When should I start getting nervous? Cant find a good tenant!!

[Allyson Edwards]

Hi everyone,

I have a property in NC that i closed on June 15th. https://www.zillow.com/homes/105D-Brookshire-lane-...

I have a property manager taking care of trying to get a renter. the problem is she is constantly getting stood up by prospective tenants, or people just don't follow up after they contact her. Ive listed it on social media and other sites. I trust she is doing her best. 

Any one have any other ideas? Is this the norm? Flaky people or am i freaking out too early? Does it normally take this long (I live in CA so I have a very skewed view of RE, ill admit that). 

I did my due diligence on this area, I've been there several times, i know the area is growing, and the schools are good (Troutman school district not Statesville). 

So what am I doing wrong? Any help would be appreciated. Thank you.

[Michael Swan]

Another thing, people told me I would see NO appreciation in the Midwest and I just sold all my single family in Euclid Ohio that I first purchased for about $25,000 average a door back in 2014-2015 for $45,000, $45,000, $47,000, and $47500.  That is almost 100% appreciation in 3-4 years time.  These things rent for $775-$825.00 a month.  In a solid C class neighborhood.

Lots of Fake news out here saying that you don't get appreciation.  Jobs are coming back in droves, new Amazon fulfillment center, machining, manufacturing, etc..  not fast food minimum wage jobs.  Thank you Donald Trump!!!

Stay East of the New Amazon fulfillment center in NE Euclid and Lake County and you can't go wrong.  If you go west of the new Amazon fulfillment center in Euclid, you move to a D class area of Euclid, closer to Collinwood.  Feel free to contact me to discuss this area etc...

Swanny

[Frank Wolter]

@Allyson Edwards adjust your rental price

[Stephen Jeffers]

@Allyson Edwards as a precious property manager you PM should be advising you on what to do to move forward. If they aren’t they aren’t an asset to you, they should be very proactive in getting your place rented. Other than price as many have said it could be your PM. I know you think they are doing their job, but I’d verify. I’d try calling from another number or have someone call and get a feel on how respond above and how they are selling the property. Trust but verify.

[Henri Meli]

@Allyson Edwards . I live in NC and feel the same as most here that you are really at the high end of rental prices for this location. Therefore your pool is very small. 

At this point, you should really think more about damage control ... meaning limit your losses...

Maybe offer people a free month to move in, or 1/2 rent for the first x-months ... or convert the place into short term rental ... but it is a completely new area of real estate all together.

Your area in CA might have high rent, but it could be very suited for Short term rentals. I know lots of people in CA who are doing that now.

Good Luck

[Ali Hashemi]

If you can’t rent the whole house for what you want, and you can’t lower your price any more, then you should look at renting out each room. 

For example:

Houses in a neighborhood rent for $1,500. Your mortgage is $1,700. Renters are unwilling to pay $1,700 to rent your house. if it’s a 3bdrm then rent out each room for $700. There’s more turnover and more management but you cash-flow. 

[Christian Hutchinson]

I would furnish the house. Then start calling around to HR Departments of large companies and try to angle for a relocation deal. Companies are always scrambling for housing, in nice school districts at reasonable costs.

I had a $1800/mo place that I was going to turn into a corporate for $3000 furnished. But luckily the house sold.

[Fred Krauss]

We had a problem something like yous.  Property was listed for 2 months and our agent said he said he had not had very little interest and no showings.  We took over and listed it at same price and had 8 showings in a week and rented the same week.  Need. To say we formed our own property management company and rent all if our properties with very few issues.

[Cassie Villela]

Your property manager should be getting feedback from prospective tenants on why it's not renting. Probably the price is too high, but there might also be something about the property driving tenants away. If it's listed on the MLS and other agents are showing it, your PM should be able to get remarks/feedback from them. If he/she can't give you this, it's time to find a better PM, in my opinion.

[Tami R.]

Bad situation. Seems like everyone has helped you figure some of the issues that could be causing your vacancy. On another note, my rent has been right on with the market and I have left the property vacant for 2 months only because the right tenant didnt come along. Sometimes I feel like we have cycles of just crappy tenants to decide from and its not worth renting it to any of them.... to get the house back in 6 months completely trashed with them owing money. Good luck.

[Luan Oliveira]

I haven't read through all of the responses here so ease excuse me if this has already been posted. Just a tip for future properties. Take the listing pictures and set up a ad on Zillow to gauge interest. This way you can play with the rents and see how people respond. If you get a million contacts, the rent is probably too low, so up the price. Same for the inverse.

