I am in the process of purchasing a quadplex in a C class residence. This would be my first investment.
Area is low income, 2br/2 bath run anywhere from $650 to $800. This mostly seems working class not individual such as prison warden, school teacher, grocery employee. However, that is not to say there is no crime. There have been reported theft every now and than.
My concern is that I recently found of from the seller that one of the rooms is facing eviction due to not paying. Apparently the tenant has been arrested for what ever reason and failed to pay rent. My concern is finding a tenant in a timely manner. I have a property manager lined up who works in the area and rented one nearby with the same price point and found a tenant in 2-3 weeks. They screen pretty hard too, 3x rent, background, etc.
My concern is I have seen alot of zillow post in the same subdivion at similar price and even lower that have been on the site anywhere from 15 day to 2 month. Should I be concerned?
What can I do to make sure I find a quality tenant in a timely manner? How can I ensure my PM is on top of it? May they screen to hard for the area? Referrals?
Depends. How does your PM qualify the tenant? How do they advertise their property?
Zillow? Cozy? Facebook marketplace? Craigslist? Each area of the country has better results from each type of advertising.
It’s much better to sit empty then to put in the wrong tenant into the unit. It costs way more to turnover and evict a bad tenant then to not have a 1/4 of your units empty. Learn from other people’s mistakes.
Account Closed I am not 100% how they market. I knowthey use trulia and zillow. Yes, I am starting to see that regarding bad tenants. Any idea how long on average a "C" class takes to get tenant in a decently sized college town?
Just curious what is the average time apartments spend on the market in your area 15 days doesn't seem like a long time in certain parts of Chicago?
Also a note, I have had apartments on Zillow that I have closed out that still show for rent on zillow for months despite calls and emails to them. They do not always show accurate data. Not to mention leasing agents that leave up apartments already rented to get leads for other apartments
Originally posted by @Robert Hernandez :
@Eric C. I am not 100% how they market. I knowthey use trulia and zillow. Yes, I am starting to see that regarding bad tenants. Any idea how long on average a "C" class takes to get tenant in a decently sized college town?
Each area is different so I couldn’t answer your specific areas timeframe to fill a vacancy. I average 2 weeks from listing to signed lease.
@TIm Harstead 15days - month is about standard from what I can see. That is true zillow may not be updated, great point. I will definelty be on top of this!
Account Closed You're correct each market is different. If you don't mind me asking when you say you average 2 weeks. What advertisement do you use, do you have a property manager. And do you rent in "C" class? I'm very nervous being new to the game.
Originally posted by @Robert Hernandez :
@Eric C. You're correct each market is different. If you don't mind me asking when you say you average 2 weeks. What advertisement do you use, do you have a property manager. And do you rent in "C" class? I'm very nervous being new to the game.
I use cozy, Craigslist, and Facebook marketplace. I have a property manager for some aspects but not all aspects of the business. It keeps my costs down. I use a open house format to list it out quickly and create urgency between tenants. I average 4/5 rejected tenant applicants to get to a qualified tenant.
With my structure I have almost eliminated my turnover by using some social engineering to find a tenant that is a long term tenant and not someone looking to move To the next place that is cheaper than my place. I provide a clean functional place to live. I run it like a business and throw in some common courtesy it goes a long way. I barely deal with any of the tenants directly.
@Robert Hernandez i have turned over 4 units on South side of Chicago 60620 in last 3 months, both market and section 8 tenants with no vacancies.
I used rentlinx and zillow market place, but got way more inquiries thru rentlinx.
Be very proactive when faced with evictions, non-renewals, and vacancies as these not only kill bottom line, but in the commercial world may drop your dcr so that you are unable to refi when balloon is up.