I have a nice SFH trying to fill and I'm not having much luck. First the level of inquiries is not that great and the tenant pool is horrible; most of the interest is from evictees. There were two people this week who had hearings scheduled either on the day they inquired or later in the month. If I have their names, I check public records before even bothering them with the standard message to go to my page to complete the pre-screener. I don't expect I'll have this rented until March. This place is in a pretty decent area and I dropped the rent slightly. This is a large 3/2 which may be harder to rent at the price I'm asking. I'm really considering selling this one or doing a 1031 into a duplex that's far more rentable. Generally, I find the smaller the unit, the easier it is to rent mainly because it's more affordable. Moreover, SFH, is not where I prefer to play and that's a consideration for sale also. The issue is where the market is now. An exchange may be easier given the slowdown though.

Is this a Class C or B house?

Class C pool has only gotten worse over the past 5 years. Our Govt's reaction to the pandemic didn't help any. People have been told "You are the victim; you sit tight; big Govt will help!"

So yeah, we got tons of people with evictions on their records now who'd have probably been fine if they hadn't been told to stay home and not pay their rent.

I don't take evictees... ever. They have to have a co-signer, and basically I rent to the co-signer and allow the evictee to live there. Of course, they're both on the lease, but the only reason they get approved is because their "roommate" who doesn't actually live there is on the lease.

No amount of deposit seems to help evictees do what it takes to pay. The few times I tried it with double security (the max Missouri allows me to charge), I ended up evicting anyway, and the costs ate up more than the double deposit. If lawmakers would realize the stupidity of limiting the security deposit--which makes it impossible for evictees to become a financially sane risk--and eliminate that, we could move forward. I'd take an evictee with a 4x the rent deposit, since I can have them out in 3-4 weeks usually. That would at least cover the rent, legal fees, damages, and frustration.

1031 into something better is a great plan. I know you said a duplex, but have you ever thought about commercial? Self-storage is great if you can find one for sale! Otherwise, I love automotive shops with roll up doors in front. On the rare occasion I have one available, I've got a list of guys asking me to keep them posted when units come open.

GKARL, it sounds like your advertising is missing the mark. Everything you said about bad tenants is true. However, there are still lots of young married couples getting a job transfer into a new city. Lots of grad students at the university for 3 years, lots of new nurses and docs who need a 2-3 year rental.

Your ads are only getting read by the thugs who are always on the move.

G,

I believe you are priced too high. The good folks are not bothering to apply and the bad folks are grasping at straws, trying anything, HOPING you will not check their background.

It takes 3 things to rent a home

1.Good condition, clean, up to date, good curb appeal

2. Good advertising. That means GREAT photos online and casting your bait into the right pond.

3. Good price. Sure you might find a unicorn to pay too much but prospects are savvy and combing the internet, seeing EVERY home posted.

On a side note, I get PAID to see their lousy app. Prescreening is denying you that income AND bogging you down with losers.

I used to think a paid app slows downs the bad apps, and maybe it does a little, but at least I get paid to look at their bad app.

1 app a day x $25 = $775 per month per income.

BRAD

We only have a few 3/2 "family homes" and they do stay rented but we stay well UNDER the prevailing rents, which are starting to match DC! Maybe because we have a LOT of new blood around here in the landlord waters: folks who bought to AirBnB during Covid when people moved to the beach to "work from home", made bank in 2020, 2021, even did okay in 2022 but suddenly bookings are WAY WAY WAY down for 2023 as we are now well over-saturated in the STR market. I see BEEEEYOUTIFUL homes, fully furnished with gorgeous AirBnB quality stuff, now listed for Annual Rent at very high prices...And you can tell the ads are written by novices in the Annual market.

BUT!! Around here people can't afford $2500 in just rent. Our last 3/2 we went to $1700 and I am NOT prepared to go higher - I am basing that decision on the apps / pre-screens I already get for anything we have open.

Higher than $1700 would bar our Coast Guard families from entry, and all local teachers, and most of our County workers. It leaves the construction workers and restaurant servers who DO make high $$$$ but are hit or miss on their "quality" as a renter.

My tenant pool is overflowing with service animals and emotional support animals. It used to be 15% and now it is 98%.

Brad & WMH;

I think you have a point on the price. All of the higher priced places on Zillow generally have less contacts similar to my place. This house was formerly used as my CPA office and is located in a downtown area with many restaurants literally right around the corner. It's also close to a couple of universities. It would be more attractive to younger professional couple who want to walk and enjoy all of that stuff, but a 3/2 is too big. It's less attractive to a family as they likely prefer a more suburban location with a bigger yard and driveway. My place has street parking since it's downtown and that's a battle. Younger people don't mind that. For families that's a hassle. If it were a duplex with smaller units, I think it would rent far easier. It would also be very attractive as a STR but the town's laws require that you live there and basically rent out a room.

Wilma, here's the link:

I know this a bit far fetched and demanding - but I list the requirements that I screen for in my listings. That way when someone does apply, they know they were informed of my standards.

You have good pics of the place - so I would end up saying I would require at least a 620 credit score. If someone applies and has a 619, they don't qualify without a co-signer - but they know in advance.

Here in militantly pro tenant land, we don't dare list any specific qualifications for fear an activist will try to make something of it with no intention of renting. Have written standards/policy, apply equally but don't show your hand.

Lower tents actually bring on in a better tenacity applicant as the unqualified feel the govt will pay extra to house them. (See NYC hotels vs illegal aliens).

Ray, I don't list requirements either, because people lie just to get in front of us. They believe THEIR story is so compelling it will sway us into changing things just for them.

Whereas I know if we DID do that, we could be sued by anyone I turned down before. And they'd be RIGHT - if we change our requirements for ONE person, we've just discriminated against everyone else.

G Man,

Looks great!

Can this be a commercial office?

At a seminar the guru taught us to stay away from properties with negative attributes that cannot easily be changed, like no offstreet parking.

Nice people have nice cars and want garages (in Indiana).

Not every home makes a good rental.

Consider selling this to another CPA/insurance agent and 1301 it into a rentable prop.

BRAD

Beautiful place. Perfect for college kids, roommates, highly-paid no-kid family.

Beautiful place. Perfect for college kids, roommates, highly-paid no-kid family.

the tenant pool right now is awful. I have been trying to fill a 2 BR apartment for months in a B+ property. Unit has been completely repainted, has new flooring and updated lighting.

I have lost count of the inquiries I have had, and have had at least a dozen applicants, but none of those applicants meet our standards. Most have evictions in their past, and most of those still owe other landlords money. Or if they don't have those things hanging over their head, they don't make enough money (3 x rent!).

I will just wait until the weather gets better; by then, maybe the quality applicants will have cabin fever regarding their present digs and be ready to move.