All Forum Posts by: Nat Rojas

Time of Year, Property Manager, or User Error?

The property has been listed for 77 days awaiting for a tenant. My question: Vacant because Time of Year, Property Manager, or User Error?

Listing: 1053 Parksley Ave, Baltimore, MD - https://www.zillow.com/homedetails/1053-Parksley-Ave-Baltimore-MD-21223/36546090_zpid/

Time of Year: My optimism says the reason is the time of year, but at this point, something needs to change whether it’s the Property Manager, discounts/rewards (first month half off, etc.), or I need to lower the rental amount..

Property Manager: This is a property manager that was recommended via a real estate agent. Comes from a large company (based out of two different states) and has standard fees. He communicates well and is analytical. My fear is he is waiting for online leads versus taking action. I have a call scheduled to ask him directly to see what he has been doing specifically (which may remove any concerns I have).

User Error: Rent is too high. Currently at 1150. Rentometer shows Average $1085. MyRentRates: $1195. Rent Zestimate: $1195. PM says it’s good where it is. I asked him to lower it from 1200 à 1150 about 30 days ago.

What do you recommend my course of action? I have several lessons learned for the next rental, but encourage your wisdom and guidance as well. Any assistance is greatly appreciated!

@JaMario Price I'd recommend focusing on the comps rather than the zestimate for determing ARV. This along with the rehab estimate will help in your calculations.

Remember, your rehab with be greater than you think, especially if this is your first one

@Ben Feder using a variety of methods (some mentioned in the above posts) start with one member - the real estate agent. From there all conversations should end with "based upon my goals, who do you recommend I should reach out to? "

And keep in mind, once you find a rock star agent, he or she will have a preferred lender, for example, and referrals to other members or even contacts/methods to find you those referrals

At my stage of acquisition, and with money so cheap, I'm taking advantage of and focused with the card benefits:

1. 0% APR for 15+ Months or 18+ Billing Cycles

2. sign on bonus: spend $500 in 3 months and receive $150 back.

3. Cash back 1.5% + on all categories

 Zip codes don't offer much value as it's block by block. Definitely recommend Driving for Dollars and attending local Meet up to ask these very same questions.

Perhaps determine a price point and then find neighborhoods/areas in which provide a crime rate you feel comfortable with

Hi Anthony! Welcome to BP. Best of luck in your journey as it will have its trials and tribulations. Throughout your journey you'll have opportunities for learning and growth. If I may, I'd highly recommend taking full advantage of the resources at your disposal here on BP. Forums, blogs, Podcasts, everything! The faster you learn, the faster you'll grow.

Also, Drive through Baltimore and get to know the streets as it certainly is "block by block"

Let me know how I can help

Nathanael

@Jade Naylor welcome to BP Jade.

Contact more property managers that work specifically within the city and have a thorough understanding of the areas you're looking to invest in. They're able to provide rent rates, and additional information regarding the neighborhood/area/block

Working with a real estate agent that also is familiar with the city at the neighborhood.

Since you're local, highly recommend driving for dollars. Visit the area during different days and times. Baltimore is block by block meaning some streets are much better than others.

@Michael Lee agree with the posts above. I'd like to add myrentrates.com. I've had success with this site and is completely free compared to rentometer

 Thanks for looping me in @Courtney Rollins. 

Yes, I interviewed several PM's and Shanicka at PropertyWize was one of the top choices. I currently have 2 rentals and will be using PropertyWize for the next two that will be settling within the next Month and a half. We have been communicating on and off for the past 6 months and she has provided incredibly quick responses with great customer service. Next, we'll test her skills as a PM!

So far, highly recommend. More to come!!

 Incredible content in the responses you received. I'd like to add to your question regarding the rent rates.

As you've heard, you have to honor the current tenant's lease. Depending on your State's laws, there may be a max allowable % to increase rents. Or, if a bad tenant, for example, find a new tenant and increase to market value.

Do ensure the numbers work as is. I had a recent purchase, current tenant rent $1000, market rent $1200. I ensured numbers work with current rent. Icing on the cake when the rent increases to market value!