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I got the property with the stolen appliances rented today — total turn around time 4 days.
I was also running ads for seller financing but I could not find anyone with even $1000 to put down. Several asked if they could put down $500 now and another $500 later.
My call volume was 3 to 1 for renters vs owner finance
I was only advertising with signs in the front yard and on craigslist.com
I did delete my ad every morning and resubmit it so it would be at the top of the list.This house has nasty carpet – I don’t think it had ever been vacuumed since they moved in a year ago.
The carpet was brand new when they got the house.The kitchen is purple, the hallway is lime green, the bathroom is blue and the master bedroom is mustard yellow.
The living room and other bedrooms are neutral.So I had two choices:
(1) I could pay a contractor to go there to clean it up and paint it – would cost about $500 and a few days time
(2) I could rent it AS IS and pass the $500 savings on to the new tenant.
I did #2 — Deposit only $125
I got 3 applicants.
they all LOVED getting a reduced rent and the 0pportunity to do the work themselves to save money.
The lady I’m renting to is a surgery nurse at a heart hospital. She gave her notice to move out of her apartment by December 1st. She found another place to move to but the landlord called on Saturday and said they decided to move in instead of rent. So here she is, the week before Thanksgiving and no place to move to on December 1st.
She has her own fridge and washer dryer. I agreed to put in another microwave.
She will start painting this weekend and move in Dec 1.
Her boyfriend is a wood floor installer and she asked if they could rip out the carpet in the living room and install laminate that he can get for free where he works.
With all this sweat equity — my guess is she stays a long time.
If I had done #1 – I would be out the $500 to get it fixed up, at least a month of NO rent – maybe two.
My total down time from one tenant to the next will be 4 days with plan #2 and I got $1100 cash today.
The way the economy is tenants are looking for reduced deposit opportunities — it was a win win for us both.
Landlords are competing with apartment complexes. In my area, they are all offering $99 move in specials — so to stay competitive I had to offer a move in special too.
This is a dangerous time to have a vacancy. If you don’t get it rented FAST, it could be January or February before you find a tenant. Not only do you have no rent for 2 months, but you also have HIGH utility bills.
Do whatever it takes to get your properties rented FAST.
Offer reduced deposit
1/2 month rent the first month
Reduced monthly rent for a 24 month lease.Check out the ads apartments are running and see how you can stay competitive.
This is not the same rental market we had just a year ago.
Jackie
I have also experienced the same in my area. A service that tracks rental houses in our area estimates rental inventory increased by 70% or so since April, most likely due to unsold inventory made available for rent. Big property management firms have higher vacancy rates.
The thing is that I don’t really feel comfortable renting with a low deposit. I want to have some money in my pocket when they move out.
But most people in my area will rent with 1/2 to 1 month rent in a nice property. Also, I know at least one landlord who is taking a note as part of the security deposit. I felt the pressure when I had two houses for rent a few weeks back.
Jackie,
What additional screening do you do when you take a low deposit (assuming the house is in good shape)?
On a house that does not need work, my preference would be to offer 1/2 month rent free and take a full deposit so I have some money in my pocket when they move out.
Does anyone else have any ideas?
Thanks,
Pedro
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