19% Vacancy Rate
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19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:28 AM
       19% Vacancy Rate (by WL [CA]) Oct 14, 2020 10:31 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:36 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:37 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:38 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:39 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:41 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:42 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:43 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:45 AM
       19% Vacancy Rate (by myob [GA]) Oct 14, 2020 10:46 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:48 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:48 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:49 AM
       19% Vacancy Rate (by myob [GA]) Oct 14, 2020 10:50 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:52 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:54 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:55 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:56 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 10:58 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 10:59 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 11:04 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 11:04 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 11:04 AM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 11:05 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 11:06 AM
       19% Vacancy Rate (by Oregon Woodsmoke [ID]) Oct 14, 2020 11:56 AM
       19% Vacancy Rate (by Oregon Woodsmoke [ID]) Oct 14, 2020 12:00 PM
       19% Vacancy Rate (by LisaFL [FL]) Oct 14, 2020 12:01 PM
       19% Vacancy Rate (by Frank [NJ]) Oct 14, 2020 12:12 PM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 12:14 PM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 12:15 PM
       19% Vacancy Rate (by Robert J [CA]) Oct 14, 2020 12:53 PM
       19% Vacancy Rate (by #22 [MO]) Oct 14, 2020 2:14 PM
       19% Vacancy Rate (by Tonia [RI]) Oct 14, 2020 2:18 PM
       19% Vacancy Rate (by GKARL [PA]) Oct 14, 2020 2:31 PM
       19% Vacancy Rate (by 6x6 [TN]) Oct 14, 2020 3:52 PM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 3:53 PM
       19% Vacancy Rate (by David [MI]) Oct 14, 2020 3:59 PM
       19% Vacancy Rate (by Robert,OntarioCanada [ON]) Oct 14, 2020 8:43 PM
       19% Vacancy Rate (by Jeff [CO]) Oct 14, 2020 9:55 PM
       19% Vacancy Rate (by LisaFL [FL]) Oct 14, 2020 10:49 PM
       19% Vacancy Rate (by plenty [MO]) Oct 15, 2020 7:40 AM
       19% Vacancy Rate (by David [MI]) Oct 15, 2020 8:06 AM
       19% Vacancy Rate (by NE [PA]) Oct 15, 2020 8:31 AM
       19% Vacancy Rate (by PG [SC]) Oct 15, 2020 10:13 AM
       19% Vacancy Rate (by David [MI]) Oct 15, 2020 10:37 AM
       19% Vacancy Rate (by LisaFL [FL]) Oct 15, 2020 11:54 AM
       19% Vacancy Rate (by Jeff [CO]) Oct 15, 2020 1:40 PM
       19% Vacancy Rate (by Still Learning [NH]) Oct 15, 2020 1:44 PM
       19% Vacancy Rate (by David [MI]) Oct 15, 2020 2:25 PM
       19% Vacancy Rate (by NE [PA]) Oct 15, 2020 3:00 PM
       19% Vacancy Rate (by LisaFL [FL]) Oct 15, 2020 3:26 PM
       19% Vacancy Rate (by Ray-N-Pa [PA]) Oct 16, 2020 9:06 AM
       19% Vacancy Rate (by Ray-N-Pa [PA]) Oct 16, 2020 9:11 AM
       19% Vacancy Rate (by Pmh [TX]) Oct 16, 2020 5:58 PM
       19% Vacancy Rate (by Ray-N-Pa [PA]) Oct 17, 2020 10:27 AM
       19% Vacancy Rate (by Small potatoes [NY]) Oct 18, 2020 2:24 AM
       19% Vacancy Rate (by Denise [CA]) Oct 19, 2020 10:53 PM
       19% Vacancy Rate (by Ray-N-Pa [PA]) Oct 20, 2020 11:55 AM
       19% Vacancy Rate (by Ray-N-Pa [PA]) Oct 20, 2020 11:55 AM

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19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:28 AM
Message:

Not sure if it's all due to Covid, but I have not seen a vacancy rate like this in all the time I have been doing this. Folks are moving out for many reasons. I never ask, but they tell me job transfers, buying a house, etc.

