Vacant Units/Property Manager

[Stephen Kichak]

I purchased a couple of duplexes two years ago and am now having trouble filling them. The area is descent (downtown Madison, WI close to the University of Wisconsin). I've had one of the larger property management companies in town managing them as they were when I purchased them and thought it would be nice to let them handle some of daily headaches. At the time they had a good rental history and I didn't think I would run into this problem. They have been 95% full these last two years

I've done upgrades such as a new shower in one unit, new deck on another, painted a deck on a another unit, new flooring in two units, planted flowers out front for curb appeal. Every turnover I touch up paint and have the units cleaned. They are not in spectacular shape but they are definitely better than both of the houses I lived in while in college

My property manager and I have tried decreasing price/offering by bedroom (5br units)/offering furnished/offering first month free/including heat. When I ask him why they aren't filled he tells me about all of the new high rise apartment buildings that are being built that offer internet, pool, workout center, heat included in rent. My units are older and rent at half or less per bedroom than what they are offering so I cant see the comparison. Is cheap college housing a thing of the past?

At this point they are only about a quarter filled with little over a month left to go before current tenants are moving out. I'm worried about them getting filled/having to help cover the mortgage.

Am I getting hosed by my property manager? Does anyone have any suggestions on where to head from here?

[Colleen F.]

if you are trying to rent to students and you have a lot lower price point then these high end pool internet places they aren't your competition. They may be pushing standards up though. You need to find out what your direct competition is offering that you are not. the other thing in my market is timing, if you don't market at the time students are looking and through the places they use to look you have higher vacancy. Lastly don't compare your rental to when you were a student no matter how short ago it was. The student market is to some extent local and can change quickly, the on campus apartment trend may influence you too.