We put our home for listing mid August, the current tenants (who were excellent by the way) are vacating tomorrow . We listed the home the same lease that our current tenants were paying, the home in Collin County with an excellent school district. However we had only 1 enquiry in the last two weeks and prospective tenant did not get back to us with an application. We have hired a realtor for the listing however I am not sure how much marketing he is doing since there is no activity on the listing.
The DFW and particularly Collin County rental market has been hot and we have not heard any issues with renting, are there signs of this slowing down now, should we start reducing the lease price since it has been more than 2 weeks since we listed. I understand that we listed the home after the school districts opened in this area but this was a red hot market for home sales and rentals and we are surprised to see that there is no interest. The home is in great condition and it is less 2000 sq ft with 4 bed/2 bath.
Anybody with knowledge of the rental market would appreciate tips/suggestions. I think we got spoiled as landlors since when we bought the home we leased the house on the day of closing...
@Manasa Srinath I would say missing the start of the school year is probably what is hurting the most. You also have to think about the demographic which your property appeals to. My suggestion, not knowing your circumstances nor the condition of the property, would be to reduce the rent so you can get it occupied ASAP BUT only offer a 7or9-month lease term, so they are out in May'19! Then do a good make-ready/light rehab (possibly just new paint, the smell of fresh paint makes a world of difference!) and have it rent ready in late June or early July! you would probably then be able to collect a premium rent again and your lease terms will sync with the summer so next time shouldn't be as difficult to lease.
@Manasa Srinath DFW has the second highest number of new apartments opening in 2018 (#1 is NYC). With 17,000 new apartments opening mostly in Dallas and Collin County there is bound to be a slow down. Especially since no new large businesses have moved in to the Collin County in the past 12 months. It was crazy two years ago with Toyota and Liberty Mutual moving their HQs within 1-mile of each other in an 18 month period. I don't know enough to make comment on your specific area or home but I know that the market will see some slowing over the next 2 years.
@Ryan Blake I agree with you to some extent however in @Manasa Srinath case I don’t think she should be overly concerned about the apartments. For one, most of these apartments are A class and asking crazy rents. Two, and most importantly, a tenant (family) looking for a 4/2, 2000sqft sfr is most probably not going to be the same tenant who would move into an apartment. While record number of apartments have been delivered, in the last year the Dallas-Irving-Plano metro has added about 70,000 jobs. I do think the market is starting to “normalize” and we are going to rates that are more in line with national averages rather than the high growth and demand we’ve seen in the last few years. Just be patient @Manasa Srinath you will find a tenant soon and be sure you’ve checked what your comp’s are renting for.
Could be a few reasons...price, condition, commissions. Have you looked at a CMA? What is your Realtor paying the tenants agent? What's the address?
There is so little money in rentals for agents I wouldn't expect them to market the property other than to put on MLS and a sign out front. You are probably paying your agent 100% of 1 months rent which is then split with the tenants agent at whatever ratio your agent wants to offer. Your agent needs to be offering 50% commission (half months rent) to the tenants agent or you will have agents not even showing their prospective tenants the property. The market is not "red hot" like it was before.
Timing is poor. Red hot or not, very few families are signing leases in September.
Thank you all for your inputs, we are bringing down the rent by $50 and also changing the term on the lease to be short-term 9 months, the CMA is 50% . The community where this home is turning out into an investors area with a lot of homes with renters so it is getting harder to get lease in this area. We are willing to go down another $100 or so in terms of rent as long as we get this leased within next 90 days.
@Manasa Srinath Agree with the comments on timing and # of rentals coming online. Also about 10 houses away from you there is basically an identical house with slightly higher finishes in the kitchen for $195 less per month.
Hello, i hope my case also helps.
I'm a non-local investor, purchased my first 3-2 SFH in Princeton area (Collin county) through a realtor referred from my cousin over there.
- I communicated with realtor completely through texts and emails. he was very responsive and active.
- We started looking for a property in June mid, bought in July and closed in 1st week August.
- i was all excited in getting it leased asap, working actively with my realtor and listed for $50 less than the recent comps. Then i was like checking my Zillow views, showing requests updates from my realtor.
After 2 weeks we got an application, and with initial review we didn't accepted because of income criteria and no.of people.
Then no application for 4 weeks, even though showings were happening.
Then my 1st Mortgage payment is coming up, i was getting confused if i made any wrong decision with Rental property investment, and then i started researching on my own, decreased it by another $50, which became 2nd lowest in that area, and mine was better home than the lowest, boom 2nd day after lowered, we got an application on Friday, and i dint accepted right away as it was not 100% to my expectations, and i want to wait through weekend to see if i get any more.
Monday morning, no apps received and we went ahead with this app as my PM ( found through Thumbtack) was also realtor from Tenant side was very confident enough to manage them. we went ahead and leased them, and they are moving on Oct 1st.
- We were too eager to buy our first property, and Jun/July is crazy Seller market
- April - July is "most" tenants moving time, and easily rent able time.
- Home prices are cheaper now ( 3rd Quarter), but as an investor, i would not buy now as well (?), unless you are going for low rent and hard to find good tenant.
i would like to purchase down the line preferably next Summer ( April - July), as i understand they would be appreciation based wealth building properties and not typical cash flow properties.
- What areas could i look for SFH ~1500 sqft around $100-110/sqft
- I know its expanding towards ANNA until Sherman, how is the rental market over there
any suggestions on these would be great, thank you.