La Canada Flintridge, CA · Member since 2013 · 21 posts · 0 votes
Maybe I am inexperienced since this is my first time try to lease my house. Or maybe it's only the second day I posted the ads. But I only received two inqueries regarding the new posts. My questions are
Am I listing the price too high? It's about the average of the $/sqft of the houses on the market for rent.
Should I try more websites? I posted on craigslist, zillow and trulia so far.
How many inqueries you get so that you know it's priced right?
School starts in August, and the inventory on the market is low, I thought there should be many people looking right now.
Homeowner · Knoxville, TN · Member since 2011 · 207 posts · 73 votes
13y
Frank, perhaps there are more things you can do to increase exposure (which others can help with). But I would have to say that you haven't given it enough time yet. It sounds like you just posted the ads yesterday. I would think that on a Wednesday night, you may have not gotten the looks that you will receive going into the weekend (when most people have much more time).
Post it to as many sights as you can, and re-evaluate on Sunday. Don't lower your rates just yet...
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
13y
I don't even use online listings. Stuff on CL gets buried by corporate apartment listings within an hour.
I would put up a yard sign if you haven't already. That is my sole advertising method and the best part is that whoever drives by and calls is not going to waste your time vetting the neighborhood because they already know where it is.
Investor · Macomb, MI · Member since 2013 · 654 posts · 115 votes
13y
Frank Jiang, everyone has different results from their techniques. It will be trial and error for you in you market areas.
I have had good luck with signs in front as well as online listings.
Try using Postlets.com. It's free and posts your listing on multiple sites. FREE. CL and Trulia are included but at least you only post once instead of multiple times to get to multiple sites.
I have gotten two clients by using Postlets and one by a yard sign. Another by word-of-mouth.
So feel it out and see what works best. CL you will have to renew or repost everyday most likely. Too many posts and they get buried within an hour of posting. At least in my market anyways.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
I've completely given up on craigslist. Most of the responses are scammers. A yard sign generates plenty of calls and reasonable applicants.
$/sq.ft. is not a meaningful metric. If you have a larger-than-average house for the area and you're pricing on size, you're probably overpricing it. Get it priced at or a little below similar houses in the same neighborhood.
Residential Real Estate Broker · Bremerton, WA · Member since 2013 · 494 posts · 142 votes
13y
Wait a bit - it's only been posted for 36 hrs.
Also, estimate rent based on beds/bath and other features, not sq. footage. Tom made a great post - follow wise words.
When I'm testing a rental market, I'll post rent a bit high for 1-2 weeks and check response rate and quality of tenant (if rent is too high, you'll get a poor quality tenant). If I don't like what I see, I lower rent just a bit, maybe $10-$15/mo. depending on the unit. I do this until I hit my sweet spot. It gets easier/faster with experience.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
Uh, disadvantages? What disadvantages? Now you're really making me think its overpriced.
Sometimes new landlords price their rentals high thinking they will get an extra good tenant. In my experience (not huge, admittedly), its just the opposite. Price it high and your only applicants are ones that have been rejected elsewhere and are willing to pay your higher price to have a place. You have to realistically evaluate your property and price it in like with the market. Then you will have your pick of applicants.
If you're worried about offending the neighbors with a sign, what about when you have tenants?
La Canada Flintridge, CA · Member since 2013 · 21 posts · 0 votes
13y
Jon, I did my study. I don't think it's overpriced, but as you said, if my goal is to get good tenent, I should reduce the rent. The house is 2100 sqft for 3B/3B + den. Smaller houses in the area are listed with higher $/sqft.
Pros and cons are
+ upgraded kitchen and bathroom
+ large backyard
+ quiet street, safe and well established neighborhood.
+ den can be used for office
+ the family room was a bedroom before with closet
- no garage, two car carport
- split level, the living room is downstairs
- no formal dining room
- location is far from public schools but close to a few private schools
BTW, total available houses for rent on the market is 9 as of today. 6 are 3 bedroom house and they are all listed with higher $/sqft. Did I say the school district is exceptional?
Investor · Louisville, KY · Member since 2013 · 20 posts · 9 votes
13y
Frank Jiang - Have you tried an open house? My property manager used this method and had a lease signed the day of. Give it a little time and when you have a few people interested, let them all come and take a look at the house at the same time. According to my property manager, when prosepective tenants think others are interested, it helps them make the right decision ;-)
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
You are too hung up on $/sqft. Tenants don't think that way. Re-read Tom Goans post where he encouraged thinking like the target.
Tenants have a certain dollar amount that they are willing to spend on the rent - that's their budget. If you are priced above their budget, they won't bother to look.
