Did we reach breaking pnt
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Did we reach breaking pnt (by Homer [TX]) Aug 18, 2023 6:40 PM
       Did we reach breaking pnt (by David [MI]) Aug 18, 2023 6:56 PM
       Did we reach breaking pnt (by Dave [MO]) Aug 18, 2023 7:20 PM
       Did we reach breaking pnt (by Vee [OH]) Aug 18, 2023 7:42 PM
       Did we reach breaking pnt (by Ed [CA]) Aug 18, 2023 8:06 PM
       Did we reach breaking pnt (by MC [PA]) Aug 18, 2023 8:10 PM
       Did we reach breaking pnt (by Homer [TX]) Aug 18, 2023 8:40 PM
       Did we reach breaking pnt (by David [MI]) Aug 18, 2023 8:59 PM
       Did we reach breaking pnt (by t [IN]) Aug 18, 2023 8:59 PM
       Did we reach breaking pnt (by Ken [NY]) Aug 18, 2023 9:11 PM
       Did we reach breaking pnt (by GKARL [PA]) Aug 18, 2023 9:45 PM
       Did we reach breaking pnt (by Homer [TX]) Aug 18, 2023 9:57 PM
       Did we reach breaking pnt (by plenty [MO]) Aug 18, 2023 10:01 PM
       Did we reach breaking pnt (by Richard [MI]) Aug 19, 2023 4:44 AM
       Did we reach breaking pnt (by mapleaf`18 [NY]) Aug 19, 2023 9:19 AM
       Did we reach breaking pnt (by Allym [NJ]) Aug 19, 2023 9:20 AM
       Did we reach breaking pnt (by Oregon Woodsmoke [ID]) Aug 19, 2023 11:02 AM
       Did we reach breaking pnt (by Tim [CA]) Aug 19, 2023 3:52 PM
       Did we reach breaking pnt (by David [MI]) Aug 19, 2023 4:29 PM
       Did we reach breaking pnt (by GKARL [PA]) Aug 19, 2023 7:32 PM
       Did we reach breaking pnt (by Small potatoes [NY]) Aug 20, 2023 12:35 PM
       Did we reach breaking pnt (by tryan [MA]) Aug 20, 2023 1:51 PM
       Did we reach breaking pnt (by tryan [MA]) Aug 20, 2023 1:55 PM
       Did we reach breaking pnt (by MikeA [TX]) Aug 20, 2023 4:03 PM
       Did we reach breaking pnt (by David [MI]) Aug 20, 2023 5:03 PM
       Did we reach breaking pnt (by 6x6 [TN]) Aug 20, 2023 5:05 PM
       Did we reach breaking pnt (by WMH [NC]) Aug 20, 2023 5:26 PM
       Did we reach breaking pnt (by Ken [NY]) Aug 20, 2023 5:51 PM
       Did we reach breaking pnt (by David [MI]) Aug 20, 2023 6:12 PM
       Did we reach breaking pnt (by Robin [WI]) Aug 20, 2023 8:29 PM
       Did we reach breaking pnt (by Sisco [MO]) Aug 20, 2023 9:02 PM
       Did we reach breaking pnt (by Ray-N-Pa [PA]) Aug 20, 2023 11:02 PM
       Did we reach breaking pnt (by Sir Walter [NC]) Aug 21, 2023 1:18 PM
       Did we reach breaking pnt (by 6x6 [TN]) Aug 21, 2023 4:27 PM
       Did we reach breaking pnt (by Ken [NY]) Aug 21, 2023 8:02 PM
       Did we reach breaking pnt (by Matt [TX]) Aug 22, 2023 7:20 AM
       Did we reach breaking pnt (by Annie [IN]) Aug 22, 2023 12:39 PM
       Did we reach breaking pnt (by Sandy [CO]) Aug 23, 2023 12:39 AM


Did we reach breaking pnt (by Homer [TX]) Posted on: Aug 18, 2023 6:40 PM
Message:

Iíve been a landlord for over 20 years now with almost 30 sfh. Iíve seen prices go from $850 a month on a brick 3-2-2 to now $1850 a month. Previously when I would post a vacancy I would get slammed with inquiries. I am seeing houses sit and sit for weeks. I have class C and B homes in a super high end city. New builds are selling for a million plus. Property taxes have exploded, utilities have exploded, and of course food and cost of everyday living has exploded in the past 2.5 years. Iíve had a vacant for two weeks now that just underwent rehab after a 18 year tenant. I am getting very few inquiries, and price is down to $1800, which just a few months ago I was getting slammed on the same type property. My buddies are having trouble getting leads too. Of course itís been about 105-108 everyday for weeks now. I am wondering if itís the heat or the economy? Should I cut the price again? Btw, itís a brick 3-2-2 with 1250 sq ft. All new paint, windows, gas range, new hvac, new flooringÖ. I really donít want my other tenants see a nicer house priced less then theirs. ) --138.229.xxx.xxx




