Columbus, OH · Member since 2016 · 22 posts · 8 votes
The fact that we are novice in this business will shine through in this post. We purchased our first investment property as a foreclosure on 9/2/16. The idea was a BRRR approach. On top of the $65k price tag, we put $22k into renovation and repairs. We paid cash with the idea that we would get a mortgage on the property when the improvements were complete. Now, here we are with $85k in this thing. We think it will appraise at about $110k. Based on comparable sized homes for rent in the area, it should rent for about $1000/mo. Sounds decent, right? Well, we can't get the darn thing rented. We've had it on the rental sites (Zillow, Trulia, HotPads, and Craigslist) for 3 and a half weeks. We've had a total of 44 inquiries. When the flood of inquiries started coming in, we thought "This will be easier than we thought!" So wrong. Of the 44 inquiries, we have made about 12 appointments to show the place. Of the 12 appointments, only 6 have actually showed up! After two no-shows, we started sending appointment confirmation texts. Still, no luck in getting people to actually show! What do we do? We are solidly into the "holiday season" now and I feel like we're going to have even more trouble renting the place. Do we lower the rent? Do we eliminate the $35 application fee (FABCO check) and cover that ourselves? Do we just grit our teeth and wait it out? So far, the only comments we've gotten are that the floors aren't in good condition (they are hardwood and could use refinishing but we are TOTALLY out of money to do that... We're lucky to be able to give our kids Christmas this year!).
Welcome to Landlording! I'd be glad to help you out if I could see photos of the property and review your online advertising. Perhaps even chat with you by phone. Also in BP Podcast #83 I share tips and strategies about landlording.
It's extremely rare for us to have prospective tenants "no-show" for a viewing of a property. We are able to rent properties at all times of the year. Last year we had two vacancies (out of 16 units) that we filled in December! If you had 44 initial inquiries, it shows there is an interest and people in need of housing in your area. Now the key is to make your property stand-out and you as a landlord stand-out. People are looking for a home and a lifestyle. They are looking for good landlords too. There are a few key elements that seems to be important to everyone: safety, cleanliness, affordability, comfort. You need to switch from investor/rehabber mode to leasing agent/property manager mode. People will be attracted to not only the property, but also to you as a landlord. How are your interpersonal skills? Are the prospective renters seeing you as someone who will respect them and whom they will respect in return?
Our mission statement:
"We strive to provide safe, clean, affordable, comfortable, and quiet housing for responsible renters in the neighborhoods of West Vancouver."
Our management style:
We own and manage our own properties. We respect our tenants and perform in a way that will garner their respect in return. We respond to tenant inquiries and needs in a timely manner. We keep current with property maintenance. We respect our tenants' privacy. We require our tenants' cooperation and adherence to the terms of our rental agreement. We value open and honest communication. Our mission statement emphasizes our values and we seek those who share those values. We partner with law enforcement and are actively involved with organizations in our industry that promote best practices. We provide a necessary service to our customers, not just a commodity.
Our marketing strategy consists of four parts:
1. identifying our market
2. creating a rental property that will appeal to that market
3. advertising in ways that will reach that market, including word-of-mouth and internet advertising
4. responding to inquiries quickly, politely and efficiently, showing kindness and respect
Our tenant screening process consists of five parts:
1. advertising/listing the rental (includes a clear description of the property, some of our terms, and some of our rental criteria);
2. answering the initial inquiry, tenant screening and interview;
3. internet search and social media check; (often done while on the phone with step two)
4. property showing and more dialogue with the prospective renter (rental applications and our full written rental criteria is available at this time for prospective tenants to take, also a copy of our full rental agreement is available for viewing);
We don't interview people by text or email. We interview people by telephone and in-person. We only show our properties to people who appear to meet our minimum criteria to rent, based on the interview. We only offer to rent properties to people who have completed our full application process, have met our qualifications, and are willing to accept our terms. By providing a significant amount of information to the prospective tenant, they have the opportunity to self-disqualify themselves during the process. We pretty much know if the tenant is likely to qualify by the time they submit an application.
