[quote=earlyretirement]I agree with the others (especially EconProf’s post) that you most likely need to lower your price until you get it rented out.
The market has a way of telling you what fair value is. Also, you have to really objectively and subjectively evaluate your property vs. others on the rental market.
Is there anything that is obviously negative on it vs. other properties in the area? Bad decor, ugly bathrooms, dirty, etc? I know some owners that don’t objectively do a comparison on their property vs. what else is on the market.
I compare it to parents and their kids. No parent wants to admit their kid is ugly. And even parents that have ugly kids, probably don’t think they are ugly. Many think they are very beautiful when they are scary (think Seinfelt episode on “stunning baby”). It can be the same with properties.
Also, what is the make up of the property management fee? Do you pay a monthly flat fee to pay the bills? And then a percentage of all rentals? If so, they aren’t really making too much unless they book it.. No? What kind of rates are you paying? How much is the property manager actually making not renting it out?
Also, what competition for property managers is there in the area? I agree sometimes the property manager is to blame but many times it’s just owners that either have properties that are substandard or trying to charge too much relative to the condition of the property. Basis supply and demand issue.
I’m not saying that is the case with yours because I don’t know your case. But it clearly does you NO good to have it sit empty.
Also, how does your property manager go about advertising and getting new clients? Have you talked to other owners that they manage?
A good tip sometimes is to do a bit of detective work and have a friend contact the property manager to set up viewings that they have and set up several including yours and other comparable properties that they manage on the same day and just see how what they say during your visit vs. other property visits. It could be worth the time to do something like that.[/quote]
I really took an objective look, and I studied the market closely and like has been mentioned I came in at market value.
I had others go through the house and tell me honestly what they thought. They all said the same thing – the house is immaculate. Newer kitchen, new carpet, paint, outlets, switches, toilets…the list goes on and on.
Very good location, quiet street – all the right ingredients.
Prop Mgmt fees are $395 for tenant placement, then about $110 per month including eviction insurance.
I interviewed over 10 prop mgmt companies before deciding on the one I chose.
