Rental Property Investor · Sacramento, CA · Member since 2018 · 27 posts · 8 votes
Hey all,
I have and issue filling in my properties. I have (1) 4/plex, (1) single family, and (3) 2/plex in Milwaukee WI, and in all three types we are on average three to four months turnover between tenants. We are using a property manager with plenty of experience because we are not local and it seems like they are doing everything in there power to advertise or promote them. I am wondering if it’s just this market, property manager, or my requirements for tenant approval. Has anybody experienced something similar or is it just me.
@Arnold B. Guerrero no, 3 months is not normal in Milwaukee. We fill our own vacancies usually within a week or two. If it takes 3 weeks, it is only because I was busy and did not respond to inquiries the right way.
You have 3 elements that determine if a listing is attractive: condition, price and marketing. Everyone will tell you just drop the price, but that is often not the right medicine.
I have seen properties from OOS investors before, that could not get rented and when I went there it was totally obvious, why nobody wants to live there! My dog would have been disgusted! We had to do substantial work before they could be sold. Are you sure about the condition of your properties?
You probably know the old joke: how to run from a bear? You don't have to run faster than the bear, you just have to run faster than your friend.
Well, you are the friend, who does not make it.
There are probably more than 10,000 leases signed in the greater Milwaukee market every month (my guesstimate based on population and home ownership rates), so if yours don't get rented, you have to ask yourself why not mine?
Something is up. It sounds like your PM is wasting your time and money. It should not take 3 months. The only way I could ever see that happening is if the unit needed extensive repair. I know of several investors with SFH and Multifamily and they never have any issues finding renters. Time to fly out there and check each property out. Scout the area. If you aren't in a bad area I don't see any reason it should take this long to get rented again.
My guess is either your PM has way too many units he is managing or they are super lazy. He is laughing all the way to the bank on your dime. Either way they should be more honest with you. Something is up.
Is your PM paid when your unit is vacant? Mine only charges when it is rented.
I would look to see how they are marketing your property and if you know someone in the area, have them book a showing and see what their experience is with the PM.
I wanted to jump in and share one more data point for the OP. I have three properties in West Allis. My units have never been vacant for more than 3 weeks. The controlling factor for my vacancy is whether I personally do the turnover which takes more time or have my PM hire the work out directly. Every time we list a unit for rent, we typically have 8-10 applications the first week. Surprisingly, more interest for one BR units and less for the 2-3 BR units.
Each neighborhood has a "normal" expectation for rent and condition of the unit. I'm guessing one of those two items are off or you have a PM issue (or both)
I wanted to jump in and share one more data point for the OP. I have three properties in West Allis. My units have never been vacant for more than 3 weeks. The controlling factor for my vacancy is whether I personally do the turnover which takes more time or have my PM hire the work out directly. Every time we list a unit for rent, we typically have 8-10 applications the first week. Surprisingly, more interest for one BR units and less for the 2-3 BR units.
Each neighborhood has a "normal" expectation for rent and condition of the unit. I'm guessing one of those two items are off or you have a PM issue (or both)
Very interesting you are getting lots of interest for 1 beds. I wonder if you are having issues also getting the premium/difference in rent too? I have a 2-bed upper I am remodeling now, which I am contemplating making into a 1-bed / 2-bed flex, instead of the 2-bed / 3-bed flex it is now (living room is the flex room). If I did that, it would end up being a really awesome 1-bedroom, or a sort of cramped, but still decent 2-bed, and finally never a 3-bedroom. The last tenants had like 6 people up there, I would rather keep that down to 2-4. But, I think of other investors/buyers down the road too, and wonder if the next person would think I'm nuts and hate the reduction in potential bedrooms...I'm north-side. Anywhos...