I have rented thousands of properties over the past 10 years and have compiled an abundance of of data related to this topic. A property may have many reasons it does not rent quickly. Here are the two most common:
Landlords performing their own clean up and repairs
Landlords Performing Clean Up and Repairs:
Many homeowners choose to conduct their own clean up and repairs to save money. However, this rarely works for the following reasons:
Clean up & repairs are NOT COMPLETED IN A TIMELY MANNER
Clean up & repairs are NOT COMPLETED IN A PROFESSIONAL MANNER
Many homeowners are under the false impression they can save money by performing clean up and repairs themselves. Experience has shown that it takes significantly longer for homeowners to find the time to complete the work than it would be to allow the management company to take care of it. Example: Rent $2,200.00 per month / 30 days = $73.33 per day. Each day the property sits vacant in this example, the homeowner loses $73.33 per day. It typically takes homeowners 3-4 weeks to complete their work costing potentially $1,500-$2,200 in lost rent. If the management company performed the necessary work, it typically takes 3-4 DAYS to complete. DO THE MATH!
Many homeowners are under the false impression they can complete repairs such as drywall patching, house cleaning, painting, etc. in a professional manner which rarely happens. In most situations the work is performed to the homeowners standards, but seldom completed to professional standards. When the property does not rent in a timely manner, the owner usually ends up lowering the rent price. Any perceived savings is lost by lowering the rent price, additional time incurred for the owner to complete the work, and potentially losing a qualified applicant who is unsatisfied with the work performed. When a prospective renter views a property, it is incredibly important to make the most of every opportunity. If there’s a scheduled viewing, there is an interested party that is likely to rent your home provided the property meets their standards. DO NOT GIVE A POTENTIAL PAYING CUSTOMER A REASON TO SAY NO.
The amount of rent tenants are willing to pay is largely a result of the value they believe they’re receiving. On our website we offer a free online pricing tool which provides a detailed report of rental prices in your specific area. https://www.clockworkpropertymanagement.com/chino-hills-property-management#free-rental-analysis
This report provides an approximate rental valuation of your property. However, it is always best to have our agents visit the property for a free, no obligation rental analysis. This includes the following pricing options:
Aggressive price: The property should rent very fast
Fair market value: The property should rent between 1-21 days
Pushing value: This price is above the median rent price for the neighborhood. It’s likely to take more than 21 days to secure a renter that is willing to pay a premium.
Unless your property has significant upgrades and amenities above and beyond competing rental properties, the rent price should be listed at the fair market value.
Being a Landlord is like running a business. For any business to run properly, investment is needed to make it the most attractive it can be. Homes that are upgraded and in great condition will command a much higher rent price and will rent faster. Properties that are in average condition will take longer to rent, and in most cases rent below fair market value.
The most valuable piece of advice I can give to a homeowner is to INVEST IN YOUR BUSINESS and let the professionals do the work.