Need advice: Frustrated but don’t want to give up

[Denise Pauzano]

Bought a duplex last year in what we thought was an up and coming area. Assessed at purchase price. After tenants moved out, we are now struggling with vacancy for almost 6 months. Renovating but not getting the right tenants. House feels like a complete money pit. Barely cash flowing at this point. Any experiences or strategic perspective? Continue on or try to sell at likely a loss?

[Marcia Maynard]

Why do you believe this is happening? 

Do you have a local mentor that could give you some insight on your property and the local market?

You can turn this around and stay in the game if you truly have the passion and aptitude for the residential rental business. Focus on learning the business and/or find a great property management company to assist you.

Find the ROOT CAUSE of the vacancy issue and focus on resolving it!

Possible causes

• Overpricing
• Quality of Unit
• Quality of Neighbors (homes and businesses)
• Location of Neighborhood, Amenities, Transportation, and Employment Opportunities
• Supply and Demand in your area
• Effectiveness of your marketing  (Are you reaching the potential renters best suited for this property?)
• Your management style  (Make yourself available to field the inquiries. Remember when you interview prospective renters, they are also interviewing you!   Initial impressions are key, as well as great follow-through.)
• Your documents, rental agreement, and property rules (These need to comply with the laws of your jurisdiction, professionally presented, and be top notch to serve both you and your tenant well.)

Good Luck!