Now, if your sq footage is below the norm for the area, then you should expect to charge less for rent; but the converse does not work!
Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
13y
Originally posted by Jon Holdman:
Sometimes new landlords price their rentals high thinking they will get an extra good tenant. In my experience (not huge, admittedly), its just the opposite.
When I analyze the target market to determine the rent or loan payment, I always factor in this consideration; if you do not make it possible for the tenant/borrower to enjoy life by having enough money for an occasional family night out on the town or a backyard BBQ with friends, they will turn into a landlord hater and take it out on your property.
Happy tenants/borrowers are great payers and take better care of the property.
This has been my experience. Plus, I like to treat people the way I like to be treated.
Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
13y
Originally posted by Steve Babiak:
Tenants have a certain dollar amount that they are willing to spend on the rent - that's their budget. If you are priced above their budget, they won't bother to look.
One of the first questions I ask an applicant is; “How much are you comfortable in paying?” The applicant knows better than any application reveals or your qualifying analysis what they are comfortable in paying. Most paperwork does not reveal the auto transmission in need of repair or the possibility of braces for the children.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
Frank Jiang $/sq.ft. is absolutely irrelevant. SFR rentals are just not priced like this. Forget about this metric. How is your house priced vs. those six other 3 bed houses? Not $/sq.ft., just price. If you're is priced 10% higher because its 10% bigger, but otherwise similar, its overpriced and you will have a hard time getting a tenant. If yours is 20% higher because its 20% bigger, you're really shooting yourself in the foot.
Compare your house to similar 3/3 houses. Yours has a den, which is worth a bit extra vs. an otherwise similar house that doesn't. But it lacks a garage. If others in the area commonly have them, this is a significant ding. If other houses also just have carports, this isn't a problem. I assume other houses in the same area are also far from public schools. So, that shouldn't be a factor, either. If yours is "far" and the others are "near", then you may be going too far afield to find comparison properties.
I'd get a yard sign out there ASAP. The thing I like about a yard sign is people who call off that are 1) out looking for a place, and 2) have see the place and the neighborhood.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
13y
Pictures, pictures, pictures. This can be all that matters if they "feel it" they will come. Do you have pics? If not get them. If so, are they good? Many, myself included, will not bother with an ad that the seller (or what have you) doesn't bother to take pics.
Wait at least a month before lowering price unless you are getting lookers.
A yard sign is the very best form of advertising. You want neighbors to bring good tenants to you and you want people that want your area that may be driving it.
Real Estate Investor · Englewood, CO · Member since 2013 · 988 posts · 258 votes
13y
Originally posted by Jeff S.:
Pictures, pictures, pictures. This can be all that matters if they "feel it" they will come.
Excellent recommendation. A picture is worth a thousand words. When I market, I include photographs of what the target market is seeking. For example, if they are prone to having friends over, I include photos of the backyard grill.
La Canada Flintridge, CA · Member since 2013 · 21 posts · 0 votes
13y
I'll post a yard sign, and hopefully my neighbor will not through eggs on it. :)
I'll have three showings this weekend as of today. One guy is already trying to convince me to rent the house to him. He said he does not have a good credit record and won't be able to buy a house in the area, but he has three businesses and has money to pay the rent .... He has three kids and would like to get in the public school.
Another lady is a RE agent and this is for herself and the family. Both her kids go to prestigious private schools that are not far away. She seems a high-maintenance type and might be picky. I'll be hesitating to rent the house to her.
I think the best tenant will be full time employed with good credit history. The dilemma is with rent he is paying, he may be able to find a similar house to buy if he has good credit.
I may be asking too much... But I'll wait for another two weeks before reduce the rent.
Just FYI, here is the link of the house. Please don't shoot me for asking that money for such a shabby house. http://losangeles.craigslist.org/sgv/apa/3960956785.html
La Canada Flintridge, CA · Member since 2013 · 21 posts · 0 votes
13y
I am very analytical, probably because of my daily job. Talking about the right price, there are lots of experience involved. Everyone says should be cheaper than average. Unfortunately, I don't have the opportunity to go to every rental house in my area to get the experience, the benchmark I have is what's on the current market. But there is a bias using the data on the market because they represent the house that do not rent out, probably due to overprice.
BTW, does anyone know any website listing the past transactions of rental properties?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
Rentometer.com says average rent for a 3 bed in that area is $2965. I find rentometer to be a bit optimistic. So, your house needs to be a LOT better then its competition or you're going to get the dregs of the tenant pool.
I'd recommend watching the properties that are available closely. Watch when new ones appear and when existing listings disappear. Call and ask questions and find out about the properties. Keep notes. Ask your callers and visitors what else they're seeing.