[Sierra Crisp]

@Allyson Edwards a couple of things... there are a lot of comments here and I haven’t read them all. I own property in California and I would advise a few things. 1. ARE YOU LISTED AT THE RIGHT PRICE? Really research where you are listed to insure your property is competitive with those around it. 2. DO YOU HAVE BAD CURB APPEAL? You stated that people call and then don’t follow up. This usually happens after people drive by and decide they don’t like the area. 3. CAN YOU UPDATE? You may not need to go in swinging hammers yourself but there may be some minor things you can do to make your property more appealing to tenants. These things pay off in the long run. They really do! 4.IS YOUR PROPERTY MANAGEMENT DOING WHAT THERE SUPPOSED TOO ? This one is rough... but I’ve had property managers that just never return calls and say it’s all on the tenant. I usually screen this by pretending im interested in the property and calling the property management. How long does it take them to show it? Do they pick up? Do they have the right property info. Having poor property management can bring your business to a dead hault! Always check in on them. I hope this helps!

[Ryan Thomas]

Hi Allyson, 

I currently live and invest in the Lake Norman area.  If I were in your position I would sell ASAP and purchase something in an area that has more appreciation potential like Denver Concord,  or Kannapolis.  Here are the problems with statesville

1. Its in the middle of nowhere and is still many many years away from becoming a Charlotte suburb if it ever even happens.  

2. People who can afford that type of rent do not want to live in Statesville. 

3. There is businesses like Lowes and NASCAR in Mooresville but there is similar rents in Mooresville.  For example,  I am currently building a primary residence and renting a 3000 sqft new construction house that is 3 minutes from Lowes for $1900 per month. Your place is 25 minutes from Lowes. 

4. Schools in Mooresville are just as good as Troutman/Statesville

Sorry if this comes across condescending but I want you to know the truth about the area. Not sure who gave you advice on Statesville but I would fire them if you still work with them and never take advice from them again. 

[Allyson Edwards]

Hello Everyone, 

I wish I could say thank you to EACH of you for your time and invaluable advice. I have read through all the comments and decided to lower the rent and do a lease option. Ive been lucky enough to speak to a few of you on PM and run some numbers, so I thank you for that...

Im also in the process of vetting the PM further by having someone call. If anyone would like to call and let me know what you find please feel free to do so.

I also spoke to a few more people in the area, (ie) police officer, warranty manager and sales associates from the area. Just a few more extra opinions thats all. I was told Amazon Hub is going in15 miles away, with 2000 new prospective jobs. 

Before acquiring the home I looked over the Iredale county population and housing estimates and planning and that is why I felt this to be a good situation. All population numbers were increasing and still are. New homes have been going up as well( i know that could drive supply and demand) but also these home are starting at $300,000 wouldn't that help as comparables? The house is only 1 exit from Troutman area which tends to be more desirable. I know Statesville has some c and d neighborhoods but this property is not located there.

Im not trying to make excuses just trying to see the brighter, bigger, long term picture. either way i have an exit strategy that I am moving on as we speak. 

I am also going to get in touch with all the people who called about the property and then for what ever reason decided to rent elsewhere, find out what drove their decision and then offer them lease to own, perhaps they would be more interested in doing that option versus just paying high rent.  I also have a local RE attorney I will be contacting in case there is anything legal I need to know for that area.

Again thank you to everyone, and especially those who contacted me personally I feel confident this will work out in the end and shall be a huge learning lesson as well.

@John M.

[Michael Swan]

@Allyson Edwards

Way to go!!  Reach out to me anytime and leave a message in my inbox if you want to talk.

Swanny

[James Ma]

Great news that Amazon is coming to the area! They offer high paying salaries and will help increase the value of your home with the employees that wish to live close to where they work

Sounds like you've put in the effort to make things work and I'm sure you'll do great. I personally have lowered rent by $50 every week until I got enough interest in applicants to know the pricepoint was right. 

[Mike D'Arrigo]

@Allyson Edwards I would have been nervous after 30 days if all you've gotten is flaky people. June is a strong rental month with school just getting out. I don't know your market, but 75 days in Kansas City or Indianapolis which is were I'm active, would be a long time. In my opinion, if this is a decent area, you should have had a tenant long ago.