the DVR is plugged into a router the HOA pays for located in the upstairs closet. I'm thinking this may spook some, the cameras strictly cover our common area parking lot. Also, We've had lots of problems with some residents stringing their garbage out- we've fined them and they still don't comply. Never the less this is frustrating and I'm going to try whatever I can and not take it for granted that this should have already rented. Thanks again.

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  • Jonathan G.
    Investor · Marietta, GA · Member since 2015 · 382 posts · 258 votes
    10y
    How did you add the third bedroom? Did you just split one room into two? Is it small and crampy? For whatever reason, the market has spoken. Something is only worth as much as another person will pay.
    0Reply
  • Account Closed
    Rio Rancho, NM · Member since 2016 · 57 posts · 41 votes
    10y

    Have you checked if there's a registered sex offender nearby? Your potential renters have. Just a guess.

    0Reply
  • Joe Pitrolo
    OP
    Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes
    10y

    This is a townhome community and I've seen houses nearby stay vacant for months and others rent consistently. It seems that once renters get established, places get re rented from people whom they know, so networking.

       As far as the Third Bedroom, it is 9 x 12 with a separate entrance and bathroom, looks great, even the realtors agreed.  

     As far as Boo boos, I've tried everything from lowering the price, listing with realtors, CL, newspaper. I'm just not getting enough calls and I don't want to give the property away for $1 a month.  

    0Reply
  • Rumen Mladenov
    Investor · Newark, DE · Member since 2014 · 245 posts · 198 votes
    10y

    I have to agree with @Steve Moody, this definitely looks like a scam on the CL ads. You have the rent listed at $1400, $1350 and $1150, and it is not very clear whether it is 2 bedroom or 3 bedroom.

    I know there are scammers on CL because applicants who back off my units when they find much better deals come back a few days later saying the other place was a scam... If potential renters got burned once or twice, they would probably see the red flags in your listings and assume it is a scam.

    Good luck, hope you get it rented soon!

    0Reply
  • James Fisher
    Investor · Morgantown, WV · Member since 2016 · 43 posts · 17 votes
    10y

    What is the status?

    As other's have said - students are not looking for housing right now.  There may be a few that are starting a Spring semester program and looking.  The deadline for signed leases for the property I manage is 1 Feb for the following August, 7 months in advance.

    My experience has been if I don't have the property filled by March, I won't be able to get anyone until the next 'lease signing season' a year later.

    0Reply
  • Joe Pitrolo
    OP
    Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes
    10y

    I've lowered the price to 1200 and have had a few more calls and a potential candidate I took an app on.  

    0Reply
  • Randall Williams
    Investor · Bath, ME · Member since 2016 · 40 posts · 6 votes
    10y

    @Joe Pitrolo, if it's still not rented, try craigslist and facebook local yardsale forums - which should have thousands of members. Many shiny happy photos and a warm friendly and thorough description should make your phone ring. 

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