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Updated almost 9 years ago, 12/07/2015
Houston rental market slow sign of slow down?
So i have a rental at north west Houston current listed right now and it almost hit 30 days mark. It is in a nice area and i was able to lease this one out with no problem in the pass. I wonder is it just me or has anyone see that your rental and sale are now sitting longer on the market?
Thanks
Huy
i increased it by 50 buck to 1250 which is the at the market rate. i think i should have kept it the same at 1200 to attract more application
How many showings? Could just be the time of year (currently between two major holidays).
Have you called the buyer's agents for the rental comps. yet? They may have more clients looking in the area...
I am having the same problem. I have a vacant property in Northwest Houston area that hasn't been rented in 45 days. I see other properties in that same are that just aren't moving. Some have been sitting for over 73 days. I believe the oil collapse is hitting Houston too hard and this will get even harder. Does anyone from Houston have a take on this? Is it time to leave Houston market?
Lower the rent.
I don't think the rent level is currently the issue. For once it is offered at $200 discount for the first month and I have seen others offereing half off first month and still vacant. Also the rent at $1250 is at the lower end of what the others are asking. Those asking for $1100 have a smaller home but then again they are sitting vacant.
Al K, could you show us more about your property? A link to the rental ad would be great, but if you don't want to share that then maybe just let us know the school district, sq ft, and whether the living room is carpet/tile/wood laminate.
Yes. It is in Chimney Hill, 77041. It is 1466 sq f, tile in living room and carpet in bedrooms. It is sfh 3X2. It is in the Cy Fi school district with greatschool rating for elementary of 8, middle of 7 and high school of 6.
Al K., I'm speculating that house prices and even rents are going to have to cool off over the course of the next year, but I don't think that's the reason your house is still vacant.
My first thought is that the photos advertising the house are not as attractive as they could be in terms of lighting and resolution. The resolution of the pics don't fill the frame on sites like Zillow, so your pics (and the house) look smaller and dinky compared to the competition. Next time you get a chance, take the exterior pics during spring or early summer when the grass is green and all the trees have leaves. It might seem inconsequential, but it makes a difference when renters are scanning through tons of options and want a home that stands out as lush and inviting.
My other thought is that although it seems to be in good shape and has pretty good schools, it's still a 1970's property. Parents might be willing to throw their kid under the bus just a tiny bit in order to rent one of the many 2000's houses a mile away, even if it means their kid goes to a middle school that's ranked a 6 instead of a 7. They can get a brand new house that feels more open for maybe $50 more a month.
Your price is right at the Zillow Estimate. I'd try lowering $50 and see what happens. If you bought this house for $85k-ish, you should be sitting pretty even if the rent eventually drops to $1100. Finally, it's probably the slowest time of the year to be renting it out, so try to get a 6 or 18 month lease so that your next attempt is timed during the peak season. Hope this helps...
Thanks a lot for your imput. The house was purchased as a turnkey investment at $112,000 and it is managed by the same company. I am paying attention to that area and the houses are just sitting vacant and there is more coming in for rent which will put more pressure on the price. I am in a dilemma to just sell it and leave the Houston market or drop the price by anither $100 and wait for what's coming.
Decisions decisions
I think what you're seeing for the unrented houses sitting there might just be the same houses that are priced above the Zillow estimate or at the Zillow estimate but with something slightly unattractive about them. I know many people think "Zestimates" are useless, but they're actually pretty spot on when it comes to cookie-cutter suburban rental houses that don't have tons of upgrades. Try to track fairly attractive houses that are listed right at or $50 below the Zillow estimate and see how long they sit there. With better pics and $50 less on the asking price, I think you'll be fine. $1200 for a $112k purchase with no work on your part isn't bad. If you don't desperately need the cash you invested in this house, it's probably not worth selling unless rents drop below 1% of purchase price.
Thanks a lot Chris.
Hi Huy just my little two cents, but I think it's just the time of the year. It's slow right now. I don't think you're asking to much in rent. I've seen properties in an area where some would say is a D area that have rented for $1,200-$1,250 for around the same square feet.
the market in Houston is weird due to the oil price. It took me 5 months to sell my amazing property in Kingwood when in the past similar property went in days.
Originally posted by @Rachel Pervis:
Hi Huy just my little two cents, but I think it's just the time of the year. It's slow right now. I don't think you're asking to much in rent. I've seen properties in an area where some would say is a D area that have rented for $1,200-$1,250 for around the same square feet.
thanks! that will cheer me up a bit This is definitely a solid B area. I guess i am just so used to seeing all my houses rent in less than 15 days. This is the 1st house in the entire 3 year doing rental business breaking the 30 days DOM...
I just had to remove a rental listing in Pasadena 77504 because I was bombarded with requests for viewings. I scheduled a 2-hour vewing yesterday morning and collected 10 applications. It was maybe $50 below market value.
There was another rental (not mine) close by that was just rented in less than a week.
Originally posted by @John Truong:
I just had to remove a rental listing in Pasadena 77504 because I was bombarded with requests for viewings. I scheduled a 2-hour vewing yesterday morning and collected 10 applications. It was maybe $50 below market value.
There was another rental (not mine) close by that was just rented in less than a week.
Wow. That is really strange. I checked that area too. Homes look like they are not sitting for too long. Similar neighborhood, similar homes which actually rent fast for a higher price..... hemmm.
It's always price. If you were to drop the price it will rent. Just think, had you left it at $1200 and rented it immediately you would not have lost essentially two months of rent. The extra $50 a month will not make up for this loss over the course of the year.
I personally like to rent homes a bit below the area average as it gives me a choice of tenants ($10-25 below), and you can make it up on a lease renewal if you need to. Just my thoughts on your situation.