How Many Applications do you get per Open Rental

Question

How many applications do you receive for an open rental on average?

How long does that rental stay vacant on average?

I've looked quite thoroughly on the internet to research this. I'm trying to run some numbers for my costs in the future, with vacancies, background checks etc. and I can't do any better than a wild guess at this point. I understand it will be different for different markets, but I just need a general consensus.

Could you let me know what your past/current experience says I should expect?

Thank you for your help

Michele Fischer · Answer

Agree that the number of calls and showings is as important as the number of applications.  It is a funnel and three calls may lead to one showing and half the showings may turn in applications.  At each stage, pay attention to what you are hearing and try to figure out why they aren't going to the next steps, and whether it is something you want to address or not.

I looked at my running list of applicants and I am averaging six turned in applications for each opening.

If you use a property manager you may experience more empty days between turns than if you are self managing and hustling.  I don't track empty days, I track unpaid days, as often getting an existing tenant out can lead to more income loss than true empty days.  I have a steady 96% occupancy overall.  A lot of our move outs only have ten empty days, but we recently had a nasty eviction with 129 days unpaid rent.

This blog post may be helpful.

Mitch Messer · Answer

Hi @Colton M.! Let me answer your first question, then I'll explain why these types of questions shouldn't be a real concern for you.

For every 12 viewings of one of our rentals (lease-options, actually), we get about 2 - 3 applicants. Of those applicants, one will get the property. The others will eagerly await our next available home. The whole process typically takes no more that two weeks.

But here's the deal: We will know from the initial response to our marketing of a new home whether we're getting enough interest. So, if we haven't scheduled at least a dozen viewings within the first few days, something is wrong. It's up to us to figure out what it is.

Since we're counting appointments scheduled, the problem can't be inside the house itself (no one's seen inside it yet), but it could be:

• The exterior of the home
• The neighborhood
• The numbers (rent and deposit for rentals, or lease payment, option payment and purchase price for lease-options)

You'll need to quickly determine which of these is the problem, then solve that problem. If your rental sits for more than a month, it's because you haven't been listening to the market.

In the fight between landlord stubbornness and the marketplace, the marketplace always wins!