I didn't want to screen and interview people myself so i listed with a very local realty office just blocks from my rental
Before I chose that realty office i talked to a few other realtors in the area and it seems the local going rate is one month rent for me that would be $1200 I worked out a deal with this office said they'd do it for half $600 but won't list it in the MLS for that price
Anyways they've had the place for over over a month now with no luck. The girl i listed with now recommended i just pay the full fee and let them list in the MLS that way she says it will get more action she said she showed the place to 15 people and no one made a offer
Real Estate Investor · MD · Member since 2010 · 124 posts · 84 votes
16y
Mark, the way your listing reads that you attached says that they have to pay $1200 plus $3600. If you are only charging $1200, then the listing needs to clarify that as $1200 security deposit. Prospective tenants will see that and understand that $1200 + $1200 is $2400. I suggest you do a listing on craigslist yourself with pictures and see what happens. Often times, realtors may not be seriously following up on email leads via craigslist and as someone else asked, what has been their feedback if they claim to have done so many showings? Try craigslist yourself and see what kind of response you get.
Investor · Albuquerque, NM · Member since 2009 · 118 posts · 43 votes
16y
Mark, I'm not sure what your market is like, but 3600 dollar deposit would be very high around here. For a renter to have 3600 or 4800 ready to put down just to move in is really limiting your number of possible renters. I would lower that amount, and definitely advertise on craigslist - that's where I get all my renters.
M
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
There's several people on here who like to rip on property managers pretty hard, and it's kind of insulting. This board is supposed to be a gathering place for all of those involved in real estate.
Property management is like any other business. There are good people and bad people in any business. It's also a free market. If you don't like your PM, choose another.
That said, I agree with the previous posters. I would think that deposit is extremely high. We charge slightly over one month rent, but our rentals are between $350/mo and $700.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
There are certainly some good property managers out there. Ask any investor that has used them for several years and I will assure you that most will be disappointed. It is a tough and thankless business that I wouldn't want to do.
They are like anyone else...want maximum income for minimal effort. Nobody will care for your asset like you. You are the one that has to stomach the mortgage payment if there is no tenant...not them.
Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
16y
I do quite well listing on craigslist. I would agree that $3600 for a deposit sounds very high. A number of years ago, I would have been able to get first, last and deposit. Doesn't happen anymore though.
You may want to find out what typical rents and deposits are for the area and go from there.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
Originally posted by Bryan Hancock:
There are certainly some good property managers out there. Ask any investor that has used them for several years and I will assure you that most will be disappointed. It is a tough and thankless business that I wouldn't want to do.
They are like anyone else...want maximum income for minimal effort. Nobody will care for your asset like you. You are the one that has to stomach the mortgage payment if there is no tenant...not them.
See, a good PM will realize that when you're happy, and profitable, you'll buy more properties and refer your friends. Telling every new landlord that comes on the site that PMs are lazy and they're better off not using one could directly effect business for other members.
There are numerous benefits to having a PM, even if you're local, and the costs of using one should be included in your purchase considerations. But that's a discussion for another thread I suppose.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
I never told him not to use one. I said that MOST are lazy and I stand by that statement. I have used tens of them and they are almost universally lazy.
Find a good one...it isn't hard if you do some due diligence at your local REIA.
Real Estate Investor · MD · Member since 2010 · 124 posts · 84 votes
16y
Mark W,
I suggest you do what other say and post on craigslist and also postlets and how about in the Sunday real estate section if such exists in your area and put a large for rent sign in the yard with your number. I would not use the realtor unless they do mls access. If they arent willing to put in mls at a fee you are comfortable with I suggest you find another realtor.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Not the place for debating about the merits of a PM. If there have been 15 showings, I would suggest the PM is doing their job.
What's been the feedback from the showings?
I generally need about a dozen showings to get a good tenant, and maybe on in half a dozen will fill out an application. If there have been no takers, the place is mispriced.
