When you’re experiencing difficulty finding a tenant for the rental property, it cannot be very pleasant. It’s very much possible that you’re attracting the wrong kind of tenants or that you’re not attracting any at all. So here are common reasons why the property isn’t renting and what one can easily do about it in such a situation.
1-High-Security Deposit
Potential renters do not get bothered with the monthly payment you charge, but an unnecessary high-security deposit can put them off. Numerous states have a limitation on how much one can charge a tenant, while others do not. Think of how much of a deposit you want from renters. Approximately 3 months’ rent is likely unfair and too much, particularly if the other landlords in the same area only demand one month’s rent as insurance.
2-Incompetent Marketing
If you’re facing difficulty renting the property, take a close look at the marketing strategy and campaign. It is very much possible that you are dealing with one of two issues:
Bringing in the Wrong Kind of Tenant: If the renters interested in your property do not fulfill your qualifications, you must have to reconsider the marketing strategy. Add renter conditions in the advertisements so that you don’t waste the tenant’s time and they don’t waste yours. Include the following:
- Requirement of income
- Requirement of a security deposit
- Do you allow pets or not
- The rental agreement’s duration must be signed
3-Current Tenants
Another thing to think about is how your current tenants can affect how a prospective tenant perceives your property. Noise and trash are the two main suspects.
Noise
When a potential tenant walks into the property and is welcomed with noisy music, dog barking, or other renters crying, they will rarely agree to sign a contract to stay at that place. Residents deserve the right to relax in their own homes.
Trash
Furthermore, if a potential tenant has concerns about the other tenants’ hygiene, they cannot rent the property. They will also get concerned with the property’s bugs and rodents.
Rules enforcement
Be sure the current tenants are living up to a quiet hours policy. Additionally, ensure that the outside and all open areas of the property are properly safe and clean. Tenants are also responsible for keeping their rental property clean to ensure health and safety standards. So if you have any concerns about the cleanliness, you need to issue a notice to the tenant to stop the unethical behavior.
4-Unnecessary Feature
You are having issues renting the property because of a fault or useless features in the rental unit or the property as a whole. This may include the following:
Bathrooms
The common issue you can face is that your renters want more bathrooms than you have in the home. They may be searching for 4 bedrooms with 3 bathrooms, but your home only has one.
Too Many Stairs
If the property you’re hoping to rent is on a high floor, tenants have to face problems while renting it due to the number of stairs. The renters have to climb them all to reach their floor.
Small Room Space
The size of the property’s rooms can also be going to stop certain tenants. The rooms may be too small to accommodate the new furniture or decorations.
Location
Due to the extreme location of the property, you may be struggling to attract tenants. Tenants in the neighborhood consider the properties near public transport, but your property requires a vehicle. Your property may be present on a busy highway, which may stop renters. And in some cases, it may be isolated and present in the middle of nowhere, which can be unattractive.
Outdated
Among other reasons why property isn’t renting, primary reason might be very much outdated property. Tenants may search for a property with modern kitchens, bathrooms, or hardwood floors.
Unattractive exterior
The exterior of any rental property can stop tenants from even getting inside to look around. The property may seem deteriorated from the outside, or a tenant may feel unsafe due to the absence of lighting or secure access into the property.
5-High rent
You can easily rent the property if it is priced appropriately. A pricey property may prevent potential tenants from visiting the property, or potential tenants who have to visit it may believe there are cheaper and comparable houses available.
Take No Action
One can leave the price alone but keep the larger picture in mind for once, just once that If you charge $900 for the property, you can lose 900$ per month if it remains empty without a paid tenant. You’ll also have to pay the property taxes, insurance, and mortgage, if you have one, even with the vacancy.
Reduce the Price
The next step is to reduce the price. Yeah, it is actually $1,200 less each year if you drop the price by $100 and have a tenant right away, but you will lose $1,000 per month if the property is empty, so you will make a good amount of money over the time by reducing the price.
6-Hard Screening Process
A comprehensive and detailed tenant screening process is beneficial to you as a landlord, but at the same time, it can be discouraging and hard for tenants. Giving consent to undergo a background check and credit checks and receiving references from previous employers can seem to be too much for a $1,000 per month property. The tenant may search for another rental property with less strict conditions.
7-Property Manager
The person responsible for finding renters is why sometimes you haven’t been able to find one. The property manager you hire can ask too many critical questions initially, or your supervisor may have an aggressive attitude that always gets the job done. Because the tenant will be dealing with this person regularly, the tenant has a right to move on if they do not get along well with them.
Conclusion
I have provided you a thorough analysis of the possible reasons why your property isn’t renting. Examine each one of them and take detailed information about the rental units and see how all of the reasons for rental properties relate to your current situation. Sort these issues, and you’ll be able to rent out your property easily. However, if you want to mortgage your property, contact Aceland Mortgage for expert guidance and opinion.