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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  • Doss Mann
    Houston, TX · Member since 2013 · 51 posts · 22 votes
    13y

    Maybe call it "property interest form". 1 page or simple contact box on website or email. And provide your full lease criteria with it.

    They provide basic info and answer 3 questions.

    Name, address, phone #

    When do you want to move?

    Criminal / legal problems?

    Current employer?

    Add a authorization to contact employer/ landlord for info etc... At bottom of page.

    If anyone is looking for family, friends or mor than a month out you know where they stand going into it and decide if its worth your time.

    At least in TX i can look up criminal records, sex offenders, law suits and traffic tickets for either $1 or free. You just how have to learn to navigate the gov sites.

    Employer and position give you a range of income, verify it with a phone call or two.

    About 15 mins of internet and phone is all it takes for a PRE-screen to save you time and gas..

    0Reply
  • Doss Mann
    Houston, TX · Member since 2013 · 51 posts · 22 votes
    13y

    Landlords here are probably getting away with a lot more than usual - which will eventually catch up to them.

    I don't see what I'm getting away. Avoiding showings to unqualified tenants by sticking to my criteria saves my time and reduces the chance of comprising or letting things slide in person when they have cash in hand. Not to mention having to listen to long stories about how its someone else's fault for their eviction, job loss, or arrest.

    I have had several duds show up and want to see the house during rehab when i was on site, they offer cash to take the property as is, ready to move in tomorrow, they can finish the repairs, they are looking for someone else etc. I give them the criteria and never hear back.

    0Reply
  • Mark Forest
    Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes
    13y
    Originally posted by Gary Clark:

    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.


    Use Zillow and Trulia too. But 12 showings is a lot to not have any results. It may be the price.
    0Reply
  • Al Bunch
    Realtor · Houston, TX · Member since 2013 · 128 posts · 27 votes
    13y
    Originally posted by Doss Mann:
    I don't see what I'm getting away. Avoiding showings to unqualified tenants by sticking to my criteria saves my time and reduces the chance of comprising or letting things slide in person when they have cash in hand. Not to mention having to listen to long stories about how its someone else's fault for their eviction, job loss, or arrest.
    I have had several duds show up and want to see the house during rehab when i was on site, they offer cash to take the property as is, ready to move in tomorrow, they can finish the repairs, they are looking for someone else etc. I give them the criteria and never hear back.

    @Doss Mann I wasn't implying that you were getting away with anything. Right now the supply side is low and the demand side is high with respect to rentals. When the rental market turns and there are 5 vacant houses in the same neighborhood, landlords will have to work harder to get a decent tenant in the property.

    Avoiding showings for unqualified tenants by phone-screening them is definitely one way to go about it. Personally, I'd prefer scheduling one showing Saturday morning at 10am sharp to multiple families (qualified or un) and create a competitive atmosphere as others have pointed out. If the future tenant misses the showing window, they miss their opportunity. This, to me, is the start of the training process for a new tenant and they're either training you or you're training them.

    @Gary Clark I've only skimmed the thread, but I'm sure someone here has mentioned getting rental comps from a local Realtor so you can make sure you're priced right...and possibly even listing it with a realtor - even though it might cost you 1/2 month rent to get it rented, if it sits for another month vacant you'd just be paying the fee by way of mortgage payment anyway.

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

    I have a friend of mine who used to work for apartment people or something setting up an up house for next Saturday. He garnered he will get it rented so we will see.

    0Reply
  • Doss Mann
    Houston, TX · Member since 2013 · 51 posts · 22 votes
    13y

    You are absolutely right with the hot demand in Houston. Next year or two things might slow down and I will adjust my systems accordingly. Until it stops working I won't fix what isn't broke.

    With that said Gary might need to change his methods, what do they say about doing the same thing over and and over an expecting different results? what works for me in Houston might not for another on the other part of Houston so everything I post are just ideas, there are 100's of ways to do anything.

    2Reply
  • Doss Mann
    Houston, TX · Member since 2013 · 51 posts · 22 votes
    13y

    Gary you should find a local REI club for your area. They will have the best advice and practices for your area. Chicago is big city so the commercial office building or big apartment investors probably wont serve you best.

