Apartment Vacant for Almost 3 Months

[Andrew C.]

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

[Napoleon DeCiutiis]

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

Andrew,

Is your price point for rent at the same it would be locally, or are your prices inflated?  You may want to lower it just below the average in your area and make it enticing.  Include rent raises annually and get it back up to where it needs to be.  I think we need a little more info.  What are you charging? After three months of it sitting idle, you may want to reconsider your management company, or at least inform them they better "get to steppin'".

[Bob Stevens]

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

No its not normal, You are either asking too much or there is an issue with the property. Take govt tenants, there are all kinds of programs. Just screen well 

[Andrew C.]

Quote from @Bob Stevens:

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

No its not normal, You are either asking too much or there is an issue with the property. Take govt tenants, there are all kinds of programs. Just screen well 

Thank you both for replying. It's a 3 bedroom 1 bath located in downtown Louisville and it was listed for $1195 for a month but I reduced it to $1095 and it's still been vacant. It's open for Section 8 so I am accepting govt tenants.

What can I do with the property management company to make sure they're doing everything they can to get a tenant?

[Bob Stevens]

Quote from @Andrew C.:

Quote from @Bob Stevens:

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

No its not normal, You are either asking too much or there is an issue with the property. Take govt tenants, there are all kinds of programs. Just screen well 

Thank you both for replying. It's a 3 bedroom 1 bath located in downtown Louisville and it was listed for $1195 for a month but I reduced it to $1095 and it's still been vacant. It's open for Section 8 so I am accepting govt tenants.

What can I do with the property management company to make sure they're doing everything they can to get a tenant?

 Well I would fire them 3 months is ridiculous. Tenants are everywhere. When we list a property its typically gone in a few days.  

[Andrew C.]

Quote from @Bob Stevens:

Quote from @Andrew C.:

Quote from @Bob Stevens:

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

No its not normal, You are either asking too much or there is an issue with the property. Take govt tenants, there are all kinds of programs. Just screen well 

Thank you both for replying. It's a 3 bedroom 1 bath located in downtown Louisville and it was listed for $1195 for a month but I reduced it to $1095 and it's still been vacant. It's open for Section 8 so I am accepting govt tenants.

What can I do with the property management company to make sure they're doing everything they can to get a tenant?

 Well I would fire them 3 months is ridiculous. Tenants are everywhere. When we list a property its typically gone in a few days.  

 Thanks - I'm searching on NAPRM.org for new PM's. Do you have any that you recommend in Louisville?

[Bob Stevens]

Quote from @Andrew C.:

Quote from @Bob Stevens:

Quote from @Andrew C.:

Quote from @Bob Stevens:

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

No its not normal, You are either asking too much or there is an issue with the property. Take govt tenants, there are all kinds of programs. Just screen well 

Thank you both for replying. It's a 3 bedroom 1 bath located in downtown Louisville and it was listed for $1195 for a month but I reduced it to $1095 and it's still been vacant. It's open for Section 8 so I am accepting govt tenants.

What can I do with the property management company to make sure they're doing everything they can to get a tenant?

 Well I would fire them 3 months is ridiculous. Tenants are everywhere. When we list a property its typically gone in a few days.  

 Thanks - I'm searching on NAPRM.org for new PM's. Do you have any that you recommend in Louisville?

 No sorry, just go to the local forums on FB, 

[Drew Sygit]

@Andrew C.

There are really only two main reasons a property doesn't rent out:

1) Not enough exposure to the right target audience

2) The audience doesn't like the price-value relationship

To drill down on what the problem is:

How many views are you getting?
---Not enough is a sign that the property is not getting enough exposure, has a bad initial view or is priced way to high

How many inquiries are you getting?
---If a decent amount of people are viewing it, but not inquiring for more info or a showing, then they are not liking what they see when they view the ad. Either price is too high for what it is, or has bad pics or bad description or not enough showing availability.

How many showings are being scheduled?
---Not enough is another sign that price is too high for what it is or has bad pics or bad description or not enough showing availability.

What percentage of showings actually happen?
---If too many showings are cancelled, curb appeal may be an issue or may be part of the market and more confirmation is needed.

Lots of showings but few applications?
---Usually a sign that price-value is perceived to be out of line. Need to lower price or improve the product.

Some more ideas:

1) Is it on the MLS so other agents can show it?

2) Are self-showings being offered for more showing schedule flexibility?

3) Have you reviewed the ad type and pics on your phone (how most prospects will look at) to verify acceptable?

4) What MoveIn Specials are being offered?

5) Is there a 3-D Tour? What about a floorplan, so prospects can envision where their furniture may go?

Ask your PMC a LOT of questions about what they are doing and try to brainstorm fixes.

Please send us any feedback via email, as we do not use the DM feature here.
Also, if you like our response, please don’t be shy about giving us a vote😊

[Michael Seeker]

Quote from @Andrew C.:

Quote from @Bob Stevens:

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

No its not normal, You are either asking too much or there is an issue with the property. Take govt tenants, there are all kinds of programs. Just screen well 

Thank you both for replying. It's a 3 bedroom 1 bath located in downtown Louisville and it was listed for $1195 for a month but I reduced it to $1095 and it's still been vacant. It's open for Section 8 so I am accepting govt tenants.

What can I do with the property management company to make sure they're doing everything they can to get a tenant?

What do you mean by "downtown"?  There are lots of neighborhoods in and around the downtown core, each of which has different price points and demand profiles.  Our portfolio is 100% in Old Louisville (though we've owned in other downtown adjacent neighborhoods in the past) and it is common to see extended vacancies in 3 bedroom units in winter months in this neighborhood.

Out of curiosity, what PM company are you using?

[Account Closed]

You get it leased? Michael is right, Winter means a major slowdown. Also, property mgmt is a very very hard gig, it's an extremely difficult business for even the best operators so being patient and building a good relationship with your PM is key. If the property is clean, relatively updated and being marketed on all the normal platforms then it's down to price. 

[Andrew C.]

Quote from @Michael Seeker:

Quote from @Andrew C.:

Quote from @Bob Stevens:

Quote from @Andrew C.:

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

No its not normal, You are either asking too much or there is an issue with the property. Take govt tenants, there are all kinds of programs. Just screen well 

Thank you both for replying. It's a 3 bedroom 1 bath located in downtown Louisville and it was listed for $1195 for a month but I reduced it to $1095 and it's still been vacant. It's open for Section 8 so I am accepting govt tenants.

What can I do with the property management company to make sure they're doing everything they can to get a tenant?

What do you mean by "downtown"?  There are lots of neighborhoods in and around the downtown core, each of which has different price points and demand profiles.  Our portfolio is 100% in Old Louisville (though we've owned in other downtown adjacent neighborhoods in the past) and it is common to see extended vacancies in 3 bedroom units in winter months in this neighborhood.

Out of curiosity, what PM company are you using?

 I was using Stout Properties but now I've switched to LREI.