My partner and I each owned a home when we moved in together - mine was just getting finished being built. Since we've decided to go the real estate investing route we're live-in flipping his and we were going to rent mine out. I priced the rental according to multiple factors - other recent and current rental listings in the county as well as rent assessments from Rentometer and Zillow. It would cover my mortgage and expenses plus a couple hundred a month. Deposit and utilities are in line with everyone else. I'm allowing pets. If anything it is a bit low given that it is a brand new build on a nice lot. I've had it listed about 30 days now and received plenty of inquiries online (it's listed on Zillow, hotpads, realtor.com, and a paid ad on Facebook with tons of photos). I've shown it probably four times. No applications at all. I'm using Cozy, so no paper apps involved. It seems as soon as I advise folks of the qualification standards (using Brandon's from the Managing Rentals book) they disappear, usually before even seeing it. Has it just not been long enough? The flip isn't ready to sell and there's a limit to how long we can pay the two full mortgages with no cash flow. There's a bunch of construction bills still needing to be paid on my house (due to a contractor going way over budget without permission...another story) so time is of the essence, but I don't want to compromise and get a bad tenant.
Are you open to sharing the rental listing? This will allow for more specific feedback, especially from folks in that same market.
Have you considered asking a local Realtor to list on MLS ? Agents & relocation agents have large pool of potential clients too
Hi @Vanessa Johns ,
Thanks for sharing the link. Here is my take. I don't know your market so please apply as it best fits.
- Modular Home: Right off the bat, this typically scares off some perspective tenants. For majority, it's seem as a lesser quality. Some people even use filters to exclude this asset type.
- Good Photos: I thought your photos really showed the nice appearance and condition of the home.
- Description: When it comes to online reading, bulk paragraph is tough. Break apart your description into 2-4 sentence paragraphs. This allows the user to skim through it faster.
- Lack of Rentals: I had to scroll out quite a bit to find another rental property in the vicinity. Why is that? Perhaps it's too far way.
- Population Size: Scrolling out on Zillow, this appears to be a small town. That will be tough to find renters in a smaller town, expect higher vacancies.
- PM/Realtors: You can talk to realtors to help with leasing. It'll cost you $500-$1,600
- Nearby Employers: Is there a large employer for the town? If so, I'd reach out to their HR and ask if they have any employees looking for a new rental.
- Rental Signs: It appears to be located off a highway, I would post a For Rent sign to help attract drivers
Just some quick thoughts from looking at the listing:
- Your listing description says the initial lease term ends 4/30/20. People may be looking for at least a year lease. The cost and uncertainty of having to move twice within a year for a renter can be stressful.
- I am assuming the house is on a slab and there is no basement? If so, it also looks like there is no other storage on site (shed or garage) and people looking to rent a home this size probably want more storage. Do the comps you mentioned have storage?
- Paved driveway. This house doesn't look to have a paved driveway do the comps have them?
- What kind of heat does the house have? Is it the norm for the area or is it a costlier type of heating source for the tenant
@Kenny Dahill thank you for the very detailed assessment! There are several things there I'm going to change accordingly. It is a very rural area, positioned between the only two towns in the county and those towns are where the only other rentals are.
@Michael Noto thank you for the input! I'm trying to shift the end of the lease term so it is in an easier time for me to find a tenant next time, but perhaps you are right. It's not a slab but a crawlspace. The comps seem to vary on storage. Some have garages and some do not. Perhaps I should install a shed? Paved driveways in this area are a luxury rarely seen.
Absolutely! Always here to help.
I'd also get more outdoor pics. It appears you step out the back door into the jungle. Is there no yard/lawn at all? If so, is there a spot for one?