How is leasing going for everyone?

Question

As a landlord, Im just curious how residential leasing is going with everyone lately.  I would guess that during March/April it might have slowed, but now that we are into the summer months, and COVID-19 restrictions easing, are people seeing an uptick in leasing activity?

Mitch H. · Answer

Thanks everyone for the responses - @Craig Curelop might have a vacancy coming up so was curious to hear how other Denverites were fairing.

Cameron Tope · Answer

Hey Mitch,

In the greater Houston area, we're seeing a lot of interest in our properties. We put one on the market Friday and had an application on Saturday.

It seems that people now have more information about their work situation so they feel more comfortable moving and leasing a property.

Lien Vuong · Answer

@Kama Cicero I work in the market also and it's likely the price, units are moving but at a 3-5% decrease in rental rate from the year before. I dont mind and set the expectation for my landlords, I'd rather have great tenants than expensive and them to leave after a year. I advise for gradual increases when things settle down.

Mitch H. · Answer

Just a quick update, especially for the Denver folks.  Per Zillow I had almost 100 contacts in the first 5 days of listing.  About 40 of those followed the instruction given to them to fill out a pre-screener and I would say 90% of them were qualified based on that.  I pushed rents to about 95% of what my best estimate of "Market" would be.  But based on that interest level maybe Im still too low.

In the end, the current resident ended up finding a new roommate, so I didn't have to do any showings.  Moral of the story is that interest was very high.

I do think my product is in high demand in Denver.  Its a well located C class duplex, updated fully in 2015, has a yard etc.  Because its C class, the rents are quite affordable.  Most comparable properties are "nicer" and fetch over $2,000.  Also thinking there might be a lot of people in larger apartment buildings that want out of that environment during COVID.  I think my rental rate competes well with 2br apartments in larger buildings, so the value proposition probably seems rather enticing for a lot of folks.

Matthew Irish-Jones · Answer

@Mitch H. Leasing is doing just fine.  There is still a ton of demand for well cared for and reasonably priced rentals.  Collections have taken a hit but, getting units rented has not been an issue.

At least in WNY

Greg Pond · Answer

I own a property management company in Denver and we are seeing an uptick in leasing activity. We only have 6 homes on the market, but the activity has been strong and looking to sign 2 leases this week, possibly a 3rd. Best of luck to you.

Khaled Morad · Answer

Chelsea, Great to hear you are finding success in our area! I also house hack in Buffalo. What neighborhood are you in?

Chelsea Knapp · Answer

I closed on a double in a nice suburb of Buffalo, NY at the end of March. Needed to get appliances for it, add another laundry hookup, and put up blinds so I made it available for May 1 so I could take my time finding the right tenants. I opted to live in the smaller 650 sf upper and rent the 1100 sf lower. I got a little nervous based on the initial applicants but lucked out and had two young girls sign a lease together as their first rental after living at their parents after college. So far so good and I charged one of the highest rents for the neighborhood as the lower feels more like a house vs apartment. Mortgage, taxes and insurance is covered. Started to look at other properties with my boyfriend as he also owns a double and we are trying to build our portfolio. The good news is that some landlords that are older and were doing this as a “hobby” or supplemental retirement income may be looking to unload as recent times have been pretty stressful for some. One guy I know who runs his business in retail space and rents 4 1 bedrooms above in a building he owns has only had 1 tenant pay the past few months. He’s in his 60s and doesn’t want the stress and his wife is telling him to cash in.

Matt M. · Answer

@Mitch H.

Housing by me is flying off the shelf. Houses are going under contract in hours, days, with multiple offers.

As for rentals- I finished a rehab mid April, listed it for rent. In 6 days I had 70 responses and had it rented for too dollar for May 1.

Mitch H. · Answer

Makes sense, thanks @Chris Lopez

How is leasing going for everyone?

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