When will I get an applicant

Question

We closed this house in Davie, FL last Wednesday. Posted as a rental property right away at $3,400. It’s been over one week and more than 10 showings. Still no application. The feedback I received is that the walls are a bit dirty. So I had a painter go there paint the wall and will also change the carpet.

Now I’ve lowered the rent by $100. Still no application. This drives me nuts. Can someone help me here? What other strategies I can use to get a goddam application?

Jules Aton · Answer

Its only been just over a week and in that time you addressed the feedback. If this is is driving you nuts you are in for a bumpy ride.

Angela Zhou · Answer

@Jules Aton This is my first time investing in real estate. We have a large mortgage payment to make, but I should stay calm. Thx for the advice!

Curtis Mears · Answer

Sounds like you may have wasted the first showing by not having the property in showing condition.  Personally, it is rarely worth showing a property before it is in viewing condition. So all those early showing were wasted due to your impatience. You should have a process for getting tenants and follow that process. The process should include basic pre-screening because showing the property to nonqualified individuals wastes everyone's time, and could give you unrealistic expectations.

Angela Zhou · Answer

@Curtis Mears that's exactly what happened. The unit was not ready and I was impatient to show to people. Now I've made the unit ready and let's hope I get some good applications coming! Thx!

Adam Bartomeo · Answer

I think that you have some unrealistic expectations here... A week?

@Chris Seveney We are seeing properties take 90 - 120 days to find a qualified tenant throughout FL but I can specifically attest to SWFL. This is when it is priced right, and we have taken multiple price reductions. The market is FLOODED with inventory which is causing prices to drop rapidly and lengthier procurement times.

Bill B. · Answer

Who chose the rent amount?

If it was a professional ask them how long they think it will take at the current rent, how long at $300/months less? If the lower rent is a month or more quicker take the lower rent, you’ll net more rent for the year while also avoid paying utilities.

If it was a random guess or basically anyone other than a PM or a very rental focused realtor. (Not the one that sold you the property.) Then call a couple PMs Monday. Ask them how much ent they would charge, how long it would take to fill and what they would charge you to do that.

There’s only a few possible results.   You priced it too high and a month or two from now you’ll have to lower the rent after losing $5-10k in lost rent.

You priced it right or even low. That means it’s your advertising quality or location. Are you on the 5-10 biggest rental market sites? You did have a professional take the photos right? They aren’t smartphone pictures. If they are, fix that tomorrow as well. You can use those photos for the next few tenants, they’ll pay for themselves. This is where the PM can pay for themselves or provide you their service for free. If they save you a month’s vacancy you get them for free. Good luck.

Angela Zhou · Answer

@Chris Seveney I think I had the wrong expectations. Appreciate the insights!

Chris Seveney · Answer

On average it typically takes 30-60 days + to get a property rented. Just my want to reset expectations

Angela Zhou · Answer

@Ecaterina Katerina Morosan thank you so much for the advice and tips!

Ecaterina Katerina Morosan · Answer

Hey Angela, congrats on your new investment! We've been managing rental vacancies in SoFlo for many years now and I can tell that the inventory amount is much higher now than 1-3 years ago. Therefore, days in market are longer.

The goal is to find a long-term good tenant who is there for school zoning/work proximity/close to family etc. So you don't lose on vacancy very year. Also, when signing the lease, make sure to include a clause/addendum requesting the tenant to give access to show the place if they don't renew 30 days before the lease ends. That will allow you to put the rental on the market and start showing it 30 days prior to the tenants move out.

When will I get an applicant

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