Did we reach breaking pnt (by David [MI]) Posted on: Aug 18, 2023 6:56 PM
Message:

Too much inventory from people buying up homes and renting them. Plus school is starting. Lower to $1700

" I really donít want my other tenants see a nicer house priced less then theirs" lol that's none of their business what your other tenants pay. --68.56.xxx.xx




Did we reach breaking pnt (by Dave [MO]) Posted on: Aug 18, 2023 7:20 PM
Message:

Agree, lower rent and you will have to find the sweet spot.

Do you have any other local LL in the same super high end city, you are friends with that will share what rent they are charging for a 3-2-2?

Local LL in my area are about a $1.00 a ft.

--199.200.xx.xxx




Did we reach breaking pnt (by Vee [OH]) Posted on: Aug 18, 2023 7:42 PM
Message:

Raise not lower the rent, wrong clients are missing you. --184.59.xxx.xx




Did we reach breaking pnt (by Ed [CA]) Posted on: Aug 18, 2023 8:06 PM
Message:

How do your current tenants find out what you're renting this place at?

My tenants don't know how many rentals I have or where they might be. It's none of their business and does me no good for them to know. --108.201.xx.xx




Did we reach breaking pnt (by MC [PA]) Posted on: Aug 18, 2023 8:10 PM
Message:

You know your area. I say give it another week or so. Drop by $75 or so for a few weeks or what you feel is appropriate.Know your bottom line. Sometimes pull it, take new pics, reword it and things may change. --174.235.xxx.xx




Did we reach breaking pnt (by Homer [TX]) Posted on: Aug 18, 2023 8:40 PM
Message:

In response to , how will your other tenants know how much you are leasing forÖ.. very easily we post on Zillow and that shows the management companies name. We post on Facebook, they will see our name, I have houses clustered together, they will see me over there or the sign on my yard with my phone number on it. --107.77.xxx.xxx




Did we reach breaking pnt (by David [MI]) Posted on: Aug 18, 2023 8:59 PM
Message:

I use the generic name "Management" to post on Zillow.

I use a different phone number for showings (which I change every year) than I do for current tenants .

It's none of tenants business what other tenants pay. Just like airplane tickets, hotel rooms, concert tickets and many other things, there can be a huge spread in prices, not to mention every house is unique --68.56.xxx.xx




Did we reach breaking pnt (by t [IN]) Posted on: Aug 18, 2023 8:59 PM
Message:

Maybe... things locally are have slowed business wise. Housing... still getting a lot of requests, BUT...

The good renters that everyone wants to rent too, is rare. They bought homes 2 yrs ago or just staying put. Meanwhile, there is a growing population that I call "The Unrentable". They have prior evictions...a police record...pitbulls, terrible work history... some or all of the above mentioned. Also have a growing crowd that cant follow directions. I placed an ad on FB marketplace; 91 sent a message, only 6 of those actually asked question that wasn't covered in my description and needed a message back. The rest were the dreaded "Is it available?" All info was in the description. I got 12 apps from that...

With that said, money is tight around here. Housing is at the least affordable rating according to Goldman Sachs. --170.203.xxx.xxx




Did we reach breaking pnt (by Ken [NY]) Posted on: Aug 18, 2023 9:11 PM
Message:

I agree with Vee,your rent very well could be too low --74.77.xx.xx




Did we reach breaking pnt (by GKARL [PA]) Posted on: Aug 18, 2023 9:45 PM
Message:

I think things are slowing up on the rental front. I think a inflation has taken its toll on renters and I agree that the pool of the "unrentables" has increased a lot. I also think more supply is coming on as STR rentals get increasingly converted to LTR, although that will mostly affect A class.

