12 showings but no renter yet

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12 showings but no renter yet

Gary Clark
Chicago, IL · Member since 2013 · 82 posts · 7 votes

So I have shown this apartment more than 12 times and still don't have a renter.

One family said they wanted it but didn't make their appointment to give me a security deposit so I called them and they said they didn't have the money.

Another person that moved to Chicago from California last week with no job and a 550 credit score wanted it but I think that's way too much risk.

It's a 3 bedroom 1.5 bath apartment in a house. Freshly painted, free washer and drier, high ceilings, nice ss appliances, central heat and a/c, also a private rooftop deck.

If there's one "downside" there's a pool in the backyard and there's only street parking.

Rent is $1500 which is about average for a 3 bedroom in an apartment building let alone a spacious house.

I've listed it on craigslist and have had at least 20 calls and over a dozen showings. Everyone that comes says they love it but I'm beginning to think I missed something. I charge a $50 application fee per ap regardless of the number of applicants.

Anyone have any suggestions or thoughts on how I can get this place rented? This is my first rental and I'm curious if its normal to go 0 for like this.

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y

Sharon Hiebing let us take a look at this. We saw this once before.

Gary Clark, $1400 to $2200 is a HUGE range. Those are not apples to apples. You need to do a detailed assessment of the other units that are for rent and figure out your correct rent. In my market, 12 showings without a tenant means its overpriced, plain and simple.

You're calling this an apartment, but it is not. Its one unit in a duplex. It doesn't have the amenities of an apartment, which may turn off some applicants. Its upstairs (walk up, I'd guess) and that may turn off others. At the least, being upstairs means a discount vs. a similar unit on the ground floor. You need to find other very similar units and figure out their rates.

Ask the people who look at it what they think and what else they are seeing. They have actually looked at other properties. They know what's out there and may be able to help you identify the issue.

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  • Kevin Barrett
    Involved In Real Estate · Wilmington, MA · Member since 2013 · 84 posts · 4 votes
    13y
    Maybe not advertise the washer/dryer and if you show the property to someone that seems interested you could tell them you were going to sell w&d but they can use for free. May be able to hook them this way. Is the interior/exterior clean? Do you have them fill application on site? Quicker turnaround time if you do. Do you schedule appts all at once? Creating competition might help. And less trips to the property for you. And the obvious...Try decreasing rent to $1450 to see if it increases quality applicants.
    1Reply
  • John Rooster
    Denver, CO · Member since 2013 · 409 posts · 105 votes
    13y

    I rent 5-10% below market, so about one in 3 people that I show to end up wanting to rent the place. I also put language in my ad that discourages non qualified applicants from calling me. This strategy works out well for me. 0 for 12 indicates to me it is over priced. Not sure how you are evaluating market value, if you are going on CL and looking at similar properties for rent, you are only determining what properties are not renting at.

    3Reply
  • Kevin Barrett
    Involved In Real Estate · Wilmington, MA · Member since 2013 · 84 posts · 4 votes
    13y
    Also, how much screening do you do when someone contacts you? Sometimes you can determine if it's a fit for someone just by talking with them and seeing what their must haves are.
    0Reply
  • Samantha M.
    Landlord · Dallas, TX · Member since 2012 · 505 posts · 34 votes
    13y

    Gary Clark
    Do people in that area even have the income that you need? To make 3X rent for your property they need $4,500 after taxes. That means their salary needs to be around 60k per year to qualify.

    At that price in my area most buyers would BUY a home if they are qualified. Where I am at $1000-$1200 seems to be the sweet spot.

    2Reply
  • Mehran K.
    Investor · Wichita Falls, TX · Member since 2010 · 3k+ posts · 603 votes
    13y

    Gary Clark How do you mean by "apartment in a house"?