I am down to only 26 units. One has been vacant for 2 months, and I have 3 more on the way. Then I will get the notices for November! :)

This is NOT a problem for me.

I don't lower rents and I am not changing anything.

The units are clean, the buildings are in terrific shape, but there is a lot more to choose from and a smaller pool of tenants.

No market stays hot forever.

--76.120.xx.xxx




19% Vacancy Rate (by WL [CA]) Posted on: Oct 14, 2020 10:31 AM
Message:

The market determines the rent - if the Ts in your area declines or pay decreases, lowering the rent to compete may be necessary. --201.140.xxx.xx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:36 AM
Message:

I agree with WL. "I don't lower rents and I am not changing anything." this is a terrible mindset for a LL.

A 2 month vacancy? You are losing thousands . Rent it out for whatever the market will bear and hike the rent when their lease is up.

Let's say the rent is $1500 a month. If you have to lower it to $1400 to rent immediately, thats $1200 less a year. If it sits vacant for TWO months thats $3000. As the wise man said, do you want to be rich or do you want to be right? --50.4.xxx.x




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:37 AM
Message:

I agree with the first part. The last part is opinion. --76.120.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:38 AM
Message:

Jeff, the law of supply and demand is not opinion. Unless you're part of the Bernie and AOC crowd :wink: --50.4.xxx.x




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:39 AM
Message:

David, you missed one of the lines in my post: "This is NOT a problem for me."

I don't care if they sit for months or a year.

--76.120.xx.xxx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:41 AM
Message:

David, reading is fundamental. You assumed that because I posted what I did that I was a nervous wreck because of the vacancies and was desperate to find a solution. "Please, someone, I need help with this!!!"

Um, nope.

It was an observation. --76.120.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:42 AM
Message:

Fine Jeff , if you want to cut off your nose to spite your face. Some LL here might go further and say you're a terrible LL who should sell all his properties but I'll be charitable and just say its not a good decision --50.4.xxx.x




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:43 AM
Message:

Jeff, I made no observation of your emotional state, only of the financial bottom line that a LL will be ahead by renting out immediately at lower rent than sitting vacant --50.4.xxx.x




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:45 AM
Message:

David, LOL!

I can see your feelings are hurt.

So saw my post and thought, "How dare he! There outta be a law!"

Calm down, little guy.

One of my 11-unit buildings has a mortgage of just under $2300 per month. That's it. It's worth around $2.2M. Each unit brings in $1000-$1200 per month.

Do you see where this is going? --76.120.xx.xxx




19% Vacancy Rate (by myob [GA]) Posted on: Oct 14, 2020 10:46 AM
Message:

Spoken like a warrior-- "I'm not changing anything". --99.103.xxx.xxx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:48 AM
Message:

Myob gets it.

--76.120.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:48 AM
Message:

Chuckle chuckle. Jeff, my dear, there IS already a law, the law of supply and demand.

Let's do the math again. $1200 a month rental vacant for 2 months, thats $2400 lost. If you rent it out for $1100, over a year, thats $1200. Do you see where this is going? --50.4.xxx.x




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:49 AM
Message:

LOL I think myob is being sarcastic. Do you think the military can be successful with the motto "I'm not changing anything" --50.4.xxx.x




19% Vacancy Rate (by myob [GA]) Posted on: Oct 14, 2020 10:50 AM
Message:

David MI ---YOU GET IT! --99.103.xxx.xxx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:52 AM
Message:

David, I can't explain it for you but I can't understand it for you.

Two words: Income tax.

This is gonna make you green with envy: I don't need the money.

I would rather pay less in taxes.

--76.120.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:54 AM
Message:

Again , I have to be charitable and not be like some LLs here who would tell you to sell all your rentals .

