5 Learnings From Filling My First C-Neighborhood Vacancy
This past week I filled my first vacancy and answered a number of my own uncertainties and fears. While agents can help provide great tenants they come at a steep price. As a new investor I wasn't willing to give this learning opportunity away - especially at the cost of a full month's rent.
1. Make a great listing
The number of poor listings I saw, going so far as showing no photos, was jaw dropping. Every landlord should seek tenants that choose to live in your unit not ones that have no other option. Poor listings only encourage the latter.
2. Remind applicants of the requirements
Over my first week I received over 100 leads through the usual sites - Zillow Network and Craigslist. I responded to every lead by reiterating the requirements I listed in my posting (that I suspect a majority of applicants didn't read at first). While I can't confirm, I suspect I saved myself a few let downs by not wasting time on applicants who would fail my screening.
3. Use an auto-reply
Going forward I'll change my approach to use an auto response and request that applicants email a separate email address if they meet my requirements and are still interested. Responding to 100+ leads isn't productive. A good automatic reply, especially emphasizing why it exists to begin with, shouldn't deter good applicants and if anything you give them an opportunity to stand out by following up.
4. Be flexible
Scheduling showings together is convenient, safe, and productive, but it's not always possible. A number of landlords probably hold 9-5 jobs with no issues taking off a little early or heading in a little late. A lot of our tenants don't. Don't miss out on a great applicant just because you don't feel like driving to the property twice in a day.
5. Screen screen screen!
It should go without saying that you need to screen your tenants, but don't resort to paid services only. A quick Google search or your local cities court cases can help you weed out applicants that are just going to cost you time. Even while repeating my requirements involving background checks I still had tenants apply that I was able to easily disqualify with a quick search.
Filling a vacancy yourself can be scary, fun, and rewarding at the same time. But it's something every landlord should do at least once. While my first search only took me a week, it was time consuming and at times frustrating. Applying these lessons to my next search should save me at least half the time I spent on this search while saving me a month of rent by avoiding the use of an agent.
Comments (14)
I will be in the same boat soon, and we've had inquiries already from some locals which simply would not be desireable tenants. We decided a straight forward approach to those who ask. We will tell them that we do a background and credit check, the credit check they will pay for. If they don't think they will pass a credit check, don't apply. We will also do a reference check of previous landlords. If all passes, we tell them what the rent and security deposit will be and it needs to be cash for starters. I do like the screening questionaire for those who respond to an on-line listing.
Peter Wade, over 8 years ago
@Anton Orlik
Really good article to read. I definitely agree, as in all management/supervision, it is very important that you learn each step, hands on experience preferred, along the way in the process. This will only make you stronger, knowledgeable, and appreciative to whoever may do this task in the future.
Bill
William Wilson, over 8 years ago
Anton Orlik, over 8 years ago
Hi,
I learned quickly to create a canned e-mail (saved as a draft for easy cut/paste into response) upon inquiry from my Craigslist ad (never give phone number) and it has made things so much easier. It weeds out lazy or unmotivated people, shows me they are easy to contact via e-mail, and saves me from those "crazy callers" we used to get! Here's the content:
Thank you for your inquiry.
Please fill out this initial screening questionnaire to see if the property is a good fit for you.
Name:
Phone number:
e-mail address:
Current city:
When do you plan to move?
How many people will be living in the rental?
What is your occupation?
What is your (spouse, roommate) occupation?
What is your total net monthly income?
Why are you looking to move at this time?
What types and sizes (weight) of pets do you have?
Suzanne Nelson, over 8 years ago
Suzanne,
Great idea and it's similar to what I did. Still, replying over 100 times is frustrating especially when applicants (at least in my case) didn't follow up. I plan to follow a similar plan next time but I'll use an auto reply to save myself from having to email the repetitive responses.
Anton Orlik, over 8 years ago
I love this questionnaire idea! First, it will weed out the people who don't want to take the time to do it, and then it will get you your answers right away.
Also, I have learned that I only like doing open houses for showing the place. So many flaky no shows in the past.
Julie Marquez, over 8 years ago
Julie Marquez, over 8 years ago
Sorry, I'm not sure what the C-class designation means?
Lucy Bettencourt, over 8 years ago
Lucy, c-class would refer to the lower end neighborhoods. I would consider D a neighborhood to avoid at all costs, C/B then become your majority, with A being upper class housing, new, etc. Obviously these categories don't have a particular metric applied to them as it would vary wildly by market.
Anton Orlik, over 8 years ago
Thanks I wasn't sure what A, B, C, D class neighborhood's were either.
Account Closed, over 8 years ago
Filled first vacancy and already sharing excellent points on the process. Nicely done, Anton!
To help whittle down the masses (after posting an excellent listing witth quality pics, of course), I ask 5 questions at the bottom of my ad copy. These help save a lot of time and frustration: How many people? How many animals? Is this far from your work? Does anyone smoke? How soon would you like to move?
With these answers one can quickly see whose worth getting back to via anonymous e-mail. Folks will tell you where they work and how !much they earn. It will help avoid crazy & desperate or one that sounds perfect but can't move for 3 months.
Thanks for sharing and best wishes to you going forward!
Steve Vaughan, over 8 years ago
Steve, I appreciate the advice. Since I clearly outlined my requirements in the both listing and in my initial response I wonder if it brought the number of non-qualifying responses down. Unfortunately there's no way to tell at this point but I'd be very curious on what my response rate would have been had I not re-iterated my minimum requirements in my email.
I can't help but think that the simplicity of inquiring on Zillow/Hotpads has resulted in a lot of poor leads. I wasn't too surprised to see Craigslist having the best response follow-up rate. It takes much more effort to inquire about an apartment on Craigslist than the 1-click on Zillow Network.
Anton Orlik, over 8 years ago
Great piece! Very clear and concise. With 100 leads (especially if many were solid), it sounds like you did very well marketing the unit; you also may have some great "C" demand and could grow too as you get better and better at it. Congrats.
Michael Boyer, over 8 years ago
Michael, I think that's the biggest issue I had is that many leads were not solid. My next article will outline the funnel and waterfall I saw during this vacancy process and how low the follow-up rate was. The leads were certainly there though and it likely has to do with my market mostly consisting of C and A class housing with little B-class.
Anton Orlik, over 8 years ago