@Adam York, sounds like you are answering your own question. If the price is similar and they offer more amenities.Also consider that charging top dollar will likely mean not only increased vacancy which you are experiencing now but also increased turnover as people will be less likely to stay very long. A bunch of 1 year stays gets expensive for a landlord. You want to really think about the value proposition you are offering a tenant.

Real talk- it's ALWAYS price. Always. Even if your units aren't in great shape, they'll rent if the price is right. If your units are awesome and they aren't renting- your price is too high. In all honesty- think of how much time, stress and revenue loss this has been for you so far, and there's nothing to show for it. This is a sign that you need a professional property manager. I know most new investors don't want to pay for it, but you already have in your time, vacancy and stress. The annual cost for a professional property manager probably could have already been paid with the vacancy you've experienced. I'm truly sorry you are stressed, but I'd suggest brining in a pro and letting them do their thing so you can focus on your thing- family, finding new deals, your day job, etc. Best of luck!

@Adam York got it. Thanks for clarifying. I was reading into your post to guage the depth of management experience. But this makes a lot of sense. I've done this myself where I went over on a project, decided not to flip it and hold as a rental (crappy BRRRR), and then self-manage to increase cash-flow and re-coup overruns. I hired a property manager 6 months later when I got to the point of evicting my tenant :-)If you're concerned about lack of amenities, perhaps go to the local gym, eateries, etc. and work out a discount pricing (If I get a membership for every tenant in my apartment building can I have it for 50% off). Then you can throw the free gym membership onto your listings as amenities. Yes you'll have to come out of pocket, but maybe less than the price decreases. Whichever way you go, best of luck!

As other's have said, it looks like an office building. The kitchen looks like a office breakroom. Maybe it needs an island or something. I dunno.However everything looks nice and well done but these are not "high end" finishes. It sounds like the units were priced based on the numbers to make it profitable and not what the market will bear. Try lowering one unit substantially and see what kind of attention it gets. I'm not a big fan of gimmick promotions like first month free or half off. Just keep lowering the price until its rented.

The market is telling you your asking monthly rent is too high. That's what I'm reading here. @Adam York

@Timothy Howdeshell When I said "first property" I meant first time managing. The property is owned and was developed by my father-in-law and his partners. They decided to self-manage to mitigate the losses from construction overruns and delays. He brought us on to help with getting them leased. To be honest, we are quickly getting to a point where we are considering suggesting they hire a professional management company instead if we can't get them leased soon.

Thank you everyone for the input!

Marketing as 2bd may be misleading and causing confusion and prospects to lose interest? Also does seem a bit overpriced for only being 1bd and no amenities.

Hi @Adam York , I looked at your place... I'm just going to expound on my thoughts about it, looking it as a potential customer and as an owner would. Outside it's pretty, (but to me it) looks like a (nice higher income neighborhood) Medical Dental building vs. apartments, but that is not a deal killer. It's very pretty. The wood and the white work very well together and the immature trees and landscaping give it a fresh new look. That is a positive. I see no signage indicating it's apartments, no tombstone sign, no building signs. no NOW RENTING banners, no flags at the curb indicating Now Renting, (no unit being used as a temp rental office where you can sit all business day--you have 100% vacancy--12 units!!!) Inside, the spaces do not look like someplace a person would choose to live compared to a standard apartment...if the market were super hot, and getting a rental was hard...and super competitive, people will live anywhere they can get...and make do, but with more attractive offers from competitors at similar prices, they tend to shop for the best they can get for their money. Let me give you an example of two things that jump out at me... Bathroom: There is a huge space between the toilet and the sink and the shower is a (tiny) 30" x 30" (ish) looking space vs a 60" x 34" (ish) bigger space (aprox. tubs size) that fits people who like to eat a lot. (layout issue). Kitchen: Looks like a break room in commercial setting...tiny amount of cabinets in a Huge vertical and huge horizontal space (layout issue). And the Hugeness of the space seems to be amplified by the color white on everything. I also wonder if KC is a big "Loft" town, like NYC is, or do the customers there prefer more mainstream apartments with amenities and standard apartment layouts? Meaning are you trying to sell Haircuts to Hippies and they don't want them, and how much price drop is needed to fill the place...(if you lower your tenant selection standards (ouch, ouch ouch) you might fill up, or if you hit a price low enough (ouch, ouch, ouch) you might fill up. Competitiveness (at a price point): Yours: https://www.apartments.com/401-charlotte-lofts-kansas-city-mo/30xhqwg/ A Random Competitor (seems to be about the same money based on the listing) (look at that big horse out front--those things are not cheap): https://www.apartments.com/steeplechase-apartments-kansas-city-mo/6wkv66v/ Maybe (maybe) try staging, maybe try siting in the staged units for walk ins during the business day, maybe try signage, maybe try rent concessions such as 18 month lease 1 month free, $250 security deposit, prorate 1st, and last in advance. Maybe try a top notch management company. There are a lot of things you can (try), but I assume time is not on your side, and if the clock is ticking 100 vacancy of 12 units needs a lot of interested leads to make for enough closes to fill the place. You need interested leads! Good Luck! What a (potential) vs interest lead might see:

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Updated over 1 year ago, 08/20/2023

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Posts: 15
Votes

Adam YorkPoster

Marketing Your Property

Units won't rent??

Adam YorkPoster

Posted August 07, 2023 05:51

Hey Everyone,

My wife and I are managing our first property and are having an extremely difficult time getting tenants. It's 12 units of lofts in a great area, walking distance from one of the most popular downtown hotspots. They're 1bd/1bth with an open loft that could be used as a bedroom so we're marketing it as 2bd/1bth. We've used services like apartments.com, zillow, and avail and still the leads just trickle in. After 3 months of no tenants we just started a special of $125 off each month for the first 12 months and we're finally getting more leads, but no one is biting! So far we've only got one unit leased and we're getting worried. Any tips!

Here's the listing.

https://www.apartments.com/401-charlotte-lofts-kansas-city-m...

Adam

Kansas City, Missouri

0 Votes