    0Reply
  • Gary Clark
    OP
    Chicago, IL · Member since 2013 · 82 posts · 7 votes
    13y

    @kevin Barrett I have scheduled appointments for the same times. They seem to come early or late so have not had a double dip yet.
    @Samantha M. It's a 3 bedroom in Chicago so there are lots of people making 60+
    Or a couple making @ 30 each or even 3 people making $10 hour works.
    @Mehran Kamari there is a small legal apartment on the ground floor and the top 2 floors are for rent.
    The way I've come up with 1500 is all the 2 bedrooms listed for $1250 in the area and seeing 3 beds for $1400-2200

    0Reply
  • Carolina E.
    Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    13y

    Hi Gary Clark. Is it possible that the rent can be too high? I know it's not the best way, but you could got to rentometer.com and see if you are within range.

    1Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Sharon Hiebing let us take a look at this. We saw this once before.

    Gary Clark, $1400 to $2200 is a HUGE range. Those are not apples to apples. You need to do a detailed assessment of the other units that are for rent and figure out your correct rent. In my market, 12 showings without a tenant means its overpriced, plain and simple.

    You're calling this an apartment, but it is not. Its one unit in a duplex. It doesn't have the amenities of an apartment, which may turn off some applicants. Its upstairs (walk up, I'd guess) and that may turn off others. At the least, being upstairs means a discount vs. a similar unit on the ground floor. You need to find other very similar units and figure out their rates.

    Ask the people who look at it what they think and what else they are seeing. They have actually looked at other properties. They know what's out there and may be able to help you identify the issue.

    4Reply
  • Gary Clark
    OP
    Chicago, IL · Member since 2013 · 82 posts · 7 votes
    13y

    @John Holdman I ask everyone who comes what's their overall impression and everyone says they love it which has me confused. A couple people have said other places they looked at had water stains on the ceiling, chipped paint and all the fixtures looked old (most of mine are all new with ceiling fans in every bedroom) for around the same price.
    Idk... I will repost the add for less rent. Need to get it leased for September.
    Thanks for everyone's thoughts.

    0Reply
  • Serge S.
    Rental Property Investor · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
    13y

    I'm currently going through the same issue. I have a nice 4bd w pool that i have rented for 4 years for $1450. Listed it for $1395 and instantly had 10 showings. All seem to love it but no applications. When pressing tenants for feedback I get everything from windows are original, wanting new carpets to we just started looking. It feels like I am renting to a new class of tenants where in the past they were displaced homeowners fresh from foreclosure ready to move in. Right now they are younger families moving into the state and roommate situations. I've responded by replacing the carpets, fence and some other touch ups. Still getting calls but still not rented. All I can say is that tenants are very fickle and you need to be patient. If you think you have the right price then give it at least 15-30 days. I've had situations like this where I've lowered the price significantly and it still took time. Finding the right tenant is really a function timing and price.

    0Reply
  • Naveen Desai
    Real Estate Professional · San Francisco-East bay, CA · Member since 2013 · 340 posts · 50 votes
    13y

    Hello Gary,
    While you are trying to find a renter for long term, is there a possibility to rent it out on daily/weekly basis? That might require some basic furnishing, but if the location is a busy and commercial spot, it is an option to look at. There are websites to post such requirement where folks can pay online and you screen/approve them online as well. Just note the cuts the websites take.

    ( mods: not sure if my reply violates any rules for this forum, am just trying to help my fellows to benefit out of the situation. )

    0Reply
  • Savannah Leigh
    Real Estate Investor · scranton, PA · Member since 2010 · 174 posts · 14 votes
    13y

    overall, am finding tenants increasingly fickle

    too much supply of units for rent

    damn. Lol

    iI

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Don't ask what they think of your place. At least, don't just ask that. Ask what else they're seeing and how those compare to yours Ask what they think they should be paying and will have to pay. Ask about deposits and who pays utilities.

    For that matter look up ads for your area and drive the area and then call and pretend to be a tenant and find out what's out there. Find out the details of the properties, deposits, rents, utilities, etc. The more information the better. Also look at when ads come and go. If your market is really slow, like Savannah Leigh and Serge S. seem to be saying about theirs, you may have to really adjust your price. I'm not sure "fickle" applies to tenants who've never rented from you, but "picky" might. If there is plenty of supply, and its moving slowly, you really have to make your's the best deal in the area for it to move.

