How long should it take to find a tenant?
How long should it take to find a tenant? My SFH in Northwest Arkansas was listed on all the major platforms (Zillow, Realtor, Facebook Marketplace, apartments.com, hotpads, etc...) in the last week in Jan 2024. It's now March, and still no tenant. I have thoroughly researched market rent in my area, and I've felt confident in the price up until recently. I tried reducing the rent by $25 a couple of weeks ago but I still don't have a tenant. There have been a few interested tenants, a couple of which I actually approved but then they ghosted me.
Now I'm starting to wonder if it's just seasonal or if there's something wrong with my property. Any advice would be greatly appreciated.
Tough season. Mine has been empty in December but just filled today. Ittl get better soon!
Landlords need to market themselves all the time, not just when they need a tenant. My friend has written an app called Shuk Rental Marketplace (I'm not in the company) so landlords can get rated and rate their tenants. The idea is that you build a following of warm relationships and can leverage your reputation when you need a tenant.
STR Market has definitely slowed down. However, one great strategy I have seen is getting a mid term rental for the slow season, and then going back to STR during the hot season. It also really depends on the actual product. You need to make your stay unique. If its far from everything, then you need to make it an oasis. If its a cookie cutter, then add some kind of "activity" like ping pong, board games, bikes, something to make it stand out.
Quote from @Mark Hayes:
How long should it take to find a tenant? My SFH in Northwest Arkansas was listed on all the major platforms (Zillow, Realtor, Facebook Marketplace, apartments.com, hotpads, etc...) in the last week in Jan 2024. It's now March, and still no tenant. I have thoroughly researched market rent in my area, and I've felt confident in the price up until recently. I tried reducing the rent by $25 a couple of weeks ago but I still don't have a tenant. There have been a few interested tenants, a couple of which I actually approved but then they ghosted me.
Now I'm starting to wonder if it's just seasonal or if there's something wrong with my property. Any advice would be greatly appreciated.
Mark, I have 3 SFHs in Fayetteville AR. I found and approved new tenants in January within 5 days of listing the home. If you send me a message, I'd be happy to discuss strategies that might help you. ~Susan
Quote from @Mark Hayes:
It's price. The market does slow in the winter, but people still move, especially in areas with decent weather.
You need to study the market constantly and know how you compare to the competition. Your home may be the exact same as one listed for $2,000 a month, but their home is in a nicer neighborhood, closer to a better school, closer to downtown, has nicer views out the front window, etc. You have to honestly compare yours to the competition and price accordingly. You obviously didn't or it would have rented.
Have trouble comparing? Pretend to be a renter and visit other homes to see what you are competing against.
Can you improve your pictures? Are you allowing pets, which half of all renters have? How strong is your description?
I'm not familiar with your area, but from my experience if its not priced correctly, you won't get any leads. I priced a home too high once and I wasn't getting anything, once I dropped it to a certain amount I had leads coming every day to see the home. If you have access to the MLS it helps to see what other rentals are going for in your area. If not you can use the other websites to see what others are going for and put it just under that. Make sure you are accounting for renovated properties as opposed to outdated ones as well.
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
It’s price or quality/location fi advertising. I get on my PM when we don’t have a new tenant in 10 days as it’s usually 7 or less.
If you truly lost 2 months of rent you could have lowered your rent 15% and been ahead even before counting the savings from someone else paying the utilities.