OK - I need some suggestions on how I can compete.

Frankly I'm thinking of divesting myself of my apartments.. I can earn about a 30% equity profit. I was hoping to wait for them to double in value and let my partner sell them after I kick the bucket.

We have several large REIT owned, government subsidised, apartment properties in our market. They literally are giving away rentals.

I've owned my properties for 4 and 5 years now and we have constantly had vacancy and retention problems. (We are in a winter season resort town in AZ.) I have never had full occupancy. My units rent for $395-$425 for a 1 bedroom and $495 to $525 for two bedrooms, though I discount the 2 bedrooms down to $450 for single seniors. They are nice properties.

The competitions latest advertising - "FREE FIRST MONTH and NO DEPOSIT!" (On a 7 month lease.) Plus pet charges waived, just a $99 "processing fee" (service animals free). I don't allow pets.

In other words, move in for free, bring your pit bulls, provide no deposit and don't have to pay for 30 days.

PLUS they pay water, sewer, trash, AND FREE CABLE! This on a two bedroom apt for $480 a month. That means before taxes, maintenance, capitol repairs and mortgage they net about $350 per unit.

Plus they have a pool.

I really don't see any way I can compete anymore. I'm losing ALL my interested parties to these properties. I've had two units vacant for three months! So have many other smaller properties except the total slum/druggie properties.

Anybody have any ideas? I can't drop my rates any more and still make it worthwhile to service the properties.

Have you called your competition and pretended to be a potential tenant?

I hear you, LTD. I have the same problem with competitors. Just can't offer the same amenities in my one bedroom older units. And not only that, I can't find qualified renters.

I can't and won't give the keys to just anyone just to get a warm body into my one vacant unit. And there have been absolutely no good prospects.

Have you thought of ways to offer what your competition isn't offering?

You say you have nice properties, but is there anyway that you can improve them inexpensively? Sometimes little things like lighted closets, under-the-cabinet lighting in the kitchen, new coat of paint with modern colors, upscale showerheads, attractive bathroom cabinets, etc., can attract tenants.

Size up the outside of the units. Could they use shutters, flowers, a fountain, etc. to make them more attractive?

Make the properties so inviting that the prospective tenant will choose to live in your units instead of the competition's.

Many people will not want to live in units filled with pets. Advertise your properties as "Pet free! Enjoy good living without having to put up with barking dogs, or crying cats in the night!"

Maybe increase your security to make the units more attractive to older tenants.

Falling prices will create alot of tough competition ... hard to compete with someone who paid alot less for thier place.

You said you're in a resort area .... have you looked at converting to a furnished vacation rental or Motel Alternative.

Check VRBO or Homeaway and see what the competition gets for rents and tenancy. You'll also see pics of how they furnished the place.

You have clearly stated you can't compete on price. Find the place in the market where you don't go head to head on price. Offer something they can't or don't.

You mentioned single seniors as someone that you do discount for. What about marketing to them? Seniors don't want a pool and don't want the noise (kids crying and loud parties) that comes from the big plexes. Figure out ways to market to them. Where did the ones you have find out about you? You will likely have less turn-over as they don't want to move and don't have the resources to pack up every year.

You have lots of security, play that up as well. Look at other business that market to seniors and team up with them in your marketing campaign.

You need to carve out a niche'. Figure out what they want and offer it. People will pay more to get what they want.

Do some internet research about what your target tenant wants. Find out how to advertise to them. Perhaps there is a local senior print paper that you can advertise in. Most seniors are not comfortable with Craig's List. Convert two of your 1 beds to 3 bds if it's more room they want.

My condolences. I wouldn't want to be in a market like that. I would sell if I were you. You played the game a long time and now you're older. Go see the world, play golf, do whatever you want. Too much buildable land (always competition who can build cheaply, charge less, use efficiencies of scale, and rent for less due to build-in advantages), too few highpaying year-round jobs, and a market that has bubbled over the past 20-30 years.

You can try these ideas of furnishing places, adding washer/dryer, etc., but that's not going to bump up your ROI all that much. A blip on the radar really.

I also think lower increases in SS over the years are going to limit what retirees are able or willing to pay. And less pensions for current and future retirees (plus many with smaller 401k's due to layoffs and downsizings) makes retirees skittish about uprooting for "resort" type places in general.

In reading this thread and the senior living idea, it reminded me of "The Best Exotic Marigold Hotel." A diverse group of British pensioners see an ad for an Indian retirement hotel and move there, sight unseen.

Your rates are going to sound great to someone in the Bay Area or Orange County. Sure, you can market to locals but maybe also to CA retirees looking to make a change and cut their utility bills. Electricity in CA is going out of sight.

