Having trouble renting my first investment property (Denver, CO)

[Tyler Peters]

Hi all,

I just bought my first investment property last month, and I'm having trouble getting renters interested in the property.  It's a small 2BR/2BA, about 820 square feet, just outside of Denver, CO (in Wheat Ridge, about 15 min drive from downtown Denver).  I don't live in Denver, so I'm using a property manager.  I checked with 4 or 5 property managers before deciding on one, and they all gave me rental estimates of 1300-1400 per month.  I settled on a manager who has been marketing the property for about 3 weeks, and so far I have zero interest.  I started asking 1425, then dropped to 1325, and just last week dropped it to 1250.  The property manager is now telling me they don't think I can get more than 1200.  

I don't want to make a rash decision and drop the rent to below market, but I also don't want to leave the property vacant.  Any tips on how I can get more interest?

If you want to see the listing, please reply and I'll post the link.  Thanks very much for any help or advice!

[Bill S.]

@Tyler Peters so there are really a ton of questions I have. I'll start with the obvious. 

1) How is the property being marketed now? What is the PM doing to fill your unit? Are they filling other units at your price point? If the property is being marketed properly then how many calls on the property? If no calls then you are way too high. If a few calls and showings but not takers then still too high.

2) How did they support their your initial price of $1,425? My rule is to never over price a property it costs you time and money. That is, it sits on the market longer and then ultimately rents at a below market rent.

3) $1,425 is definitely strong for at 2 bd in Wheat Ridge. I don't know where it is there but it is above what I have seen. I have a few similar units (based on your brief description) and I had projected market rents to be $1,000 per month.  My units have washer dryer hookups but only one offstreet parking space (so no covered parking or garages), no central AC, no private outdoor space like patio or yard.

4) I know some PMs tell prospects very high prices to entice the prospects to sign with them but having several companies all tell you the same thing is a bit unlikely. Was there a "Russian judge" that you threw out? Didn't someone give you a hint  of what's really a viable rent rate?

Last thing is to jump on Craig's List and Zillow and see what you have for competition right now. That will tell you the real story. Do you find your place when searching on those sites. If not, your PM needs to be fired.