Find other property manager or lower the rent?

Question

Hi Follow investor/landlord,

I have a duplex for rent, one unit has been occupied, other unit is vacant and has listed on market for 3 months but still haven't rent out. My property manager is keeping asking to lower the rent from $1000 per month to $950 and now she asked to lower it again to $900 with $500 off first month. I searched online and see other properties near ours are rent for around $1200.  Maybe this listing agent is more restrict to screening the applicant and I'm thinking to get this property to other listing agent who can help me get it rent out quickly or Should I accept her suggestion to lower the rent?

Matthew Irish-Jones · Answer

@Tony Zhang it’s a tough question to answer without knowing more details.

We almost never have units sit for 3 months with a couple exceptions.  Rural units can sit longer and anything that gets listed in November can sometimes sit until February.

Rental demand between Thanksgiving and Christmas falls off a cliff and most people don’t want to move in the snow (Buffalo NY).

I just had an expertise with a client who asked me to look at his rental.  After reviewing his unit that was listed by another company that had sat for 3 months I tried to schedule a showing.

The automated email bounced back as not working and two separate phone numbers lead to a recording that said to leave a VM and they would call us back.

After that I read the description on their unit and it instructed me to go watch a video of the unit on YouTube and apply through their website sight unseen.

I am all for automation and leveraging technology but… this business requires professionals as well.  Not having a leasing department or someone that cared that this rental sat for three months cost this person 3 months of rent on TWO vacant units.

It’s a high demand area, fully renovated, and priced right.  In this situation it was definitely not renting due to negligence and NOT price.

Julie Hartman · Answer

@Tony Zhang Have you tried doing a test inquiry? Have a friend reach out to the PM posing as an interested party. This will tell you how quickly they respond to prospects. You can have this person ask about qualifications as well. Other than that, without knowing where the property is located, we can't really help. Maybe there is a lot of inventory in the same area with better amenities or features. Maybe the property is not showing well because it's dirty or has worn out carpet, etc. Are the photos well lit and showing the property in the best way? Consider paying to have it staged instead of taking $500 of the first month of rent.

Matthew Irish-Jones · Answer

@Mary M. Totally agree and you get what you pay for.  No one in my company makes $10-$15 per hour.  We have very well compensated people, and we pay well above market average.  Our labor rates are a lot higher than local competition but... we have the best people in the industry, we problem solve faster, they use technology better.   In the end getting units rented quickly by marketing them right away, marketing them well and having live people answer the phone to load units saves the end investor money.  There is a cost to the investor but, the quality and timeliness of the service more than makes up for it.

Mary M. · Answer

@Matthew Irish-Jones haha I am sure there must be good PMs....  But in general I feel that I will do a better job as it is my money on the line.   Now, I know that I am unique and I enjoy managing my apartments and not everyone can do that,  or wants to do that,  and maybe some folks dont have the cash involved like I do....  but IMHO a $10-15/hr desk person will not have the vested interest that I do.    Admittedly I have only had experience with a small number of  PMs....  3 as an owner and then when I was renting.....

Bill B. · Answer

Do you have other properties with this PM leasing just fine? Is the PM leasing out other properties just fine? Is the PM making money not leasing out your property? For us 2 weeks is a long time, 4 weeks is the longest I’ve had in 20 years and most of that was extensive turnover work (full repaint and and recarpet, new appliances and countertops, and massive cleaning)

As others have suggested, list the address, there are lots of experts on here willing to work for you for free to solve a mystery like this.

Matthew Irish-Jones · Answer

@Mary M. shots fired LOL.  Some tend to be terrible.  Some are fantastic and pay extra special attention :)

Mary M. · Answer

@Tony Zhang  What is the application criteria?  Has your PM shared the stats on enquiries, showings and applications? IMO when you are not getting something rented it is lack of interest on the PMS part to do their job.  They tend to be terrible at leasing up.  I would due some digging:  look for your rental online as if you were a tenant...  can you find it? what happens if you (or a friend) inquire about the space>? how easy is it to get the needed info and get a showing? To me you should do a lot of sleuthing to find out what the issue is.  It *might* be price.  It also might be a lazy PM.

Laurence K. · Answer

@Tony Zhang

I had a situation where my pm listed an apartment on Zillow , which then is supposed to cross post on numerous other websites. The listing went live but then within 24 hours (unknown to anyone) the listing was automatically removed due to incomplete info relating to the number of bedrooms and bathroom.

This allowed the apartment to be vacant for nearly 3 months. The pm just kept telling me there was a lack of interest.

Michael Noto · Answer

If you want to get specific advice on your situation I would post info about where the rental is so people in your local market can chime in. Rental real estate is a local game when it comes to things like you outlined in your post.

Find other property manager or lower the rent?

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