Hi vacancy rate in San Antonio?

Question

For landlords or property managers in San Antonio, have you had a hard time filling vacancies recently? My SFR has been vacant since October and people are telling me that multiple property management companies are having a hard time filling vacancies. Is anyone else having the same experience? Further detail below:

I have a 3/2 SFR in Highland Park that had renovations finished in October, and it has been sitting vacant ever since. We were asking too much for rent in the fall, then I understand there being a slowdown at Christmas. Since then, we've been dropping the rent and are now $105 below the amount that I thought would be a realistic floor based on comps and on the opinions of a couple real estate agents who have no interest in the deal (comps taking into consideration location, size, and state of renovations of course).

I have a professional property management company that insists they are getting multiple showings per week and there isn't anything specific that potential tenants dislike about it.

This is my first property in SA but I've done BRRRR from out of state before and have had rental SFRs for 9 years. It's kind of disappointing that I managed the difficult part of the BRRRR strategy from out of state - the purchase and rehab - but am getting hung up on the part that should be the easiest.

Joseph Cacciapaglia · Answer

There are a lot of areas in San Antonio that are tougher to keep rented, but also many parts of town that rent very quickly. Before you buy, you should not just look at the rates of the rental comps, but the days on market as well. In most areas that we operate, we are filling vacancies in 21 days or less, when priced appropriately. One of the biggest problems I see investors make, is assuming you can look at the data for the city, or even the zip code, to judge how a specific property will perform. Imho, you should be pulling rental comps from your subdivision or neighborhood only. If you have to go wider than that, I would always assume some discount as a margin of error.

Jose D. · Answer

@Heather H. That area is pretty rough the closer you get to Little Red Barn Steakhouse. C- to D imo. It's a little better the closer you get to Clark Ave. Probably a C.

Is it possible the comps were closer to Clark Ave and your rental is closer to Little Red Barn?

Brett Cox · Answer

@Heather H. Hi Heather, I have just one SFR rental in San Antonio, but I’ve been renting it for 5-6 years and it was vacant for a week or two when I first listed, but hasn’t been vacant since then.

I’m surprised to hear your problem, so I’m thinking it must be due to your location. Mine is near 1604/i10, near many major employers and UTSA.

Another thing I have done is set my contract schedule to the UTSA school schedule (and really all school schedules). People across the board move a lot during summer after school is out. That could be a big help going forward. I did a few 11 month contracts at first until I got the timing right with contract renewals.

I hope you can get it filled soon!

Camille Roland · Answer

@Brett Cox  That is defiantly a great strategy! @Heather H. I agree with what is being said, According to TAMU research the Vacancy rate is anywhere between 6.1%-7.7% with the lowest rate being in north central and the highest being in south San Antonio.

Rick Pozos · Answer

Hey @Heather H. inside of highland hills there is some variance of prices and condition of homes. If we knew a little better the part of the neighborhood and the price that you are trying to get for rent we could better judge. If you want, I can go by and check it out and give you an honest opinion. I am sure that @Will Pritchett would want to go with me to give you another opinion also. Let me know offline. My info is on my profile.

Will Pritchett · Answer

@Joseph Cacciapaglia great points! Thank you for sharing those ideas for running comps.

Jerry Lundergard · Answer

My rentals always sit in San Antonio. I have tried several PM, both good but after my last rental sat for nearly 60 days I knew I was gonna try somebody else. So same problem with this rental, I am at 30+ days and counting. I am having to tell my PM to drop price and stay on them about it. BTW, my property is a B+ to A- property in NE San Antonio at the 1500$ range 4/3.

This season is terrible for renting IMO but great for buying.

Will Pritchett · Answer

We don’t have any properties in Highland Park but most of our rentals fill quickly. We had one near Culebra and Callaghan that took over a month and that was our longest vacancy to date. The season isn’t helping you. Would 50 dollars lower make it cash flow negative? Sometimes waiting for your price costs more because you miss a month of rent which would be better - even at 50 dollars a month less. It would only be 600 dollars for the year. I know you already dropped it to what seems appropriate. When you do rent it, consider six months or 18 months so lease ends in summer. You’ll rent it for more and faster, by far. The short answer to your question is that demand has been high for our rentals from NW SA to SW SA. I would guess you’re mainly feeling the effects of winter. The house sounds attractive to families and families don’t prefer moving during the school year. Last option is section 8. There is quite a demand, I hear. We don’t participate yet but we’re considering it for a couple of houses. It is a love it or hate it system from our friends that do it. One friend does this exclusively and says she has great tenants. Best of luck to you!

Agnes Greco · Answer

My daughter rents in San Antonio.  The downstairs unit has been vacant for several months and the next door property also had a unit vacant for several months.  On the other side is a 3 plex that was for sale for several months as well.  I don't know SA very well and this is just one case.

Hi vacancy rate in San Antonio?

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