Need help finding a renter!!

[Uju Anyanwu]

Hello BP family. I am a newbie in REI from Dallas Texas. My goal is specifically rental property investment. I closed on my first rental property (SFH) 12/19/19. I made this deal with little or no knowledge in REI (bad idea). With the little knowledge I have acquired from BP, I have realized it wasn't a good deal. I am learning from my mistakes and trying to move forward and make the best out of it. The property was renovated by an investor (my guess) before I bought it. I have put in new appliances, washer, dryer, refrigerator. My property has been listed on various sites including Zillow, apartments, for 2 weeks for rent with little prospects. So far only one person has come out to see the property. I need some advise on how to get a renter soon. I tried to use my realtor to get a renter but she is charging 1 month rent. So I am trying to do it myself. I also need help getting a lease agreement. I would appreciate if anyone can share one with me.

The house has carpet with tiles in the kitchen. It is listed for $1550 which is slightly above the median price. I am trying to figure out the best action to take to get a good renter soon. I have been thinking of doing a few things and would appreciate inputs please. My options are 

1. Change flooring in the living room to laminate or luxury vinyl plank (which are cheaper than hardwood flooring). 

2. Leave the house as is and offer first month rent free or half off. 

3. Decrease rent to $1450-$1500

I want to figure out the most affordable thing to do to salvage my situation. I don't have a lot of cash left (invested almost all my free cash in purchase). 

I hope to recover from this deal, learn from my mistakes and hopefully continue to pursue my dreams in REI.

[Marc Winter]

@Uju Anyanwu, congrats on the first investment.  This is what's known as the "Ready, Fire, Aim" school of investing.  But don't worry--it's still salvageable.  

First, take a deep breath, and think about the timing of this purchase:  you closed just before Christmas, and today we are not a full week into the new year.  Most qualified tenants were home celebrating the holidays with their families.  Who goes house hunting during this time?  Your guess is as good as mine, but the majority of folks are not out looking.  

Lower your price $25/mo, put a 'For Rent' sign in the window or front yard, do your facebook, Zillow, Craigslist, etc.  

Have some flyers made up about the house, its features, and rent. Then go door-to-door to around 50 houses surrounding your property;  "Do you have a friend or relative you think might want to live in this neighborhood?"  

If they say "yes", then Bingo!  If they say "live in this stinky neighborhood?  No way!", then you have a possible motivated seller.

Unless you have some experience in vetting and qualifying a prospective renter, it might be a good learning experience to have your realtor (if they know what they are doing in that regard) qualify the tenant--background, eviction history, previous landlords, proof of income, job stability, number of household members, etc.

Good luck!

[John Underwood]

Try FB market place before making any changes to anything.

I never ever provide a washer and dryer. Many tenants have there own, then I would have to remove mine and store them. It is also something you will be responsible for repairing when they malfunction.

[Uju Anyanwu]

@John Underwood thanks for your input. Well appreciated. 

[Joshua Mellor]

@Uju Anyanwu

Craigslist has always been really good for my rental. It may be worth having the realtor place a tenant there if the unit is sitting empty. It sounds like you would be willing to do a first month free anyway so why not give that to a realtor who you can build a relationship with for future deals.

[Marc Winter]

@Uju Anyanwu, congrats on the first investment.  This is what's known as the "Ready, Fire, Aim" school of investing.  But don't worry--it's still salvageable.  

First, take a deep breath, and think about the timing of this purchase:  you closed just before Christmas, and today we are not a full week into the new year.  Most qualified tenants were home celebrating the holidays with their families.  Who goes house hunting during this time?  Your guess is as good as mine, but the majority of folks are not out looking.  

Lower your price $25/mo, put a 'For Rent' sign in the window or front yard, do your facebook, Zillow, Craigslist, etc.  

Have some flyers made up about the house, its features, and rent. Then go door-to-door to around 50 houses surrounding your property;  "Do you have a friend or relative you think might want to live in this neighborhood?"  

If they say "yes", then Bingo!  If they say "live in this stinky neighborhood?  No way!", then you have a possible motivated seller.

Unless you have some experience in vetting and qualifying a prospective renter, it might be a good learning experience to have your realtor (if they know what they are doing in that regard) qualify the tenant--background, eviction history, previous landlords, proof of income, job stability, number of household members, etc.

Good luck!

[David Veeder]

I would go to Zillow and Realtor and find out what your competition is.  Are you just slightly pricing below other rentals in the same neighborhood?  You want to have the most applicants to screen from as well as get them fast, you are burning through money every day!!!  HOWEVER, with this caveat, IT IS MORE IMPORTANT TO GET A GOOD TENANT than to just fill the house.

It is a slower time of year to find a renter and the pool of renters will be a bit smaller.  However, if priced right and marketed well you will get some interest.

I have gone back to putting a sign in the yard.  It seems to bring in candidates that are more committed to that particular area. In the past, I have opened the window shades and put a list in the window of the updates and features of the house.  Of course, you want to make sure that you have a vacant home policy, most policies cover vacancies for a very limited time.

I realtor that will list it on the MLS, and use CSS to schedule showings for a flat fee. However, you will need to pay the cooperating (renters agent) something or they won't show the house.

Hope this is helpful.

[Dennis M.]

I can’t believe anybody is even using Zillow or a realtor or Craigslist these days . I only use Facebook because it allows you to Pre screen The person beforehand . No other platform can weed out idiots like Facebook can 

[Jill F.]

On the washer and dryer, you can add a section to your lease that lists "unwarranted items" i usually put w/d, window treatments, and microwaves in this section. it permits the tenant to use the items while they work but says you will not replace. If bigger pockets has lease agreements for your state buy it; for ohio, the bp lease was better than the lease I paid a local lawyer $500 to write.

[Theresa Harris]

Find out what others in your area are using to list rentals.  Trying to rent over the holidays will be slow.  Give it another 2 weeks and if you don't have a response, you could use your realtor.  Even though it would cost you a month's rent, if she can get it rented faster, it will work itself out as you get nothing when it is vacant.

[Zeke Liston]

Hi @Uju Anyanwu, congrats on getting your first deal! Where are you located? Usually, when I'm having trouble renting something, I lower the price and/or put it on more platforms (Facebook, Craigslist, etc). 

[Uju Anyanwu]

Thanks everyone for you responses. Your suggestions and advice are very helpful. Now I understand its slower to rent at this time of the year. I will be a little more patient. Definitely a learning curve. 

@Zeke Liston I am in Dallas Texas. I have the property listed on Zillow, Apartments, Craiglist etc. I will also enlist it on FB. 

[Uju Anyanwu]

@Marc Winter I will try the flyer and door-to-door advertising. Thanks a lot for the idea. 

[Uju Anyanwu]

@David Veeder Could you please hook me up with a realtor that can advertise it on MLS and use CSS to schedule viewing? Won't mind paying a flat fee if that my best option.

[Uju Anyanwu]

@Account Closed, thanks for your advise and the clue on how to get a lease agreement. So thoughtful. 

[Uju Anyanwu]

Update

So I listed property on Facebook and have good response. I have about 5 people coming tomorrow Monday to see the property. I need some advise on how to screen the prospective tenants. I have been reading on that on BP. Additional advise won't hurt. 

Also, my property is listed on Turbotenant. Do I give them link to that website to apply. I am not sure how to send the application form to anyone that qualifies the prescreen. 

Thanks in advance for your response? 

[Trell Smith]

you have to realize the season we are in its winter, and the holidays just wrapped up. not many people are looking to move around this time especially tenets who are looking for sfh.