Good Tenants Hard to find

[Jesse Aiken]

So, I have a big beautiful newly renovated flat in a good location that I listed a little over a week ago. I have good pictures, a nice video (uncommon for my area), am priced below the competition, and have my listing on 5 different sites. I don't even bother with a sign in the yard because the calls that come from that are even worse. I have gotten over 80 contacts that have resulted in one showing scheduled (yes ONE) with the only prospect out of 80 that I think may be a good tenant (and she is from out of town) and remains to be seen whether or not she will even show up (in my experience 1 out of 2 don't show). I invest in Erie PA and this is why I have stopped my original plan of expanding in this area...the tenant base SUCKS if you want to have good properties and good tenants while getting a good return on investment. It seems that the most success in my area  is among investors in D-class neighborhoods with D-class properties that they buy for next to nothing and their tenant base is, you guessed it...D and F-class tenants. Makes things easier when you take the first warm body that doesn't have a recent felony and government assistance to pay low rents. Maybe I just don't want it enough, but I don't think that's it; I think it's a moral issue and I just don't feel good about it. A select few are having success with A-class and student housing (with risky high-end rents that may not be sustainable in this market), but it isn't common and it's a small market and shrinking. I'm still doing well with my investments, but its a struggle. Is the middle class disappearing, or exiting the rental market? IDC how much of a discount (unless they are going to give it to me) or how high the return is, it's just not worth it to me to be a junk dealer and I would rather invest in another area/niche or make money through business and invest more passively with a slightly lower return. Earlier today I saw a post in a local REI group offering a duplex for 15k...and I don't want it. If it was a good deal, they wouldn't be offering to others; It's junk with nothing but problems and headaches. I don't see how it can work if only 1 in 100 renters are good tenants with reasonable standards. Maybe its just my market, but I'm curious if anyone else is having the same problem? 

[Jonathan Rodriguez]

@Jesse Aiken I try to focus on the positive stuff in life and crazily I only get positive results.... I had 3 apartment rented in the last few months all under 2 weeks to great tenants. Communication and sales skill are helpful.

Good luck stay positive

[Sam Shueh]

Put a big sign in front, aggressive on marketing..... After 1 month reduce rent. Good luck.

[James Galla]

Originally posted by @Jesse Aiken:

So, I have a big beautiful newly renovated flat in a good location that I listed a little over a week ago. I have good pictures, a nice video (uncommon for my area), am priced below the competition, and have my listing on 5 different sites. I don't even bother with a sign in the yard because the calls that come from that are even worse. I have gotten over 80 contacts that have resulted in one showing scheduled (yes ONE) with the only prospect out of 80 that I think may be a good tenant (and she is from out of town) and remains to be seen whether or not she will even show up (in my experience 1 out of 2 don't show). I invest in Erie PA and this is why I have stopped my original plan of expanding in this area...the tenant base SUCKS if you want to have good properties and good tenants while getting a good return on investment. It seems that the most success in my area  is among investors in D-class neighborhoods with D-class properties that they buy for next to nothing and their tenant base is, you guessed it...D and F-class tenants. Makes things easier when you take the first warm body that doesn't have a recent felony and government assistance to pay low rents. Maybe I just don't want it enough, but I don't think that's it; I think it's a moral issue and I just don't feel good about it. A select few are having success with A-class and student housing (with risky high-end rents that may not be sustainable in this market), but it isn't common and it's a small market and shrinking. I'm still doing well with my investments, but its a struggle. Is the middle class disappearing, or exiting the rental market? IDC how much of a discount (unless they are going to give it to me) or how high the return is, it's just not worth it to me to be a junk dealer and I would rather invest in another area/niche or make money through business and invest more passively with a slightly lower return. Earlier today I saw a post in a local REI group offering a duplex for 15k...and I don't want it. If it was a good deal, they wouldn't be offering to others; It's junk with nothing but problems and headaches. I don't see how it can work if only 1 in 100 renters are good tenants with reasonable standards. Maybe its just my market, but I'm curious if anyone else is having the same problem? 

