Just closed on 3/10, now state in lock-down and cant find renter!

General Landlording & Rental Properties
6yFollow

Just closed on 3/10, now state in lock-down and cant find renter!

Taylor Lydon
Boston, MA · Member since 2016 · 12 posts · 9 votes

Hi All,

After years of following BP, I finally pulled the trigger and bought a duplex that I was planning to house hack.  The sellers agreed to rent the unit they were living in through May of this year, at which point they will move out and my family will move in.  The 2nd unit is vacant and available to rent immediately...the only problem is that we closed on 3/10 right before everything hit the fan.  Michigan is now in lock-down and the number of actively searching renters has dropped significantly.  I would move into the vacant unit, but I am stuck in Mass on state lock-down waiting to sell my house.

Does anyone have any advice on how to entice renters or out-of-the-box ideas on where to find renters?  I am having a virtual tour recorded tomorrow.  I am also considering either lowering the rental price (below market), offering incentive (pay for some of move), and/or considering allowing pets.  Any other ideas would be hugely appreciated.

Thanks, stay well,

Taylor

0Reply
45 views

Most Popular Reply

Gennaro Coscia
Rental Property Investor · Apex, NC · Member since 2019 · 55 posts · 29 votes
6y

First thing is DON'T OVERREACT! I don't know your whole financial situation but let's think about it for a minute. If you have a mortgage (by the sounds of it, you do), your 1st payment shouldn't be until May 1st. The sellers are your tenants until then(April & May), but you don't have a mortgage payment for April. So assuming their rent is equal to(or close) what your mortgage payment is, you should have May and June's payment mostly covered. That gives you over 3mo to find a tenant. Hopefully this situation will be well under control and we will be getting back to normal by then. Good Luck, stay positive and maybe look into a good property manager to help find a tenant. 

9Reply
See this reply in the discussion

14 Replies

Jump to latestLatest
  • Account Closed
    Member since 2020 · 28 posts · 41 votes
    6y

    No magic bullet.  In times like this even price reductions dont matter.

    1Reply
  • Gennaro Coscia
    Rental Property Investor · Apex, NC · Member since 2019 · 55 posts · 29 votes
    6y

    First thing is DON'T OVERREACT! I don't know your whole financial situation but let's think about it for a minute. If you have a mortgage (by the sounds of it, you do), your 1st payment shouldn't be until May 1st. The sellers are your tenants until then(April & May), but you don't have a mortgage payment for April. So assuming their rent is equal to(or close) what your mortgage payment is, you should have May and June's payment mostly covered. That gives you over 3mo to find a tenant. Hopefully this situation will be well under control and we will be getting back to normal by then. Good Luck, stay positive and maybe look into a good property manager to help find a tenant. 

    9Reply
  • Wendy PattonBusiness Member
    Real Estate Consultant · Clarkston, MI · Member since 2009 · 864 posts · 350 votes
    6y

    I would check with Millennium Realty  they property manage for me - they are in clarkston, MI - also there are closings happening.   Not sure how to get home shown other then virtually - Then you can do everything over the computer - applications etc.    There are ways!

    Michigan Real Estate Investors535 Reviews
    WebsiteView Page
    2Reply
  • Taylor Lydon
    OP
    Boston, MA · Member since 2016 · 12 posts · 9 votes
    6y

    @Gennaro Coscia thanks for the advice.  You are spot on regarding the rent/mortgage payments schedule.  I will definitely keep that in mind.

    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    Lowering the rent would be the worst thing you can possibly do right now. It would hamstring you later when the country is in recovery and you still haven't rented it. You couldn't go back and raise it up again unless the demand increased and then they will use the reduction against you. In times like these, you just have to put a pin it and pull it down and off the market and relist it for rent when shelter-in-place is over and people are out again. Think about it this way, is this really the best time to find a renter. What if you found a new tenant and they immediately lost their job due to the economy and couldn't pay and were granted temporary immunity from the default? Just wait it out and suck it up. Long-term value will still be there and better and safer rent options on the other side.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    3Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    6y

    @Taylor Lydon try to be patient, keep the rent at market, and allow pets.  There are some good threads on BP about allowing pets and simply charging a market rent that is appropriate.

    1Reply
  • Account Closed
    Member since 2020 · 28 posts · 41 votes
    6y

    Dont go the pet route unless you have to.  Cats can do more damage financially than  a C.19 vacancy.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Account Closed:

    Dont go the pet route unless you have to.  Cats can do more damage financially than  a C.19 vacancy.

    smaller dogs are generally fine.. Cats though as stated can do massive damage with someone who can live in a cat pee smeeling house UGH

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Allison B.
    Rental Property Investor · Brentwood, TN · Member since 2016 · 46 posts · 27 votes
    6y

    Hey  @Taylor Lydon congratulations on pulling the trigger!! Have you considered short term rental opportunites like healthcare workers who may be looking for short term housing during the Coronagenden to protect their families from infection.  Contacting the hospitals in Boston to see if there is a need might lead to opportunity or post on a neighborhood forum like Front Porch Forum.  Another market to plug into are traveling healthcare workers (nurses, physical therapists, physicians assistants, etc) www.furnishedfinder.com - they rent shorter term than a long term tenants but longer than VRBO & Airbnb.  They are in your city to work and typically take great care of the properties they rent.  

    Be well and believe that it will all work out!

    1Reply
  • Taylor Lydon
    OP
    Boston, MA · Member since 2016 · 12 posts · 9 votes
    6y

    @Allison B. thanks for the suggestions, I will definitely check out both of those sites.  I had a couple interested in renting short term (3mo) which might work well until things normalize.  Thanks again!

    0Reply
  • Andrew S.
    Rental Property Investor · Helena, MT · Member since 2017 · 282 posts · 117 votes
    6y
    Facebook marketplace gets 95% of my leads. I wouldn't lower rents, you'll probably have to wait until this normal life resides.
    0Reply
  • Taylor Lydon
    OP
    Boston, MA · Member since 2016 · 12 posts · 9 votes
    6y

    @Andrew S. thanks for the suggestion.  Just to confirm - So you post your rentals on Facebook Marketplace and that where you are getting most of your tenants?

    0Reply
  • Andrew S.
    Rental Property Investor · Helena, MT · Member since 2017 · 282 posts · 117 votes
    6y
    Correct, not exaggerating by the 95% of my leads either.
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free