Does anyone ever have problems getting tenants in place?

Question

Hi All:

So I just have a quick question...have any of you ever found it very difficult to find tenants for a place you recently renovated?  I'm just asking becasue we bought several units within a matter of weeks, now they're all undergoing renovations, and I just can't help to wonder if we'll have a difficult time renting them out.  I mean, all the neighborhoods are decent, but I guess it's just my "fear" as a newbie.  Anyone?

Greg B. · Answer

The answer is....it depends.

It depends on your rent vs the market.  It depends on whether local employers are closing up shop and heading out or are they expanding and hiring.  It depends on the time of year, tough to get a renter November to January.  It depends on how picky you are about who you rent to.

I do agree though, filling that first rental is scary though.  After you have done it a few times it's no big deal.  Good luck.

Jay Miller · Answer

I have found that when I have multiple units to rent at the same time it is sometimes easier to get them full.  If the prospect doesn't like the first place you can show them the other you have any usually they will find one they like.

When you rent your unit the first time listen to any comments your prospects make and ask them questions about their impressions if they do not want to take it.  Take the info and reassess if need be.  If you just renovated and did a good job the biggest factor is the rent amount.  If the first person in the door want it they you are probably too low.  If no one wants it you are too high.  I like to stay on the low end personally because once I get someone in they will have a hard time finding a place that is comparable for the same price.

Good Luck.

Bienes Raices · Answer

I had trouble on my first one, last year, because I was asking too much in rent. The people coming to the house either weren't that interested, or were the dregs of society. Once I dropped the rent I started getting more normal people who were serious about applying.

Thomas Fish · Answer

Tenants...ah, such a sweet and sour word.  I've done them in both houses and apartments; and in duplexes, triplexes, commercial...etc.  Getting them is never a problem.  Getting them to PAY, now THAT can be a problem.  Getting them to tell the truth about when they are going to pay, why they can't pay, etc.  Therein lies the headache.

Nick Henson · Answer

As everyone agrees, it depends. Do the shopping yourself. Hit the classifieds and craigslist and while you are biting your nails until the renovations are done, BE a prospective tennant. There is no shame in scoping out the competition first hand. Know what your units will be compared to.

Mitch Kronowit · Answer

Sometimes you have a dozen people look at your property and don't even get a single application, sometimes they're breaking down the door to stuff money in your hand. It really depends on the market, the season, your rent, your competition, etc.

Remember, there is a price where nearly any place will rent. Also, don't be in a rush and rent to the wrong person. No tenant is better than a bad tenant.

Aly W. · Answer

The first rental is always the scariest. It took 3 months to rent our first rental house, and the same amount of time for the 2nd. The market was different 2-3 years ago. These same units rented within 3 weeks recently, and so did the 2 condos we have in FL.

Our rents are slightly under market price, the properties are freshly painted and spotless, and as a photographer, I was able to take photos that were much better than the competition, which drove a lot of traffic to our places.

I advise that you hire a professional to do the photography, as I have to do with our latest FL rental (we're in NJ). It makes a world of difference with good lighting and lenses. If there are a lot of rentals available in your area, you need an edge to get people to see yours first.

We offered incentives this time around too. A free window air conditioner for the houses, and 2 weeks free rent or a $300 Best Buy gift certificate.

Chris Martin · Answer

Not directed at you, but myself. Sometimes value buyers get caught up in good numbers and 'forget' about little details like small bedrooms. This is reality... and why sometimes a lower rent is appropriate for an otherwise comparable (except for the small impairment(s) in the) property.

Hoang P. · Answer

IMO, I think a house with 3BR is much easier and quicker to rent out compare to houses with 2BR. That's is one reason I don't buy anything with less than 3BR.
I terminated a lease with section 8 tenant on April 30th for $850/month (picked up the keys). Today I got a tenant wants to move in (cash renter) for $825/month.

Account Closed · Answer

size of my bedrooms is my issue now. I have a 2bed with a denn and the bedrooms are pretty tiny like 10x10.. I am changing up my marketing strategy and will leave a flyer on the window about the apartment now along with the for rent sign in the yard

Does anyone ever have problems getting tenants in place?

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