Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
Recently closed on a house and just listed for rent. Been listed for rent for four days now and only had one application. Applicant credit score too low so decided to pass. We are approaching the Winter season and it’s obv Thanksgiving week so I figured it’d be slow trying to find a tenant. Current Zillow rent price is $1550 and I listed for $1600. House it a bit dated but in a great neighborhood. One bathroom doesn’t have a shower, just a tub, but master bathroom has a full bathroom. I’ve listed the house on Zillow, Cozy.co, And Turbotenant. Since I’ve listed on these three sites, my property gets advertised on many different sites by default. My question is, do I stay a bit more patient at $1600 and wait until week after Thanksgiving is over then reduce price? I don’t like the idea of placing a for rent sign outside house or listing on Craigslist. Thoughts on both?
So do I keep price, adjust price, advertise house differently...any help is appreciated
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
5y
its been listed for 4 days? that is nothing - especially this time of year. However, Lowering price (or raising it ) can change the traffic. Did you look at other similar rentals and see what they are renting for?
Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
5y
@Charles Large
I did use the for rent sign and it did work. Had a individual call requesting information about property for her sister-in-law. Unfortunately that was the beginning and end of that applicant as they never actually submitted an application.
I had another applicant who just move to the state and wants to rent out my property for short term. He’s looking for a house to live in himself but wants to get situated first. Not sure whether I go with this applicant or keep house on market and try to look for long term tenant.
Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
5y
@Mary Koleno
House is located in Nebraska. For Rent sign is currently up. I think visibility is great and house is listed on almost every online website that I can think of with exception of Craigslist. $1595 does sound way better and will stick with that for now and see where it gets me. Thank you for your expertise
Where is this property located? I'm surprised no one has asked this question yet. As for 4 days of no applicants, I wouldn't worry about that yet. We regularly see ebbs and flows in our rental business. People will be thinking about moving when they see their lease is coming up at the end of the month. This is traditionally, where we see the spikes in traffic. I'd consider the real estate agent as an option as well. This shifts your potential turnover time frame to Summer rather than Winter (of course if you're in Phoenix or some other warm climate, that may not matter..see Q#1). I have a SF home coming on the rental market in mid January and am budgeting for rental in Feb or March (I'm in NH). I'm an agent so I can look up the area in MLS and see what's leased out recently, for how much and also see the rental history of the other units. I'd agree with a lot of the above posts as well but would sum it all up with this:
Rent- study the local area rents and price according to your finish, location, terms and competition
Term- go with a lease term that suits your business plan but consider the tenants' demographic as well (professional looking for short lease, family looking for long lease, college kids looking for the rest of the term...)
Qualifications- I look at WHY credit is bad and use that more than the number. Active collections on a cable bill, phone bill, Macy's card or car payments late is a bad sign showing they can't manage their money. Medical debt & student loans are usually not as big an issue on money management. Never rent to someone with a history of eviction. If their last address was with family or friends, call the prior landlord. You'll need to establish a 1-2 year rental history. Also, make sure you're actually speaking to the previous landlord. I've had occasion that a tenant gave me a friend's number to act as a prior landlord. When I asked a few more questions regarding the property, (the kind of lingo you can use with another investor) they got flustered, then I asked for a written statement and they hung up and wouldn't answer my calls. I didn't need any written statement but asking for it called their bluff. My applicant couldn't explain this odd behavior and refused to provide anymore references.
Background check- I always do a background check. I Always tell my applicant that I'm going to do a credit, rental history, criminal and sex offender registry background check. Many will ask for the application but then I never hear back. I'm sure I've avoided some people with records.
Meet the tenant- IF you're managing these yourself, it's a great idea to meet the tenant. There's nothing like the in person impression you get from someone. I've rented to people that I thought seemed a little weird and regretted it. I've rented to people with bad credit that seemed like genuinely nice people and it's worked out just fine. Use you gut on this.
Advertising- I advertise on any source I can, I use Apfolio through my office to do so. If you don't have access to a service like this, use Craigslist, FB, Zillow and the like. Differentiate each of your ads so as to know who's contacting you from what source. Track this and you'll have a great idea what source works best in each market. When advertising on CL, I put all the criteria in the ad. This keeps people that are unqualified (by your standards) from wasting your time. On FB, I'll respond to all 'is this available' inquiries with a note that has all the criteria and it has the same effect as the CL ad criteria. On Zillow and the like, I do the same as FB. I also have a nice 'For Lease' sign in the yard with a number on it. I'll sometimes do flyers with the information but they typically don't do much good in my area so I just have the sign. I like the 'For Lease' better than For Rent and I use the term Resident rather than Tenant. I can't say for sure but it seems to change people's mentality on the whole thing. Think "used car" vs 'Certified Pre-Owned'.
Pictures- Make your best aspect of the property your first picture. This is what's going to hook someone. This is the picture they are going to show their friends when they tell them where they are moving to. Look at any Airbnb Superhost ad and you'll see what I mean.
