Why my metro Denver townhome is still sitting in the market

[Manoj N.]

I bought a decent townhome in Louisville, CO in January first week. It is a 3 bedroom townhome in a great neighbourhood. I put it in market after a few minor repairs. After the first week of low interest, I reduced the price to below market rate - such that mine is the lowest priced 3 bed home available in the whole Louisville-Boulder area. I require a minimum income of 2.5 time rent, a credit score of 620 or greater, and clear background checks. I had lots of interest after I reduced the price 3 weeks ago - about 50 enquiries, 17 showing and 1 application which was rejected due to job issues. I am really surprised why it takes such a long time to rent my house.  I notice that my competitions are also just sitting in the market. Is it just because of the cold season ? Any clues Denver gurus ?  

[Bill S.]

@Manoj N. 17 showings and only 1 ap. Bottom line is your are still over priced but figuring out why is important. There might be non-price issues that could be addressed and still keep the price. Check those out first before you lower it again. One of the main things that turns folks off on the property is smell (often overlooked by guys). Think pets, musty/damp (especially a problem with vacant properties where you might be keeping the heat down to save on costs), cooking, or the place feels cold (whenever you do a showing the place must be warm (72-74) IMO). There are other quirks such as carpet, paint colors, or the person showing the property. Get a disinterested 3rd party female to view the property and give an honest, no holds barred feed back to cover the the non-price issues. Take a hard look at your approach to prospects. Some times when we want to get a place rented we come off as needy or desperate which is a huge turn-off. Some times we do the hard sell which also turns folks away. Sometimes we are too cavalier and people don't think we will address their needs as tenants.

Finally, in my experience 50 inquires is low but 17 showings is high. Where are you advertising? You should be on Zillow (including all their affiliates) and probably Craig's List as well. Are you prescreening people who want to see it? Pre-screening helps cut down on showings where the people walk up to the front door and say "Oh it's a townhouse, we are looking for a single family home" Many people don't read the whole ad so if you don't pre-screen, you get people showing up who aren't really looking for what you have or won't qualify for your standards. Would the job issue you mentioned have come out via a quick pre-screening inquiry? Perhaps not but think about your time as well. A word of caution about pre-screening, don't go overboard as it's a turn-off to be grilled but be friendly and casual. I have found if I ask permission to ask the questions it goes far better by phone.

Hope this helps.