How can I increase the chances of getting an rental applicant?

General Landlording & Rental Properties
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How can I increase the chances of getting an rental applicant?

Kevin Drouillard
Investor · Brooklyn, NY · Member since 2016 · 50 posts · 25 votes

Hello everyone,


I'm in a bit of a pickle with a couple of my rental properties. I currently have two units vacant in Kansas City, both in C class neighborhoods. They have been vacant for about the last 2 months. There is a bit of trouble finding tenants, but the problem is my property management company is not much help either. I am trying so hard to get in touch with them, but they are not responding to my emails and voice messages. I am not sure how well they are marketing them either.

The main question of this post is, what should I do in order to get these units rented as soon as possible before the holidays? There's absolutely no way anyone is going to want to move into a place within the next two months. What might be some strategies that I could do to possibly take things into my own hands and get these units rented with quality tenants? I am trying to acquire more properties for my portfolio, but the banks will not give me a pre-approval for a loan with any of my units vacant. They all must have a lease attached to them in order for me to get funding. 

I could get another manager, but that (presumably) would only prolong the process and cost more.

I greatly appreciate all responses!

Thank you

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Karen Rittenhouse
Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes
8y

@Kevin Drouillard I have done property management for years. You can always find your own tenants, meaning you are not solely at the mercy of your property management company.

Post your properties yourself on ForRent.com, Craigslist, Zillow, any site you can find that lets you market your rentals (there are a ton of them). 

Properties rent all 12 months. I have had tenants move in on Christmas Eve and Christmas day. They need a home when they need a home so don't despair because of the calendar.

Then, as soon as you can, fire this management company and get someone who cares about you and your property. 

Good luck!

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  • Karen Rittenhouse
    Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes
    8y

    @Kevin Drouillard I have done property management for years. You can always find your own tenants, meaning you are not solely at the mercy of your property management company.

    Post your properties yourself on ForRent.com, Craigslist, Zillow, any site you can find that lets you market your rentals (there are a ton of them). 

    Properties rent all 12 months. I have had tenants move in on Christmas Eve and Christmas day. They need a home when they need a home so don't despair because of the calendar.

    Then, as soon as you can, fire this management company and get someone who cares about you and your property. 

    Good luck!

    7Reply
  • Jason D.
    Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    @Kevin Drouillard advertise on Facebook. Closed groups, open groups, marketplace. I have great luck with facebook
    1Reply
  • Chris DawsonPro Member
    Real Estate Broker / General Contractor / Property Manager · Kansas City, MO · Member since 2010 · 395 posts · 425 votes
    8y

    @Kevin Drouillard find a new PM company.  While you are doing that, do everything @Karen Rittenhouse suggested.  There should only be 2 reasons why your properties aren't getting rented; either the properties are not being advertised, or the rent is too high for the location/condition of the properties.  The time of the year has nothing to do with it.  October is a great month for renting or selling in our market.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    1. It is not always because of the property class. My market turned this year and I'm struggling to rent any single-family homes, most of which are B Class. If there's no demand, you can't find a tenant.

    2. Why are you paying the property manager? They should be able to explain why the property is not renting, what steps they are taking to correct that, etc.

    3. I would consider lowering the price or offering some bonuses like 50% off the second month's rent to make your property stand out from the crowd.

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  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    Here in San Francisco Bay Area the rental market has been slow for two years now. There is still a severe housing shortage as past 40 years and unemployment is close to 1+% with lots of high tech jobs. Homes still can get sold in one weekend with multiple offers but any rental property that has a flaw or pricing will be skipped as there appears to be enough floating on the market. There is now incentive on new apartments, houses that offer free rent 1st month. Unless it is below the market people often look at it for 10 seconds and move on. My impression toward end of the year is if it is NOT priced correctly it will be vacant for a long time. For locals, I tell them never mind your $8K PITI take what you can get buy you a peace of mind.


    0Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Kevin Drouillard,

    You can easily tell how it's being marketed to a regular consumer-- just check to see if it's on the main ones, CL, zillow, hotpads,trulia, etc..    If it's not in there, absolutely take matters into your own hands and advertise it.. it's all free btw..  If your PM is ignoring you, you absolutely need to find a new PM!   

    Some suggests to get it rented, because IMO 2 months is horrible... even for C/D properties, the right price/incentives make things move.    Maybe offer half-off rent, or maybe offer to throw in a  $200 wal-mart gift card, something for the holidays.. for the right price/incentives, things can be rented!   Give them something to think about, and how picking your unit benefits them the most!   

