Help, can't get it rented, what am I doing wrong?

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Help, can't get it rented, what am I doing wrong?

Cali Skier
Oklahoma City, OK · Member since 2017 · 125 posts · 14 votes

All, We have honed the art of scaring off potentially good tenants...Help!   We have a very nice property, has been listed for 7 weeks, we have shown it ~25 times, we believe it is priced right. (we think it is, and others tell us it is.)  We have had a handful of tenants come through, act very interested, tell us they are coming back with spouse or whatever...

I go through this same process every time... and every time after the email goes out (step 3)... communication stops.  Note:  These are people that are texting or calling back after they have seen it, there is real interest, after step 3 it goes away.

Step 1:  Tenant Calls we set up showing

Step 2:  They see it, like it, want to start paper work

Step 3:  I send something like the following in an email

--- Begin Email---

Nice to meet you today, the following is a summary of what we discussed:

Rent: $1295

Deposit $975

Pet: $100 non refundable, $400 Deposit

The following is what I need to process your application:

Copy of each lessee's photo id

Copy of each lessee's most recent pay check stub

$35 application fee from each ($50 for married couple)

$975 holding fee - This holds the property and will become your deposit once you lease the property. This will need to be in the form of a money order or cashiers check so you will want to go to the bank tomorrow

The included files are:

004 and 005 I gave you in person, that's the criteria and application

007 Lease

009 Pet Addendum

010 Tenancy Guidelines

---End Email ---

I have my suspicion of what the problem is, but I don't want to taint your answers.

Thanks for any help, enjoy your day.

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Most Popular Reply

Rob Gillespie
Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
9y

Hi Cali,

I am not sure how your personality is, but the emails look very corporate. 

In my experience, PEOPLE do business with PEOPLE. Especially people they know, like and trust. 

When I rent out places, I try to be EXTREMELY cool with them. I will ask for docs, but I do it in steps. 

I found when you ask for too much up front it is overwhelming. Think of going on a first date and telling her all that you hope to accomplish with her in the next 12 months. (hopefully not too offensive. LOL) It would scare her off in my opinion. 

So perhaps try starting with handing an application. then as they are filling it out ask them if they are paying the fee with check, cash or card. 

tell them that you will review with partner and call them in 24 hours. (be cool)

When calling them back, let them know that you think you can work with them and ask if they would prefer to meet tomorrow morning or this afternoon to get the deposit and sign the lease. 

When you get there then start going over all of the other details. 

Some may argue this, but it works. If done correctly, you will fill units much quicker.

Good luck!

P.S. be careful running the same ad for 7 weeks. it will look stale and may not get as much attention. It will look like you are too picky or the place has issues. Change it up a bit with different profile pics.

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  • Andreas W.
    Durham, NC · Member since 2013 · 502 posts · 215 votes
    9y

    You might be overpriced. A handful of walk throughs is not much at all. My experience is that it takes about 30 walk throughs per signed lease. I tackle those with open houses.  

    1Reply
  • Christine Kankowski
    Real Estate Broker · Temecula, CA · Member since 2014 · 994 posts · 783 votes
    9y

    It seems that you are asking for a deposit at the same time that you take the application. 

    I dont do it this way, because if they dont qualify, I dont  want to have to deal with refunds, etc. 

    Take application, photo Ids, and Pay stubs.   If they qualify, complete a lease, take a deposit at that point. 

    If you've been showing the place for 7 weeks, something is wrong.  Try a move-in credit, or just decrease the price a little.

    1Reply
  • Craig CurelopBusiness Member
    Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
    9y
    Make sure you are pre-screening your potential tenants before showing them the place. If your place is $1295 and they only make $2500 a month, it will be tough to sell them. Also maybe try suggesting a range of price for rent? Say $1100 to $1500. Talk to them and gauge to see what they can afford. Ask them what they are currently paying for rent and why they are moving? Charge extra for pets. Charge extra for a cleaning service? Etc. Brandon Turner wrote a good book that's sold on BiggerPockets called, "The Book on Managing Rental Properties." One of the chapters is dedicated to getting your property rented.
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    2Reply
  • Rich N.Pro Member
    Investor · Haverhill, MA · Member since 2015 · 761 posts · 328 votes
    9y

    I think its your email presentation.  Using words like:  "Summary of what we discussed",  "process your application", "holding fee",  "so you will want to the bank tomorrow" and "criteria".

    It sounds all too formal and not friendly and welcoming.  Also, its a bit overwhelming to come all at once.  Tenants will read something and complete things..... until they need to comprehend and actually complete a process.

    1Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    9y
    Is this a house? I can't imagine paying 1295 for an apartment. Your rent plus deposit is 2 grand. That may be part of the problem
    0Reply
  • Rich N.Pro Member
    Investor · Haverhill, MA · Member since 2015 · 761 posts · 328 votes
    9y

    @Caleb Heimsoth

    Plus the pet deposit would put in about 2500.

