Updated about 1 month ago on . Most recent reply
Not getting applications from potential tenants with enough income
I know this is a problem everywhere these days, due to the insane increase in property values. We have a rental that's just under 1800 sf in a prime location near shopping, churches, etc. All are within walking distance but the home is still in a nice area with other nice homes and a great view of an expansive, serene pasture. I've received literally hundreds of inquiries, over a dozen applications, but NONE of the applicants have qualified due to lack of income. I used to require 4x the monthly rent as income, but back in 2020 I lowered it to 3x because the property values skyrocketed overnight in our area but wages didn't change. Something had to give. Rentals the size of ours are renting for around $2000 to $2100 depending on location and age. Since ours is an older home that was recently completely renovated (new quartz countertops throughout, new paint, new bathroom fixtures, new flooring (no carpet--all tile or waterproof laminate), all new/updated light fixtures, appliances only 2 years old, so pretty new still. It's a great house, open concept living room, kitchen, breakfast nook, dining room. Split floor plan, with master on one side of the house and the other two bedrooms and bath on the opposite side. Privacy fenced backyard, covered front and back patios, nice landscaping, and we provide free lawn care. You'd think it would rent right away. But after 2 months of nothing but unqualified applicants, we decided to drop the rent amount to $1850, and instead of asking the same amount for the deposit, we reduced the deposit to $1500. We allow up to 2 pets (regardless of size), but instead of the pet fee or pet deposit, we charge pet rent of $30 per pet per month. We've switched to this type of pet "fee" because most tenants find it too difficult to come up with a large sum of cash at the onset. Also, most tenants don't stay more than a year or two, in our experience. (The longest tenant we've had stayed for 3 years. This is a very transient area, so it's to be expected. Many of our tenants buy a house after renting from us, or are transferred with their employment.)
Are things really so bad that we can't even find a tenant that earns 3x the rent each month? I can't see renting to someone who only makes 2x the rent each month, because they inevitably also have a great deal of debt. We require a credit score of 650, which is the average requirement for most rentals in this area, and I don't feel it's unreasonable to expect.
Tenants won't know it until they move in, but we are very attentive landlords and take care of issues within 24-48 hours (unless, of course, there is an issue with availability of a serviceman or part). We have never had any serious issues with our rentals, since we maintain them impeccably.
We don't have a mortgage on the home, the utilities on the empty house are minimal. How long should we allow the home to remain vacant? The longest we've ever had a rental say vacant in the past was a month. ALSO: I had ONE applicant who qualified, but it turned out that she wanted us to "save" the house for her till June! I told her we couldn't "save" it without payment, that we would have to allow other potential tenants to apply and if they qualified they would of course be free to rent it. She was quite annoyed at this. (I imagine she has always rented apartments, where they probably had availability at almost any time due to the large number of units they rent.)
Does anyone have any advice in this situation? I'm seriously at my wit's end.
Most Popular Reply
#1 Tenant Screening Contributor
- Honolulu, HI
Nice looking property from the exterior, but Plain Vanilla on the inside. There is literally nothing to set it apart from the competition. Basic, white, low end appliances. No use of "feature" walls. Ceiling, walls, and trim all appear painted the same. The only contrast is in the kitchen, which, while it appears to be in good condition, seems quite dated. One tub and surround is basic white fiberglass, the other is a dated, bulky yet plain tub, possibly with jets? Flooring transitions look a little bulky, potential trip hazard, not critical, but not awesome.
And then there is your ad text. The first seventy five words, in essence, are saying F U, don't bother. Then you double down with an additional 63 words of discouragement at the end of your ad. Good Grief.
Sales 101: Build rapport, describe features and benefits, overcome objections, ask for Action!
Thusly:
Spacious, freshly painted 3BR 2 BA with large covered patio and fenced back yard is ready to move into today! Enjoy the calming view of pastureland (and cattle, horses, grazing?) across from your front yard with an expansive, open view. Huge main living area with (gas/wood) fireplace, Primary suite with walk in closet and double vanity (which you imply but do not show),tub AND separate shower; large kitchen and breakfast nook, with plenty of cabinet and counterspace (and direct access to the patio?) make entertaining a breeze. Two additional bedrooms with ample closets and access to a shared full bath are located in a separate wing, adding needed privacy within the home. The separate laundry room with hookups only (is that common for the area, or do most come equipped?) is near to, but separate from, the kitchen; the two car garage has ample size for additional storage or work area, and you can walk to shopping! Limited Yard service is included.
Maximum of 2 approved pets may be allowed with additional monthly cost. Proof of minimum total household income for approval is $5500 gross. Provide income verification and request your Pre screening questionaire for full copy of Rental Agreement terms at no cost. A Zillow report will be required if you choose to move forward after viewing the property.
Paint your ceilings with a high hide white to create needed contrast from the walls. if you MUST paint the trim same color, use gloss finish for the trim, with satin or eggshell for walls EXCEPT for kitchen and bath, where you should use semi-gloss for easier cleaning. The different finishes will provide at least some contrast.
Create a feature wall in the main living space, the primary, and possibly the other two bedrooms. All it takes is painting one wall a pleasant contrasting color, usually the wall farthest from the room entry. Or add a simple wallpaper border at the top of the wall. Or add trim/moldings or go as far as wainscoting or a board and batten look to create a pattern or boxes on a single wall for added dimension. It does not take a huge expense, put indeed done well can pay off big.
I glanced through pics of a few of the other featured properties on the page, every one I viewed had stainless steel appliances. Everyone knows kitchens and baths are where you make money on upgrades.
Speaking of Baths, fiberglass units are fine for a quick fix, but they do not say "quality". Many are not installed properly, and the bottoms will actually crack due to flexing caused by lack of proper support and fat people. The other tub is just bulky and dated, and a lot of people have misgivings about potential health hazards from "hot tubs" and their inner workings. Not altogether unfounded, I would add. A simple, "Americast" porcelain/lightweight cast iron tub, Hardiboard backers, and basic subway tile installed properly, and with a simple contrasting tile pattern of some type within the overall design, will provide a low maintenance, highly durable, 30 year solution as long as waste (including trap, waste and overflow) and supply lines are replaced at the same time, and proper installation methods are utilized.
The only AI used in this post was Actual Intelligence, and 30 years of experience. I hope I have not been to "harsh" on you...