Filling Vacant Rental Properties

None · Member since 2018 · 125 posts · 46 votes

A lot of new investors (like myself) seem to have the fear that once they buy a property, it will sit vacant for months and ruin their cash flow and make them unable to pay their bills. Of course, a lot of this depends on the market, but in general, what are your best suggestions for quickly filling a rental property with good tenants?

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Karen Rittenhouse

Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes

@Account Closed The number one way that properties get filled is the sign in the yard. No kidding. Neighbors refer, neighbors leave their home and move into yours, people driving by who want to live in the area or who work nearby. I find it fascinating that of all the marketing we do, the number one way people find our rentals is the sign in the yard.

Then, of course, there are tons of sites online for marketing - Craigslist, ForRent.com, Zillow, Trulia, HotPads, etc., etc.

And we screen everyone through services like National Tenant Network (ntnonline.com). Screening is very inexpensive and takes the guesswork out of who you're putting in your property. We charge it back to the tenant on their app - anywhere from $25-$40.

Landlording is not that difficult when you put in a little time and effort up front.

Good luck to you!

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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
7y
@Account Closed as you mentioned, so much of this is market dependent. In my local sub market in Chicago's western suburbs, real vacancy in apartments has been hovering around 3% for the past few years. What this means on the ground is that we can fill units pretty much as quickly as we need to.
One of the simplest things you can do is to take very good quality pictures. This doesn't mean you need a professional photographer, but it does mean that you should turn lights on, have windows open, etc.
Make sure you are adverting your property through as many free places as possible. We don't actually put a sign out anymore, because it attracts the wrong types of tenants. We want the tenants who are looking on line because they have access to a computer, bank account, cell phone, email, etc.
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Karen Rittenhouse
Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes
7y
@Account Closed The number one way that properties get filled is the sign in the yard. No kidding. Neighbors refer, neighbors leave their home and move into yours, people driving by who want to live in the area or who work nearby. I find it fascinating that of all the marketing we do, the number one way people find our rentals is the sign in the yard.
Then, of course, there are tons of sites online for marketing - Craigslist, ForRent.com, Zillow, Trulia, HotPads, etc., etc.
And we screen everyone through services like National Tenant Network (ntnonline.com). Screening is very inexpensive and takes the guesswork out of who you're putting in your property. We charge it back to the tenant on their app - anywhere from $25-$40.
Landlording is not that difficult when you put in a little time and effort up front.
Good luck to you!
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Account Closed I have been doing this 15 years and there are two things you should know based on my experience:
1. Every property in every market will rent quickly at the right price.
2. Biggest mistake you can make is taking a lower qualified applicant over fear a better one will not come along. It is less expensive in the long run to discount for a good applicant than take more rent for a bad applicant.
As far as marketing, my strategy is simple. There is never too much marketing, so use every possible source. Top four sources, not necessarily in order:
1. Zillow (syndicates to other sources)
2. Craigslist
3. Facebook (groups and market place)
4. Yard sign (use voice mail description to filter)
Other sources could include local market websites such as online newspaper or TV station, realtor message boards in your market, pointer signs on street corners, tack board at your local grocery store, tenant referrals, neighbor referrals.
With any fear, the best way to mitigate is to have a backup plan. Vacancy is an easy one. Just have an emergency fund for 6 months expenses. It should never come to that, but having 6 months funds should relieve any pressure to rush into accepting a bad applicant.
Most importantly, your biggest fear is vacancy, but it should be bad tenants. There are professional tenants that will move in, never pay rent and destroy your property. Bad tenants are the number one reason that landlords leave this business.
Great question and I hope my suggestions help you. Good luck!
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OP
None · Member since 2018 · 125 posts · 46 votes
7y
@Karen Rittenhouse @John Warren thank you for the advice! I agree good pictures and screening services upfront can make a huge difference in the types of people you'll attract and how quickly your rental fills.
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Account Closed
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None · Member since 2018 · 125 posts · 46 votes
7y
@Joe Splitrock Thank you for such a detailed response! I agree no tenant is better than a bad one! And that's a great idea to have a 6 month emergency fund that you always keep filled to cover one or more properties, because like you said it is unlikely your unit would go vacant for more than 6 months. Thanks!
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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
7y
I don't have 1500 units, but I've been doing this for a long time, and have a handful of doors. Vacancy in my area is low, around 3% and has been for several years. However, during the downturn, it was hovering around 7%. Personally, I've never had a vacancy of more than a couple weeks. I think that is for a couple reasons:
-I respond quickly and respectfully to interested parties.
-I am up front with them about exactly what to expect as a tenant
-I make it clear that they are a potential customer, and I intend to treat them as such, as long as they understand the nature of the lease and reasonable requests.
There are the usual advertising methods that people have listed above, but we get lots of applicants and interest from referrals by current and previous tenants as well as friends and family. If people like and trust you, they'll tell others.
I know there are markets that are exceptions to this, but I don't give vacancy a second thought. There is a lot of worry about it here on the boards, just buy right and manage right and you'll be fine.
Good luck!
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
@Account Closed you have to know the market. Don't move to Alaska and set up an ice cream business.
Determine demand exists. Find out what marketing techniques work in your area. Offer a quality product for a fair price. Treat your customers honestly and fairly. Obey the law.
That's it in a nutshell.
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Account Closed
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None · Member since 2018 · 125 posts · 46 votes
7y
Thanks @Nathan Gesner!
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Account Closed
Rental Property Investor · New Castle, DE · Member since 2017 · 95 posts · 102 votes
7y
@Account Closed let me know if you need help taking pictures. Wouldn't mind helping someone whos local with quality pics.
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