This house has no takers

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Bernie Huckestein
Rental Property Investor · Apopka, FL · Member since 2013 · 155 posts · 62 votes
9y

Assuming that is close to market rate

It looks like there is a fence around the back yard?  I know folks will disagree but if it would me I would not only allow I would market to dog owners (I don't do cats).  If you reserve the right to meet / approve the dog I've found this opens up an entire new market.

I look at it this way....with the exception of college I've never been without a dog...and I would have been a good tenant.

I think that is your ticket...but no cats.

b

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  • Mark Forest
    OP
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    9y

    WOW Great response! Thanks to all. Actually my wife just bought a used fridge at Habitat for Humanity (I love that place) for $100. We will put it in place this weekend. I just bought an open box Canon camera on Amazon, but it is hard to learn. Once I do I will certainly take new pictures.

    Actually per my search we are well below market rent. Trailers in the trailer park are going for $700 plus. I don't understand that! Trailer parks are usually poor places to live.

    As for dishwashers I have had bad luck in the past. They eventually leak and for some weird reason the tenants did not call us. They just go about their business while my floor rots!!!

    We do have a comprable ad on CL.

    I guess we will have to consider reducing the deposit, but that makes me concerned.

    Actually this looks like a rural area, but it is only two blocks from good jobs in retail outlets like Meijer and a mall.

    I will have my wife add more flowers. She is good at that.

    Yeah i will never buy another two bed again. 

    Thanks to all. I welcome more suggestions.

    1Reply
  • Rachel H.
    San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    9y

    You may want to re-check the going rent. If you come just a little below, you'd be surprised how many more people are interested. Also, figure out if there is a market in that community for your restrictions. If not, you may need to adjust. Good luck! 

    0Reply
  • Wil Reichard
    Rental Property Investor · Greenville, SC · Member since 2017 · 185 posts · 178 votes
    9y

    The security deposit seems a bit high for that kind of property. The minimum monthly salary needed for rent might be a big high but I see your point in putting it in there. Maybe all these numbers and clauses are scaring people off. I would leave general info and numbers. And like others said, open up to dogs is a good possibility. I took a look at the comps in the area and I think $550-$575 is in the right ball park

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    9y
    Originally posted by @Mark Forest:

    WOW Great response! Thanks to all. Actually my wife just bought a used fridge at Habitat for Humanity (I love that place) for $100. We will put it in place this weekend. I just bought an open box Canon camera on Amazon, but it is hard to learn. Once I do I will certainly take new pictures.

    Actually per my search we are well below market rent. Trailers in the trailer park are going for $700 plus. I don't understand that! Trailer parks are usually poor places to live.

    As for dishwashers I have had bad luck in the past. They eventually leak and for some weird reason the tenants did not call us. They just go about their business while my floor rots!!!

    We do have a comprable ad on CL.

    I guess we will have to consider reducing the deposit, but that makes me concerned.

    Actually this looks like a rural area, but it is only two blocks from good jobs in retail outlets like Meijer and a mall.

    I will have my wife add more flowers. She is good at that.

    Yeah i will never buy another two bed again. 

    Thanks to all. I welcome more suggestions.

     Thoughts:

    1. I have had dishwashers in my homes (my personal homes and rentals) for 30 years and have never had a rotted floor nor a catastrophic leak. On a rental, you should inspect the home on a somewhat regular basis, and you should see a dishwasher leak, which would either be constant (from the supply side) or only on use (from a seal, pump, or drain line). If it's only from an on-use, unless water was pouring out of it no one would probably ever notice the difference. And the floor under a dishwasher should be non-absorbent, either tile or vinyl. Then the water has to go somewhere. Either way, you've left a big hole in the cabinet that looks dumb. If you're not going to reinstall a dishwasher, add a cabinet in its place or at least some shelving in the hole. If I were coming to look at that house, and saw the hole, I would think you were cheap and a shoddy landlord.

    2. Camera quality is less important (in my opinion) than skill in photography. Taking pictures from the right angles, the right lighting, highlighting positives and minimizing negatives. I prefer using cell phones, because the pictures are then with you and can be shot off to anyone, any time, and most cell phone cameras have become surprisingly reasonable for online picture quality.

    3. 2 bedroom homes depend on the area. Where I am, in a college town, they're golden. If you are in an area of mostly families, your pool of renters is a little more limited. 