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Kevin Drouillard. You want to offer some sort of incentive such as a hundred bucks off rent and you want to make sure it’s listed everywhere relevant. You should be getting multiple showings per week and ideally an application or two per week. This is my experience is it leading to it being rented in a month or less.
    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y

    @Kevin Drouillard here are some ideas:

    - First month free so they pay security deposit, transfer utilities and move in. Usually offered with a 12 month lease. I have even seen first two months free. May sound crazy but if you think it will sit vacant until the new year, it is better to get someone in and paying utilities. Vacant properties only attract trouble.

    - Offer an 18 month rent program where the first 9 months rent is a lower dollar amount. So first 9 months is $950 and second 9 months is $1100 for example. This could be better than a rent concession because it is a built in rent increase. Plus 18 months puts your next vacancy at a better time of the year.

    - Offer reduced deposit for move in. Could be half deposit or even $0 deposit with qualified applicant. Make sure they have great credit so you know you can go after them for damages. Nobody with good credit to protect is going to stiff you for damages.

    - Relax your pet policy to allow small and large dogs and cats. 

    @Karen Rittenhouse I agree that properties rent all times of the year, but in my experience the period between Thanksgiving and Christmas is much slower. At least it is in cold climates. When you have temperatures below 0 and a couple feet of snow, people are much less motivated to move into or around the area. I rent only houses and most of my tenants are families, so they all move in the summer when kids are out of school. My houses can rent for $150 more per month in June versus December, just due to supply and demand.

    1Reply
  • Kevin Drouillard
    OP
    Investor · Brooklyn, NY · Member since 2016 · 50 posts · 25 votes
    8y

    Thank you, everyone, who replied! This is such great information! I had no idea about incentives. I think that will make my rental stand out the most!

    I have seen my rentals posted on Zillow, but I'm going to do what @Karen Rittenhouse said, and I will definitely take matters into my own hands. Thanks for the awesome suggestions.

    I love the Walmart gift card idea too @Linda S.I definitely will be using that!

    I know, the property management is so bad! I finally got through to the marketing agent, and I asked her if she was getting my voicemails, and she hesitantly said she hadn't been receiving them. What a bunch of baloney! I do not understand how people can be in business and treat people like that! I do not understand how they haven't gotten in trouble yet?! This makes no sense to me! I mean the ethics and the morals of this company are out of this world! So bad! I do want another management company, I just need someone who can pick up from where they left off at a much higher level. It doesn't seem like there aren't too many out there that can do better. This has been one of the most humiliating experiences that I've had ever since purchasing these rentals. It's weird that I'm actually in the market to purchase more because I do understand the power of Real Estate, I just overlooked the power of proper management.

    Thanks to all who responded! I will work on this right now! I really appreciate it, everyone!

    0Reply
  • Blair Poelman
    Real Estate Broker · Provo, UT · Member since 2013 · 689 posts · 511 votes
    8y

    I have had limited success with rent-based Incentives - like 1/2 off first month of rent when you sign the 12 month lease.  Or 6th month free... I never give first month free. 

    Gift cards, flat screen TV's, gas cards, etc... has never worked out very well - but I get a lot of broke people calling on those ads.

    The real problem is likely the property and the location.  

    0Reply
  • Jim Thomas
    Contractor · Atlanta, GA · Member since 2018 · 32 posts · 14 votes
    8y
    @Kevin Drouillard The answer is probably nothing. You signed a management agreement where your manager is responsible for marketing. If they won't even answer the phone, you need to immediately give them 30 days notice that they are fired. If you want to self manage, there are ways to handle marketing so that your phone is not blowing up. Let me know if you want more input on how to accomplish that.
    1Reply
  • Jason D. Lewis
    Lender · Vancouver, BC · Member since 2017 · 40 posts · 16 votes
    8y

    @Kevin Drouillard

    Lots to attract tenants, but I'll let the others talk about that.

    In terms of getting the loan, I believe you said all they need is a lease agreement. So find a way to draft up a lease agreement for your loan.  Some banks require seeing the deposits going into your account, others just require seeing an agreement.  Pull out some cash, make reg deposits and draft an agreement.  Easy solution if the problem is really the loan and not just getting a tenant.

