My rental won't rent. What are my next steps?

Myrtle Beach, South Carolina
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My rental won't rent. What are my next steps?

Melissa Faraias
Member since 2023 · 65 posts · 28 votes

Hello BP community,

I am an out-of-state newbie investor with a rental that is currently on the market in Bluffton SC. I have posted the listing on all major sites like Zillow, FB marketplace, apartments.com, Craigslist, RentRedi and have had my contractor put flyers all over the place. I am getting inquiries on the rental but so far nobody has filled out the application. It's been on the market for 3 weeks now and I'm wondering how to get it moving. We have advertised an open house for the upcoming weekend but so far no inquiries. I dropped the rental rate last week and it is now below market rate but there are currently lots of active rentals on the market. Looking for some advice on what to do next? Should I had it over to a local realtor or property manager or drop the price further and continue for another week? I have three rentals in Houston, which rented quickly so I'm not sure what I'm doing wrong here. Thank you for any advice that you can give me.

2Reply
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Most Popular Reply

Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
2y
Quote from @Ke Nan Wang:

If you find a good prospect and you want to place them, I would even recommend 1st month free if they sign a lease today. I'm mean the chances are you aren't gonna rent it for that 1st month anyway so it's just sounds like a very good deal to the prospect. 

I've always felt this was risky with a new tenant. You don't know what type of tenant they're going to be and you're giving them the first month free.

Maybe offer their 12th month free with the caveat that the prior 11 months rent must have been paid on time and no lease violations. 
6Reply
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43 Replies

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  • Tom McNutt
    Bluffton, SC · Member since 2015 · 6 posts · 6 votes
    2y

    What’s the listing? I can take a look and tell you if I see any immediate issues as a local. 

    6Reply
  • Lilian Smith
    Member since 2018 · 3 posts · 4 votes
    2y

    Hi Melissa! 

    First, a disclaimer. I have not managed rentals in quite a few years, and I do not own any RE at this time. I do, however, hold a RE license, I have sold resale and new build, and I have several years of experience in property management, both in multifamily and single family homes. Here's what I would do if I were in your situation today: 1- If you compete with multifamily properties, due to proximity, price, and/or size, I would call those close to your property (pretending to be potential tenant) and and see what they are doing to get their units rented. Are they offering any incentives for immediate move-in? Are they more/less updated? Think about how can you make your property a no brainer when having to decide between an apartment and a home. 2-Contact homeowners who are not in your close proximity, so they do not feel threatened, and ask them what are they seeing in the market, and how are they are adjusting (most likely you are not the only one who is experiencing this). 3-  If you decide to work with a real estate agent, use one that works with rentals, and better yet, someone who specializes in property management as well, because they will help you weed out  bad applicants. 4- This last one I do not have experience with, but I would definitely try it if my rental was near a hospital: Partner with a company that finds housing for traveling nurses. Best of luck, you've got this!






    4Reply
  • Ke Nan Wang
    Developer · St. Augustine, FL · Member since 2018 · 311 posts · 384 votes
    2y

    What's the average day on market for a comparable listing? Gauging rental market rate is tougher because you can only see what's active on the market, which means they are not renting. Usually only professional PM or Real estate agent has the average day on market data. Just click through the active listings and see how long they have been on the market, if they are mostly longer than yours, at least yours hasn't gone blow average yet. If you see the active ones are in general shorter than yours, then you need to figure out a way to market your listing more competitively. For you, most likely the only knob you can turn is the price knob. If you have a good sales agent, or if you get the lead on the phone, offer incentives for them to move in. First gage their interest, if they are on the fence, you can offer something like $300 off first month rent if they sign a lease by this date. If you find a good prospect and you want to place them, I would even recommend 1st month free if they sign a lease today. I'm mean the chances are you aren't gonna rent it for that 1st month anyway so it's just sounds like a very good deal to the prospect. 

    Also do you allow pets? that will also open up a larger tenant pool. Always allow pets no matter what they have, just charge more if you think it's a higher risk pet (best practice is to actually specify pet fee and pet deposit in the Ad). 

    2Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    The biggest issue will be price, especially if there are a lot of listings. You have to give the tenant a reason to come see yours and not the others. With a saturated market it will also take longer than normal to rent. You should also have it listed everywhere you can. But, it sounds like a pricing issue...

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    1Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    2y
    Quote from @Ke Nan Wang:

    If you find a good prospect and you want to place them, I would even recommend 1st month free if they sign a lease today. I'm mean the chances are you aren't gonna rent it for that 1st month anyway so it's just sounds like a very good deal to the prospect. 

    I've always felt this was risky with a new tenant. You don't know what type of tenant they're going to be and you're giving them the first month free.