    4. What is your concern with lowering the security deposit? 

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  • Mark Forest
    OP
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    9y

    I will have to reluctantly lower the security deposit and the income requirements. My concern with the security deposit is damage. People in this area are rough on homes. In another house in that City I had to do an eviction where the kids used my walls as their drawing board.

    As for the space where the dishwasher was we tell them it is a place for their garbage and recycling bins.

    0Reply
  • Richard C.
    Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    I'm going to agree with most of the other posts.

    1.  The rent is high.  Not overwhelmingly, but high compared to comps;

    2. The security deposit is high.  Too high.  Comparable listings have a 1 month SD;

    3.  The phrasing of the ad will turn people off;

    4.  It needs a dishwasher.  A gaping hole in the cabinets looks awful and cheap;

    5.  The ability to have a pet is the reason many people prefer single families to apartments.  You are really hurting yourself there.

    Only you can decide your comfort level with changes.  But the issues have been correctly identified to you.  If you do not change, you have to expect vacancy issues.

    1Reply
  • David Moore
    Investor · Crystal, MN · Member since 2013 · 486 posts · 277 votes
    9y

    @Mark Forest

    The address is not posted, and the house is tiny.  No mention of a basement, and no fridge is just a bad look.  And your rent is too high.

    Since there was no address, I took the address of another house on Moorish street, and put in your bedroom/bathroom, into www.rentometer.com.  I am a subscriber.  Average rents in that vicinity was $550.00, and those other two bedroom units are probably not tiny houses.  I saw one house that rented for $425.00, and a decent number renting at $500.00

    Bottom line, cheap houses in C and D neighborhoods are not good investments, IMO.  At $500.00 to $550.00 a month, there is too little profit.  

    0Reply
  • Irina Belkofer
    Real Estate Broker · Cleveland, OH · Member since 2017 · 719 posts · 658 votes
    9y

    I think that add is just fine, but pictures need to be better - photoshop them just to lift up the colors.

    Agree with everybody about staging - little shiny things go long way. After all, it's one time investment and you'll use some fake fruits, kitchen things in every listing.

    Needs to have some blinds - people who move in at this rent price, won't have money for window treatments.

    Refrigerator is always better new - it's less calls for not working, they don't make them last forever anymore - it's part of busines expenses. Dishwasher gap looks cheap and screams "cheap place".

    It needs to look more expensive than the asking price.

    Allow dogs - pet rent, extra security deposit.

    I disagree about lowering income requirements or background check 

    However, the security deposit is high for sure.

    If the price is right for the market, why the property is sitting since May? 

    1Reply
  • Laura Tokgozoglu
    Rental Property Investor · Catonsville MD · Member since 2015 · 136 posts · 44 votes
    9y

    Allow dogs, subject to your approval. Require pet deposit. Put something in the front, flowerpots, something for a little curb appeal. Find a low cost fridge. Put a nice little ruffle in front of where the dishwasher is supposed to be, adds a little shabby chic/ cottage look and can be extra storage space for tenants. Clean up pile of branches in back yard. Security deposit = rent. No application fee or refund if they are accepted. Ad comes across as rather negative and demanding, try to reword it to make a bit friendlier.

    Laura T.

    0Reply
  • Calvin Strain
    Dallas, TX · Member since 2017 · 51 posts · 5 votes
    9y

    Providing own fridge + high security deposit is a large amount of $$ to pony up even before first month's rent. I recommend getting a fridge and allowing pets. Looks like your market requires that you give a little more to attract renters 

    0Reply
  • Deanna O.
    Rental Property Investor · San Diego, CA · Member since 2010 · 377 posts · 314 votes
    9y

    If this is turning into a real dog, maybe consider rent-to-own in order to get rid of it?

    1Reply
  • Deanna O.
    Rental Property Investor · San Diego, CA · Member since 2010 · 377 posts · 314 votes
    9y

    oh, and dishwasher space is PERFECT for a trashcan $10 for a nice white trash can and all of a sudden the space makes sense. We've done that with the "trash compactor" space where I live. Previously it was just completely dead space with a panel over it -- makes our small kitchen work SOOO much better). 

    0Reply
  • Mark Forest
    OP
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    9y

    Is rentometer accurate?  

    0Reply
  • Mark Forest
    OP
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    9y

    @David Moore I just did a free search on rentometer and it said the average rent is $606, and median is $550.  That would put me a little lower than average.  When I looked at comps in Zillow I am far lower than most.  