You only pay income tax on your profits ... if you make less, you pay less taxes. --50.4.xxx.x




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:55 AM
Message:

I love that it drives folks crazy that I don't need the money and that I am holding my properties for the appreciation and tax benefits.

While other landlords stay awake at night because a tenant will be quitting, I am there making their exit as easy as possible, with nary a thought of their replacement. --76.120.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:56 AM
Message:

Let's do some more math. $1200 month unit. vacant 2 months. Thats $12,000 gross rent for the year.

Rented for $1100 with no vacancy, thats $13,200 gross rent.

Assume you have $6,000 fixed PITIetc in year. So profit with 2 months vacant is $6,000. Profit with no vacant is $7,200. After tax, you'll still have more money in the latter case. --50.4.xxx.x




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 10:58 AM
Message:

Jeff, many LLs here make money on appreciation. No surprise. You want to leave it vacant? Thats fine, your prerogative.

But please don't give other , less experienced LLs here that doing that will put them financially ahead. --50.4.xxx.x




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 10:59 AM
Message:

David, I don't listen to other landlords about my business model. I listen to myself.

Landlording has been VERY profitable to me. I paid $690,000 for the $2.2M building mentioned above. I have two others and have sold 3 other properties.

I have also stashed a lot of cash over the years.

While you are white-knuckling it, I am relaxed and trying to find more and more ways to spend money on my buildings and myself.

Sorry!

--76.120.xx.xxx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 11:04 AM
Message:

David, I don't give advice. You missed that, also. I stated facts and made an observation. I do things my way and I don't deviate from my framework. I don't do cash for keys, I don't do grace periods, and I don't change my business strategy with every little market change.

Compare my business with a huge cargo ship vs. someone in a canoe. I stay the course and only make changes when conditions demand it and there is no other choice but to react.

--76.120.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 11:04 AM
Message:

ok Jeff I'm not going to get into a d-measuring contest with you.

Final words to any LL reading this discussion who thinks leaving units vacant with make them big money: run the numbers. Maybe you'll be like Jeff and be the next. --50.4.xxx.x




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 11:04 AM
Message:

be the next t-r-u-m-p --50.4.xxx.x




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 11:05 AM
Message:

Jeff, hate to remind you but the titanic waited too late to react to that iceberg --50.4.xxx.x




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 11:06 AM
Message:

"ok Jeff I'm not going to get into a d-measuring contest with you."

Wise move. You would lose.

Anyway, you're dismissed. Have a good day! --76.120.xx.xxx




19% Vacancy Rate (by Oregon Woodsmoke [ID]) Posted on: Oct 14, 2020 11:56 AM
Message:

How odd that there are vacancies anywhere in Colorado.

It's not strange that some tenants are moving out and buying their own house. Anyone with even mediocre credit and a salary can qualify for a very low interest mortgage where their house payment is lower than rent.

Banks will give mortgages to people I won't rent to because of their credit or note enough income. The last house I sold, the buyers only had to come up with $1,000. That's it, and I suspect that the family income was not reliable.

But I would think that Colorado would be getting a lot of the people fleeing the big cities. You practically have to kick them out of the way in order to walk down the street around here. --76.178.xx.xx




19% Vacancy Rate (by Oregon Woodsmoke [ID]) Posted on: Oct 14, 2020 12:00 PM
Message:

One thing for all of you price droppers to keep in mind:

Depending upon how the election goes, we might be looking at nationwide rent control.

If that happens, I wouldn't want to be caught with my rents at a low level.

(Yeah... never happen, just like the government would never seize our personal property and require us to support deadbeats out of our own pockets.) --76.178.xx.xx




19% Vacancy Rate (by LisaFL [FL]) Posted on: Oct 14, 2020 12:01 PM
Message:

Jeff, I think you post was read into a little too much. It sounded like to me you were just noting a change in the market. Not that you would sit by forever until you had zero tenants but would keep the building regardless simply because you’re stubborn.

