Are multifamilies remaining vacant in this fragile environment?

Question

I found a few multifamilies for sale that have been vacant for 6 months and a year.

Has anyone had trouble filling their rental units longer than 3-4 months. If so why and how many times?

Bjorn Ahlblad · Answer

@Dale Miller you are right to be cautious..........some parts of the country are getting dangerous to invest in. Politicians have invaded the minds of some renters and have emboldened freeloaders that will surely test our screening skills and inevitably some land lords will fail. All the best!

Bjorn Ahlblad · Answer

@Dale Miller I have had a couple of MF vacancies since March. I screened the applicants like crazy and filled the units with paying tenants. It might have taken a little longer but likely because I have raised the basics and am screening harder.

Donald Crockett · Answer

We have on vacancy now since September. We have advertised and received many inquiries but no one is qualified. Our requirements are not so high as to be be hard to meet, in my humble opinion. So it seems like there's a lot of people looking for a place to rent, but they don't have the income to qualify for what they are seeking. They might qualify for a C apartment but not a B SFH.

Dale Miller · Answer

@Jennifer T very nice. Seems like things are rolling right along. Not having to advertise and wait is a huge bonus. Thanks for your reply!

John Warren · Answer

@Dale Miller this is going to be not only market specific, but also sub market specific. I invest a lot in Berwyn and Cicero which are right outside Chicago. We have extremely high demand and it normally takes less than a week to fill an apartment. Most of the apartments are in the $900-1300 range though, so they are very affordable to every day folks.

Justin V. · Answer

@Dale Miller

Zero issues over here in Minneapolis.

Rented the last three units for personal bests.

Occupied three bed upper duplex-> 1 showing then rented by someone who found it online before the next scheduled showing.

Reno 2 bed plus upper duplex: lease signed 1.5 months before finished with reno.

Reno 2 bed lower duplex: listed 1 week before finish: had people moving in 1 week later.

Good screening has been key, but good screening doesn’t have to take many days.

Jennifer T. · Answer

I agree it depends a lot on the local market/sub-market.  All my properties are in NOLA which, normally, I think has a soft rental market.  In the past, it's taken me as long as 6 weeks to find a tenant and, on average, 3 weeks.

I've had four vacancies since early July, three of them at the same two recently renovated/almost renovated duplexes.

I had tenants lined up for my first vacancy after 10 days, with a move-in date for August 1st.

The second vacancy was posted in early Sept.  It took less than one week and the tenant moved in Sept. 15th.

From showings for the that second vacancy, we already have a tenant lined up for when we finish the 4th unit at those duplexes (sometime this week).  I won't even have to advertise that vacancy.

Another tenant from that showing asked if we had any available properties in East NOLA (totally different part of town).  So funny she should ask!  We did, but hadn't advertised it yet because there were repairs needed after the previous tenant.  Ended up not having to advertise that house either.  We finished those repairs last week and she is moving in today.

Nick Barlow · Answer

@Dale Miller it depends on market. My experience in the Midwest (Small town in Indiana and Cincinnatti OH) is identical to @Jill F: I can’t get renovation done fast enough during turnovers.

Dale Miller · Answer

@Bjorn Ahlblad Sounds like you are being extra cautious which is good and its good to hear you are keeping your units filled!

Are multifamilies remaining vacant in this fragile environment?

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