Hi - thanks for the ideas. I have converted one building to 55 plus. It's become much less of a headache, but I still have trouble keeping the upstairs units occupied - seniors don't like stairs. Frankly nobody likes stairs. I will never buy another two story multi family unless it's townhomes.

I don't want in-unit washers due to the water overflow issue. I have a coin op laundry.

My units are nicer than the competition. Designer colors, nice carpet, upgraded massaging shower heads (no tenant has ever said cared about that BTW). But we don't have covered parking (some of the competition has car ports).

I like the idea of marketing to out of area people. We can't compete in the short term market, we have 14 casinos nearby with $25 a night rooms. Most of our market has been casino workers in the past, but they either make a good living and buy a house or they are part-timers and get laid off regularly.

Can you get creative with the second floor for seniors. Any way to add an exterior elevator or lift. I know it's more overhead but if it keeps the units full it pays for itself.

I see a number of paradigms that are contributing to your situation. Number one is no pets. Number two is no in unit washer and dryer. For me in my market, I figure that offering W/D in unit is worth $50 per month in rent over on-site W/D. It's worth $100 per month in rent if the building doesn't have a W/D at all. Pets bring me $25 more per month. I've never had anyone tell me it was too much or look somewhere else because of them. So far only minimal issues with pets. Makes more money than they cost.

For Sale By Owner.

Find somewhere else to hang your hat.

LTD,

Welcome to MY world!

We've been scraping and clawing since '06 in Indiana. That's why I came up with some of my extreme landlording techniques - to SURVIVE!

Based on what I see locally I predict a very harsh winter. We're stockpiling cash.

(good news: my crazy stuff has paid off nicely - best year ever, then topped that, and topped THAT.)

As the apts are proving, old school landlording no longer works.

From what I know about you, I suggest you consider being the bank. TONS of investors want to borrow money and are willing to pay top interest, plus points, etc.

Another serious idea: 70% of our new leases are chosing PayDayPlan.

Several are coming to us because we provide it.

Just curious. Do the large REIT type properties pose as much a of a problem for SFH rentals as they do for small apartment buildings?

I have considered furnishing one or two houses and doing vacation rentals, but I have never actually done it -- the downsides and risks always seem too high.

I wish I had some encouraging words and brilliant ideas, but I have none. I just keep plugging away, and providing the best service I can to my tenants. So far, that has allowed me to survive in a very nasty economy. I hope you find a great solution!

Brad20,000,

Robin,

Read with caution! Every one of these quick and easy management ideas has been blasted by many on this forum. After repeated examples and testimonials of increasing profits, they have slowly become a standard part of this forum.

Raise your head above the crowd for a peek and they'll throw tomatoes at you. Stick with it long enough and you'll have a full salad that everyone will want to eat!

PayDayPlan - break the rent into smaller pieces and match the rent to their paydays, usually bi-weekly or weekly. Add $10 per payment and x 26 payments = a 13 month year.

$99 Move In Special - this month's rent is only $99, sign a payment plan for the deposit

"Early Lease Termination Fee $___ Resident may pay this one time fee to end the lease early and not be held liable for the remaining months. A 30 day is still required."

Autodraft - we TAKE the money from their bank account, not wait and HOPE they pay.

Mold Crusher form - the laws that protect the LL from being sued for mold.

No more carpet! My shampoo guy wonders why I don't call!

24/7 Self Tours - lockbox code 0000. Go look and apply online.

Website that takes apps, payments, service requests...

TxtAlrts to your phone listng new vacancies.

Email blasts.

Move Out Agreements - settle out of court for a higher figure and quicker possession.

I don't have large multi-unit buildings, so take this with a grain of salt. But I continually hear from prosspective tenants that they don't like various things about living in the "big" apartment complexes. (Hopefully yours isn't REALLY big?) They don't like that the apartment manager doesn't seem to screen carefully, that you can hear everything through the walls, long walk to the W/D, sometimes mgmt doesn't care what sort of pets are in there, weird smells coming from all the different apartments at dinnertime, etc. Now, I'm comparing my duplexes to the big multi-unit apartment buildings. So again, if you OWN one of those big buildings...sorry! :-)

If I were you I'd think about just hanging out at one of the really big complexes on weekend mornings and look for people moving out. Then just play dumb and act like a prospective tenant. Say "Oh hey, I see you're moving out...I was thinking about moving IN. Why are you moving out? What did you like? What didn't you like? Where are you moving?" That sort of stuff. Odds are good that there will be some jewels in their answers.

Accentuate the positive. If you unit is on the first floor advertise NO STEPS, appeals to people who don't like or can't do steps. Advertise amenties that are close by that are not part of your property like a park, like a bus line, like close to shopping, see 4th of July fireworks from your own deck.