Condo rental not getting traction

[Jamie Bergstrom]

Hi all,

I have had my condo listed for rent for close to a month now. I have had two people inquire (without responding when I answer questions) and no applicants. I believe I have priced it fairly based on the unit, condition, parking included and some other amenities. Though, I assume it being winter and COVID impacting the way people are moving around these days are playing big factors. Wondering if others are seeing rental properties move or if you are also having issues? Maybe I do need to continue to lower the price, but worry about going too low. 

How long do landlords usually see it takes to see interest in your properties? Best places or market? Any tips on success?

One person told me he has most success posting on Facebook Marketplace, however even though mine is posted, I do not see my property listed when I do my own search of parameters I should fall into.

Thanks in advance!

[Greg Scott]

A property should rent quickly.  If it doesn't, it is typically one of three things.  Marketing, asking rent, or condition.

Based on your post, it sounds like asking rent and condition are "typical" for the neighborhood.   So, that leaves marketing.

We had tried Facebook Marketplace and did not get a good ROI. It generated a lot of traffic to the Facebook page we had created for our small apartment; we just didn't get much traction from it. Next we stopped paying for Facebook Marketplace ads and just posted a video of the units we were renting on our apartment Facebook page. Of course, the units were in good condition and the asking rent offered value for the area. When creating the video, I mentioned the date I created it so everyone knew it was a new video. After that, the volume of web page requests and phone calls went off the charts. Every unit was leased up quickly.

[Anders R.]

@Jamie Bergstrom

Are the search parameters you are using the same as those you expect prospective applicants to use? When applicants contact you, are you asking how they found your listing? Are there other services you could use to post your listing? Maybe go old school and just post a physical flier? Are you sure your listing is fairly priced? What are you basing that on? What about your photos and description, could they use some tweaking?

Just a few questions that come to mind.

[Jamie Bergstrom]

Thanks @Greg Scott! That is super helpful. Did you have luck marketing it anywhere outside of FB Marketplace, or find this still to be the best place?

Hi @Anders R.! All good questions! The two people who have inquired came from the same place (Domu) so know how they found me. Otherwise I feel I have it posted everywhere I could think of, and  recently packed up all of our stuff (minus some furniture) and took new photos on sunny days so believe the photos are good to go. I have some photography background so believe they should suffice. 

It could quite easily be the price! I am basing it off of rent my neighbors in the unit pay, pricing I have seen on my street..and the unit being top-floor, newly renovated, parking included, near the lake, and in-unit laundry/storage. 

[Joey Nakayama]

Zillow Rental Manager has by far been the most productive platform for me for the last few years. I've had some success with Apartments.com and FB Marketplace, but less consistently. 

If a listing goes more than a couple days without a nibble, I know I've probably overpriced it. I've always found it helpful to go to the map view of listings in my area to see what potential tenants might be comparing my listing to. Hotpads (where Zillow Rental Manager automatically cross-posts) is especially good for this because you can see how many people viewed and contacted each listing. Look at the popular listings to see how they're priced, shot and described. You might get some ideas for how to refine yours. 

Renting in the middle of a Chicago winter is tough...I've been there. When you do find a tenant, see if they'll sign a lease that ends in the May-September range so you can get on a better leasing schedule. Best of luck!

[Crystal Smith]

Originally posted by @Jamie Bergstrom:

Hi all,

I have had my condo listed for rent for close to a month now. I have had two people inquire (without responding when I answer questions) and no applicants. I believe I have priced it fairly based on the unit, condition, parking included and some other amenities. Though, I assume it being winter and COVID impacting the way people are moving around these days are playing big factors. Wondering if others are seeing rental properties move or if you are also having issues? Maybe I do need to continue to lower the price, but worry about going too low. 

How long do landlords usually see it takes to see interest in your properties? Best places or market? Any tips on success?

One person told me he has most success posting on Facebook Marketplace, however even though mine is posted, I do not see my property listed when I do my own search of parameters I should fall into.

Thanks in advance!

In your post you say " I believe I have priced it fairly based on the unit, condition, parking included and some other amenities." What's missing in this statement is a comparative rental market assessment. How does the price you've set compare to the market in your building or within 1/4 mile of your building. What's the comparable days on market for rentals that have recently rented?  For those units that have recently rented what incentives have the owners and/or listing agents used? In certain parts of Chicago, because of COVID, many condo owners are giving one month free rent or some other kind of financial incentive. If your condo is located in an area where those type of incentives are being promoted then you're behind the eight ball.

Study the data then make some adjustments based on what you find. While you can get an answer on this forum about Chicago in general, you need to dig into the area right around your condo to see what's going on.

[John Warren]

@Jamie Bergstrom what price point is this condo at? With my rentals in the near western suburbs I typically have the units rented in maybe two weeks or so. If I don't get 20-30 inquiries a week then it is priced wrong. I am in the 800-1300 price range if that helps. 

[Mitchell J.]