I had a beautiful place I wound up selling earlier this year because I couldn't rent it. Generally, I think anything larger than a 3/1 is tough to rent in my area. Sweet spot is smaller units like 2/1. These are cheaper generally and more folks are looking for smaller units. --209.122.xx.xxx




Did we reach breaking pnt (by Homer [TX]) Posted on: Aug 18, 2023 9:57 PM
Message:

As far as being priced too low. Just a few minutes ago, another landlord in the area called me. He saw my sign, we talked for quite a while. He has a very similar house for 3 weeks now, just a few blocks away at $2,000 per month. He has had 3 inquiries. We are in a high end town, with low end houses. The schools are top notch, poor people really want their kids here. I think the bubble has burst. --138.229.xxx.xxx




Did we reach breaking pnt (by plenty [MO]) Posted on: Aug 18, 2023 10:01 PM
Message:

Take the ad down. Take new pictures. Repost for $100 more a month than competition. Have a move in special for reduced rent for 1st month. A move in special will get their attention and make an appointment to view. Host an open house two hours one weekday evening and on Saturday or Sunday afternoon. Get out there . You got the best house on the market. Get out there and be available! Answer the phone when it rings. Do it different. --172.59.xxx.xxx




Did we reach breaking pnt (by Richard [MI]) Posted on: Aug 19, 2023 4:44 AM
Message:

If new houses are selling for a million plus, maybe older houses are selling for high numbers also. Have you considered selling those 30 houses and retiring? Even at half a million each, that's 15 million to you and no more tenant problems. --172.58.xxx.xxx




Did we reach breaking pnt (by mapleaf`18 [NY]) Posted on: Aug 19, 2023 9:19 AM
Message:

I'm getting a lot fewer responses than earlier in the year or the same time last year.

And I agree. The crowd of "Unrentables" is exploding exponentially! --64.246.xxx.xx




Did we reach breaking pnt (by Allym [NJ]) Posted on: Aug 19, 2023 9:20 AM
Message:

It's the weather and nothing moves around here either in August since everyone is on vacation somewhere. Can't even sell anything on Ebay. Hold on. September will open everything back up. --173.61.xxx.xxx




Did we reach breaking pnt (by Oregon Woodsmoke [ID]) Posted on: Aug 19, 2023 11:02 AM
Message:

One thing that has always been a problem for me is that the crowd that buys houses is not in the same income class as the crowd who rents houses.

We get people with lots of money buying houses and they have bid the price of a 3/2/2 up to half a million dollars and in the meantime, a working family has not had their income go up by much and they can realistically afford about $1200 a month in rent.

There are not many tenants who can afford to rent a half million dollar house. There just are not many jobs that pay that sort of income, so it is a tough job to find a tenant who can qualify at the high rent. --76.178.xxx.xxx




Did we reach breaking pnt (by Tim [CA]) Posted on: Aug 19, 2023 3:52 PM
Message:

Salaries have not kept up with costs for nearly two decades. Elderly care costs have exploded, so....more parents are letting their adult kids live with them and building an ADU in the back yard. The result is that the pool of tenants that make enough to rent a half-mil home is slowly drying up.

The really bad applicants still need a place to live because they've already burned all their bridges with their relatives.

We rental owners rents keep going up, but we keep expecting our costs to stay the same.

I realize these are all broad generalities....if you disagree, so be it. This is what I'm seeing - the situation in your local is likely different. --108.201.xx.xx




Did we reach breaking pnt (by David [MI]) Posted on: Aug 19, 2023 4:29 PM
Message:

it's just impossible to expect consistent experiences renting a vacant property. There are many variables of the market at the time you rent. I don't think it's useful for a LL to try to speculate WHY the market is behaving at a particular moment.

I look at zillow to see the current inventory on the market and what they are listed for. I ALWAYS list my house for the lower range. A lot of posters say to increase rent, but I think that doesn't work anymore now that rent increases have outpaced wage increases.

You can raise their rents at renewal. A tenant already living there will have to weigh the increase with the cost of moving . --68.56.xxx.xx




Did we reach breaking pnt (by GKARL [PA]) Posted on: Aug 19, 2023 7:32 PM
Message:

I agree with David. Rents have skyrocketed in most areas and folks are tapped out. If you bought before the pandemic, you can afford to moderate your rent. That won't apply to most post pandemic buyers who must charge at the top end of the market in some instances just to break even. --172.56.xxx.x




Did we reach breaking pnt (by Small potatoes [NY]) Posted on: Aug 20, 2023 12:35 PM
Message:

I remarked in the spring that this effect was happening by me. I priced less than top of mkt and then made 1 reduction and it took me 2 months to find a resident. When I lowered the price I attracted inquiries from farther away who were willing to consider the area because of the savings and updated condition of my unit. Went from 850 for 1 br to 775 in C class. --72.10.xxx.xxx




Did we reach breaking pnt (by tryan [MA]) Posted on: Aug 20, 2023 1:51 PM
Message:

Had a interesting conversation with log home builder (he built mine ... I was ordering materials). I asked "What it would cost to build my house today." Said he just closed a deal to build the same house for $1M. I built in 2006 for 425K. My cost included a waterfront land purchase and landscaping.

