How long should you give a property management company?

Question

How long should you give a property management company to rent out your property? This is our first property and we hired a property management company that had good reviews but it's been 4 months and the property is still not rented out. One of the main reasons we hired a property management company was because we wanted to get it rented quickly. They were excellent with communication before we hired them and with getting it listed but it's been difficult communication wise the past few months. Any advice or suggestions? We are in the Kansas City area. Also the house is a single family home (4 bed, 2 bath) and is in really good shape (mostly new everything) and in a good area.

Charles Kao · Answer

@Angela Milosevich

Assuming we know it is priced well ask one of your friends to mystery shop them to see how fast they respond and how they act when showing it.  We hate leaseups at this time of year so will do odd month leases to get the lease to expire April-August so we don't have to worry about this issue.

Laura Williams · Answer

@Angela Milosevich this time of year is a little tough. I had a property last year that took 2 months to get a tenant (the tenants didn’t work out) so same house back on the market in the summer. In summer it rented in one day & had tons of interest. Also if this is a higher priced & higher end home then sometimes those can take a little longer to get rented. My cheaper priced properties in great areas people beat down the door and then the higher priced but nicer & larger homes can take longer cause I think most people in KC can’t afford more than $1200ish a month for rent.....unless it’s a room mate situation. Also in the more suburban areas with families people tend to want to move during the summer when school is out.

But that being said how does the listing look? Is your PM using nice photos? That’s HUGE. It’s a big peeve of mine when PMs use crap photos or no photos on the listings it really makes a difference. Also your PM should be reaching out to these people who have viewed it to see what feedback they have.

If your house has been on the market since Sept and it’s in good shape, clean, doesn’t have a bad odor and is priced right in a good area it should have gotten rented already from my experience. You might need to lower your price or do a move in special or 1/2 month-1 month free rent. Or it could possibly be your PM if they aren’t marketing it well or responding to tenants who are interested.

I think the longest it’s taken me to get a tenant in KC was about 2-3 months.  80% of my places get rented in first 2 weeks. I don’t think I’ve had one go over 3 months. If that answers your question.

Also going forward if you can have your leases set to come due during the spring/summer that will make things easier for you. Generally get it rented quicker and have more tenants to choose from so you can pick the best one.

Angela Milosevich · Answer

@Charles Kao thanks! I actually do think that was part of the problem. We found out there were a lot of communication issues without any real checks in place to solve for them and that the person managing our property was no longer with the company so we decided to move on to another company. In the process of switching over now.

Thanks everyone for the advice. Very much appreciated!

Angela Milosevich · Answer

@Cameron Pendergraft it's 64068 zip, Liberty area, a suburb of KC.

Thanks everyone for your responses, they are really helpful. Totally get it's a bad time of year. We were really hoping to get it rented out before November because of that.

@Tim Cebulski and @David Acosta what you said is exactly what I'm concerned with - the lack of feedback or recommendations to get it rented out. We have lowered the price twice but it's basically just me saying lower it to what you need to to get it rented after not hearing anything for a while - which is basically until I contact them. I'm also wondering if the communication issues exist on the potential tenants side as well in terms of them scheduling showings, expressing interest etc.

@Laura Williams I think the photos are decent for our area. They could be lightened a bit, they're a tad dark. My experience is that when I've asked them to update basic things on the listing for example the square footage - which is pretty off (says it's more than it is) they haven't so I felt that was probably a long shot. Do you mind if I ask what property management company you use in the area? If that's even allowed on here...? If it's not I totally understand. 2-3 months is as long as we were expecting also. Your stats are really helpful especially being KC rentals and are definitely in line with what I was thinking, so thank you!

And thank you @Aristotle Kumpis and @Luther Wilson III also super helpful advice and questions for me to ask them.

Cameron Pendergraft · Answer

@Angela Milosevich what zip code is the property in?

Tim Cebulski · Answer

The time of year can be a factor, but obtaining feedback from your p.m. should be easier than you are experiencing.  We get feedback from every showing, and we advise the property owner as to whether factors at the property itself are why it isn't renting.  If there isn't foot traffic, chances are the asking rent rate is too high.

You can perform a quick search on Zillow or Trulia in your immediate area and see what you're up against.  If you don't see other homes in the area currently available, it's either the price, condition, or neighborhood that's deterring prospects.

Best of luck!

David Acosta · Answer

Lack of communication would be a bit of a red flag for me.  Particularly, if you're not hitting your goals (leasing up the home).  It's understandable that the season and timing may have a part to play.  Maybe they can't be faulted due to these factors. However, when you're hit with an unexpected situation (extended vacancy), you want timely communication from the company you've entrusted your asset to (e.g hey, we've hit some unexpected hiccups, here's what we're doing to course correct).  Something to think about moving forward. Hopefully, you're occupied in no time!  Best of luck!

Luther Wilson III · Answer

Hey, @Angela Milosevich!  There are a number of factors that go into getting a property or unit rented.  More often than not it's the timing, pricing, or the condition that is causing the delay.  The same goes when selling a property.  The time of year is the biggest concern for us right now...  Of the 100 or so units that we manage in & around KC right now, there are just 5 or 6 that are "ready" but not rented yet.  We've opted to hold tight as oppossed to making adjustments in the rent amount or condition of the units.  If we don't start getting more action soon then we'll have to have that discussion with the owner about those adjustments.  What will need to happen then is we'll need to drop the rent amount or try to get the owner to invest more into the property.  As far as how long to give your PM, that's a great question...  If you haven't changed anything with the property to make it more desirable for a qualified tenant and if you've kept the target rent amount the same then I don't think you'll need to give you PM the axe quite yet.  I'd try something different with your PM or your property before you dismiss them.

-Luther

Angela Milosevich · Answer

Sorry I should have included that it was listed September 1st. I'll have to check on how many showings. They just tell me they've "had showings" or "have some scheduled" when I ask.

Aristotle Kumpis · Answer

Hi Angela. It sounds like your property came on the market right before the holidays. If so, that can delay things. For example, if you listed your house at end of October, there's a good chance it won't be rented until after all the holidays have passed. This happened to one of my properties a few years ago. It was listed in the beginning of November and didn't lease up until February.

You should try to find out if they have a lot of showings. If they have a lot of showings but no applications, it could indicate that the rent is too high. Or maybe your manager is passing up applications to find that better tenant for you.

How long should you give a property management company?

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