    Maybe offer their 12th month free with the caveat that the prior 11 months rent must have been paid on time and no lease violations. 
    6Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y

    It is important to always watch the market. If you were checking the market weekly, you would know approximately how long properties are taking to rent, which properties are renting and which aren't, pricing strategies, and more.

    If you dropped the price and it's still not renting, then your price is still too high or you need to be more patient.

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    2Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Melissa Faraias

    Get a local agent / property manager would be my recommendation

    Also have you been in the property ? How are potential tenants able to view the property?

    I had one friend who tried this and finally went to go visit the property and it had holes in the walls etc that the contractor never fixed but they did not know it until they visited

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    3Reply
  • Shawn Bhatti
    Investor · Miami, FL · Member since 2020 · 80 posts · 66 votes
    2y
    Quote from @Adam Bartomeo:

    The biggest issue will be price, especially if there are a lot of listings. You have to give the tenant a reason to come see yours and not the others. With a saturated market it will also take longer than normal to rent. You should also have it listed everywhere you can. But, it sounds like a pricing issue...

     As Adam said, pricing is the biggest issue. It is a moving target and challenging so you aren't the only one dealing with these challenges!

    What software are you using to price your rentals these days? 

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Chris Seveney:

    @Melissa Faraias

    Get a local agent / property manager would be my recommendation

    Also have you been in the property ? How are potential tenants able to view the property?

    I had one friend who tried this and finally went to go visit the property and it had holes in the walls etc that the contractor never fixed but they did not know it until they visited


     I have not been in the property but my local contractor did all the repairs and I did a walkthrough via facetime and viewed pictures of the home. He also took pictures for me, which I must admit are not very good. I am looking for a photographer in Bluffton to retake the pictures. My contractor also does the showings with me on facetime. 

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Shawn Bhatti:
    Quote from @Adam Bartomeo:

    The biggest issue will be price, especially if there are a lot of listings. You have to give the tenant a reason to come see yours and not the others. With a saturated market it will also take longer than normal to rent. You should also have it listed everywhere you can. But, it sounds like a pricing issue...

     As Adam said, pricing is the biggest issue. It is a moving target and challenging so you aren't the only one dealing with these challenges!

    What software are you using to price your rentals these days? 


     I used a combination of propstream, zillow, rentometer, and propwire. There are a lot of active rentals on the market and some are better and cheaper than mine even though I think my rent is below market value. 

    1Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Greg M.:
    Quote from @Ke Nan Wang:

    If you find a good prospect and you want to place them, I would even recommend 1st month free if they sign a lease today. I'm mean the chances are you aren't gonna rent it for that 1st month anyway so it's just sounds like a very good deal to the prospect. 

    I've always felt this was risky with a new tenant. You don't know what type of tenant they're going to be and you're giving them the first month free.

    Maybe offer their 12th month free with the caveat that the prior 11 months rent must have been paid on time and no lease violations. 

    I had a special going with $200 off the first month's rent if the lease was signed by a given date. But once I lowered the rent amount, I took away the special. 

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Tom McNutt:

    What’s the listing? I can take a look and tell you if I see any immediate issues as a local. 


     Thank you so much Tom. I sent you a message. I appreciate this so much.

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Lilian Smith:

    Hi Melissa! 

    First, a disclaimer. I have not managed rentals in quite a few years, and I do not own any RE at this time. I do, however, hold a RE license, I have sold resale and new build, and I have several years of experience in property management, both in multifamily and single family homes. Here's what I would do if I were in your situation today: 1- If you compete with multifamily properties, due to proximity, price, and/or size, I would call those close to your property (pretending to be potential tenant) and and see what they are doing to get their units rented. Are they offering any incentives for immediate move-in? Are they more/less updated? Think about how can you make your property a no brainer when having to decide between an apartment and a home. 2-Contact homeowners who are not in your close proximity, so they do not feel threatened, and ask them what are they seeing in the market, and how are they are adjusting (most likely you are not the only one who is experiencing this). 3-  If you decide to work with a real estate agent, use one that works with rentals, and better yet, someone who specializes in property management as well, because they will help you weed out  bad applicants. 4- This last one I do not have experience with, but I would definitely try it if my rental was near a hospital: Partner with a company that finds housing for traveling nurses. Best of luck, you've got this!







     Great ideas! I am going to implement these.

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y

    Thank you all for the great ideas. I am going to implement some of them and wait for one more week before I either drop the price or hand it over to a realtor/property manager. 

    0Reply
  • Brian Kloft
    Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes
    2y

    You mentioned that you are getting inquiries but no applications. Those two are related but only thru showings. You have not mentioned how many showings you have had. If you have had a lot of showing but no applications, first I will ask if you have been following up with the people that looked at it. Ask them why they chose not to rent it. They might tell you that there is something wrong with the place, or the neighbor's place across the street is a crack house so they don't want to live there, or...... They might also tell you that they found a cheaper place. 

