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I don't think most landlords are concerned with getting the best tenants so much as they are getting the place filled quickly with someone who can pay the rent.
And that is exactly why there are landlord horror stories. And it creates opportunities for real estate investors. If you are an astute business person, it's easy. If you think God owes you an income as a LL, you are destined to fail.
Things are done differently in large cities like L.A. and in hot markets like that where there is a lot of competition for housing. I don't think most landlords are concerned with getting the best tenants so much as they are getting the place filled quickly with someone who can pay the rent. I've never had an experience like you're describing with the landlord being there and making deals (though I believe it probably happens more frequently than the typical person would assume), but I've also been to rental open houses where if you weren't the first or second person on the interest list that day that you had zero chance at getting it.
80% of applicants I get do not get past the prescreening questionnaire.
The other 20%
10% fall off after I start checking background. They usually get declined due to omission (basically lying about something)
The other 10%....that’s what I have to choose from.
So no not everyone is just looking for a breathing body to fill a space. I have never done anything like that auction style renting nor would I ever be remotely interested in doing so. My last vacant rental stayed empty for about 4 months. I’ll leave it empty before I lower standards to get someone in paying rent.
80% of applicants I get do not get past the prescreening questionnaire.
The other 20%
10% fall off after I start checking background. They usually get declined due to omission (basically lying about something)
The other 10%....that’s what I have to choose from.
So no not everyone is just looking for a breathing body to fill a space. I have never done anything like that auction style renting nor would I ever be remotely interested in doing so. My last vacant rental stayed empty for about 4 months. I’ll leave it empty before I lower standards to get someone in paying rent.
I get ~10 showings after ~100 inquires. Most pass that apply, as they have been pre-screened. I only show a place 2-3 times in a week, and only for an hour during that showing. I schedule showings 15-minutes apart, and schedule five in an hour.
If I do not get enough responses in a week, I lower price $25. If I do not get enough quality tenants that are pre-screened in the first showing, I lower price $25. If I have a qualified person walk away, indicating I am not the best value out there, I drop price.
I rarely have a vacancy, and I do have turnovers. The key is locking someone in 6-8 weeks out, an being able to do a 1-day turn.
I had a 5-month vacancy once. I decided that lowering price by even $100 was a lot cheaper. The rent can be raised in a year. Vacancy is your #1 avoidable expanse as a landlord, and you can always increase demand by lowering price.
I get ~10 showings after ~100 inquires. Most pass that apply, as they have been pre-screened. I only show a place 2-3 times in a week, and only for an hour during that showing. I schedule showings 15-minutes apart, and schedule five in an hour.
If I do not get enough responses in a week, I lower price $25. If I do not get enough quality tenants that are pre-screened in the first showing, I lower price $25. If I have a qualified person walk away, indicating I am not the best value out there, I drop price.
I rarely have a vacancy, and I do have turnovers. The key is locking someone in 6-8 weeks out, an being able to do a 1-day turn.
I had a 5-month vacancy once. I decided that lowering price by even $100 was a lot cheaper. The rent can be raised in a year. Vacancy is your #1 avoidable expanse as a landlord, and you can always increase demand by lowering price.
My long vacancy was simply due to the time of the year. Tenant left in mid October so I was screwed till feb March. I mean I could of rented it but the people I was getting were 550/650 scores and not enough income. No thanks. I had those type of tenants and never again. I like you rather drop the price to attract better tenants but I don’t drop too much simply because lowering the price too much attracts too many lower tier tenant applicants. It’s a fine line. I shall stay a hundred or two under going rate
My long vacancy was simply due to the time of the year. Tenant left in mid October so I was screwed till feb March. I mean I could of rented it but the people I was getting were 550/650 scores and not enough income. No thanks. I had those type of tenants and never again. I like you rather drop the price to attract better tenants but I don’t drop too much simply because lowering the price too much attracts too many lower tier tenant applicants. It’s a fine line. I shall stay a hundred or two under going rate
I agree, do not take a sub-par tenant. In MN, I sometimes show properties in -20 degree weather. I have had move-ins in all months, although I focus now from 5/1 to 10/1.
The property I was vacant on for 5 months was finally rented in mid-February. Very low price, $100 under what I was asking. If I would have lowered right away, I would be ~$4,000 ahead.
Since then, I have adapted and only had 15 days not rented in 2018 with 24 apartments and three turns. Very seldom can I not do a 1-day turn, especially when tenants move out a few days early, or I can get in a few days early.
Lowering price attracts all, more to weed out mostly via email. However it is more profitable than holding firm.
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