Rental Property Investor · San Francisco, CA · Member since 2018 · 19 posts · 2 votes
I bought a SFR in Class C+ neighborhood in Mesquite. The unit's been sitting unrented for a month and a half. Just today my property manager sent me a prospective candidate.
This candidate had 17 lates since 2012 (She has been late 20% of the time), but her previous landlord said they would rent to her again. See attached. Does this fall under typical Class C neighborhood renters? (see attached)
Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
7y
There is something wrong here. Your house should not be sitting vacant for a month and a half unless it's overpriced, in non-showable condition, or there's something else weird going on. We are in a smoking hot rental market and fairly priced housing flies off the shelf, particularly at $1400/month.
The recommendation from the former property manager is worthless. They have no incentive to be honest and every incentive to lie.
If it were me, I would stop, re-evaluate and figure out why I don't have a flood of applicants. I would not take the first applicant that comes along. In this market, and at that price point, you should be able to find more qualified applicants.
Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
7y
There is something wrong here. Your house should not be sitting vacant for a month and a half unless it's overpriced, in non-showable condition, or there's something else weird going on. We are in a smoking hot rental market and fairly priced housing flies off the shelf, particularly at $1400/month.
The recommendation from the former property manager is worthless. They have no incentive to be honest and every incentive to lie.
If it were me, I would stop, re-evaluate and figure out why I don't have a flood of applicants. I would not take the first applicant that comes along. In this market, and at that price point, you should be able to find more qualified applicants.
Investor · Fort Worth · Member since 2019 · 57 posts · 16 votes
7y
No, I personally wouldn't rent to this person. It just seems like a headache waiting to happen. Price of waiting a little longer to find a tenant that meets your criteria versus the cost of a bad tenant. I also agree with John on the topic of her former landlords word meaning nothing whatsoever.
Real Estate Agent · Los Angeles, CA 90015 · Member since 2017 · 5 posts · 4 votes
7y
I would agree with John. I would be asking why it has not rented out. That are is a great area for rentals. If you would like a second opion on the area and rents, hit me back. Would be than happy to take a look at the area and see if I can help you with why it is not renting out.
Rental Property Investor · San Francisco, CA · Member since 2018 · 19 posts · 2 votes
7y
Hey folks, thanks for all your comments. I'm scratching my head on what could be wrong. The address of the unit is 3031 Karla Drive. Its going to be 2 months since its been on market. Only 1 application .
I know Mesquite is a hot rental market. Perhaps my asking rent is too high ?
Los Angeles, CA · Member since 2019 · 512 posts · 301 votes
7y
@Yash Ranadive I am following this discussion as I find it interesting and have family invested nearby this whole area of Texas. My first instinct is the place inside is very nice which is pricing potential tenants out. I do see it being overpriced a little. I don’t see how it has four bedrooms. I guess maybe in Texas you don’t need a closet to be considered a bedroom but regardless I would also reassess the pictures to get more showings/interest but mainly just lower the price. A nice kitchen and bath when compared to your neighbors.
Yash, I'm new to BP, some experience in RE but years in marketing. So for me criteria one is how is your Property Manager Marketing the property, what does his ads say.
Here is a comp, solid brick with 300 sq ft more and comparable interior, plus a fireplace and a nice wooden fence renting for $1,350.00.
Looks like lowering the price could get more people looking. Hope you've rented by now.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
7y
In a hot market, you're rental should have qualified candidates within days of listing it. With rentals, it always comes down to price. As other have said, the previous landlord could be saying good things to get rid of them and pass the problem on to you.
I would pass on this candidate and get it priced to market rents so you can choose your tenant, instead of your tenant choosing you.
Thanks Jonathan. I just got hit with more bad news that my inspection didn't pass. So I have to spend more money on this property :(
I don't know Mesquite as well as Dallas, but it seems a little on the small side. I might clean up the front a little, get rid of the weeds in the drive and maybe put in a little bit of landscaping.
Just out of curiosity, what didn't pass on the inspection?
Rental Property Investor · San Francisco, CA · Member since 2018 · 19 posts · 2 votes
7y
see image below
My property management company had to do an inspection from the city of Mesquite for it to be rented out. I'm so surprised that the city is making me do all of these things. There was a crack in the window, so I'm replacing it. There's also minor things, some of which like trip hazard, etc. The biggest shocker is that the city is asking me to provide permits for work that was previously done on the property. Huge huge waste of my time and money on this property.
Lesson learned, always get an inspection from the city before you buy the property so as to understand what is going to be the cost of rehabbing it. Are other cities this strict @Bart H.
This is strict? No wonder it hasn't rented. Looks like the inspector was offended that a rental with these basic needed corrections was being offered for rent. Maybe that's why he/she asked for permits. If you didn't supervise work done or visit the property once it was deemed ready to rent, I would find another property mgmt company.
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
7y
@Yash Ranadive. Mesquite is the only city I have seen this in in the greater Dallas area.
For me the bigger questions are - did you do the work when you received the city inspection? If not why not? Next - did your property manager advise you on suggested rents ? Did you heed their guidance ? As mentioned earlier the main reason I see properties sit on the rental market today if that they are overpriced. if you want me to do a CMA for you just let me know.
Also do the work as recommended in previous string.
Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
7y
Originally posted by :
see image below
My property management company had to do an inspection from the city of Mesquite for it to be rented out. I'm so surprised that the city is making me do all of these things. There was a crack in the window, so I'm replacing it. There's also minor things, some of which like trip hazard, etc. The biggest shocker is that the city is asking me to provide permits for work that was previously done on the property. Huge huge waste of my time and money on this property.
Lesson learned, always get an inspection from the city before you buy the property so as to understand what is going to be the cost of rehabbing it. Are other cities this strict
cc @Account Closed
We haven't ever done anything in Mesquite, but it has a reputation for being difficult to deal with. We avoid Mesquite for just that reason.
Rental Property Investor · San Francisco, CA · Member since 2018 · 19 posts · 2 votes
7y
@Daniel Y. price was originally higher suggested by the prop mgmt company. After no interest we got it down.
The good news is that I've found a tenant and I'm trying to get everything sorted out with the city of Mesquite. They have been very very strict for their inspection. I'm keeping my fingers crossed that they approve. If they don't I'll be screwed.
Before buying the property, I should've found out all the things I need to do beforehand by calling an inspector. That way I could've known my actual rehab cost on the property. I was really off, which have caused this property be a sore eye on my spreadsheet.
This is my first rental property and I've fallen flat on my face and it hurts. Hope I don't make same mistakes again.
Keeping my fingers crossed on what happens on the inspection. Will update the thread and let everyone know.
Rental Property Investor · San Francisco, CA · Member since 2018 · 19 posts · 2 votes
7y
I also do concur with other's assessment on this thread. My contractor also said that Mesquite has added these new laws and they are brand new and they are making it real difficult for investors.