So, it sounds like you're ready to move on to Milcreek. Frankly, you can't invest in crappy areas and expect the cream of the crop when it comes to the tenant base. Erie has definitely slowed down over the last couple of decades. And, you're not going to attract the good, higher-paid workers, in the more metro areas. For instance, Lord Corp. constructed a multi-million sqft facility off of upper peach. You can't expect those folks to start renting on 14th street. Those folks are either purchasing their own homes in some development (possibly a Maleno dev. - shoutouts to them) or renting in a higher quality area.

The fact that your qualified candidate is from out of town demonstrates they might not have knowledge of the property's neighborhood. If you grab them, great, but I'd expect them to leave within the year. Also, you may be walking into the over-upgrading territory. If your property is in a lower-tier area, making it "newly renovated" may be a waste of money because you're not going to attract pristine tenants in a low-income area.

Anyways, good luck.

[Mike Franco]

good tenants (on paper) generally aren't that difficult to find.

The only big unknown is how much of a slob prospective tenants are.

You can check for credit scores, evictions, etc. But you'll never know how badly they can damage your home.

[Pat L.]

Originally posted by @Mike Franco:

good tenants (on paper) generally aren't that difficult to find.

The only big unknown is how much of a slob prospective tenants are.

You can check for credit scores, evictions, etc. But you'll never know how badly they can damage your home.

Exactly. Neighbors had a recent who passed ALL requirements plus his father is a local builder. Apparently he always paid but the dog left a mess so he lost the $1800 security deposit. But then again we have a tenant that has been with us 14 years in a SFR & she still direct deposits the rent one week before its due & deposits her water bill (in our name) as soon as she gets the bill from us. Then we have some that always paid but consistently with a late fee.

[Dennis M.]

@Pat L.

It’s funny you say that Pat and your right , you just never know . It’s crazy how you can do all your due diligence screening and there’s always a few wild cards in the deck . Last year I had a tenant who was very picky about the condition of the rental when I showed it and he rattled on about cleanliness and how he’s going to have to clean it to his standards because he’s a clean freak and ocd about orderliness.. I was pleased to learn he’s going to be great for this place and improve it ..fast forward >he turns out to be an absolute slob innevery part of his life.. his own looks ,his clothes he wears his car ..his unit stinks and is always filthy with food laying out ,clothes strewn everywhere and trash piling up on the deck ! Go figure

[Dave Chow]

I think good properties in good locations with reasonable rent would alway find good tenant candidates. 

[Pat L.]

Originally posted by @Dave Chow:

I think good properties in good locations with reasonable rent would alway find good tenant candidates. 

 Boy do I have news for you !!!

[Quincy Lockett]

@Jesse Aiken

I’m in the south suburbs of Chicago. I have a newly renovated 3 bedroom apartment priced 25% below market. I’ve had 140 inquiries over 60 days and no contract yet. 90% don’t reply to your return correspondent, 5% don’t show to the confirmed appointment (that day) and the other 5% you don’t either say they want it and stop responding or are not interested. I thought it was just like that in C/D Class markets. It’s not worth it if you can’t find decent tenants.

[Dave Chow]

Originally posted by @Pat L.:

Originally posted by @Dave Chow:

I think good properties in good locations with reasonable rent would alway find good tenant candidates. 

 Boy do I have news for you !!!

Well if it does not work, then you are investing in a wrong area and with a wrong property !!! When I say area, it is defined as cross different states. Not try to be mean, but buy in the right area with the highly-demanded market strategy have been working very well for me. We recently put a town house in the market for 5 days and got 40 inquires. We only showed to 4 qualified applicants on one day. At the end we rented to 1 couple with price 30% higher than the listing price. We Check over several hundred houses online a week but eventually end with a deal within 2 to 3 months. Of course read some failure stories from some BP blogs would help as well. Keep open mind and stick to the right strategy !