Also said he is booked solid thru 2026. And labor costs are the bulk of his expenses. --198.168.xx.xxx




Did we reach breaking pnt (by tryan [MA]) Posted on: Aug 20, 2023 1:55 PM
Message:

... the land was 100k so building costs have more than tripled since 2006.

Yeah, I'ld say a breaking point is near. --198.168.xx.xxx




Did we reach breaking pnt (by MikeA [TX]) Posted on: Aug 20, 2023 4:03 PM
Message:

I recently read an article that quoted the rental housing market demand had shrunk by about 100K units over the last two quarters. That means there are 100,000 more units available for renters to select from today than 6 months ago. It went on to say that rent inflation has flattened out and and begun contracting, in some markets where rent inflation was highest last year, it has gone down by 1-3% over the same period. I was going to post the link but I can't find the article now.

So, the national market stats seem to confirm your concern that we have reached the breaking point in some places in the country. --209.205.xxx.xx




Did we reach breaking pnt (by David [MI]) Posted on: Aug 20, 2023 5:03 PM
Message:

If indeed the rental market is oversaturated then the invisible will correct by lowering prices. So if you have a vacancy you should protect against by pricing on the low end.

When I check comps on Zillow, I also add in the neighboring towns, because some may be cheaper and tenants may not care --68.56.xxx.xx




Did we reach breaking pnt (by 6x6 [TN]) Posted on: Aug 20, 2023 5:05 PM
Message:

Vee, Ken, and others who say to up the rent, I am still confused as to why you say to do this when you are getting few inquiries? Would you mind elaborating a little more why you do this?

Do you have an example to give? --73.190.xxx.xxx




Did we reach breaking pnt (by WMH [NC]) Posted on: Aug 20, 2023 5:26 PM
Message:

6x6, this was long a winning strategy in some markets. Price slightly above what's listed and you get people looking for nicer places. Price too much under and you get people who will take trashy places because they don't care.

BUT with rents as high as the sky these days I'm not sure that's such a great idea anymore. --50.82.xxx.xxx




Did we reach breaking pnt (by Ken [NY]) Posted on: Aug 20, 2023 5:51 PM
Message:

I agree with what WMH said.Tenants look in ranges, $1400-$1500 or $1500-$1600 so if you price at $1200 even though it is woth $1600 and the rule of thumb being the higher the rent the better quality the tenant you could not only be getting less rent you could be getting a lower quality tenant --74.77.xx.xx




Did we reach breaking pnt (by David [MI]) Posted on: Aug 20, 2023 6:12 PM
Message:

What evidence do you have Ken that tenants set a lower limit in their search just $100 less than the higher limit?

The fallacy in that logic is that even if a tenant who can afford a $1600 rent will want to pay less if it's possible

I have tried that many times before, and I just end up with a longer vacancy before I lower the rent and quickly rent it out. --68.56.xxx.xx




Did we reach breaking pnt (by Robin [WI]) Posted on: Aug 20, 2023 8:29 PM
Message:

I'm fortunate to live in a market that still has somewhat affordable homes. We moved there in 2015, bought our first rental for $20K, rehabbed it for $20K, and rented it for $750/mo. In retrospect, we overpaid.

We picked up a couple more houses in the same zip code for under $40k. Rents crept up to $850.

Now a house in neglected-but-livable shape in that same area is going for $75k, and ones that have been remodeled are going for $150K+. Rents are $1200 for the same house. Much harder to make the numbers work, but two-income families earning $18/hr at Amazon can still afford the rent. Demand is still high. When I'm doing a rehab, people stop by and ask when it will be available for rent.

I can't imagine paying upwards of $200K for a house and trying to provide affordable housing! --104.230.xxx.xxx




Did we reach breaking pnt (by Sisco [MO]) Posted on: Aug 20, 2023 9:02 PM
Message:

Homer, I am most certainly not in a super high end city and your prices and house descriptions sound to be in line with my small market. While cutting your price may create a bargain that canít be resisted by the locals moving from another rental 2 miles away, I donít think it is a make or break issue with the young couple relocating to work a new job. He has to get a house the his wife likes , well located, safe, clean and quiet. He has to get it done in a short time frame.