    2Reply
  • Bryan H.
    Investor · Willow Spring, NC · Member since 2013 · 788 posts · 285 votes
    13y
    Originally posted by Jon Holdman:
    @John Holdman For that matter look up ads for your area and drive the area and then call and pretend to be a tenant and find out what's out there. Find out the details of the properties, deposits, rents, utilities, etc.

    Every time I see this mentioned, I can't but think that all these 'tenants' viewing your place are other landlords checking out the competition.

    LOL, wonder why no one submits an application? They are landlords too.

    Kidding, but there may be truth to this.
    1Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    While I think it would be a good idea, I've never actually made an appointment to go see a unit I called about as a landlord. I have had calls that I suspected were landlords. And one that admitted he was and he owned the property next to mine. We exchanged info.

    0Reply
  • Gary Clark
    OP
    Chicago, IL · Member since 2013 · 82 posts · 7 votes
    13y

    If its too expensive why do they come to see it? Idk... I have 2 more walk throughs tomorrow and got an email from another person wanting to set one up. Even if its too high there is a sucker born every minute so if people keep coming someone's bound to rent it. LOL

    0Reply
  • Serge S.
    Rental Property Investor · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
    13y

    Yes I agree with Jon Holdman. Every market requires a specific touch and I find situations change almost monthly. It hurts having to drop your price especially if you have had years of success in a price range. Funny thing is that in my market all the statistics say rental demand is high, vacancy low and prices on the rise. AZ has a shortage of housing and the economy is strong. Yet I have not been able to raise prices over 4 years now and have had to steadily decrease prices while offering more amenities, upgrades and services. And its not like I'm getting better tenants in exchange!

    People talk about how dealing with runny toilets makes them hate landlording, for me its the showings. It can get frustrating after you have gone through painstaking lengths to get a unit rent ready to have a tenant turn up their nose and tell you all the things they hate about your property. My immediate thoughts are how much more are you willing to pay if I changed out the windows ... I can answer for them and its nothing! End of the day its all a part of the business. I'm starting to outsource showings paying a fixed fee commission to deal with the headache but there are downsides to that as well.

    The key is patience. I once had a house that I thought was best in class and priced very competitively. Unfortunately it was during the holidays and it was vacant through over 30 showings and over two months. I was so burned out showing the property that after 45 days I found myself snapping at prospects, not answering calls and ended up accepting someone I would never have accepted otherwise. Luckily they turned out to be great tenants. The following month (still off season) I had another vacancy at a much less desirable home and rented it first showing. You just never know. Stay patient and grind it out. If your like me and can't stand showings you can outsource through MLS listings, leasing assistants, etc.

    A Property Manager friend of mine puts the house on lockbox and has prospects send him their SSN and pic copy of drivers license and releases the code. He never shows up to showings and has done this for years with over 100 units under management. Never an issue for him. I've considered this approach but it just does not feel right. I'm sure after my next 30 showing debacle I'll try this too.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Is street parking normal for 3 BDRs where you are? I know most city dwellers are used to street parking. But a 3BDR usually means at least two adults which usually means two cars. Have you checked the competition for 3BDRs at $1500? Do they have parking?

    Are you running a craigslist ad, and if so how are the pictures? IMO, it's important that the pictures aren't so good that they look better than the unit shows. Making the unit look bigger or brighter in photos doesn't always servce. If it's a renters market, you want them to be wowed by the price and then by seeing it in person, so they say/think "even better than the pictures" and "such a good deal".

    How's the curb appeal? Lots of landlords seem to skimp on the exterior and landscaping upkeep (not to mention cleanliness). In a renter's market, you want the house to be as good or better than others on the block.

    1Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Gary Clark this is a very dangerous game to play:

    I've found that if you price your unit high you will get a crummy tenant. Somehow new landlords think they will get an especially good tenant who can afford their overpriced unit. Instead you will get the tenant who's been rejected everywhere else and is willing to pay your high price. You really must get it priced right, which means right at or a bit below other properties. Good tenants have their pick of properties.

