Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
this house has been on the market for over a month now with no applications.
initial price was $1,050. 2 weeks later i got my realtor to list it with the MLS (she has done all other houses, but this one is on a main road, so i thought i was not going to have to use her).
now it's $995 and lots of people call, but no applications. i had one accepted, but she wanted to stay in the city where she lives now.
here's the CL listing - https://post.craigslist.org/manage/3651337126
and here's the website with a little more info - http://onpointrentals.com/index.php?p=1_13
negatives: - main road (not like a highway, but a "mile road"
- shared driveway with neighbors
- one car garage
- bungalow (most people like ranches, i think)
- the other side of the street is the start of a "lower class" city, where rents are cheaper.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
One think I like about yard signs is that I know the prospect has actually seen the place and the area. Otherwise people who are unfamiliar with the area can be put off by the area even if they like your property. Not much you can do about that.
Do you have it priced right? If its comparable to similar properties that are further away from the busy road, you will have a harder time getting a tenant. Have you surveyed other properties in the area? How does it compare?
What's the market like in this area? Do you see other rentals coming on the market and being rented? Perhaps what you're seeing is just typical for your market right now.
Virtual Assistant · Anaheim, CA · Member since 2013 · 167 posts · 44 votes
13y
When they call do they then come look at rental? Or are you telling them anything negative or putting out negative vibes on the phone or in person? Are you feeling it wont get rented out? Those things will kill your salesmanship. You have to sell it to the tenants emphasis the great things about it and #1 dont overprice the rent make sure you have checked out personally other comparable units in the area and see if yours measures up.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
One think I like about yard signs is that I know the prospect has actually seen the place and the area. Otherwise people who are unfamiliar with the area can be put off by the area even if they like your property. Not much you can do about that.
Do you have it priced right? If its comparable to similar properties that are further away from the busy road, you will have a harder time getting a tenant. Have you surveyed other properties in the area? How does it compare?
What's the market like in this area? Do you see other rentals coming on the market and being rented? Perhaps what you're seeing is just typical for your market right now.
In my area, that rent would be pricier for an older house... though if it's in a trendy area, you might get it. Is your application "scary" looking? What are nearby rentals renting for? I don't know that one month is unheard of for a vacancy at the $1000 mark. But, if it stays vacant past 2 months, I would look at the rent and see if that's really what it can get.
I would take another photo of the exterior if I was you. And/or, resize it properly. It looks a little weird-- the roof is "patterned" in the image. I would also remove the photo of the garage, or at least put a photo in it... on first click, I wondered if that was the living room. Most ads I've seen don't have photos of the garage. And, perhaps add a photo of the second bath.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
13y
Emily,
My wife was fielding all the calls and she always pointed out the positives. the home looks beautiful and i purposly installed mini blinds so that the visitors do not see the street while looking at the rooms. because it's older home ~60 yrs (common), there is drywall and plaster and it's amazingly quiet. so, they can't hear the noise at all.
Jon,
I have 5 more in that suburb and they all go from $1,000 (no basement) to $1275. i also looked at the comps before i purchased the home, and we noticed that the street where this house is located gets around $995-1100 per month because the schools are 10x better.
the other side of the street gets up to $950, but has really bad schools.
John K,
I do not have a picture of the garage for that house. Maybe you looked around on the site and saw a different garage. The roof was just replaced and it's architectural shingles, wonder if that's the reason it looked patterned on your monitor.
I know i can get a tenant if i bring it to $900 or get a section 8, but I do not want these types of tenants. My other tenants range from blue collar to lawyers.
my holding costs are very low since it was a low purchase price, but i am missing out on profit..that's my concern.
Investor · in, MI · Member since 2013 · 226 posts · 102 votes
13y
My guess would be the price is too high. It looks like a decent unit otherwise. With it being on the "edge" of a lower area, I'd guess that you are getting more of the lowers calling in on it out of curiosity.
If you're getting calls and people aren't applying, I'd have to assume that they don't feel like the features match the price.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
13y
I would do a lease to own... $1200/month.
Sounds like it's not as appealing as the comps you
mentioned.