Is three month's rent typical for a deposit in your area? In my area, that would be a non-starter. I set my deposit a little less than a month and struggle to get that.
The web site where its posted shows numerous properties for rent in the area, many at higher prices than yours. If yours is really a great deal, why isn't it rented? Have you looked at the competition? Are they numerous properties for rent? Maybe your market is just very slow. Our market's pretty decent, yet I prepare myself mentally that it will take two months to fill a vacancy.
Frankly, I can't imagine paying to list a rental on the MLS. A sign in the yard and an ad on craigslist is usually all it takes to generate numerous calls. Again, though, perhaps its different in your area.
Residential Real Estate Agent · Camden, NJ · Member since 2010 · 126 posts · 55 votes
16y
Originally posted by Jon Holdman:
Frankly, I can't imagine paying to list a rental on the MLS. A sign in the yard and an ad on craigslist is usually all it takes to generate numerous calls. Again, though, perhaps its different in your area.
i agree 100%
in NJ you can't charge more than 1.5 months rent for deposit, and if you get somebody with a good score and references usually just 1 months rent.
Real Estate Investor · Daytona Beach, FL · Member since 2009 · 23 posts · 6 votes
16y
Mark,
Just now came across your post...
I am intimately familiar with the Broward rental market. Your $1,200 asking rate is fair. $3,600 total deposit likely won't fly, as others have said. Drop it to first month's rent and $1,000 security deposit. ($2,200 total out) If you are extremely certain to have found quality tenants via credit check, background/reference check, etc. you could perhaps even drop security to 2/3 rent ($800), but no less.
Sunrise is a great area, and you shouldn't have a hard time finding quality tenants in a property like yours. Also, unless you are extremely busy or are very concerned about being a landlord, forget the property management, boost your cash-flow, and post it yourself on Craigslist. My experience has taught me that tenants in general treat a property with more respect if rented directly from the owner than through a PM company...
Investor · Sunrise, FL · Member since 2009 · 105 posts · 15 votes
16y
Thanks for the reply's
First of all i don't know how this tread got off on to talking about property management I'm not using a PM company this is just a local realty office I'm using to get the place rented for me after that its all on me to handle with the tenants
I'm pretty busy and wanted someone to handle meeting with and showing the property and getting it rented for me.
As far the the $3600 that's first last and the security total i was looking to get to move in so maybe I'm just going to drop the security and go with $2400 first and last hows that sound ?
As far as the listing the realty company say they listed it on Rentals.com, rentalhouses.com, mynewplace.com, google base, oodle.com, vast.com, olx.com, and craigslist.com. thats a sample of there listing in my above post
Real Estate Investor · MD · Member since 2010 · 124 posts · 84 votes
16y
Mark, the way your listing reads that you attached says that they have to pay $1200 plus $3600. If you are only charging $1200, then the listing needs to clarify that as $1200 security deposit. Prospective tenants will see that and understand that $1200 + $1200 is $2400. I suggest you do a listing on craigslist yourself with pictures and see what happens. Often times, realtors may not be seriously following up on email leads via craigslist and as someone else asked, what has been their feedback if they claim to have done so many showings? Try craigslist yourself and see what kind of response you get.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
You say you're not using a PM, yet effecitvely you are. Not to manage, but just to rent it out. I'd consider actually using a PM who doesn't work as a realtor rather than a realtor to lease the unit. That sort of person may be more focused than a Realtor who's also showing houses and such.
In my area, getting the last month's rent would be impossible. First month plus $2400 would still make my houses un-rentable. I'd suggest you pull some listings from craigslist or other sources and start making some calls. When they get to the deposit, hem and haw and ask if they can "work with you". Or if they will charge more rent and let you have a smaller deposit. First, last and a deposit is nice protection for you, but I've found that's impossible to actually get. I'm very happy to get first and a deposit, and I've been happy to get first and half the deposit.
