When to lower rental listing price?

Question

How many showings a week is considered good? Meaning that the number of showings show you have it priced well? I have seen many say “3-5 showings a week is good”. However, does that include people who wouldn’t qualify? I get many requests for showings, but when I ask them to first confirm they qualify (3X income, etc.) they don’t respond.

Listed 22 days. Have done 2 showings, with one more scheduled for tomorrow. Got 5 applications. Only one applicant qualified but they said in the end the house didn’t have everything they needed. The 2nd person really liked the house and even mentioned how nice the rehab was, relative to comparables they have seen. They made it like they were ready to apply, but did not apply yet. That showing was yesterday

Would love if you give feedback on actual listing. Link here.

Thanks!

Would love if you give feedback on actual listing. Link here.

Thanks!

Nathan Gesner · Answer

Thanksgiving and Christmas are the slowest time of the year. People are busy with the holidays, and very few are focused on moving. 22 days isn't ideal, but it's not bad for this time of year. I think you'll see things pick up in January.

Some other tips:

1. put the toilet lid down.

2. Put the dryer in place and put the door on.

3. Don't use so many pictures. A close-up of the stovetop or the back steps won't sell the house. The purpose of marketing is to attract an in-person showing. Just like a stripper, you should leave them wanting more.

4. Some of your requirements come across harsh. Why mention the tenant will be responsible for appliance repair above ordinary wear-and-tear? That's already in the law and applies to floors, windows, lawn, etc. Why set a 600 credit score if it's negotiable? Why do they have to notify you if they will be gone for more than 24 hours? Your ad should require "proof of income" not proof of employment. Someone could have income from a pension, disability, investments, or even Section 8 without being employed.

I'm not taking the time to study your market, but the ad looks pretty good. I suspect it's because you are competing with the holidays.

James Wise · Answer

I'd see how next 2 weeks go before lowering the price. Nov / Dec are the dead season. Nobody moves during this time.

Caleb Brown · Answer

It is the Winter time so it's a slower time but I think you are overpriced. You can probably hold out for the right renter but you might be waiting a couple months. You are in Blenheim area which is trending up but not as nice as Troost or West. I would think it would rent well in the 1,350-1,450 range, above that it will be tougher. Rehab is nice so I don't think that will be a concern, this is also off street parking so ones with garage will be favored more if you are priced the same.

Levi Perl · Answer

I think I have a pretty standard screening criteria. I ask they first confirm the below before showing. Here it is

Applicants must:

1. Show gross monthly income equal to 3 times of rent (between 1 or more adults). 2. Be currently employed and be able to provide 3 most recent months of past paystubs or other income documentation.

3. Show a credit score of 600 or more (negotiable).

4. Have a decent rental history, including no past evictions.

5. Have a clean criminal history (excludes minor misdemeanors and traffic violations).

6. A showing is required as part of the application.

7. Documents regarding your pet(s), if any: Photo; vaccine records; proof of license with Animal Services; contact info of vet; renters insurance showing pet coverage.

8. Pet deposit is $250. Pet rent is $50/month per pet.

Stuart Udis · Answer

@Levi Perl As other have noted, most decide not to move this time of year unless they absolutely have to and that tenant pool is small. I generally try to put my October through January lease starts on 18 month initial terms to better align with more favorable leasing periods when the units come back to market. Looking ahead, once you secure a tenant, perhaps this is something that should be explored to make the next lease up easier.

Also, @Caria Mitchell raised an interesting point in saying: We are experiencing a shortage of qualified applicants, I’ve noticed non-conventional applicants vs qualified applicants that don’t have a voucher or some form of subsidy.  Usually when a landlord cannot find qualified tenants but are getting a fair amount of inquiries there's an underlying real estate problem and the qualified tenants simply do not want to live in that location. That appears to be the issue Caria is facing.  Could that be an issue you are facing as well? Especially since you are getting a fair amount of inquiries.

Caria Mitchell · Answer

We are experiencing a shortage of qualified applicants, I’ve noticed non-conventional applicants vs qualified applicants that don’t have a voucher or some form of subsidy. If you are receiving 3-5 per week that’s not bad, considering the price is what most individuals look for when looking to rent. Lowering it now might not be necessary. I would consider offering an incentive like a free application fee, or $50 off first month, free parking for 3 months etc. Hope this helps.

Nicholas Mann · Answer

I am experiencing similar issues with time of year being the main culprit. From what I am told, hoping the next few weeks really pick up and I can get my vacancies rented. Best of luck

Trent Davis · Answer

@Levi Perl, is there a way you can ask the people who have not applied why they didn’t?

Brian DeMasi · Answer

@Levi Perl

Let me start off with, I am completely new to all of this but not new to business in general. I’d definitely want feedback after the showings, as you’d get first-hand information from prospective renters. If multiple people chose another house for the same reason or avoided yours for the same reason, maybe you can pivot a little to prevent that issue being a factor for future prospective renters.

I personally dropped the zip code into Zillow and looked at your listing on a map and others nearby. There’s a lot of vacancy in the area with some listed for as long as two months. One that stands out to me is 1801 E 69th Terrace. 3/2 with similar square footage. While I feel it’s not as nice as yours, it’s also listed for nearly 30% less, with similar qualification requirements and pet policies.