I find common driveways & busy roads are a big negative here.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
If you drop the price to $950, the people from the other side of the street will jump for the chance to go to better schools without having to pay more. You might be in a situation where the lookers all think they will be in that other school district because it is on that street.
and i just talked to the realtor to get some more feedback. she said one person mentioned the shared driveway. most people call her to "see the house". she tells them "no, you show me you are interested by giving me an application, then i will show it to you".
i agree with her. we have shown it maybe 20 times without any luck. and that does not count how many times she is has shown it.
she said the main road deters parents with kids. the bungalow deters elderly people.
oh, and she does tell them "available for rent to own",so that's good..
Virtual Assistant · Anaheim, CA · Member since 2013 · 167 posts · 44 votes
13y
Get a better realtor. Or show the house yourself and use some spark and personality.
You are saying the price is perfect and all houses in area comp and your wife is doing a perfect job fielding the phone calls etc etc, obviously it has to be your realtor sucks at showing the house. Find one with some salesmanship.
And if someone told me I could not look at a house until I put in an application in I would tell them to go eat sand. THAT IS CRAZY and you will never get your house rented out with that attitude.
I am just trying to give you a lowly renters perspective, sir, no offense meant, just trying to get you REALISTIC.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
WOW! I'd be surprised if you EVER get it rented with that approach. It sure wouldn't work here.
Could she soften this to "please drive by and have a look and give me a call if you're still interested?" I figure it takes 10 showings to actually get a good tenant. Almost everyone takes applications, but few bring them back. Someone who fills out an application on the spot is really indicating a strong interest.
If you give incentives, give them later, not up front. I don't want to let them in cheap only to discover they're going to be a problem.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
13y
emily, that's a good idea. kind of like what apartments do at times.
we have been with this realtor for a few yrs now and she is no nonsense person. she feels that if they really want it, they will do whatever it takes to get it. which if you think about it, is true. if i wanted an apt, i'll be there filing out paperwork first chance i get.
and no, i do not get offended easily, so thank you for the ideas/feedback.
Virtual Assistant · Anaheim, CA · Member since 2013 · 167 posts · 44 votes
13y
"she feels that if they really want it, they will do whatever it takes to get it. which if you think about it, is true. if i wanted an apt, i'll be there filing out paperwork first chance i get."
This is very true IF IT IS THE ONLY RENTAL IN A 10 mile radius.
But if you have competition, just like any business you have to go ABOVE and beyond the competition.
Try free donuts. That ALWAYS works for me. I am a sucker for free donuts.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
13y
George,
It looks like a nice house for a fair price. I think the main road is a drawback and especially the shared driveway. Does that mean the only parking is in back? I'm sure there's no parking on the street and if the driveway is shared, there's no parking there.
I have a house with no street parking and that has been a huge drawback. There's only room in the driveway for two cars. If the tenant's have guests over, they need to park elsewhere.
The other thing I would say is that I would never fill out an application before I saw the place if I was looking to rent. There's enough other places for rent that I would look for something else. I would suggest that your agent have everyone come during a one hour period on a Saturday and anyone that's interested could fill out an application. Of course, parking will be a problem if everyone comes at once.
Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
13y
You're trying to distinguish your property from the lower properties across the street, but your realtor is treating prospects like they belong over there. Requiring an app first turns people off. Makes them feel unworthy and unwanted.
Make the realtor do her job, which includes marketing and showings. A compromise might be to have your realtor show the house to all prospects once or possibly twice a week, scheduling showings 15-20 minutes apart.
Just curious. Was this house on MLS when you bought it - was this realtor your buyers agent? If so, why didn't she warn you a shared driveway would be a problem, elderly wouldn't like it, and families wouldn't want their kids playing in the middle of a busy street?
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
13y
I agree with Rob K do the open house thing. Have the applications there ready to go.
In fact a friend of mine in Australia does the open house with wine & cheese.
You could try wings & beer!!!! :)
Rental Property Investor · AZ · Member since 2013 · 213 posts · 50 votes
13y
Originally posted by George P.:
and i just talked to the realtor to get some more feedback. she said one person mentioned the shared driveway. most people call her to "see the house". she tells them "no, you show me you are interested by giving me an application, then i will show it to you".
