Challenging Apartment to Rent

[Carlin A Guarneri]

Hello all,

I am renting out a "2" bedroom apt in a 3-fam I recently closed on in a new area I'm investing in. I've enlisted a Realtor to help fill the fisrt time around so I can see what kind of feedback it gets and we've been having a challenge renting it out for multiple reasons. The feedback I'm hearing is the 2nd bedroom is too small (it is admittedly small and we took this into consideration by dropping asking rent), as well as there is a quiet local bar next door that turns people off (bar in middle of residential neighborhood).

We have had a lot of interest, however the rental pool has not been the best. The ones that are interested either have bad/no credit, not enough for 3 months (1st mo and 2xSD), or again ... are turned off by the small bedroom or bar.

Am looking for some constructive advice on how to fill this with a quality tenant. That being said as well, understanding this is a neighborhood might not pull the best quality tenants (its not a war zone, its more laborers mixed w Sec8), what advice would you give me to fill this w a quality tenant? 

I'm fine lowering the rent more (still makes my CF criteria), just concerned what prospectives that may bring with it. One thought I've had was to list it as a 1br with a bonus bedroom.

Any and all constructive feedback and advice is most welcome!

Thank you in advance,
Carlin

 

[Jacob Sampson]

I have never charged 2XSD.  I collect 1st month rent and a security deposit that is roughly the same as first months rent.  I try to avoid purchasing properties with problems I can't fix.  For example, the bar.  That being said, you may have more luck by not requiring so much cash up front.  Your clientele simply don't manage their finances well enough to come up with that amount.