    0Reply
  • Amy Beth
    Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    @Kevin Drouillard if it was so hard for you to get them on the phone then no wonder you can’t rent the property. If a potential tenant can’t reach the property manager easily they will give up and move onto another rental. I would find a new PM.
    3Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    Make sure you are on the major sites for syndication and use your local MLS. Make sure it is priced right.

    0Reply
  • Theo Hicks
    Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    8y

    Hi Kevin,

    Lots of good advice in this thread. Here's what I would do if I was in your situation:

    1. Google the property address and unit and see if any rental listings come up. If the units aren't listed on Craigslist, Zillow, Trulia, Hotpads, etc., then that is a problem. Create your own listings. If it is listed for rent, compare the rent to the surrounding listings. Maybe the rent is too high.
    2. Read the agreement you signed with the management company and plan an exit. Lack of communication and unresponsiveness is the worst trait a property management company can have. Find a new management company and screen them better than the first one.
    3. Consider offering concessions, like a free TV with move-in, discounted first months rent, etc.

    Good luck!

    0Reply
  • Kevin Drouillard
    OP
    Investor · Brooklyn, NY · Member since 2016 · 50 posts · 25 votes
    8y

    Yes @Jason D. Lewis , getting the loan is part of this problem as it is making me stuck. I wonder if I can even give them past leases? I'll inquire about the lease agreement.

    0Reply
  • Kevin Drouillard
    OP
    Investor · Brooklyn, NY · Member since 2016 · 50 posts · 25 votes
    8y

    @Theo Hicks , I know, I have been telling myself I need a new one. I just need to find the right one, which has been taking so much time. I feel that getting a new manager may not be any better. The ones I've looked up reviews on getting poor reviews. I know, no management company is perfect, so I don't expect 4 stars...but 1.5?? That's what they all tend to receive :-O.

    I am definitely still on the lookout for a quality management team though. It will cost me to break the contract I have with my PM now, but as long as it's with the right one, it'll be worth it.

    The good thing is, the properties are listed on Zillow and Trulia!

    0Reply
  • Theo Hicks
    Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    @Kevin Drouillard sounds like you've identified a need in the market...which could be a good business idea - start your own management company.

    0Reply
  • George Pauley
    Chandler, AZ · Member since 2017 · 174 posts · 269 votes
    7y

    Just piling on to the idea that you need a new PM.  I've went through almost a dozen before I found a good one.  Gone PMs are actually kind of hard to find.  And they are the most important part of your team.  Focus on finding a good one.
    Believe it or not, "for rent" signs are highly effective.  This surprised me.  But many folks in your neighborhood know a friend or family looking for a place, and most of them want that friend or family to move in next door.  They will work fairly hard to make that happen for you.  :)

    Finally, if the market is down and you have to make concessions (lower rent, etc) to get a renter in do it sooner rather than later.  Vacant properties are very costly.  Its much better to lose $100-$200 a month on a property because rent is low, than it is to lose your entire mortgage payment, insurance, tax, maintenance, etc because the property is vacant.  Make sense?

    0Reply
  • Laura Williams
    Kansas City MO · Member since 2014 · 357 posts · 349 votes
    7y

    @Kevin Drouillard Without seeing what your rental listing looks like I would say no/bad photos is a good reason that a place might not get rented quickly. If your places don't look good in the pictures then there's not an incentive for someone to come and see it in person. Also if your property is overpriced? It sounds like your property manager might be a block as well. If they aren't getting back to you they are probably not getting back to the interested tenants either. 

    I would make a beautiful rental listing with great photos & description and post it everywhere you can ...facebook...zillow etc and offer a free month rent. Make sure the house is clean and spotless and I even put air fresheners in so they smell good. And maybe do open houses once or twice a week and make sure any interested people are getting replied to quickly & followed up with. If you're out of town you might look into getting a Realtor that doesn't get a penny unless your place gets rented to solve the immediate problem of getting funding.

    For long term solution I would guess your property manager might be your problem and I'd consider shopping around for a new PM. Vacancies are like cancer in RE business and should be treated as such. If your PM doesn't take a vacancy seriously then I question their competence for looking out for your best interest. 

    1Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    7y

    @Kevin Drouillard If your PM isn't returning your calls or responding to your e mails, you can be sure they aren't working very hard to get your property rented. I would do exactly what @Karen Rittenhouse suggests and then find a new PM asap.

    1Reply
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