Like you, I'm pretty busy working the day job. I put an ad on craigslist. It gets replace every day or two so its always near the top. I put lots of pictures on a site like photobucket and link to those. A little extra work, but gets me lots of big pictures rather than four little ones. I put a sign in the yard. I try to answer all the calls, but if I'm tied up and can't I call back as soon as I can. We discuss the place, I tell them about the rent, deposit, and what they have to pay. I tell them about my screening criteria. Usually there is something else that's important - schools, pets, move in date, something. Half or two thirds of the callers say "I'll call you back". Probably more than that since many ask "rent & deposit" and they're done. Of the ones that want an appointment, I schedule one time slot a week. I tell everyone who calls prior to that the same time. If someone can't make it, and they sound like a real prospect, I might do a second time slot. Or, if they're the first one that week, I'll adjust. I tell them to call me 30 minutes before the appointment time or I will not be there. I'll typically get three to five who say they will be there. Usually about half show up. Most of the ones who show do call ahead. Once at least one calls, I do go. Once in a while someone will call and not show or vice versa, but that's pretty rare. This method has almost completely eliminated wasted showings.
If they like the place, I give them an application. I encourage them to fill it out on the spot, an astoundingly slow process. I know if they take it saying "they'll bring it back" I will usually never see it again. If they do take it and do call back wanting to give it to me, I usually try to get them to come to a location convenient to me.
Screening takes only a few minutes. I use tenantalert, but Josh (BiggerPockets owner) now has a service, too. If that looks OK, I do call to verify previous residency and employment. That can take some time, and may take dealing with a bureaucracy. If they work for a big company or live at a big apartment complex, it can be a hassle. Small companies and individual owners are usually quite willing to talk.
You need to know and understand fair housing law and any local laws.
I used a leasing agent once, just around Christmas when I had a midnight moveout. She did fine, and found a tenant in about a month. But the price, half a month's rent, was a little high when I compare it to the amount of work needed. Not that I think she was charging too much. Its just work I'm willing to do for half a months rent. I certainly could not see paying someone $1200 to do that job, unless you had no choice.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Several things worth discussing here.
Tenant mindset vs landlord mindset. You really have to think more like the customer (the tenant), so that they understand what you are requiring. Tenants think in terms of "move-in money" - in fact, that's usually what they will ask me!
In my area, getting first months rent plus one month's security deposit is pretty much a given - the tenants expect that to be the requirement. I will also try to get what I call "security toward last month's rent" - it's not last month's rent because your rent could increase (or even decrease) while they rent. And it's not a "security deposit", since that "security toward last month's rent" will be applied toward the rent due when the lease is up or when they give move-out notice.
Select a State · Member since 2010 · 3 posts · 0 votes
16y
im not sure if this came up now or not. but did you consider changing the agency? agents can be lazy or it may be the way the present it. it migt be worth chanign the agency to be honest. and so also get more advertisement for the property.
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
15y
Mark,
I don't know the south Florida market at all, but is your property in a very upscale area? Here in Orlando I had people balk at paying a $700 deposit (they wanted to split it and pay over several months, which I would not do). I don't get the impression that most people are able to come up with 1st, last + sec. deposit at one time, most of them don't have a lot of money in savings.
Investor · Sunrise, FL · Member since 2009 · 105 posts · 15 votes
15y
Originally posted by abhyler:
So Mark, did you change srategies? Did you get it rented? Give us an update !
Still havn't been able to rent it just asking first and last now
Realtors still showing it but no luck yet.