I am down to 22 houses from 33. I could also pretty much afford to keep them all vacant forever if I wanted to. At some point though that wouldn’t make sense to continue doing. I suspect you might agree. It’s too soon to make panic moves and changes in what works for you. If I ever got to the point that altering my business model was my only choice I’d probably just get out of the business because I’m stubborn that way. We all have different points at which we will make changes or rethink things.

If you lower your standards it results in more headaches. Filling vacancies by lowering your standards is not always the wisest move. Thus I tend to favor your mindset. --75.89.xxx.xxx




19% Vacancy Rate (by Frank [NJ]) Posted on: Oct 14, 2020 12:12 PM
Message:

I see places left vacant for extended periods and wonder why. The best answer I could come up with is already referenced above. Tax avoidance, a perfectly legal and strategic move. --174.225.xxx.xx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 12:14 PM
Message:

Oregon Woodsmoke - you make some good points there. I hadn't thought about the election, but you could be right. And then rent control...

Lisa, you nailed it. Excellent post! You understand the business better than most here. Yes, I would certainly make adjustments if things really went south. And like you, I would sell in a heartbeat if the business shifted outside my comfort zone.

I can understand how folks got upset with my post. They are new to the business or only have a property or two and become very emotional, rather than rational, because they panic when things change.

Altering a long-term business strategy and lowering your standards just because of passing recent events is not a good way to do business for the long haul.

Just because you stay the course doesn't mean that you can't adapt to substantial changes in the business.

--76.120.xx.xxx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 12:15 PM
Message:

Good post, Frank. --76.120.xx.xxx




19% Vacancy Rate (by Robert J [CA]) Posted on: Oct 14, 2020 12:53 PM
Message:

Here we have something called rent control. If I stick in someone who's a bad apple, then I may be stuck with them for life! I have to keep up my high standards, but I will take a 'Play" from the handbook or a Mr. Landlord seminar.

I will offer a rental "discount" for the next 12 months if each month the tenant pays their full rent on or before the 1st of each month. The discount being around $100 each month. --47.155.xx.xxx




19% Vacancy Rate (by #22 [MO]) Posted on: Oct 14, 2020 2:14 PM
Message:

Have you thought of selling a few? I'd bet there's a big real estate sale coming in a few years.. or maybe use a leasing company? The one I use makes me a TON of money. --174.234.xxx.x




19% Vacancy Rate (by Tonia [RI]) Posted on: Oct 14, 2020 2:18 PM
Message:

I am not seeing a high vacancy rate here in "little Rhody" yet. I do feel that rent control is next on the government hit list against landlords. I do see the "pandemic "federal moratorium extended. I do have a deadbeat tenant who has taken advantage of this "crisis" situation. I would rather have a vacancy. --99.203.xxx.xxx




19% Vacancy Rate (by GKARL [PA]) Posted on: Oct 14, 2020 2:31 PM
Message:

Not sure where you are, but US News just did a ranking of the best places to live. Four of the top five places are all in Colorado; Boulder, Denver, Colorado Springs and Fort Collins. Back when I was in college, everyone was wanting to relocate to Denver, Houston or Atlanta.

I suppose preferences change. In NYC, only 10% of the commuters have come back. The office buildings are ghost towns as I understand it. Residents are fleeing and vacancy is skyrocketing. --209.122.xx.xxx




19% Vacancy Rate (by 6x6 [TN]) Posted on: Oct 14, 2020 3:52 PM
Message:

Jeff, thank you for sharing this.

I am guessing that you are still advertising the unit for rent but are not concerned as to how long it takes to find the right renter, is that correct?

Or are you not even trying to rent it at all right now for tax purposes? --73.120.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 3:53 PM
Message:

LisaFL , lowering your rent does not mean lowering your standards. You can certainly drop the rent and keep your income/credit/etc requirements the same.

