Are you getting new tenants during COVID pandemic?

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Are you getting new tenants during COVID pandemic?

Noah Gregory
Real Estate Agent · Golden, CO · Member since 2019 · 22 posts · 18 votes

I was planning on buying my first property to house hack in the upcoming fall 2020. Due to the COVID pandemic, some peers and I are unsure if we can count on quickly finding new tenants. What is your experience? I'm in Denver CO if anyone knows about this market specifically. 

TL;DR 

Are people moving to new rooms/houses during this pandemic or are most people planning on riding out another lease due to fear? 

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John Chapman
Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
6y

I'll offer a countervailing/anecdotal view on this one.  I just rented a house in what I would submit was record time.   It's a weird house and is the lemon in my portfolio.  Always takes a little time to rent and it's tough to get good tenants.  (I've wanted to dump it for years but haven't gotten around to it.)  Rented in less than 48 hours to an exceptionally strong candidate.  I was drowning in interest and applications, which I've never experienced in 9 years.  Pretty sure I did not misprice it.  I think that renters are still looking to move for all the normal reasons and, on top of that, you've got a whole new market of apartment dwellers who are going nuts in quarantine and finding apartments are not the best for weathering a drawn out pandemic.  (Heard that a number of times from applicants)  Realize it's just one data point and it's too early to tell how it will all shake out, but it was interesting.

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  • Chris LopezPro Member
    Real Estate Agent · Denver, CO · Member since 2015 · 1k+ posts · 858 votes
    6y

    @Noah Gregory Yes they are. It's taking longer. I had two vacant units in March and one come up in April. They took  2-3 weeks longer to fill. One was Sec 8 and two were market tenants. I dropped one rent by $50 to get it rented. I've had some house hacking clients fil their room rentals as well.

    If you're buying a place in the fall, there is no sense in worrying now. We'll know more in the next couple of months. I see nothing that scares me.

    Podcast Guest on Show How to Use Equity in Your Home to Reach Financial Freedom Faster
    1Reply
  • Aaron Burns
    Member since 2020 · 16 posts · 13 votes
    6y

    @Chris Lopez I agree that looking at the situation in the Fall is the thing to do.  I'm not as optimistic about the economy as you but really at this point it's a crap shoot.  I mean who would have thought of a negative cost on oil.  Normal logic is out the window now. 

    1Reply
  • John Chapman
    Investor · Dallas, TX · Member since 2009 · 718 posts · 913 votes
    6y

    I'll offer a countervailing/anecdotal view on this one.  I just rented a house in what I would submit was record time.   It's a weird house and is the lemon in my portfolio.  Always takes a little time to rent and it's tough to get good tenants.  (I've wanted to dump it for years but haven't gotten around to it.)  Rented in less than 48 hours to an exceptionally strong candidate.  I was drowning in interest and applications, which I've never experienced in 9 years.  Pretty sure I did not misprice it.  I think that renters are still looking to move for all the normal reasons and, on top of that, you've got a whole new market of apartment dwellers who are going nuts in quarantine and finding apartments are not the best for weathering a drawn out pandemic.  (Heard that a number of times from applicants)  Realize it's just one data point and it's too early to tell how it will all shake out, but it was interesting.

    6Reply
  • Emily Martorano
    Denver, CO · Member since 2020 · 6 posts · 8 votes
    6y

    @Noah Gregory I’m in the same boat! Interested to see how people weigh in. My husband and I had just started looking seriously at properties in Denver at the beginning of March, hoping to close and secure a tenant by summer. All of that went out the window literally right as we started our search. Not at all sure when to buy anymore.

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    6y

    We filled two units in Denver during April, no problemo, and one in Longmont at the end of March as well. A few less candidates than usual perhaps, but still plenty. One we found through the VA program.

    This is an extremely easy time of the year to fill units in this area though. Oct-March is a much different experience even in a normal year in my experience, so keep that in mind if you're planning to fill units in the fall/winter. There are usually less candidates (and less quality candidates) to choose from that time of year just in general.  

    1Reply
  • Matt M.
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    @Noah Gregory

    I finished rehabbing a property two weeks ago, in 6 days I had 70 inquiries between Zillow sites and FB marketplace. Deposit taken and will be occupied May 1. I saw no downturn because of Corona.

    2Reply
  • Dawn P.
    Rental Property Investor · Sumter, SC · Member since 2015 · 334 posts · 531 votes
    6y

    I'm not in your market - it feels like a different world here in the south right now - but I filled a vacancy in less than a day at the beginning of April when things seemed to be at their worst here. I had more inquiries than I expected, so people are definitely still moving.

    0Reply
  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    6y

    Here in NJ (one of the biggest hot spots in the world) and we have had 3 vacancies since this started. 1 Lease was signed earlier in the month and hopefully 1 Lease will be executed tomorrow. The final Lease the owner is asking too much and being super picky with our recommendations. People are still viewing and we are still doing our due diligence, so that's all great news IMO. Just need to be smart, maintain distance, wear a mask, wash your hands.

    [email protected]732-289-3823
    2Reply
  • Erin Spradlin
    Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
    6y

    Hey @Noah Gregory

    I had an investors' meeting yesterday and no one had a vacancy in their place (we had 9 people on the call that owned investments) and no one had had a major issue. Someone had to slightly reduce their price to secure a year long renter, and we, personally, had a vacancy for about three weeks at a place we have in Colo Spgs, and then another vacancy in Denver for the month of May. Obviously, we'd like to have those filled but none of that is catastrophic. 

    1Reply
  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    I have a property on the market, and the showings have been steady. We had one offer, they got cold feet and didn't sign their paperwork, and then another buyer asked for a second showing. I'm optimistic!

