Observations from Re-Renting Rental #1
I just went through the most stressful and time consuming rental turnover I have had since I began renting out Rental #1 5 years ago. Rental markets as with real estate are very localized, but I figured I would share some observations from trying to find a new tenant this year.
It was a far cry from the experience I had with Rental #2 back in May where I didn't even have to listed it to get it rented - the current tenant had a friend that wanted to rent the place.
- Previously when I needed to find a tenant for either rental I found between a "For Rent" sign in the front yard and an ad on craigslist was all I need to get many potential renters to inquire. In today's environment I found craigslist to be a lot less effective than it use to be. I believe the sheer volume of ads on craigslist limited my ad's exposure.
- This time around I expanded my advertising to include Facebook Marketplace, Postlets, and hometownrent.com.
- I found my pricing was less competitive this year in my comparison research. It appeared that there were many houses that were priced for rent below market - they appeared to be houses people couldn't sell for the right price and were trying rent out. I assume may take a year or two for these folks to sell there house or realize they pricing there rental too low.
- I ended up reducing the asking rent to the lowest amount ever to ensure I didn't have a prolonged vacancy. Once I reduced the rent interest in the house picked up and I was able to get it rented successfully. The house ended up vacant for 11 days, the longest vacancy I've ever had. I tried to take advantage of the vacancy by getting some improvements done in the property - new kitchen countertop, new bathroom flooring, touch up painting, replacing rotted trim.
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