Jeff, I'd appreciate if you don't assume things about my background. I do the same for you. I believe Robert J has more experience than all of us so forgive me if I take his word and experience (and common sense) over your insults --50.4.xxx.x




19% Vacancy Rate (by David [MI]) Posted on: Oct 14, 2020 3:59 PM
Message:

In fact, when I lower my rent, I keep my income dollar amount requirement the same. $1000 rent, $4000 income. $900 rent, $4000 income. So I don't even end up renting to tenants who make less money --50.4.xxx.x




19% Vacancy Rate (by Robert,OntarioCanada [ON]) Posted on: Oct 14, 2020 8:43 PM
Message:

Things can change is six months. The future is where over time all utilities are separated out so the tenants pay for utilities as when costs rise then the tenants will have to conserve. If the government ever brings in rent control then can be in a extremely difficult position when utilities go up more then allowed guideline rent increases. A apartment building with separate utilities immediately goes up in value along with much easier to sell as no one wants all inclusive. It is easy to become complacent. Always look where operating costs can be reduced then there are more funds for capital improvements. --147.194.xxx.xx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 14, 2020 9:55 PM
Message:

6x6, correct. I am listing and showing them, but I don't care if they rent or not. I actually just rented one a few hours ago. I'm almost a little disappointed - so much paperwork ahead! :) --76.120.xx.xxx




19% Vacancy Rate (by LisaFL [FL]) Posted on: Oct 14, 2020 10:49 PM
Message:

David, lowering your rent doesn’t necessarily mean lowering your standards but it certainly can. Lowering your rent attracts lower income tenants.

So if you keep your income requirements the same but lower the rent you wouldn’t be lowering your standards but likely raising them.

I already have high standards- higher than most. I require a bare minimum of 3.5 times the rent in monthly income but most all my tenants are at 4 times.

You must keep track of the market because if you are too low you won’t attract higher quality/income tenants because they will assume something is wrong with your property. I know this from experience. --75.89.xxx.xxx




19% Vacancy Rate (by plenty [MO]) Posted on: Oct 15, 2020 7:40 AM
Message:

I am Plenty, mine property can sit some time also. Jeff has plenty, he will wait, carry on. Adjust when needed. --99.203.xxx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 15, 2020 8:06 AM
Message:

I have played the "keep rent high to attract quality tenants" game many times, and I have been burned, every. single. time. What invariably happens is that a lot of people show up to see the house, tell me how nice it is, but don't apply. As soon as I drop the rent by $100, the house is rented within a week.

To weave this into the vacancy issue, one time I left a house priced too high for a month. By the time I lowered the rent , it was too late. The listing had gone stale: zillow and zumper both showed how long it had been sitting on the market. It took me over THREE months to rent it out. Had I started at the lower rent , it would have rented within two weeks.

I have never ever had anyone ask me "The rent on this house is really low! Is there something wrong with it?" I have, however, had a few people ask me "I noticed this house has been on the market for a while now. Is there something wrong with it?"

People are used to discounts and promos and flash sales. Now that I put "Minimum 720 credit score" at the very beginning of my zillow ads, people will wonder even less about the lower rent. --50.4.xxx.x




19% Vacancy Rate (by NE [PA]) Posted on: Oct 15, 2020 8:31 AM
Message:

It ain't rented until it's rented.

I have money, so I don't need to rent it makes about as much sense as saying I have products but I don't care if I sell them. --70.44.xxx.xx




19% Vacancy Rate (by PG [SC]) Posted on: Oct 15, 2020 10:13 AM
Message:

JEFF - I agree - sometimes it's not about the money it is about piece of mind.

I will pass on something I read the other day that COULD impact the rental market.

B. plans to fully fund section 8 - in SC we have thousands that have applied for section 8 and were turned down due to lack of funds. --99.197.xxx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 15, 2020 10:37 AM
Message:

I don't have piece of mind when a property is vacant and a target for vandals and copper thieves --50.4.xxx.x




19% Vacancy Rate (by LisaFL [FL]) Posted on: Oct 15, 2020 11:54 AM
Message:

Well David, I have had people question why my rent is low. In one case they specifically asked, “What is wrong with the house?”. Puzzled, because the house was mint, I asked, “What do you mean what’s wrong with it?”