    Look for the guys who buy AND lease houses that are successful at it. Not flippers or wholesalers.

    Also laws in most states are very different from TX so actually read the state and county gov. codes on tenants, landlords, evictions etc. and not just go by what someone says, websites or general RE books.

    Getting it leased is only the first part, having a strong lease ( in your favor) saves you time and money. Strong leases don't come from office depot or the standard state RE form agents use. Those are bare basic and leave it open for future time and money costs.

    Make sure the tenants know their responsibilities and yours. When to call, who to call, what to do in the meantime, when, where and how to pay, and what WILL HAPPEN if they don't. Remember this is your business that they are entering into contract with. Your the boss, CEO and President.

    On a different note how do you quote other posts with the ipad?

    0Reply
  • Doss Mann
    Houston, TX · Member since 2013 · 51 posts · 22 votes
    13y

    On a different note how do you quote other posts with the ipad?

    I got it now

    0Reply
  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    13y

    @Gary Clark

    I just advertised for a rental on Monday, had 3 showing and 2 application and by today Friday have a signed lease and money. The 1 showing that didn't apply, wife wanted but husband didn't want to go over their budget. I'd rather they screen themselves, rather than them getting in over their head or comfort level. both of the 2 that didn't get the house, I'm trying to convert them to other houses, one of which is lower priced.

    According to HUD, my rent is in the upper half and according to rentometer I'm at the 80%tile. In most cases I do not want to be in the 90 to100%tile or more. Perhaps you might want to check HUD at www.huduser.org, or www.rentometer.com to see how your rents compare.

    0Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    13y

    I have often wondered if you get a better caliber of potential tenant using a real estate agent so as to post on the MLS. Realtor.com has rentals and is a very nice site--as opposed to craigslist which in austin requires weeding through multiple postings of apartments and realtors trying to sell zero-down houses and just a few single family homes for rent. I also wonder if craigslist users aren't serious enough to go through a realtor or have such bad credit they are reluctant for fear a realtor won't work with them. I have rented properties using craiglist--just did as a matter of fact. I listed it as "pre-MLS" and was going to list it on the MLS if I didn't get someone pretty quick. I guess I should ask my new tenants if they were also using a realtor and if not, why not.

    0Reply
  • Doss Mann
    Houston, TX · Member since 2013 · 51 posts · 22 votes
    13y

    The accidntal landlords and investors i know that paid a realtor their full first month rent and have difficult to problem tenants. I dont know realtors guidelins but i bet its limited to a tenant screen comany and thats it.

    After they have been prescreened and they have seen the house, they pay the background check fee and tun in the competed application. What they put down has to match what i find or its DQ with no refund. The app and release state this.

    When it comes down to the final decision i pull NTN, TU smartmove, and another i cant remember right now. I find key info that these companies cant report.

    I call all their employers and verify that their psition is what they say it is, and how long they have been in it.

    Current and past lanlords, and confirm that thy are the owners.

    References and creditors with issues listed in the reports are contacted or researched.

    I call some of them twice and use different aliases.

    I look them up on facebook! Its amazing how much info peope give away for free.

    In Fort Bend county you can find traffic tickets and minor citations if you lknow where to look.

    DPS criminal and sex offender registry.

    Google and Bing them with combinations of their name, employer, city and any other clues you get from facebook or talking with them.

    Divorces, lawsuits filed, been sued, ANYTHING I can find that shows habits, instability or that they lied. Its all public record.

    The more info you have the better decision you can make on the person and if they will help your investments or eat your returns and time.

    I dont think realtors go as deep because they have nothing at stake.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y

    I have to agree with @Doss Mann's last post. A realtor IMO has less incentive to weed through lots of applications; after all, the commission being paid is not based on number of applications - it's a percentage of rent, and that doesn't change whether 1 or 100 applicants are evaluated.

    And I will add one more thing you should be checking that Doss did not mention. When you get a full credit report, you will get an address history in the credit report that shows previous addresses wherever the applicant may have input when they applied for past credit approvals. Look up each and every address to confirm it exists (credit reports have errors, and incorrect addresses occur); if it exists, you then research who owned it at the time when that applicant lived there. Then you contact that owner to get an assessment of the applicant. If that applicant was crappy toward that owner, you're quite likely to learn that using this method.