I'm considering giving it to a local place here called Rent Now Realty they specialize in rental but they want one month $1200 to get it rented thinking i may as well do costing me anyways just having it sit empty
Real Estate Investor · Coolidge, AZ · Member since 2009 · 7 posts · 1 vote
15y
Ok, here's my 2 cents for you:
I run a property management company here in Idaho, and I have to say that asking $2,400 for a deposit ($1,2000 for 1st mo., and $1,200 for last month - or however you look at it) is a bit much. It's hard to ask people to do that, and still come up with the moving expenses and everything else. I think if you just ask for a deposit, either at $1,200 or a little more than that and also the 1st month's rent, it will work out great for you. I would also put an ad on Craigslist (submit one every 2 to 3 days), have a big sign in the yard, and maybe a couple signs around town and around the neighborhood where the house it, you're sure to get great tenants. Also, consider working with the prospective applicant(s) on their Security Deposit (by splitting into 2 or 3 month payments) as an option if it's available, and/or applying the application fee to their 1st months rent. I will tell you it works wonders where we are.
There's nothing wrong with having it in the MLS - It's mostly location, pricing, and features of any property that draws applicants. Have you considered having Section 8 tenants? I would scan the local website or the local housing authority for those who have Sect. 8 benefit letters (aka vouchers), and advertise the home there. I think you can list it for free on the website, too, since Sect. 8 is guaranteed income. From looking at the listing, you need to "talk" more about the features of the house, not just a few things and that's it. When you're showing the house or whoever shows the house, have them "sell" the prospects on the kitchen, and bathroom. If it has new features, explain it too. In the listing, make sure they use spell check - they messed up the word "Sull" when talking about the washer & dryer. That is also detrimental to any marketing on this property.
If I can help you out more, let me know. Have a great weekend, and good luck with your home.
* Dallas
Originally posted by Mark Weinstock:
I'm a first time landlord trying to get my place rented with no luck so far
I didn't want to screen and interview people myself so i listed with a very local realty office just blocks from my rental
Before I chose that realty office i talked to a few other realtors in the area and it seems the local going rate is one month rent for me that would be $1200 I worked out a deal with this office said they'd do it for half $600 but won't list it in the MLS for that price
Anyways they've had the place for over over a month now with no luck. The girl i listed with now recommended i just pay the full fee and let them list in the MLS that way she says it will get more action she said she showed the place to 15 people and no one made a offer
Investor · CA · Member since 2010 · 150 posts · 40 votes
15y
Although I don't actually own a rental, I've been looking at the markets to get a rental, and in my distressed and depressed county (Solano County California, one of the worst in the Country) many people have opted to do this same thing, thus flooding the market with rentals.
In a small city I checked (just on craigslist) and there were 30 listings in 2 days for rentals (about 5 rent to own)..
seems like INSANE amounts. Oh well.. I'm still going to do it .. just need some better down payment capital..
Rental Property Investor · Irving, TX · Member since 2010 · 107 posts · 34 votes
15y
I agree with what everyone's said, and the same things I've done for my rentals....
* I've never been able to get more than 1 month's rent as security deposit ($1200 in this case). In some of the lower rent areas around here, deposit is 1/2 month. Yeah I know that sucks. I wish I could get more too but lower income tenants can't come up with that much money all at once.
* I'd recommend paying the Realtor full month's commission to list in MLS. That will generate more traffic. MLS data also get propagated to other popular web sites such as Trulia, Realtor etc.
* Continue to publish periodically on free sites like Craigslist, vFlyer ...
* More description and better pictures... Here's what I did for ours: http://dallas.craigslist.org/ndf/apa/1969279795.html (Ironically we leased ours to someone who just drove by and saw the sign, but we got lots of interest from MLS showings).
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
15y
Whoever recommended using signs, I think that's a great idea. Generally when you get someone from a sign you are getting a "real" applicant who knows the neighborhood and wants to live there, not someone calling from Timbuktu who will be moving to the area in three months and doesn't even know what they want. I also put signs out on the median strip of the main road near the house.
Commercial Real Estate Broker · Aurora, CO · Member since 2009 · 29 posts · 5 votes
15y
I manage over 1,000 units and Craigslist and a good for rent sign in the yard always work the best for me. You need to repost on craigslist everyfew days to stay on top of the search. I normally have 3-4 postings for the same property, with diffrent headings to reach more of my targe market