All Forum Posts by: Lisa Hoyt

I hate to get graphic here, but I can't imagine someone, especially a child creating a crap that could not be flushed in a decently maintained toilet. When I broke my arm, I was on narcotic pain medications for a few weeks and they caused constipation issues. I dropped one that felt like it ripped me open and it went down. There has to be another issue here, excessive TP or low flow toilet....

IMO the situation could be improved a lot by 1) advertising that the unit is in an owner occupied building and 2) not having your sister initially show the unit.  That being said, the biggest issue is showing the unit occupied. The applicants are experiencing too much weirdness and bad vibes at one time.  Looking at occupied units is horrible.  Showing up to an appointment to find a reticent landlord showing a unit full of someone else's stuff.  Just yuck.  

I would say you can use the economy and the area of your property in order to be competition wise more competitive with lower rent based on supply and demand . For instance if you have not been able to rent your property for the last three months and you've really marketed it I think you should lower price to drive demand and get potential tenants because you've got to take into consideration those carrying cost that it's taking out of your pocket when your not have the unit rented out  

I personally aim to keep my units 5-10 percent under the market rent to attract and keep great tenants.  I have been renting out one townhouse since 2010 with no vacancies or significant tenant issues (two sets of tenants with the latest tenants splitting up recently and one staying with a new friend).  I recently bought a second townhouse and found tenants in two weeks and they moved in the day of closing and no issues thus far.  I attribute this partly to location but partly to keeping the units slightly under the market price also.  (These are also what I would classify as B class properties, so that helps.). However, my priority is ease of the investment over maximum cash since they are out of state (Nashville) and I don't use a management company (I just have a buddy who fixes things for an hourly rate if things break, but that is rare since the units are less than ten years old).  Bottom line is if it was me I would probably lower the asking price.

As I read this and the replies, the very best thing I could think of for you and your sister right now is actually a different angle. 

Rather than searching out a tenant, instead do an all out, exhaustive search for a property manager (look into credentials, experience, terms, etc and on this site and online about how to get the best the best one possible). I think you want a property manager that focuses on rental not sales (which may be what you had with a broker).

Each market is so unique and situation depends on the facts and circumstances. The very best person or property management firm in your area may be the best short term plan. They will know the exact price the market will bear and screen and select tenants for a living.

This could be a short term solution to reduce stress and get stability.

Then long term you and or your sister could get a chance to learn more about the property management and landlording process. I would start with simple book like Leigh Robinson's Landlording (about any recent edition, available very affordable used). Then expand out from there to other books.

@Lisa Hoyt

Two points for your sister:

1.  I think it is counter-productive to show a unit that is still occupied.  You are going to turn off potential good candidates.  

Wait for them to move out, make it look as crisp and clean as possible, take good pictures and only then, after a month of marketing in rent-ready shape, should you consider adjusting your price.

2.  People almost always rent the best unit they can afford.  By lowering the rent, you are unlikely to find a really well qualified tenant who wants a good deal.  Instead, (as you said) you would simply be more likely to attract more people who could just barely afford to rent your place at the lower price point.  

Market the property well and then find the right tenant.  

It doesn't need to be brought down to bare wood, there are different techniques for different components. It just needs to be "made safe" using the right method for that component. Example, if a flat wall with no outside corners has lead paint, it needs to be made intact with no holes in it. The lead paint can stay if it's not loose (cracked, peeling, etc.) and not mouthable. Meaning a kid can't bite it, like on an outside corner. Covering it with a thin sheet of sheetrock is preferable, then it can never be an issue in the future, but usually we just repair and repaint to save the customer money. 

If you have lead paint and get a lead certificate, the smart move is to preform a "post compliance lead inspection" (PCLI) every time you flip tenants. You don't have to hire a licensed deleader every time, the state usually gives landlords 30 days to fix any issues discovered during the PCLI themselves. There are exceptions, if the tenants destroyed entire walls for instance, but the State really does want to work with landlords to make these units safe.

Phew, that's a big drop and not likely to attract the kind of tenant you are happy with.

 This is a good point. An overall vacancy rate of 8-12% isn't really unusual in the grand scheme of things. It sounds like she had more than 17 years of no vacancy, so she is due.