    0Reply
  • Scott W.
    Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    13y

    I agree on the realtor.com rental comps. see what they rented out for. it's a great way to go.

    I have to disagree with the statement a rental should be gone in a couple showings. I knew the comps and still had to show it a bunch of times. I have started pre-screening on the phone, so that limits the showings.

    I recently had to show one rental 50 times. Had the same thing 2 years ago on the same rental. Both times, I got an incredible renter. 2 other rentals this year, I showed about 30 times each. Same result.

    4 years ago, I showed a townhome 30 times. That guy just renewed his 4th year.

    One thing you have to consider, Gary, it can sit a little while...Once you get somebody in, they will be there for 2-3 years with NO vacancy.

    Keep the long-term in perspective.

    0Reply
  • Doss Mann
    Houston, TX · Member since 2013 · 51 posts · 22 votes
    13y
    Originally posted by Scott W.:

    I recently had to show one rental 50 times. Had the same thing 2 years ago on the same rental. Both times, I got an incredible renter. 2 other rentals this year, I showed about 30 times each. Same result.

    4 years ago, I showed a townhome 30 times. That guy just renewed his 4th year.

    How many months was the 50 showings over?

    What was the reason for it not being leased? Unqualified tenants or the property?

    How many of the showings could have been avoided through prescreening?

    I agree dont settle, and the right tenant is the best investment but eating months worth of payments hurts if thats a persons only rental. Having multiple houses gives alot more room to absorb vacancies and take more risks.

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

    well, had the open house today at 1. Of the 6 people that said they were gonna show up only 1 family came (and my decoy couple) they filled out an app and said they will call with their decision tomorrow. They seemed really interested but every time somebody comes they do until I never hear from them again.

    0Reply
  • David A.
    SFR Investor · Friendswood, TX · Member since 2013 · 136 posts · 11 votes
    13y

    glad your having luck... Its tough for me to give much advice as around here anything reasonably priced for rent it is easily filled within 2 weeks.

    But as others suggested price compare and if possible visit your competition... do the others have a better yard or appliances etc... as the house for rent up the street is your competition as your property might seem great until you see the competition that is renting for similar rates. keep in mind that people usually look within $200 of their top end budget.

    0Reply
  • Mike Franco
    Los Angeles, CA · Member since 2013 · 555 posts · 261 votes
    13y
    Originally posted by Gary Clark:
    well, had the open house today at 1. Of the 6 people that said they were gonna show up only 1 family came (and my decoy couple) they filled out an app and said they will call with their decision tomorrow. They seemed really interested but every time somebody comes they do until I never hear from them again.

    decoy? You mean like shill bidders?

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

    @Mike Franco yeah, exactly. Play to win.

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

    Well, I did it! I got my duplex rented. Thanks for everyone's advice. Ended up lowering the rent, had 6 groups come in at 7 pm last night. A couple in their 50s with a 6 figure salary and had spent 11 years at their former residence filled out an app and gave me a check for first months rent and a security deposit.

    Now onto the next step. Learn how to refi out to buy something else.

    2Reply
  • Shane Johnson
    Hudson, WI · Member since 2012 · 189 posts · 30 votes
    13y

    Fantastic news - i know im two months late, but glad to hear you found a great tenant! Your patience looks to have been rewarded. :)

    0Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    13y

    Congratulations!!!

    0Reply
  • Lori Marra
    Landlord · Rochester, NY · Member since 2012 · 9 posts · 3 votes
    12y

    I agree with John H. We don't ask what they like about our place; We ask what influenced them to take another place. That usually gets us to the root cause of why they didn't rent ours. Sometimes what we assume is way off the mark. We were renting one set of apartments in a university area, and we lost a couple of renters. We asked what enticed them about the ones they chose. Unexpected but easy answer: With their rent, everything was included in one price. No need to set up gas or electric. Their parents wanted the convenience of writing one check a month. So, we worked our numbers and readvertised with an "all included" rent. Problem solved.

    1Reply
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