First Rental property- when to lower rent?

Question

Hey! So I just closed on my first rental property and have it posted on Zillow, it is in a desirable area and I priced it competitively when directly comparing it to other listings. It has been listed on Zillow for 4 days, I have a ton of views on the post, but only one contact and person interested.

It's making me ask myself the question- when should I lower the rent? I would prefer to have as low of a vacancy as possible but don't want to be too eager to drop the price. Looking for general guidance here.

Kai Kopsch · Answer

If you're Self-managing, make sure you're not getting scammed! About 30% of all inquiries I receive over Zillow are from fraudsters like stolen identities or fake employment paperwork, and good old classics like

my partner tried to apply over Zillow with a background check, but something is not working on Zillow website but you have my application this should be enough?

Lorien Wolff · Answer

Congrats @Kyle Pierrehumbert and thanks, Wyatt!

To share my experience (especially with Zillow) you'll need to be patient OR post on multiple sites. I listed my SFH LTR on Zillow this February and it had 35+ saves, 100+ views, and I only received three inquiries over the span of 4 weeks. I also had it listed via Realtor.com, Trulia, Hotpads, and ForRent.com. I landed a qualified tenant within a month (not from Zillow) and was able to prelease for a May move in with only a few days vacancy (for turn). I posted on the highest end of the market, lowered by $25 by week 3 and had it leased by week 4. Are you utilizing any other methods of marketing? Bandit signs are inexpensive and effective, if you're in a high traffic area. Do you have a 360 tour, do you have quality images posted? Are you descriptions inclusive of the area surrounding the home? (things to do, places to eat, school district, etc.) Will you be self-managing, do you have software picked out?

If you'd like to hop on a call to discuss the Charlotte market (where your property is specifically), the rate you currently have it listed for, etc. I'd be happy to connect.

Artfully,

Lorien

Wyatt Wolff · Answer

As long as you aren't bleeding cash, I wouldn't lower the price just yet. It's only been 4 days. Just keep the data on views and whatnot, and maybe have some local landlords give you feedback on the listing. For an expert property management opinion though, I defer to @Lorien Rollins

Freddy Alban · Answer

Nice work on getting your first rental property! It's a big step. Seeing lots of views but only a few contacts means people are interested but something's missing. First, check your listing again. Professional photos and clear details can really help. Also, ask the person who showed interest what's stopping them; their feedback is gold!!

Try putting your ad on other sites like Facebook Marketplace and Craigslist too. It can help you reach more people.Four days isn't long in the rental world. It often takes more time to find the right tenant, especially since some areas around Charlotte fill up faster than others.

Remember, it's better to wait a bit for a good tenant than to rush and miss out on the best match. Keep an eye on the market and stay flexible. Good luck!

Kyle P. · Answer

Such great responses. I appreciate the effort here!I did not use professional photos first, however I am getting that done on Friday and will update the listing! I have written out a very thoughtful and accurate description for the post. I think a massive element here is I need patience. Im antsy as this is my first and just want to get someone in there, the right tenant of course (and I wanted these learnings).I am planning on self-managing first, again to learn all I can. I'm primarily going to use Zillow for everything. @Lorien Rollins This is sooo helpful. I think I saw a post of yours and you have a house in Denver NC? That is where this is. It would be invaluable to have a quick call with you.

John O'Leary · Answer

Hey Kyle,

I'm not sure about the listing, but a few things to consider would be to offer virtual tours or video walkthroughs of the property to provide prospects with a comprehensive view of the space, especially if in-person viewings are limited or not feasible. Make sure you have a compelling listing description + pro photos if you aren't providing video. Keep track of the number of inquiries, property viewings, and offers received within the first few weeks of listing. If there's limited interest or little activity, it may indicate that you need to reduce the price. I'm sure there are a few realtors, and other landlords that can chime in with some great advice. You might want to share the specific market you're in also for better feedback. GL

Kyle P. · Answer

Alright quick update here folks.... So I initially listed my place for rent on March 22. This week I had 5 good inquiries with prospective tenants and 3 tours!I took the advice here and got some professional photos and a 3d walkthru, I think this helped. I also Strategically did a 5% price drop when I uploaded the new photos to get even more attention (really trying to minimize vacancy here) It's looking promising with one applicant who plans to be a longer-term tenant.Thanks to a local expert @Lorien Rollins for giving me some great info!The biggest takeaway here is to be patient.

Kai Kopsch · Answer

Hi Kyle,

Congratulations on your first rental property. It took around a month to find tenants for the past ten properties I rented over Zillow. Future Tennents not only look for the property pictures / Walktrue video but also how trustworthy the landlord is because there are a lot of rental scammers. If not already done I would upload a company logo and set up a professional zillow profile.

To improve your rental listing on Zillow

High-quality photos: Take clear, well-lit photos of your rental property's interior and exterior. Showcase the best features of your property and make sure the photos are appealing and attractive.

Detailed description: Write a detailed and engaging description of your rental property, highlighting its unique features, amenities, and location. Be sure to include information about nearby attractions, public transportation, and local schools.

Accurate information: Ensure that all information provided in your listing is accurate and up-to-date, including the rental price, property details, and availability.

Timely updates: Keep your listing updated with any changes in availability, pricing, or property information. This will help potential renters make informed decisions and avoid confusion.Professional staging: Consider staging your rental property to make it more appealing to potential renters. This can involve rearranging furniture, adding decorative items, and making minor repairs or improvements.

Virtual tours: Offer virtual tours of your rental property, either through 3D virtual tours or video walkthroughs. This will give potential renters a better idea of the layout and feel of the property, even if they are unable to visit in person.

Positive reviews: Encourage your current and past tenants to leave positive reviews of your rental property on Zillow. Positive reviews can help build trust with potential renters and make your listing more attractive.

Competitive pricing: Research the local rental market and set a competitive price for your rental property. Be prepared to adjust the price if necessary to attract more interest.

Prompt communication: Respond to inquiries and messages from potential renters in a timely and professional manner. This will help you build a positive relationship with potential tenants and increase the likelihood of finding a suitable renter.

Utilize social media: Share your Zillow rental listing on social media platforms to increase its visibility and reach a wider audience.

Jacopo Iasiello · Answer

Hi Kyle, Congrats on closing on your first rental property, that's a big milestone! It's great to hear that you're getting a lot of views on your Zillow listing, but I understand your concern about the lack of interest from potential tenants. Here are some things to consider when deciding whether to lower the rent: Evaluate Market Demand,Assess Feedback, Be Flexible, Remember, finding the right balance between maximizing rental income and minimizing vacancy is key to successful property management. Trust your instincts, gather as much information as possible, and make informed decisions based on the current market conditions. Good luck!

Greg M. · Answer

How long is the average listing on Zillow for your area? This will give you an idea of what to expect. If most other listings have been on there for 45 days, you know that is the average rental time.

First Rental property- when to lower rent?

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