    But it all depends in the location.  Properties in MA, can be 1200-1500 in the suburb cities and with last and security deposit... its 3600 to 4500 upfront! Yes, its the norm.  Inner city like Boston and its 2200 to 3500 x 3 !  Pets deposits are illegal in MA.

    Both scenarios are for apartments, not SFH.

    1Reply
  • John Larson
    Professional · Dallas, TX · Member since 2016 · 54 posts · 33 votes
    9y
    It's the $975 holding fee/security deposit upfront. Just ask for the application fee initially. If they qualify then you ask for deposit and first months rent. Although the deposit/holding fee is refundable, people will not want to provide that type of money until the know they are 100% approved. I follow the same process as you up until that holding fee and lease properties quite easily here in DFW and Houston.
    3Reply
  • Account Closed
    Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
    9y
    1. You don't require deposit upfront. That's ridiculous for multiple reasons. Deposit is to secure the property for the tenant, once the application is approved and offered to the applicant. 2. You said taint....hah hahaha
    0Reply
  • Paul Bowers
    Real Estate Investor · Macedon, NY · Member since 2016 · 251 posts · 290 votes
    9y
    Have you reached out to the 25 people that have looked at the place and asked them? Just ask " you seemed very interested, what ultimately kept you from proceeding with my apartment?"
    0Reply
  • Todd Plambeck
    Agent/Investor · Murphy, TX · Member since 2013 · 542 posts · 304 votes
    9y

    In addition to what has already been mentioned, I would suggest you stop doing individual showings.  I used to do it and was running in circles.  Have an open house like showing, tell interested parties they can see it between noon and 4 on Saturday, period.  Having multiple people show up at the same time will make those truly interested act and the tire kickers probably won't show.

    1Reply
  • Cali Skier
    OP
    Oklahoma City, OK · Member since 2017 · 125 posts · 14 votes
    9y

    I thought the issue was handing them the lease and showing them all the rules up front that are scaring them off.  

    A realtor friend of mine was a big proponent of the holding fee.  Someone puts in an application and then they don't sign the lease and now you have lost 2 weeks he said.  

    I hear what you are all saying, and much appreciated, but how do you avoid that?

    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    9y

    I can see possibly having a small holding fee, like $100 or so, but not $975 when they apply. Put yourself in their shoes.

    0Reply
  • Account Closed
    Medford, MA · Member since 2016 · 85 posts · 44 votes
    9y

    @Cali Skier

    @Cali Skier

    As a tenant I have turned away from every property represented by a landlord/real estate agent that has said the words holding fee, it sounds like too much of a scam to me and I NEVER EVER give anybody any money with a written and signed contract. .Additionally you have a lot of fees and prices in there. I want things simple and straight forward as can be. In Massachusetts you can only charge a tenant first, last and security and the cost of a new lock as a move in cost. Applications fees are illegal and so are any upfront fees that relate to pets. 

    0Reply
  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    9y

    Hi Cali,

    I am not sure how your personality is, but the emails look very corporate. 

    In my experience, PEOPLE do business with PEOPLE. Especially people they know, like and trust. 

    When I rent out places, I try to be EXTREMELY cool with them. I will ask for docs, but I do it in steps. 

    I found when you ask for too much up front it is overwhelming. Think of going on a first date and telling her all that you hope to accomplish with her in the next 12 months. (hopefully not too offensive. LOL) It would scare her off in my opinion. 

    So perhaps try starting with handing an application. then as they are filling it out ask them if they are paying the fee with check, cash or card. 

    tell them that you will review with partner and call them in 24 hours. (be cool)

    When calling them back, let them know that you think you can work with them and ask if they would prefer to meet tomorrow morning or this afternoon to get the deposit and sign the lease. 

    When you get there then start going over all of the other details. 

    Some may argue this, but it works. If done correctly, you will fill units much quicker.

    Good luck!

    P.S. be careful running the same ad for 7 weeks. it will look stale and may not get as much attention. It will look like you are too picky or the place has issues. Change it up a bit with different profile pics.

    5Reply
  • Cali Skier
    OP
    Oklahoma City, OK · Member since 2017 · 125 posts · 14 votes
    9y

    First of all, thank you all for your help and insight.  We are green indeed, this is the kids college fund, we want this to work.  So let me answer the question about the property

    It is a house, its 13 years old, in a nicer, pleasant, and quiet neighborhood in Moore Ok.  Most of the houses in this neighborhood run right at $200k.  Which is nice in Oklahoma as property is cheaper here.  Its 3/2/2 + Bonus Room/Dining Room and 1800+ square feet, vaulted ceilings, open floor plan, large master suite with big Australian closet, close to parks, shopping.  Small odd back yard that the previous property manager told me was one of the detractors. - Note, people see the back yard, know the $, say the want it, see the email and stop talking to me.