Their reply, “Well why is the rent so low?”. They had looked at many houses and mine was not only the nicest but among the least expensive.

So indeed, when your rent doesn’t match the market it can make people suspicious.

If you didn’t get qualified takers at your asking price, your rent was obviously too high. When your rent is too low you also risk losing qualified renters because they won’t bother to look at in the first place.

Why did the ones in my example look in the first place? Someone told them to call me...it was a referral which they found too good to be true. --75.89.xxx.xxx




19% Vacancy Rate (by Jeff [CO]) Posted on: Oct 15, 2020 1:40 PM
Message:

PG, agreed. I would rather have piece of mind than more money.

NE, as I recall, you own a boarding house - or something like that. Not exactly top-tier tenants. I can understand your being upset when one of your lodgers moves out, gets arrested, overdoses, etc. You operate on a very thin margin. --76.120.xx.xxx




19% Vacancy Rate (by Still Learning [NH]) Posted on: Oct 15, 2020 1:44 PM
Message:

Jeff, Denver has been on a multi year building boom. Did they finally saturate the market causing the double digit vacancy rate? Or that in combination with some people leaving cities?

--73.17.xx.xxx




19% Vacancy Rate (by David [MI]) Posted on: Oct 15, 2020 2:25 PM
Message:

LisaFL, I suppose i've managed to avoid keeping my rent too low then. I mean, that's usually easy for LLs to do right? It's not like any of our first instincts is start advertising with rock-bottom rent! --50.4.xxx.x




19% Vacancy Rate (by NE [PA]) Posted on: Oct 15, 2020 3:00 PM
Message:

No boarding house here. I don't Care if tenants move out.

I care if I don't rerent them, because I take that as a responsibility of owing that to my business.

Makes no sense to put all the effort into building a business and taking care of these houses and dealing with these tenants and everything else that goes along with it to not put effort into them to get them re-rented asap. Or purposely leave them sit for that matter.

Why bother? Might as well sell. --70.44.xxx.xx




19% Vacancy Rate (by LisaFL [FL]) Posted on: Oct 15, 2020 3:26 PM
Message:

David,

In my case my rents were too low because I failed to realize how much they had skyrocketed and my tendency to keep tenants long term and raise rents very slowly. So when a long term tenant moved and was paying $900 a month I thought raising to $1000 was reasonable. I found it hard to imagine it was worth too much more. My mistake when comparable properties were going for $100-$200 more.

It made mine suspect I guess. Instead it was just an innocent landlord not realizing they were priced extremely low. I still struggle with this because rents in my area are up something like 75% from what they were five years ago or something like that.

I have good tenants and have gotten a bit more aggressive in raising rents because I’ve left too much money on the table due to having long term tenants. I was thrilled when one moved last year who had been paying $1250 a month. This was an eight year tenant who started at $900. Sure we needed to do some updating when they moved but now the rent is $1600 and it is still below market but much closer. --75.89.xxx.xxx




19% Vacancy Rate (by Ray-N-Pa [PA]) Posted on: Oct 16, 2020 9:06 AM
Message:

To fill or not to fill that is question........and to fill you might need to offer concessions. How will the balance impact real estate values.

How will a higher than average vacancy rate impact retail sales values.

These are some real good questions and I would expect these answers to drive the rental industry well into 2022 --24.101.xxx.xx




19% Vacancy Rate (by Ray-N-Pa [PA]) Posted on: Oct 16, 2020 9:11 AM
Message:

Some follow up thoughts?

How long is the right length of time to wait for a vacancy to get filled before reducing the price or offering a concession of some sort?

Guess that answer is it depends-

If it has been two months of active marketing and you have received lots of interest but no takers......the unit is speaking to you.

If it is a case of lack of qualified applicants.......you marketing is speaking to you.

