Not many inquiries. Is it slow season?

Question

I haven't gotten that many inquiries on Craigslist lately. The inquiries that come aren't ideal. I don't allow pets or smokers or evictions, so I know I'm limiting my potential rental market already.

My price is great for the area. It's just a room in my house... cheap for them.

Is it just slow season?

David Krulac · Answer

@ Jon K.

It is a rarity that I would lower the security deposit.  I almost always charge one months rent.  I see some of the complexes are doing $99 security deposits to fill units, but to my way of thinking $99 will cover no damages and you might as well have zero deposit.  But that's not for me.

To see what your competition is charging for rent:

Look at Craigslist for rent ads

Look at newspaper ads both dailys and weeklys

Call on For Rent signs

Look at www,huduser.org  for the average rents for your area

If the market won't bear what you are charging for rent then it needs to be lowered.

Vacancy is one of your biggest expenses that LL often overlook.

Amie D. · Answer

You could advertise some % off the first month's rent in the ad but asterisk it as "some conditions apply". And then when they ask explain they will get x% off the first month's rent if they just agree to sign a lease that is say, 14 months long instead of 12.

That does a few things: possibly gets more applicants through a "rent special", gets you a couple more month's rent from the person, and then when their lease expires, you won't be in the middle of winter/dead season again.

BTW I started with roommates too, did my first two houses that way - one was mostly interns or employees for my large company, 2nd was grad school roommates at another house I owned. I then converted the 2nd house into another full time rental when I moved, and now own another single family rental now as well.

Fionn M. · Answer

Jon K.
Just a thought, as opposed to lowering your rent, offer a deduction in the last month's rent and have the agreement written (lease) that way. 
Thoughts?

Jon K. · Answer

I've gotten 2 decent replies in the past hour. Maybe there's a little hope yet. One is in the middle of a divorce. Not ideal, but around my age. One week.

Jon K. · Answer

I'm put the reminder... this is a tenant/roommate situation. So, living with someone twice my age is different than having a tenant of whatever age.

Still, I don't care all that much how old a roommate is, so long as they match up. My friends tell me never get someone that much older as they'll be stubborn and won't respect you. But, I also wouldn't want an 18 year old. I've got to cave my preferences and go with someone. Aged beats smoker or pets.

Jon K. · Answer

I have 2 people wanting to see it this weekend. They're about twice my age. Either way, all else checks out, I'll take them.

I think I've come to terms that I won't have anyone for February. Usually I get more interest before a new month starts. Ugh.

Jon K. · Answer

I'm glad I'm not the only one with roommates as their first foot in the door.

New employees needing a temporary place would be a perfect fit for me. There's a few major companies here, but I'm not sure how to to advertise to them. I googled one of the largest and it doesn't seem they have a housing office. Should I try contacting HR?

I have had some temporary medical students, and those were ideal. It's sporadic, though, with one month a piece usually. This month none inquiries.

Bienes Raices · Answer

I agree completely. I would rather lower the rent any day before lowering the deposit (or loosening my criteria).

David Krulac · Answer

@Jon K.

When I first started I had paying roommates also.  I never advertised and never used signs.  I got all of the roommates from either word of mouth or from the housing office where I worked.  New employees coming into the area often need a short term place to stay.  some of the roommates were married and their wifes were back home trying to sell the family home.

If your employer doesn't have a housing office try some larger local companies that employee the type of people you are seeking.  Like if you want profession job type people spread the word to engineering companies, hospitals, universities, and other employers of large number of professionals.

Jon K. · Answer

I'll have to check out huduser.org more later. On first glance, I couldn't figure out where on earth they show average local rent rates.

Good advice about not lowering security deposits.

Vacancy being an expense makes me tempted to lower the price for a short-term tenant. Say, knock $50 or $75 off for someone needing 1-3 months. That's a little less of a loss than one vacant month.

Mine is a tenant/roommate situation.

While there are some apartment shares or gross old homes a little cheaper, my price is the same as most others that I've seen. It's even cheaper than some. I include utilities, while some others charging the same price as me charge more for utilities. My neighborhood and house are nicer and better than those houses charging more rent. A few houseshares I've seen are better than me, but the price shows it ($100-300 a month more).

What they're paying in rent couldn't even pay my utility bills here. They're getting an amazing deal, imo. What they're all paying combined wouldn't even get them half a rental house around here, let alone pay the utilities for it.

I do say no smoking, no pets.  That could be making a big difference.

I also don't, and won't, advertise with signs outside. It's a nice neighborhood with no rentals, and the neighbors would frown on me putting a sign out. So, that lessens my ads.

I've tried Roomster. Crap site. Zero inquiries, other than a few that they make me pay/upgrade to see. I've tried Roommates.com. Ditto the crap paid messages. I've advertised often on Craigslist. I do get some inquiries,.. it's just that most of the inquires suck or are spam. Where else can I advertise free?

Not many inquiries. Is it slow season?

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