Section 8- Many will inquire about Section 8 housing (again, where is your place located?). Section 8 many times does not cover the desired rent in certain markets. I call the local housing authority and find out what their top end payment is for Housing Vouchers. In my area, it's $1637/month including utilities. If my rent alone is $1750 then I simply let the people inquiring about Section 8 know that the home does not qualify. If my rent is $1575, then I'll accept it if they fit my other criteria. Section 8 housing can be a great thing or a bad thing, just depends on your tenant. The upside is that you'll get rent every month without fail and if they are violating your other lease terms, you have someone to take those issues to (Housing). They know that if they get evicted from a Section 8 home, they'll be kicked out of the Housing program and nearly all of them know that and will act accordingly.
Hope this helps. This was a long read so if I can sum it all up in one thing: Don't rush & put a bad tenant in. This is always more expensive than waiting another week or two.
Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
5y
If your house is clean and move in ready then it always comes down to price. With that said I have been doing this for 20 years and historically the five weeks between Thanksgiving and the new Year are always the slowest for us. Seems like the flood gates open about Jan 3rd. During the holidays most are worried about getting togther with family and Christmas gifts not putting down a deposit.
Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
5y
@Tracy Streich
So true, not trying to put down a deposit. So the dilemma is either waiting until January or February or have a good tenant whose credit score and background check are clear and wants to lease for 6 months only. This will get me into the summer months which will increase my overall applicant interest.
Rental Property Investor · Brownsville, TX · Member since 2019 · 60 posts · 33 votes
5y
Glad to hear that you are getting more interested parties. For how long does the short-term person want it? I would not go for anything under 6 months and would charge an extra $50 to $75 per month.
I did use the for rent sign and it did work. Had a individual call requesting information about property for her sister-in-law. Unfortunately that was the beginning and end of that applicant as they never actually submitted an application.
I had another applicant who just move to the state and wants to rent out my property for short term. He’s looking for a house to live in himself but wants to get situated first. Not sure whether I go with this applicant or keep house on market and try to look for long term tenant.
Real Estate Agent · New York City · Member since 2020 · 818 posts · 639 votes
5y
You want to try Facebook and Apartments.com as well! Personally, I would certainly lower it. Vacancy costs you money!
If you put it to $1,550 - that is $600 per year "lost" or 11-12 days of it not being rented. If you think lowering the price can get it two weeks (or even a month sooner) you are adding much more value
Property Manager · Member since 2020 · 108 posts · 68 votes
5y
@Nadir M.
I think you should keep the price but try running a special to intrigue people to rent. Such as half off first months rent. This typically creates interest as people are more likely to apply if they think they can get free rent
Real Estate Agent · Albany, NY · Member since 2017 · 55 posts · 21 votes
5y
@Nadir M. 4 days is not long for a rental listing. You can also try Facebook got marketing the property as well. In my opinion, it is better to wait for the best tenant then rush in one who does not fit your rental criteria. Stick to your guns for a few more weeks and see what happens. Holidays are busy for everyone and may not be the easiest time to fill a unit but it is not impossible. Best of luck.
Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
5y
@Charles Large
He’s wants 6 months and honestly that’s what I wanted as well. When lease expires he can renew or break lease. Summer would be good time to find long term tenants
So when do you then increase your rent? How do you assess that? Ever since I listed property, I got two applications and one more coming in tonight?
Usually by the time we realize we set the rent too low, we already have an approved applicant (or one that will be) and so we go ahead and rent it. We just make a note for next time that we either 1) should have a larger rent increase than normal upon renewal or 2) to be more aggressive next time if the resident moves out.
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
5y
@Nadir M.i generally list a property for 2 weeks before lowering, but would adjust sooner if no interest in the property. 4 days is not long. May want to give it a little longer.
Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
5y
@Brian Anderson
I appreciate you taking the time to sum everything up. You offered terrific information. I wouldn’t say I’m rushing to find a tenant. I’ve had three applicant and done background and credit check on all. I have a good gut feeling about the tenant I’ll end up going with. Seemed very professional, good credit score, and no criminal offenses, evictions, or current collections, and him and his spouse make 6 times the rent amount. I will say that I did not verify previous housing history. They just moved here from out of state. They’re looking for a short term 6 month lease option which will work well for me as their lease will be up in the summer if they decide not to extend.
I also did have a section 8 applicant but quickly denied them as their voucher doesn’t meet rent amount. Great idea to verify with voucher program to make sure voucher is legit...thanks for that pointer and many others.
Investor · Mesa, AZ · Member since 2019 · 53 posts · 63 votes
5y
Congrats on the rental Nadir. I have a 4-plex and used Facebook Marketplace, Zillow and a couple of other sites to advertise. I found that I would get 100+ messages on Marketplace while Zillow would only get a couple. I would have my units rented within the week.
Also look in the area and see what the average rent is. It sounds unique to have a bathtub with no shower, I haven’t heard of that before. Maybe you need to look into installing a shower faucet to make it more desirable.
In conclusion, I would use Facebook Marketplace and check other rentals out in the area and see what they look like and what their prices are. Let me know if this helps!
Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
5y
@Caleb Johnson
Congrats on the 4-PLex...that’s my next feat God willing. Thanks for the post, helps a ton. 100+ responses, rented out within a week, a very promising way of securing tenants.