Real Estate Broker · Columbus, OH · Member since 2016 · 86 posts · 45 votes
9y
Good morning @Anna Milligan.
Yes. Winter renting in Columbus costs you about $100 a month. Lower your price $100 a month, and get it rented. You are likely to get a Jan 1 rental. That's when all the winter transfers come in. Then make sure all your future leases end between May-September. June, July, and August are the easiest rental months.
Don't forego background checks!
Also, ask all prospective showings to call or text you an hour before the showing to confirm attendance. That will save you many wasted trips!
Investor · Columbus, OH · Member since 2015 · 134 posts · 48 votes
9y
@Tristam Griffith has a good idea about asking them to txt or call before. I also like to schedule multiple showings at one time. Have a Saturday or evening and schedule all the people then. More people there makes it a pressing issue for the prospective tenants. They don't want to lose out to another tenant. Also even if some dont show, some will so less wasted trips.
This is the WORST time of year to try and rent anything. Nobody wants to move during the holidays unless they absolutely have to. I know you are discouraged, but 3 weeks on the market isn't a reason to panic, especially 3 weeks in NOV. Bet on 60 days to rent, if it happens quicker awesome.
I wouldn't waive the application fee. $35 isn't a deal breaker and tenants know they are going to have to pay it.
Are you asking for feedback from the people who are viewing the home? Any insight on why they aren't moving forward?
You could offer 1 MONTH FREE and waive the last month's rent on an 18-month lease, which will also get your renewal out of Holiday season going forward.
If you do that, I'd call back every person who's seen the house and see if that sweetens the deal for them.
Have you posted on the private neighborhood FB group?
If you are having no-shows, I'd schedule open house type showings. Just tell prospects to come during a 1-2 hour block of time. Sometimes the flurry of activity can get people to move.
Set your expectation, that it won't be rented until late-Jan, if it rents quicker, you'll be thrilled. GOOD LUCK! Hang in there :-)
Rental Property Investor · Jacksonville, Florida Area · Member since 2016 · 106 posts · 48 votes
9y
You might want to gather a list of property managers in your area, and call each one of them and let them know about your rental property. Alot of times they have people that need to rent. Just make sure that you vet the PM's before you decide to allow them to manage your property for you.
San Francisco, CA · Member since 2016 · 238 posts · 204 votes
9y
@Anna Milligan - In my experience, you are always going to have no shows. The best way to minimize the no shows is to have constant communication and reminders with the prospects. I send automatic reminders, follow up emails, calendar invites, and texts to confirm that they are still going to make their appointment. I also send an automatic follow up after the showing to ask for advice if they decide not to apply (why aren't they applying).
Definitely do not get rid of the $35 application fee. If they are not willing to pay that, then they may not be willing to pay rent.
Have you done a recent price comparison with other properties in the area?
If you are confident in the rental market rates do not lower your rent, that is a panic decision that most likely will not finding a tenant any faster. It is simply the season and you will need to be patient. Lowering the rent will result in you ending up with likely the same tenant you would have found anyway only with a loss of $100/month.
Be patient panic only results in bad decisions. Target a tenant for Jan 1. Once you are in business with a tenant in place all will be good and you put this behind you.
As for the no shows what you do is require the applicant contact you ahead of a appointment time to confirm they are still coming. You do not go to the property unless you get their call. Reminding applicants of a appointment is a waste of time as most people are ignorant and if they do not plan on going they simply ignore your reminder. Place the responsibility on them and go about your life.
If they do not confirm you do not go for the showing.
Welcome to Landlording! I'd be glad to help you out if I could see photos of the property and review your online advertising. Perhaps even chat with you by phone. Also in BP Podcast #83 I share tips and strategies about landlording.