If the folks are qualified and moved in elsewhere - the economics might be out of line. Where the price might have been spot on in an upward economy, and uneven K shaped recovery might be hurting you --24.101.xxx.xx




19% Vacancy Rate (by Pmh [TX]) Posted on: Oct 16, 2020 5:58 PM
Message:

no appreciation captured until sold. in the mean time I like to keep rented for cash flow to pay fixed expenses regardless of whether I need the $ or not. That is a smarter business approach. --107.77.xxx.xxx




19% Vacancy Rate (by Ray-N-Pa [PA]) Posted on: Oct 17, 2020 10:27 AM
Message:

Cash flow allows you to pay the bills.

Appreciation is only a bonus.......but this is located in Colorado. They have enjoyed some incredible appreciation.

So what goes up - well it also can go other directions. The locations that go up the fastest are also the places that come down faster too.

But in the end, paying your bills will allow you to ride through any dips or kinks in the market place. Weather the kink is with the unit, the resident or the economy --24.101.xxx.xx




19% Vacancy Rate (by Small potatoes [NY]) Posted on: Oct 18, 2020 2:24 AM
Message:

Where my b rental is a 38 unit development went on market when I had a vacancy. A made over warehouse. Some awkward units but priced 150 less than me and they had utilities and internet included. People came and admired my classy brownstone. Finally one prospect asked me why my unit was so much higher than anything ekse in the area. I researched it, found the new development, and realized other places had already dropped their ask as a result. I got it rented for a hundred less. Mind you i had one of the nicest units, but the market changed, and it's still like that.

On my c units w cheaper rent, I'll sit forever til i find a good tenant. Thats cheaper than a bad tenni in NY these days.

So you have to assess and make a decision. I can appreciate that jeff doesn't have to rent. And i take into account the math on rent it sooner. Both are strategies, you have to know when to olay which one.

Also don't think vacancy is that high by me. I notice fewer available units. --72.10.xxx.xxx




19% Vacancy Rate (by Denise [CA]) Posted on: Oct 19, 2020 10:53 PM
Message:

Jeff, I have noticed a change. I have a unit that is taking way too long to rent. I have gotten so many unqualified people applying. The good ones are buying right now because the interest rate is so low. The market in California is on fire and so many people are buying homes. They can buy and still pay less than renting from me. I don’t know if it is a COVID thing but the quality of tenants right now are bad. After 30 days on the market, I reduced (out of fear) $100. It just brought me more unqualified tenants. And now everyone has pets. One out of two tenants have pets. I don’t accept pets. After being up another 30 days, I raised it back up to the original amount. I finally had to bite the bullet and let someone rent it for only 9 months while they transition to the state of Virginia. Some rent is better than being vacant.

We voted last year in California for no rent control. We won. The government didn’t like it so they found a loophole and created rent control in Los Angeles and L.A. country even though we voted against it. Now we can’t evict, they don’t have to pay and now there is a rent freeze. Anyone who doesn’t believe there will one day be rent control is CRAZY. That is what our government is turning into- give to everyone Who doesn’t want to work or are lazy. We are turning Socialist with our young population. These young folks should go live in Cuba for 6 months and maybe reality will hit them in the face. Do they have protests and riots there. Yes but those who do are in jail. Things are changing and I don’t think for the better. --137.25.xxx.xxx




19% Vacancy Rate (by Ray-N-Pa [PA]) Posted on: Oct 20, 2020 11:55 AM
Message:

I am reading where rents are dropping in California and in parts of NYC.

I wonder if this is going to become a trend?

If it is - it will impact any real estate investment that uses the income approach to determine value. Then again leaving the same place vacant isn't going to help either --24.101.xxx.xx




19% Vacancy Rate (by Ray-N-Pa [PA]) Posted on: Oct 20, 2020 11:55 AM
Message:

I am reading where rents are dropping in California and in parts of NYC.

I wonder if this is going to become a trend?

If it is - it will impact any real estate investment that uses the income approach to determine value. Then again leaving the same place vacant isn't going to help either --24.101.xxx.xx



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