@Jamie Bergstrom feel free to send me a DM and I can help diagnose. Have a lot of experience in pricing and rental out condos (in areas such as Lincoln Park, Lakeview, Wicker, Bucktown, etc) as that’s how I started out as an investor

[Jonathan Klemm]

@Jamie Bergstrom - Curious to what area the property is in?

Being that its COVID And winter is definitely the issue.  If it were me I'd lower the price by $100 right away.  The $100 hit will likely cost you less than if you hold out for another two months, vacancies get expensive fast.

Have you tried Craiglist as well?  If it's a nicer unit you could also consider having a realtor list it.

[Brian Ploszay]

Do not feel bad.  We are in a seasonal market.  People simply move less in the wintertime.  Now, the rental market is slower in parts of the Chicago, compared to previous years.  Blame it on Covid.

Next, put the apartment listing on as many platforms as possible.  

[Jonathan Satizabal]

What neighborhood are you in? I listed a condo in Lincoln Square a couple years ago and had a similar issue. I had to post it to craigslist on a daily basis in order to get any inquiries. The price may hace been a little high but we rented it. Also, due to covid I think the rental market is a little soft in the city. I’ve seen rents that are about 200 or 300 less than they were before the pandemic. 

[Jamie Bergstrom]

Thanks all!

@Jonathan Satizabal We are in Buena Park. I've lowered it and still not much interest. I have it at $2,250 for 2B/1.5B top-floor unit with 2 parking spots included. My neighbors below me have been paying $2,100 for 5 years - they just have been lucky their landlord has not raised the rent. 

I don't want to go much lower, so going to give it a bit of time and see if the market picks up. I'm hoping it is the time of year, but we will see!

[Jonathan Satizabal]

That area is completely saturated with vacant units right now. There are 90 2 bedroom units for rent on the MLS right now. That doesn't include anything by owner or leasing companies that don't list on the MLS. Some units have been on the market since September, You need to find a way to stand out. I don't think it's seasonal, people in that area mostly work downtown and want to be close to the night life and restaurants. It's going to be tough until things open up.

Last month only 16 properties were rented between Buena Park and Lake View East, 13 of those were between 1750 and 2k.

I would do what ever it takes to get it rented. You should definitely be under 2k possibly closer to 1800. Some money is better than no money. And it's only temporary the rental market should be back to normal in 2022, hopefully.

Have you ever considered renting it to traveling nurses as a furnished unit. I've considered doing that in your area if I ever find a condo for a decent price. At least this way you are offering a different product than the rest of the market. 
Check out this sight
Travel Nurse Housing in Chicago Illinois

There's also a section 8 program that helps move lower income individuals to more affluent areas, you can try marketing to them. It's government money and they pay top dollar.

[Jonathan Satizabal]

Leasing with HCV | The Chicago Housing Authority (thecha.org)

Here is some information for the Chicago Housing Authority Mobility program. They offer payment incentives and Tax incentives to rent to voucher holders in your area. You can screen your tenants just like regular tenants. I have had some really good section 8 tenants but you do need to screen them. I'm sure there's individuals that would be happy to move there tomorrow, Again it's only temporary.

[James Ma]

After a month I would definitely price drop with so little action.

General rule of thumb is:

If there's not enough interested in doing a viewing, the price is too high. Definitely lower rent.

If there's not enough applying after viewing, the condition is not good or price is too high for the actual site. Can either fix up the place a bit or lower rent.

[Andy Nathan]

@Jamie Bergstrom I live in Sheridan Park and before that rented a condo at 4334 N Hazel. The prices on those apartments were too high before COVID. I think what is happening is the larger buildings are lowering their rent because amenities they used to sell the properties (pool, gym, etc.) are no longer in service. You might need to lower your price point or look for section 8 tenants. Longer sign up process but it makes things a lot easier for monthly payments. I believe Buena Park is in an opportunity zone which means higher rents (not sure the rate). Let me know if you want some help offline).

Andy

[Candice Kenney]

For marketing, I used TurboTenant - a friend recommended it and really did get my property listing up everywhere!  I don't know your area so I can't speak to pricing.

[Jay Garrison]

Hi,

I got quite a few replies from listing my units on Facebook, but the people responding were the most likely to no-show as well. Facebook is good for empty calories. I liked using websites that let me screen people before they showed up. 

One good thing about Facebook is that you can go and have a quick glance at their profiles, which wow-oh-wow can be super instructive about their potential as tenants.

[Jonathan Satizabal]

@Jamie Bergstrom, Have you had any luck finding a tenant?

Hopefully with a break in this weather you will see more people getting out to look at places.

[Jamie Bergstrom]

Hi @Jonathan Satizabal, yes we did, thank you!! Definitely the weather, and also I think timing. Once we hit mid-Feb and people started looking at April we saw a major increase in traffic. Thank you again for your help!

[Jonathan Satizabal]

@Jamie Bergstrom

Nice! April and May are big months for people moving. Now you can have a lease that expires at the beginning of the peak rental season. Good Luck.