    If you are getting a lot of inquiries but no showings than it is most likely you are too high on price.

    3Reply
  • Mike Dumont
    Member since 2024 · 9 posts · 4 votes
    2y

    I used to require completed applications (free) to do showings so as to not waste my time.   As things moved slower and maybe missed out on some good tenants not wanting to participate in that process. Now I do showings with a modest phone call - text - pre-qualification (make sure they read your ad - big problem today).  By removing barriers to entry you may get more leads  consequently you will also waste more of your or your teams time.  One other tip is to let your listings expire and re-list that makes them not appear as 'aged and stale' - power users will check history and notice but you may get the attention of some and those that have recently setup alerts.  

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    2y

    If you hire an agent, recommend you still process applications and do your own screening to avoid conflict of interest issues.

    If you hire a PMC, make sure you ask a LOT of questions about their screening procedures, to make sure you get a tenant you want.

    [email protected]248-209-6824
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  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    2y

    Lower the price $100 every 10 days.

    1Reply
  • Gil Wildridge
    Member since 2022 · 35 posts · 16 votes
    2y

    You could call a couple of agents and tell them that you have a listing (don't mention the address yet) at x price with y requirements for the tenant. Ask if they have a prospective tenant for that and if they genuinely do, you can give them the address.

    Definitely check your price and features vs the other rentals in the area. 

    Check around to see if anyone relocating needs a place. If I recall there's a pretty big healthcare company headquartered in Bluffton or thereabouts. They might need housing for people relocating to work at their headquarters and would want to point employees in the right direction. 

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Brian Kloft:

    You mentioned that you are getting inquiries but no applications. Those two are related but only thru showings. You have not mentioned how many showings you have had. If you have had a lot of showing but no applications, first I will ask if you have been following up with the people that looked at it. Ask them why they chose not to rent it. They might tell you that there is something wrong with the place, or the neighbor's place across the street is a crack house so they don't want to live there, or...... They might also tell you that they found a cheaper place. 

    If you are getting a lot of inquiries but no showings than it is most likely you are too high on price.


     I've had over 25 inquiries but only 4 people showed up to see the place. One filled out the application but refused to do the credit and background check so i rejected him. The rest did not respond to my follow up messages/calls. 

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @John Morgan:

    Lower the price $100 every 10 days.


     Ok. I am ready to do a price reduction by this weekend. I have had about 10 more inquiries since I made this post and 3 people are going to see it this week. If it doesn't rent, I will lower the price by $100 over the weekend. Thank you for your input.

    1Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Gil Wildridge:

    You could call a couple of agents and tell them that you have a listing (don't mention the address yet) at x price with y requirements for the tenant. Ask if they have a prospective tenant for that and if they genuinely do, you can give them the address.

    Definitely check your price and features vs the other rentals in the area. 

    Check around to see if anyone relocating needs a place. If I recall there's a pretty big healthcare company headquartered in Bluffton or thereabouts. They might need housing for people relocating to work at their headquarters and would want to point employees in the right direction. 


     Thank you for these great ideas. I am going to do this today. 

    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Drew Sygit:

    If you hire an agent, recommend you still process applications and do your own screening to avoid conflict of interest issues.

    If you hire a PMC, make sure you ask a LOT of questions about their screening procedures, to make sure you get a tenant you want.

    Ok thank you. 
    0Reply
  • Melissa Faraias
    OP
    Member since 2023 · 65 posts · 28 votes
    2y
    Quote from @Mike Dumont:

    I used to require completed applications (free) to do showings so as to not waste my time.   As things moved slower and maybe missed out on some good tenants not wanting to participate in that process. Now I do showings with a modest phone call - text - pre-qualification (make sure they read your ad - big problem today).  By removing barriers to entry you may get more leads  consequently you will also waste more of your or your teams time.  One other tip is to let your listings expire and re-list that makes them not appear as 'aged and stale' - power users will check history and notice but you may get the attention of some and those that have recently setup alerts.  


    I have noticed that once I send prospective tenants a link to fill out my pre qualification form on RentRedi, they just disappear. So then I started texting them the pre qualification criteria and just asking them if they qualify and then agreeing to show the unit. Now I am not sending them the pre qualification criteria and trying to just get them to come see the unit. I will let ethe listing expire and list again. Thank you for your input. 

    0Reply
  • Jessica StinnetteBusiness Member
    Property Manager · Herndon, VA · Member since 2024 · 20 posts · 10 votes
    2y

    Get a realtor, vacancy is lost rent never recouped. The fee you'll pay the realtor for the listing commission will likely be less than what you'll be paying for more than 1 month of vacancy. Not to mention a realtor has a larger pool of exposures to get your listing visibility.

    [email protected]703-609-2323
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