First Rental Unit...Still waiting for a tenant to sign a lease

First Rental Unit...Still waiting for a tenant to sign a lease

New to Real Estate · Los Angeles, CA · Member since 2017 · 2 posts · 0 votes

My fiance and I just bought a duplex in Highland Park, Los Angeles that came with a 600 sq. ft. bungalow.  The unit is completely separate from our front house and doesn't have any shared walls (2 house on a lot).  We renovated the entire kitchen, cleaned it up with paint and new fixtures and have it listed to rent on Zillow, Craigslist, Apartments.com, and several other sites.  It is listed as a 1 bedroom but has an additional bonus room that can be used as a bedroom as well.  We have had about 10 potential tenants come to view the unit, but no one has shown any interest in signing.

I am now on month 2 of paying the FULL mortgage and really want to get the unit filled so we can utilize that rent towards our mortgage.  

Some potential factors I see that may be effecting the situation are...

-Rent May be too high ($2395...on the higher end for a 1 bedroom (+Bonus room) in Highland Park)

-Street Parking (the street is a dead end with a school at the end of the block)

-The bathroom is in the kitchen (House built in 1920s...kinda weird)

-Sharing a lot with the owners (we have provided their own private walkway and secluded patio, so interaction with us would be minimal).

I would love any advice on things I may be over looking or potential strategies I can implement to get this thing filled.  This is our first investment and want to get it off the ground so we can continue to invest.

Thanks,

Matt

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Tracy StreichPro Member
Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
5y

I have been doing this for over 20 years.   Layout, finish and location are all very important.   However, these are just factors in the price.    Once the price is right...everything rents.   If the rent should be $2000 you have lost $4,000 in the past 2 months. Price it right and you will rent it this weekend!

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  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    5y

    I have been doing this for over 20 years.   Layout, finish and location are all very important.   However, these are just factors in the price.    Once the price is right...everything rents.   If the rent should be $2000 you have lost $4,000 in the past 2 months. Price it right and you will rent it this weekend!

  • Real Estate Broker · LA, CA · Member since 2020 · 7 posts · 1 vote
    5y

    The rent seems too high for a 1 BDrm. 

  • Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
    5y

    Im in Eagle rock and that is very high for a 1/1 in this market. My 1/1s go for 1900. Also, if the additional room is 100 sq ft with a 5.7ft egress window and a closet with doors you can legally call it a bedroom. Otherwise you are a 1/1 with a den. Two things you can do. Offer incentives (50% off first month, free utilities, etc) or lower the price. You see now that its not worth $2295 so play with the numbers but make sure you do REALLY GOOD DUE DILIGENCE on your tenant. You are in rent control AND with an eviction moratorium in place so its WAY cheaper to take vacancy than have a non paying tenant in place. I had to buy out a tenant and it cost me $20,650 for them to move or 12 months worth of rent. Be over cautious in this market right now.

  • Member since 2020 · 31 posts · 7 votes
    5y

    Did you call any of the prospective tenants and ask them why they did not lease from you?

  • Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
    5y

    Text the prospective tenants why they were not interested.

    Hopefully 2 of them will text you back.

    If you drop rent, one of them should be interested.

    Maybe less Deposit also 

    Or deposit over 2 months.

  • Developer · Los Angeles, CA · Member since 2015 · 22 posts · 12 votes
    5y

    I want to echo some of the other posters' comments. For a 1 BR in a 1920s building, I think you would have a hard time finding other units asking/renting for +/- $2,400 even if it is a stand-alone bungalow in hipster Highland Park. 

    I do like the idea some other posters had regarding following up with prospective tenants and finding out what they liked and didn't like. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    @Matt Schaefer  I just did a quick search of rentals in Highland Park with 500 - 750 square feet. Most of them are well under $2,000 a month. The ones that are over $2,000 a month are pretty nice and NONE have a bathroom in the kitchen. In fact, I don't see any under $2,000 that have a bathroom in the kitchen. Look at 207 N Avenue 54, which is a guest house with 600 sq.ft., a decent yard, and an actual bathroom listed for $1,800.

    I don't know you generated your price but unless you're renting to a bachelor that thinks it's cool to crap and cook Ramen at the same time, I think you've priced yourself out of the market.

    Do more research, price it a little below the competition, and get that sucker filled so you can catch your breath. Then stay current on the market so you're better prepared next time it's available.

    The DIY Landlord Book4.7247 Reviews
  • Member since 2019 · 6 posts · 1 vote
    5y

    @Nathan G. I agree with the comment to get feedback from potential tenants that didn’t sign that should clue you in. I would also say don’t just get tired and let a bad tenant get in there as they could wreck your place or cause other issues. On my first lease (now been a landlord for 10 years) I looked over some glaring issues for sake of renting and it cost me a lawsuit and a few years of headaches. Your in for the longterm get someone good.

    Four things to consider:

    1. How much Rent They will pay per Month

    2. How Long will they stay

    3. How will they Care of property

    4. How Hard will it be Deal with particular tenants

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    5y

    Is the bathroom off the kitchen?  or are they the same room? that would be weird, if it is in the kitchen I would fix that.     One thing I find helpful with odd properties is to put the information in upfront and be sure they saw it.   If it is the floorplan that is an issue, add a floorplan to the pictures and mention it.  One bedroom plus office sells better here then a den  or bonus room especially since you have this big work from home push.  My guess price and layout.

  • Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    @Matt Schaefer

    I would drop the price and try FB marketplace. I listed a unit Monday late morning, by tues lunch I had 113 messages.

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