If your house meets his criteria, $100 per month wonít decide the deal.

My hunch is that he wants the perceived safety and convenience of deal with a property management company. Be sure that your online presence puts his mind at ease.

If your entire presentation is a Zillow ad, you will reduce the new move in crowd that is not as price sensitive. --149.76.xxx.x




Did we reach breaking pnt (by Ray-N-Pa [PA]) Posted on: Aug 20, 2023 11:02 PM
Message:

Who is that ideal tenant that you are seeking out and how specifically are you trying to reach out to them?

Is this house designed more for a family or a single professional or maybe a retired couple? Each of these groups require different marketing to target a specific niche that an owner would seek. --24.101.xxx.xxx




Did we reach breaking pnt (by Sir Walter [NC]) Posted on: Aug 21, 2023 1:18 PM
Message:

Ray,

Can you give some specific, concrete examples of how you would market to each of the different niches you mention?

Thanks in advance. --5.182.xxx.xxx




Did we reach breaking pnt (by 6x6 [TN]) Posted on: Aug 21, 2023 4:27 PM
Message:

Thank you, WMH & Ken.

Ray, I am also curious as Sir Walter is. --73.190.xxx.xxx




Did we reach breaking pnt (by Ken [NY]) Posted on: Aug 21, 2023 8:02 PM
Message:

David- not necessarily saying tenants look in prices ranges as tight as $100 but i believe they look in price ranges lets say maybe $1400-$1600 or whatever the number is and if you are priced too low say $1200 they wont call because they assume landlords price a place at a fair price.I have a friend who rents a place worth $1500 for $700 and he asks me when he advertises it why he gets so many dirtbags, i keep telling him because dirtbags are looking in that price range and good people that can afford $1500 arent even looking in the $700 range.I know this is an extreme example,he only has the one place and is convinced he should get a great applicant at that price,i dont bother arguing with him anymore,he simply wont listen but he keeps working saturdays because he needs the money and wont hire a manager like i have suggested because it cant be that hard to find a tenant. --74.77.xx.xx




Did we reach breaking pnt (by Matt [TX]) Posted on: Aug 22, 2023 7:20 AM
Message:

My houses are in the same area at HomerĎs. I get great tenants by keeping rent $200 below market. Latest example, I put house at $2100 but couldnít get good tenants. After lowering to $2000 which is 100-200 below market, I got a great family. The same thing happened to same house three years ago. I didnít have to do anything after the tenant left. They left the house exactly the same when they moved in three years. Many good people (even renters) do manage their money like us. --172.58.xxx.xxx




Did we reach breaking pnt (by Annie [IN]) Posted on: Aug 22, 2023 12:39 PM
Message:

I think all the "good" renters are staying put for now. I have only had 2 move out this year in our apartments; both had gotten new jobs in another city in the State.

A few weeks ago, I had dozens of inquiries on a 1 BR / 1 Bath apartment in a very short period of time.

I just listed a similar unit in the same complex for the same rent, but traffic has slowed down considerably as far as inquiries go.

The inquiries I DO get, and the applications I receive based on those inquiries, is abysmal -- current or previous evictions (I had one appication just recently that was currently being evicted, had 3 others in the past and owed two of the 3 landlords money. --209.132.xxx.xx




Did we reach breaking pnt (by Sandy [CO]) Posted on: Aug 23, 2023 12:39 AM
Message:

Yes I do think we are reaching the breaking point. U.S. Credit card debt just hit an all time high at $1 Trillion dollars. A sure sign consumers are using credit to get by and will surely be running out of steam soon.

I listed a place for rent, The zestimate was $2950, I listed it for a modest $2500 and I got roasted on Facebook. Called names, said I was greedy, that it was a single wide (would have been fine if it was true, said this was why no one can afford to live in this town and I should be offering it up for free like they were opening their home up to people. Ah well. I didnít respond to any comment as I didnít want to add any fuel to the fire. Long story short I pulled it from Facebook. In 3 weeks Iíve had 3 serious candidates through Zillow, but none qualified. One gal makes $4300/moÖ which is nowhere near enough.

Another tip I noticed that similar to Craigslist, the properties listed currently, are usually the ones that havenít rented and thus usually listed too high and thatís why theyíre still there. Iíve found listing below the current inventory prices is a better way to go. Just my 2Ę --73.229.xx.xx





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