How to get Potential Renters to sign up?

Question

Hello All:

This is a great community and I learn a lot from here. I had a question that I am sure experts here can help me with.

I have a Condo and I am looking to rent it out. I advertised through Craigslist and I had 6 potential-renters walk through the house in last one week. Every one seemed very interested in renting it and had lots of good things to say about the house and community. At the end of the meeting, they say "I am looking at more houses and I will get back to you".

But they never get back to me. I am trying to see what should I do for them to sign up and how to translate their interest into really signing up for rent.
Rents are typically 1850-2050. I put the rent in at 2000.

Thanks in advance for all the suggestions on how can I close the deal to rent?

Thanks
Gash
PS: i posted erroneously in other forum and now I moved it to this forum.

Account Closed · Answer

There are always lots of tire kickers. It comes with the business. Not everybody who looks is wanting a place to live.

There are a lot of tenants looking for cash for keys landlords. They will come and try to charm you. If you hold firm with the application and they know you are going to run credit reports, they move on and try to find an easier victim.

I get a lot of lookers who lose interest when they see my application. It's not  a hard one, but it makes it very clear that I am checking references, credit, and criminal. The majority of people who can't pass screening will not bother to fill it out.

Now, however, if you are not getting anyone to apply, there is something wrong. If you have a great place at a good price, some of the losers will try to trick you. If even the losers aren't applying, there is some problem.

Try to look at your place with a tenant's eyes. Does it have curb appeal? Is it move-in ready? No cleaning or repairs needed? Is it fresh and nice?

Have you actually looked at what the tenants can get for your price range. The tenants are going to take the best house they can get for their money. So even though you are priced the same as others, the tenants won't take yours unless it is the very best one for the price.

You've got your condo prices at the high end. So is it nicer than the others?

Decent people don't move during the winter in my area, but winter should not really be a problem in San Diego.

Michael Rossi · Answer

If they could get a comparable unit for $1,850, why should they rent yours for $2,000?

It is MUCH better to have a vacant unit than to have the tenant from hell!  Wait until you find a tenant that meets your standards!!!

Mike

Mark Yuschak · Answer

I will never bend my standards.  Just like Mike said, I'd rather have a vacant property for MONTHS before flexing to get a dirt bag with tons of issues.  I've had extended vacancies....but at the same time, have very little issues with my tenants.

My philosophy is to do the leg work up front, instead on the back end when you're dealing with an eviction.

Get more creative with your ad, where you post it, and potentially offer an incentive.  If the tenant fills out the app and checks out, but they're still on the fence, see what it will take to give them an incentive.  Maybe they don't like the carpet, maybe it's the paint.  Who knows....but it can probably be fixed for a couple hundred bucks.  If they're that good of a tenant, give them something!  They'll remember it and take better care of your property because they know you care, too.

Edward Lamson · Answer

Turning prospectsâ€™ interest into property visits.The way in which you show your rental property to prospects is important.
Avoid walking from room to room stating the obvious. Instead, point out certain benefits of your rental unitâ€™s unique or special features. Just donâ€™toversell the product and talk fast like a late-night TV used car salesman.Ultimately, the best technique for showing your rental property is letting the property show itself, The best result you can expect to achieve at the property-viewing stage is convincing the prospect to complete your rental application and put down a holding deposit. What the prospect can expect from you at this time is the receipt of any mandatory disclosures

T. Desmond D. · Answer

The easiest answer would be to simply ask them what would it take to get them to lease with you?

Jimmy NA · Answer

The problem I have is that every potential tenant is worse than the one before. Arrests, evictions, addictions.....you name it. I have renovated, clean units but only poor choices for tenants. I am at a loss as to what to do. Take the least worse of the choices? Or wait to find someone that meets my standards?

Gash Nag · Answer

Thanks for the suggestions. The places I advertised are:
a) Craigslist
b) SD Reader (www.backpage.com)
c) Paid subscription in Local newspaper
d) www.rentdigs.com

Here is the ad that i put in craigslist for your review:(this ad will be active only until Jan 22nd 2008): http://sandiego.backpage.com/ApartmentsForRent/_2_000_2br_beautiful_dual_master_bedroom_for_rent_in_sorrento_valley_wateridge_/classifieds/ViewAd?oid=2111416
This ad has the pictures.

I also see that initial day I put in Craigslist , I get atleast 5 calls and from next day they fall off rapidly. (I put initially on craigslist and within 3 days changed it to add more info like pictures etc. So i observed that phenomenon twice)

Thanks again,
Gash
PS: Craigslist link was giving error when i add it in this page. so i removed it and added backpage.com list.

Richard F. · Answer

Overall the ad seems adequate, however that level of tenant typically is more likely to want to know the square footage which you have omitted. You do not mention air conditioning, but do mention good ventilation. This implies to me there is no ac. Is the unit furnished as shown? Your market may vary, but in general I find furnished much harder to rent. Also, if the complex is typical for the area/price, I would skip the exterior pics and show off the kitchen and other upgraded features.

When showing a unit like this (for that matter any unit) you will get the best results giving a consistent "pitch", leading prospects through and highlighting  features and benefits. Sales is Sales, even if you are trying to rent. The goal is to get a qualified prospect, create a desire/need for YOUR product, overcome objections, and then ASK for the sale... ask every prospect if they feel the home is what they are looking for, and with any positive response, provide them an application to fill out and return to you once they decide. Be positive about your ability to process their app and get them moved in a timely manner (based upon your standard policy), and also advise them of your routine handling of maintenance requests. It is important to tenants of this level to know they are not dealing with someone that is going to "disappear" when things need done, or use questionable "handymen".

You don't want to "negotiate" with prospects BEFORE you process their app and determine they are worthy, but IF you have a warm & fuzzy feeling about a prospect, you can certainly ask "what would it take to get a commitment from you today?" Just be clear with them that any "deals" are subject to their app meeting your stated guidelines.

You need to listen carefully to comments, and recheck comparable rents to see if you need to drop price, but seems feasible from here...

Lastly, check with the large, nearby employers to see if they have an "in-house" bulletin board or web-site that you can post your availabilities on. Just walk in the front door with a nice 3X5 card and talk with the receptionist or security.

One other thing, are you doing individual showings, or scheduled open house type showings? I recommend scheduled open houses, around lunch time. If people are serious, they WILL come.

Good Luck

Richard F. · Answer

Post a couple pics, interior and exterior, and your ad copy for our review...

It may be as simple as WHERE you are advertising. I have a property in a borderline area that has always been difficult to fill vacancies. there is NO parking, but it is at a crossroads with buses going all directions. In the past, we relied on newspaper ads, sign in the window, and online postings as we do on all of our units. On the last vacancy, we actually had two at once, I had a 3 X 10 black on yellow banner made, and hung it on the side of the building facing a grocery store. huge response, rented in two showings to qualified tenants.

Gash Nag · Answer

PNW, thanks for reply.

I tell people that they can apply for the Application once they want to rent. And hence I did not get filled out application. Most of the applicants give me their visiting card or emails. From email ids or visiting cards, I know they work in some of the big companies close by. So I did not start the application process.

Condo is empty now and I made it neat & clean. Is it Fresh? I am not sure, and you gave me an idea. I will look at it.

And why is rental price high? it is nicer with upgrades. But I donot know how do potential renters view those upgrades. (when they tour, they are feel excited about them). Another reason is, there are no more condos of this size, for rent in this community.. next condos are atleast 3 miles away and older ones.

Thanks for some of the ideas. I appreciate any more ideas on how to translate the "foot traffic to tenant".