    About the holding fee...I hear you all.  Willing to get rid of it.  How do you deal with someone submitting an application and another party coming along the next day?  Do you process them one at a time, pick the best, or first to bring the deposit after approval wins?

    About the email and being cool (good points there Rob G.) so... I am coming from this angle... I am trying to be up front with them right off... I don't want to hear them say:  "I gave you $35 app fee x 3 people = $105 and all you showed me was a qualification statement and an application.  Now i get an 8 page lease, a 2 page pet addendum and a 2 page set of tenancy guidelines?  Why did you not provide all this when I gave you the $105 and the $975?"  So I am trying to let them know everything before they get too far.  I can change this method, I want to keep the good tenants, I know what is scaring off he bad ones.

    Thanks for the help all...

    0Reply
  • Kurt Hines
    Investor · MI · Member since 2016 · 102 posts · 44 votes
    9y
    Cali Skier You can drop the up front holding fee and not lose time. Keep showing and accepting applications until you have a signed lease. Process application first come, first serve. Let people know that you will be accepting applications until a lease is signed. Applicants have a short window after acceptance to sign lease, and since you are still accepting applications, if they drop out, you move on to the next person. Another way to think about it is you have the holding fee because you are worried about losing time, but considering it has already been 7 weeks, you are losing plenty of time before you get it.
    1Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    9y

    welcome to the worlds of Property Management LOL.  We dont take the deposit till we approve the app.  we then email them the basic terms and collect the deposit.  Most folks say they will apply and do not.  You are a bit on the high side for moore right now depending on where the house is located but a good price based on the states you have listed.  25 showings though means you are about there.  I would recommend a higher deposit though as that low of a deposit will not cover much in the way of damages.   

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    0Reply
  • Kathryn Daniel
    Property Manager · Gurnee, IL · Member since 2012 · 94 posts · 43 votes
    9y

    I agree with the majority of responses. With my properties I do showings and accept applications until I have a signed lease and deposit. I inform prospects who submit the application and/or indicate that they will be submitting the application that, once they are accepted, they have X amount of time to sign the lease and pay the deposit (which occurs at the same time). Until then, I continue to accept applications and whoever is accepted, pays the deposit and signs the lease first will get the apartment.

    I know that if I were to rent from someone, I would most definitely NOT pay all that money up front just at the application stage. Yes, you give them the screening criteria, but how do they know how likely they are to be accepted? They don't want to run the risk of losing that money when they might not be accepted and would be at your mercy to return the money when they have to find another place to live. It's just too much risk for them.

    1Reply
  • Cali Skier
    OP
    Oklahoma City, OK · Member since 2017 · 125 posts · 14 votes
    9y

    Thank you all, we are killing the holding fee.  What do you do when you have 2 people both are approved but one you have a better gut feel about?  Do you tell them both to hurry up and then you hope?

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9y
    Take applications multiple at a time if you get them. I only run one credit check at a time. when you get a qualified applicant I set a 24-48 hour time limit for response and move on. There are a lot of people who need to be told take the unit or move on. I think I forgot York situation it is the deposit but it also can be the level of detail. I say something like ...thank you for your interest here is the application, send it back with xyz. applications are considered in the order recieved. I would always encourage them to apply but also let them know you are showing to others.
    1Reply
  • Rob L.
    Haverhill, MA · Member since 2009 · 293 posts · 157 votes
    9y

    @Colleen F. & @Kathryn Daniel are both right and offer great advice.  I would change your process. Do group showings only but dont tell each person its a group showing (it helps with no shows). Just tell everyone you can meet them there at a certain date and time. Have people fill applications out if interested while there (or do online applications, that's what we do). Get as many people to apply and then pick the best candidate.

    Lastly, the market commands the price. If your unit is renting its not priced right. Its that easy. Whether its your rent amount, fee, deposit depends on the market norms etc.   

    Good luck!

    2Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    9y

    You never lose 2 weeks. You take applications until you have a signed lease. We give 48 hours from the time we deliver a lease to an individual to receiving payment before we offer it up to the next qualified applicant. The clock starts when we deliver the lease to them (electronically these days). Within 48 hours we expect a signed lease and payment or we move on. 

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    1Reply
  • Cali Skier
    OP
    Oklahoma City, OK · Member since 2017 · 125 posts · 14 votes
    9y

    Thanks all once again, we may have to lower our price, we have had no new calls from zillow in the last week.  Sign drive by calls yes, but not zillow.

    0Reply
  • Cali Skier
    OP
    Oklahoma City, OK · Member since 2017 · 125 posts · 14 votes
    9y

    All,

    We were finally able to get it rented.  Found a great couple with great credentials and were able to seal the deal.  Past background, employment, prior rental history checks.  Made a lot of changes based on what you all helped me with here.

    Thanks!!

    0Reply
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