    0Reply
  • Account Closed
    Newark, NJ · Member since 2017 · 30 posts · 6 votes
    9y

    Add some pots of flowers to the front to add some curb appeal. And where is your "For Rent" sign? You should stick one in the grass in the front lawn where everyone can see. 

    0Reply
  • Josue Cruz
    Flipper · Detroit, MI · Member since 2017 · 2 posts · 0 votes
    9y

    This is kind of a summary of what everyone else has said, and also my recommendations

    1. Try also on Craigslist.

    2. Change Security Deposit to $575

    3. Don't charge from the screening. In this market people don't have good credit. Otherwise they would buy and not rent.

    4. Allow pets for an extra fee on the monthly rent.

    0Reply
  • Robert Hudson
    Crossville, TN · Member since 2017 · 121 posts · 168 votes
    9y

    since others have done some research maybe the price is a bit high. Are there a lot of homes in the area for rent? Could be a supply/demand situation. As a landlord you need to be have rules and be firm but you don't need to shove them in people's faces. This is in no way a knock on you because I don't know you or insinuate that you are this way but I will tell you what  people are thinking when they read your ad. They think: this guy is an *** with too many rules and is going to be a pain. I will just go down the street and rent this other house.

    0Reply
  • Mark Forest
    OP
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    9y

    I do explain that the credit check is to filter out prior evictions and criminal history. Which rules should I eliminate? I plan to lower deposit.

    0Reply
  • Mark Forest
    OP
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    9y

    This ad is also on Craigslist. Most of the other rentals in this area are in trailer parks which is a far different environment than a pleasant house neighborhood like I am offering.

    0Reply
  • Mark Forest
    OP
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    9y

    We put in a fridge last night.

    0Reply
  • Christian Hutchinson
    Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes
    9y

    $575 Deposit

    Allow pets for $25/mo/pet up to 2 pets

    upgrade to black appliances

    throw in a washer and dryer

    if your handy buy the $.88/sq ft tile from Home Depot.  That kitchen is depressing.

    0Reply
  • Shaun C.
    Royal Oak, MI · Member since 2015 · 257 posts · 230 votes
    9y

    I figured it out. If I was looking to rent your property I would look through the photos and immediately think it was built over an indian burial ground because of all the light orbs in your photos. But really, landscaping, appliances, flooring, and definitely better photos would go a long way. How much did you buy this property for?

    0Reply
  • Mike S.
    Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
    9y

    I don't know, it looks like a pretty saturated market in that price range.  What's the driver for someone to pick your rental?  You've got some onerous language in the listing and no incentives to differentiate.  Mile high view, I wouldn't expect leases greater than month-to-month, some kind of discounted first month move-in special, and high vacancies.  If I was stuck with this one, I'd aggressively push specials before winter sets.  I'd also be looking to get out from under it asap, but that's just me.

    1Reply
  • Mike S.
    Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
    9y

    Wanted add after further reflection, if this was in my market, I can't see asking for money for credit check.  A house in that shape and that rent in my area, the clientele would 100% have bad credit(even evictions).  I wouldn't expect otherwise, so with that stated on my ad, the entirety of my market would be on notice to move along. 

    I'd still screen, of course, but I'd market more in line with who would want it.

    0Reply
  • Richard C.
    Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Mark Forest:

    I do explain that the credit check is to filter out prior evictions and criminal history. Which rules should I eliminate? I plan to lower deposit.

     It is more the TONE with which you convey the rules, rather than the rules themselves.

    NO blah blah blah.  NO blah blah blah.

    The bottom line is this:  People who have choices will exercise them.

    You are looking for people who have choices.  People with no evictions, no criminal background, no pets, non-smokers who have 1.5 times the rent for a security deposit have choices.  As in, they can pretty much rent any place in that town.

    So why yours?

    If you are looking for the best renter in that town (which you basically are, given your requirements) then you need to provide the best house in town at that price point.

    Which you are not.

    You have been given a good suggestion on how to change the wording of the ad.  You should do that.

    You have had several people tell you that the gap where the dishwasher was is an issue.  It really is.  You need to deal with it.

    Judging by other listings, your security deposit is not the norm in that market.  I'm glad you are lowering it.

    The no pets is an issue for many people looking for a single family.

    I'm not trying to be mean, really I am not.

    But you seem to me, based on no local knowledge but just on other listings, to be offering a slightly below average house for a slightly above average rent with a high deposit and a lot of rules.

    You can get away with that in a market with a very low rental inventory.  But not where you are.

    Either lower the requirements (your rules) or improve the quality.

    0Reply
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