    I totally agree with Serge S., showings are the worst part of this business.

    I show only once per week. I pick a single time on Saturday or Sunday. I tell everyone the same time. Once in a while there are multiple groups at once. Usually not.

    1Reply
  • Serge S.
    Rental Property Investor · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
    13y

    Another quick tip on showings ... make your prospects call or text 30 minutes to an hour before the showing. When you schedule a day in advance or more its virtually guaranteed that they flake.

    K. Marie Poe is right on regarding the pics. I have a new wide angle lens camera that makes the house really pop in the pictures. Rooms look huge and the walls shine. I think tenants have high expectations coming in. Last feedback I got yesterday was that "it didn't look like the landlord put much money into the property." My response was thanks for the feedback but the owner (I always play the role of PM) has added granite countertops, new cabinets, new flooring, new baseboards, new HVAC, new roof, new crown molding and resurfaced the pool all within the last few years and that it was rented for $100 more BEFORE the upgrades. Tenants response was "well the windows look old."

    For a visual, here is a pic of the home:

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Serge S. As I'm sure you know, most tenants don't know anything about home improvement costs. So you can ignore their opinions about what they think the owner is spending.

    With so many people buying rentals this past couple of years it was bound to become a renter's market sooner or later, and sooner in some areas of AZ and CA. Lots of newbies are buying fully rehabbed properties at retail prices even if the numbers didn't make sense. They are your competition. Some of their houses have new windows. :)

    1Reply
  • Jeremiah B.
    Investor · Portland, OR · Member since 2012 · 266 posts · 128 votes
    13y

    I'm the novice of the respondents, but here are my thoughts:

    1- Do not lower the price. If you're getting that many calls/showings, your probably not pricing yourself out of your market.
    2- K. Marie Poe brings up a great point about the pictures and parking. To expand on this: what potential negatives of your rental are not being conveyed in the ads? Parking is a great example.
    3- Is there anything 'wrong' with the property? Does it have pet odor, road noise, old paint, divided floor plan, bad street, evil spirits, etc.? Put on your investor hat and walk the property as a buyer; why would you not buy it?
    4- Hang in there. I didn't see you mention the length of vacancy, but try not to panic. Vacancy happens, and sometimes is longer than we like. Take deep breaths and don't lose sleep over this... it too shall pass.

    0Reply
  • Alberto Furet
    Charles Town, WV · Member since 2012 · 38 posts · 6 votes
    13y

    Gary,
    If you still have the emails from the people that came to look at your property, email them and ask them why they didn't choose it. Another thing you can do when you find someone that's really interested is to sweeten the pot. Tell them that the full amount for the security doesn't have to be paid at the same time as the first months rent and that you're willing to work with them. I always tell prospective tenants that I'm willing to spread out the security deposit over 2 or 3 months. Lets face it, a person that has the cash for first and last month's rent just laying around would be owning and not renting.

    0Reply
  • Mike Franco
    Los Angeles, CA · Member since 2013 · 555 posts · 261 votes
    13y

    Typical. You should prescreen and not show it to just anybody.

    Originally posted by Serge S.:Tenants response was "well the windows look old."

    For a visual, here is a pic of the home:

    That makes my house look like crap.

    And to the prospect that said "the windows look old" just for the sake of being picky, my typical response is "oh, just F off." I don't need to deal with their crap.

    A window only needs to be functional. It does not have to be new. I still have the original 1960's aluminum windows on mine. I have no need to change them because they never get direct sunlight due to the long roof overhang.

    0Reply
  • Kyle Hipp
    Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
    13y

    I am not in the Chicago market or a market near that large but is an application fee common there? $50 also seems like a lot. I have never charged one and do not know of any that do in my area. That might be common in your area but I would be very turned off by paying $50 just to apply to live somewhere. Maybe try this with your showings tomorrow.

    0Reply
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