George,
I have been a renter many times in my life and there is NO WAY I would fill out an application without a chance to see the inside of the house. I wouldn't be surprised if that was the mitigating factor above any of the negatives you mentioned. I also like the other ideas of an open house and a "deal" of so much off the first months' rent. It's a really cute looking house from the outside and the renovations look wonderful too. Good luck and keep us posted!
At first I thought it was a living room, until I looked at the ceiling/floor. I would remove that photo.
Requiring an application before they see the house?!?!?!?!
No wonder you're not getting applications. I wouldn't fill out an application before I even see the inside of a house.
No tour until you apply? Seriously!?!?!?!?!?! (?!?!?!?!?!?)
That's CRAZY.
Would you apply to lease a car without seeing the inside of it? Would you marry a woman before you've even seen her?
Perhaps you should have open houses, let everyone look at once, then submit their applications then and there.
I would leave "rent to own" out of the phone calls. Your prospective tenants might get confused and think they can't just rent, but have to quality and rent to own. Something is off her, and it might not be price-- but your wacko realtor.
People will do a lot for what they want... but how do they even know they want it if she won't let them see the inside of it!?!? You would need an incredibly competitive rental market for that to work (NYC, LA).
I like the idea of perhaps discounted first month's rent if nothing else works. Then again, I would be going with another realtor who lets people SEE the house I'm trying to rent them. I like no non-sense, but there's gotta be a line.
"Adorable Renovated 3 BD/2 BTH Bungalow in Great Location"
"Charming 3 Bedroom House, Fully Renovated in Whenever"
Or, something like that.
The Craigslist post has a photo of the garage. Remove it. I keep thinking that's an icky living room.
I might even see if you can get another photo of the kitchen. The photos are so close up that it makes the kitchen seem a little small. I would also get photos of the bedrooms.
It's a cute house. I think the realtor is your problem here. Tenants just aren't going to apply to see the inside of the house. That makes them think you're hiding something that's inside, at best.
I don't know about pricing in your area, but I would at least try letting tenants see the inside first. Tell the realtor to soften up to a reasonable amount. Also, alternating Craigslist post titles to be more.... enthusiastic... helps.
Investor · North Wales, PA · Member since 2013 · 116 posts · 44 votes
13y
Wow, I'm pretty sure that your realtor isn't willing to work for his or her money here. I would either replace her or do it on your own.
It's common expectation that the level of service one receives is always best when someone is trying to win your business.
From the tenant's perspective, if you and your agents are not willing to show them the property without paperwork in place and fees paid... how likely are you to address any problems that occur once they move in?
I only have one rental property, still on my first tenants (they're great). I told everyone who replied to my craigslist add that I was doing an open house for a 2.5 hour window, casually mentioning that I'd a lot of interest.
At the open house, I had cold water, snapple, soda, beer, etc... and I also had a sign in sheet. I told people that my accountant required it or something. Only 1 of the first 4 groups put in an application, but as each group came and saw the growing list of names, their sense of competition took over. I think 4 of the last 5 groups put in applications and I had a nice group to choose from.
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
13y
excellent, all great replies and ideas.
i will talk to her tonight and let her know that we need to have open houses. ever since i took off my number from the CL ad (was getting 25 calls a day), she has been telling applicants to fill out apps.
the idea for an open house is great. she is around 10 miles away (with traffic, it's over 30 mins). i am sure that's why she is doing that...
will take a pic of the garage too. will let you know what comes out..
Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
13y
so, i have an update to this...kind of.
1. found out that the broker is showing the property to the potential tenants that were pre-screened and looked ok on the phone. she eliminates the ones that she does not like by telling them to give her some forms filled out. and even there, it's not like she asks for EVERYTHING to be filled out.
2. i told her that i was going to have open houses. i had one on wednesday, a couple came and had hard time backing out on the main road. he had to do a 3 pt turn on the driveway. (not a good sign)
3. the broker had kept the old price (1,050) on the MLS and swee talking the tenants by "i will give you a deal at $1,000" instead of reducing it directly to $1,000 or even $995 (like my CR ad).
Still not applicants.
it's been almost 2 months now, just one applicant that backed out for other reasons.
the broker also said that "section 8 people are breaking the law by renting places for more than their vouchers are worth and they can turn you in if anything happens.. so you dont want section 8 in here".
i asked the broker what price would it take to rent it right away and she said "maybe $925".