It's extremely rare for us to have prospective tenants "no-show" for a viewing of a property. We are able to rent properties at all times of the year. Last year we had two vacancies (out of 16 units) that we filled in December! If you had 44 initial inquiries, it shows there is an interest and people in need of housing in your area. Now the key is to make your property stand-out and you as a landlord stand-out. People are looking for a home and a lifestyle. They are looking for good landlords too. There are a few key elements that seems to be important to everyone: safety, cleanliness, affordability, comfort. You need to switch from investor/rehabber mode to leasing agent/property manager mode. People will be attracted to not only the property, but also to you as a landlord. How are your interpersonal skills? Are the prospective renters seeing you as someone who will respect them and whom they will respect in return?
Our mission statement:
"We strive to provide safe, clean, affordable, comfortable, and quiet housing for responsible renters in the neighborhoods of West Vancouver."
Our management style:
We own and manage our own properties. We respect our tenants and perform in a way that will garner their respect in return. We respond to tenant inquiries and needs in a timely manner. We keep current with property maintenance. We respect our tenants' privacy. We require our tenants' cooperation and adherence to the terms of our rental agreement. We value open and honest communication. Our mission statement emphasizes our values and we seek those who share those values. We partner with law enforcement and are actively involved with organizations in our industry that promote best practices. We provide a necessary service to our customers, not just a commodity.
Our marketing strategy consists of four parts:
1. identifying our market
2. creating a rental property that will appeal to that market
3. advertising in ways that will reach that market, including word-of-mouth and internet advertising
4. responding to inquiries quickly, politely and efficiently, showing kindness and respect
Our tenant screening process consists of five parts:
1. advertising/listing the rental (includes a clear description of the property, some of our terms, and some of our rental criteria);
2. answering the initial inquiry, tenant screening and interview;
3. internet search and social media check; (often done while on the phone with step two)
4. property showing and more dialogue with the prospective renter (rental applications and our full written rental criteria is available at this time for prospective tenants to take, also a copy of our full rental agreement is available for viewing);
We don't interview people by text or email. We interview people by telephone and in-person. We only show our properties to people who appear to meet our minimum criteria to rent, based on the interview. We only offer to rent properties to people who have completed our full application process, have met our qualifications, and are willing to accept our terms. By providing a significant amount of information to the prospective tenant, they have the opportunity to self-disqualify themselves during the process. We pretty much know if the tenant is likely to qualify by the time they submit an application.
Hang in there, been there done that, I know how you feel right now. If you think you did a decent rehab job and have priced your rental correctly, just stay strong. You can't realistically count the last week (Thanksgiving week) in your 3.5 weeks. I think you will have this one rented by January as many others already stated.
When I over priced one of my rentals, I still got responses, but they would all say the same thing. "Man, I like the place but this is way over priced" - I would then ask them what they felt they would pay for this place. Adjust accordingly. If no one complained about the price, you're probably ok on the pricing. $1000 for a 110K in most areas here seems reasonable.
If you would like to have a second opinion on your rental price, your ad or any specific questions send me a colleague request/PM me with the address.
Columbus, OH · Member since 2016 · 22 posts · 8 votes
9y
Follow up: We finally have a tenant! She is ready to move in immediately and will be signing the lease tonight. We did not eliminate the application fee and we kept the rent where it was when we started searching. In the end, we had three parties in the same weekend that were interested so we actually got to choose the tenant with the most desirable tenant credentials. We're so happy to FINALLY be cash-flowing!
Real Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
9y
i say lower your rates a little. You can compensate if their is an hoa by having them pay those fees. The app fee i charge to the people who get the place. Sometimes i front it and get stiffed. Its not that much compared to an extra month of vacancy. Most i lost on a leasing was 150.
If the credit scores are the problem give exceptions and look at the report not just the score. Also if they arent great look at the rental history. You should cross check public databases with the address history from a background check. Knock on doors if the addresses are close and you cant contact the owner. You can make exceptions which will let people in that dont have a 620 plus score but you must validate them through rental history. Getting desperate and accepting bad ones is where many nightmare evictions start.
Lastly if you are not using facebook yet then use that as well that sells about as much for me as zillow and craigslist. You might want to post flyers near osu if you are close enough.
I do this for a living. Leasing can be difficult in some neighborhoods but no matter what dont settle too much.