Need some advice bigger pocket community about how to handle my vacancy problem .
So Here is my situation I got 7 units Between 2 buildings the 1st I bought last year was a 4 unit and was 50% occupied When I bought it I fixed it up and With the assistance of A property management company that I was using we were able to fill the vacancies really quickly every time somebody moved out of that 1st Building We were able to find someone really quickly I bought my 2nd building which was a 3 unit A year later and this time using the same property management as the the 1st Building the 2nd Building Is in a better area of townWhere rents a higher and prices are Rising I closed on the 2nd building at the the end of April I had to do some Repairs and started to show the 1st apartment in June for rent we've had multiple showings and multiple applications and none of the Applicants seem to qualify as far as passing the screening I've lowered the Rent in hope of causing a buzz and be able to get more applicants to hopefully find the right One As of now I still have 3 vacant units in this building I feel like I'm at a crossroads because I don't wanna flip this building I wanna keep it and at the same time I have a really good relationship with the owner of the PM Company as a new investor hes helped me tremendously but as of August if it's not rented I will have 90 days Vacancy For this entire building I've consider looking at other Pm's but I don't want to jump the gun Any advice on how I should tackle this issue
It's possible that your screening criteria are too high for that part of town? Is it the credit scores or an unwillingness to meet your criteria?
No they don't use credit score they use previous landlord references and they want income to be 3x the asked rent and 2 year work history
@Carl Fordyce id probably get rid of the work history requirement and run credit
No one will care about vacant units as much as the owner. Rent them yourself.
Can you offer any incentives? Like half off the first months rent, or something similar? This is assuming that the rents are priced below the highest rents in your immediate area for like units. Best wishes to getting those units filled shortly!
I agree with Christy Browning. Offering an incentive may be a great way to motivate a potential tenant to go with your unit. But you have to keep the income/ work history requirement and rental references. Otherwise, you can end up with a tenant that won't pay rent. The eviction process can be very expensive!
Have you asked the PM about how they are advertising the unit? Perhaps they have a bigger client whom they are advertising more heavily for or recommending to prospective tenants. Or they have a low budget for advertising your property and are not doing enough. Also are they updating online listings?
Another option could be to offer a cash incentive or one time rent discount to your current tenants if they refer a friend or family member to one of your vacant units and that person is approved and moves in?
Lowering rent, a lot of the time attracts the less desired tenant. On the other hand 2 year work history- I haven’t ever rented or bought that they required a 2 year work history. Taxes only to show I had an income but I also take usually a 1 year maternity leave and when travel nursing I took 2-3 months off in between contracts
Be patient, if it is a B class property your screening standards are acceptable. I always require minimum 2 years employment but I also do credit checks.
If the property is a C/D your standards are high and will weed out the majority of applicants.
The price is too high or your screening criteria is too stringent.
I agree with others that you should absolutely require a credit/criminal background and then get rid of the two-year work requirement. I rent to people all the time that have less than six months at their current job but they have good credit. That hasn't bit me yet.
The building is in a C class area that's improving. In regards to changing the criteria I will talk to the PM about their criteria because it's their criteria that their using during the screening. I regards to using credit scores it's a toss up because I know a few people mentioned using a credit score but I feel that might not be the best indicator. For example I use to have horrible credit but now it's good if I was a landlord lord that used Credit scores I wouldn't of qualified as my own tenant if it was a few years ago