    0Reply
  • James G.
    Investor · St Louis, MO · Member since 2017 · 250 posts · 181 votes
    6y

    I am still getting tenants during this time, it is just taking a bit longer. Utilizing technology during this time is going to make a big difference for you. Use virtual tours, docusign, etc. If you have to I would consider offering specials (half off first month's rent) if necessary. Do what you need to do to stay competitive.

    0Reply
  • Aigo Pyles
    Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
    6y

    I'm still getting tenants during this time. Although right now I have to show them the rental property virtually - virtual tour, etc. It is still the same. People are still looking for a place to live in. 

    0Reply
  • Uyen Thi Truc Tran
    Rental Property Investor · Monterey, CA · Member since 2019 · 13 posts · 9 votes
    6y

    Yes, people still need a place to live. I was doing Airbnb but need to change to long term tenant. I am in CA and I was able to find new tenants in two weeks.

    1Reply
  • Chris Paez
    Woodland Hills, CA · Member since 2017 · 32 posts · 10 votes
    6y

    Had our tenants submit a 30-day notice the day shelter in place was implemented in Los Angeles county. I freaked out for three days. Got through all the worst case scenarios in my head then finally listed it on Zillow. We have had a solid stream of responses and have a couple screened candidates that should pull through. The flow of inquiries is much less then a couple years ago but, its still solid and my worries were unfounded. our price for rent has actually gone up so we are getting a raise. We use a technique from a lady on an older BP podcast that was super diligent in her screening process and we follow that like the Bible and it has not steered us wrong! Thank you BP!

    1Reply
  • Joe Moore
    Rental Property Investor · Los Angeles, CA · Member since 2010 · 804 posts · 230 votes
    6y

    I had two vacancies, one in Houston and one in Memphis.  I got both rented this month. 

    0Reply
  • Travis Limbocker
    Investor · Castle Rock, CO · Member since 2015 · 38 posts · 24 votes
    6y

    @Noah Gregory we completed a rehab at the end of February for one of our duplexes in Kansas City, MO and had our PM team begin listing/showing right when the Coronavirus situation got real. We had a decent amount of interest and ended up filling unit #1 and are about to have a new lease signed for unit #2. We own a 24 unit in Tucson, AZ and there continues to be interest in the units we just turned around. We have 4 units available after recently completing rehab and our PM is looking to get them all filled in the next 15 days. In our San Jose, CA apartment we still have 100% occupancy. One of our tenants was going to move out in April but decided to stay given the current climate. So far at least, it seems less folks are moving but there's still a level of demand vs a complete drop-off. I just moved to Denver (Castle Rock) so I don't have insights specific to this market but 85% of my portfolio spans West, SW and central states and we're still seeing tenants paying and prospective folks looking for rentals. 

    0Reply
  • James De Stefano
    Real Estate Agent · Houston, TX · Member since 2017 · 290 posts · 233 votes
    6y

    Good to hear the positive overall comments above. 

    I think a huge elephant in the room is going to be jobs moving forward, and how quickly this economy can bounce back.  

    Screening tenants was always important, but even more so now with this.  And it won't be easy, as some service sector jobs WILL comeback... many won't. 

    1Reply
  • Jon A.
    Asheville, NC · Member since 2017 · 385 posts · 274 votes
    6y

    I agree with @James De Stefano, I am working hard to keep my existing tenants at this point in time. I live in a tourist town with very little industry. I own three doors and have 5 tenants. All of them lost their jobs in the service industry and are relying on unemployment and stimulus checks at this point in time with no real hope of their jobs coming back in the immediate future. 

    2Reply
  • Noah Gregory
    OP
    Real Estate Agent · Golden, CO · Member since 2019 · 22 posts · 18 votes
    6y

    @Jon Arenault very cool to see you investing there. I raft guided the French Broad all through college. I know Asheville definitely relies on tourism and the service industry. 

    1Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y

    @Noah Gregory Yes. Have had luck with getting good tenants in thanks to @Colin Douthit here in kc. Time will tell but hopefully the worst of it is past us. I am an optimist when it comes to real estate!

    2Reply
  • Colin Douthit
    Property Manager · Kansas City · Member since 2019 · 50 posts · 29 votes
    6y

    Thanks @Alex Olson.  

    We have been having pretty good luck getting things filled up here in KC.  We have a couple of new vacancies and are getting a good response to the listings.  I think we will not be hit as hard as some people were thinking.

    0Reply
  • Joseph Weisenbloom
    Investor · Austin, TX · Member since 2013 · 443 posts · 174 votes
    6y

    Here in Austin the market has completely shifted. There is a noticable downshift in the amount of prospects I have gotten for filling my units. People are not really moving right now, i think they are staying put until things breeze over. Another factor is that since Airbnb/vrbo properties are not operating they have been shifted en masse to long term rentals. So its a combo of lower demand and higher supply that is making it harder right now to find tenants.

    0Reply
  • Gerald ThitchenerPro Member
    Flipper/Rehabber · Vail, AZ · Member since 2018 · 10 posts · 7 votes
    6y

    We have SFR Rental here in Tucson, AZ and have been looking for tenants during this Covid-19 Pandemic. We have actually had a great deal of requests for showing. We respond as follows: "Due to Covid-19 Pandemic we are only showing property to qualified individuals that have completed an application with credit and background checks."

    It narrows it down to serious applicants who are then run through our minimum qualifications questions. Only those who pass will get a showing. We still have a stay at home order and this is the safest way for everyone involved in our opinion. 

    4Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    6y

    @Noah Gregory so far I’ve rented out 4 units, all in April. We’re 100% occupied now.

    [email protected]512-888-9122
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    0Reply
  • Bob Prisco
    Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
    6y

    @Noah Gregory 2 move ins this week, 2, last week, 3 more next week,,,,,,

    Good Luck 

    0Reply
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