Apartment Vacant for Almost 3 Months

[Andrew C.]

I'm an out-of-state investor relatively new to the Louisville area. I recently closed on a tri-plex in the downtown area and one of the tenants moved out and my unit has been sitting vacant for about 3 months now. The unit has been turned and everything has been updated. Is this normal for the Louisville area? Any advice on how to manage the property management company to track leads better? Any advice would be appreciated. Thank you.

[Drew Sygit]

@Andrew C.

There are really only two main reasons a property doesn't rent out:

1) Not enough exposure to the right target audience

2) The audience doesn't like the price-value relationship

To drill down on what the problem is:

How many views are you getting?
---Not enough is a sign that the property is not getting enough exposure, has a bad initial view or is priced way to high

How many inquiries are you getting?
---If a decent amount of people are viewing it, but not inquiring for more info or a showing, then they are not liking what they see when they view the ad. Either price is too high for what it is, or has bad pics or bad description or not enough showing availability.

How many showings are being scheduled?
---Not enough is another sign that price is too high for what it is or has bad pics or bad description or not enough showing availability.

What percentage of showings actually happen?
---If too many showings are cancelled, curb appeal may be an issue or may be part of the market and more confirmation is needed.

Lots of showings but few applications?
---Usually a sign that price-value is perceived to be out of line. Need to lower price or improve the product.

Some more ideas:

1) Is it on the MLS so other agents can show it?

2) Are self-showings being offered for more showing schedule flexibility?

3) Have you reviewed the ad type and pics on your phone (how most prospects will look at) to verify acceptable?

4) What MoveIn Specials are being offered?

5) Is there a 3-D Tour? What about a floorplan, so prospects can envision where their furniture may go?

Ask your PMC a LOT of questions about what they are doing and try to brainstorm fixes.

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