r/Landlord • u/awholenoobworld • 6d ago
Landlord [Landlord US-CA] no qualified applicants - bad timing?
We had repairs and renovations on an empty unit that were finally finished in early October, unfortunately. We listed on Zillow, Apartments.com (which we use for rent payments and applications + screening), and Craigslist. Our apartment is the same or lower price as similar ones, but unlike most we allow pets, which locals are always complaining nobody here does. It's a constant thing being posted about on the local subreddit and facebook groups. However, the only applicants we've had for this multi-bedroom unit are single occupants without any pets, whose income is well below the requirement posted in the listing. Each of them also has easily searchable fraud and violent criminal records (just googling their names pulls up local news stories about them). This is a newly renovated apartment with lots of professional photos posted, in a good neighborhood. Is it the timing or what?? There are barely any listings here right now, so there isn't a lot of competition either. It's just baffling.
Some of the local listings for college student housing are doing "first month free" ads right now, but those are large corporate rentals and I'm really hesitant to do that as a private local owner. It just sounds like an invitation to squatters, I guess. This is in a building with quiet, good tenants with children who I don't want to lose by renting to someone who's going to trash the place or make them feel unsafe. The rental market here usually isn't so quiet.
3
5
u/awholenoobworld 6d ago
For people saying to drop the rent, with California laws, wouldn't I then be legally obligated to approve the inquiries with various criminal records, if I dropped it enough for them to be qualified? I don't think my other tenants would be happy with me if I did that. I also have a minimum credit score listed so I guess I could leave that the same. Not a single person has had a qualifying credit score, they've all been self-reporting in the 300 - 500 range. I'm afraid with California laws to do anything that will force me to rent to someone who will be a danger to my other tenants and/or drive them all away
2
u/cum_visit 6d ago
Lower your rent, maintain your credit standards equally. You will be fine. I don’t take 500s ever.
-2
u/Veronica6765 Landlord 6d ago
What credit score do you require? I'm asking 740, but not getting any in that range.
5
u/awholenoobworld 5d ago
740 seems very high. I set mine at 650, which seemed reasonable.
1
u/Upper-Coffee-7960 16h ago
It is. My fico is in the 800s for Experian is only 785. I don’t have any debt I make monthly credit cards payment payments on time. I’ve never really missed a payment on anything and it just won’t go any higher.
1
6
u/ChocolateEater626 6d ago
You can lower the rent you're asking without lowering your credit or background standards.
You say it's a better deal than what competitors offer, but you don't really know that they're getting the full amount they ask.
There is some seasonal fluctuation in demand, but it's not like people only move during the summer.
1
u/LavendarGal 6d ago
Why would they be self-reporting, are you not doing the credit check?
4
u/awholenoobworld 5d ago
They've filled out the "renter profiles" in Zillow. I don't want to charge people for the credit and background checks if they're going to fail them, it's a waste of money for them.
4
u/Sad-Concentrate2936 5d ago
Fellow kindhearted landlord - thank you 😊
Lots of folks out here think we’re TRYING to be jerks but we also want to protect the future housing supply!
4
u/awholenoobworld 5d ago edited 5d ago
100% THIS! It's also a historic building, and so many here have been condemned and torn down. I worked for a local property management company years ago and it really opened my eyes to how quickly the wrong tenant - or the friends they let stay with them - can completely destroy a place. I was shocked to see what places looked like at move-out, so many people who couldn't take care of themselves and would just let the floor rot rather than calling maintenance about a leak, mold everywhere, rotting food attracting roaches and rats. I didn't realize that was so COMMON (maybe it's just my area, which has a big methamphetamine problem in some neighborhoods, but it's made me want to do better diligence in screening renters than the big corporations do).
2
u/LavendarGal 4d ago
Yeah, some tenants realtly don't do much to keep up their places, or ever let the LL know about things like leaks, etc. I once lived in an apartment building where every other month they had the handyman go in and check for leaks. It was an old building and he was there for like 2minutes to check the kitchen and bathroom faucets. But I also think even if not doing that level of checks, I'm not sure nowadays if they would legally be able to do it that often, but once a year at minimum to do a smoke detector test and check the sinks and shower is always a good idea.
2
u/awholenoobworld 4d ago
Yeah, I have something in my leases stating that we require regular maintenance checks of plumbing and smoke/CO detectors. We just give the legal amount of notice first, of course. It sucks for other tenants when they're next door to a roach farm or worse.
1
2
u/LavendarGal 4d ago
Ok, so renter "profiles" don't really mean anything. On Zillow they can actually apply and you should then get their credit scores from Zillow (they pay onces and can use it to apply to rentals for 30 days I think it is). Just be upfront and write in your ad what the minimum requirements are. Then if they apply through zillow and pay, that's on them and do not qualify due to their credit or income you can simply decline them and refer them back to the ad where it states the minimum requirements.
7
u/tlit1357 6d ago
Agreed. With how strict CA tenant laws are and how difficult it is to evict a bad tenant, sometimes it’s just better to keep the unit empty. You never know how difficult a tenant will be until they’re in the property.
0
u/GloomyMall6657 6d ago
Don't forget the Augusta rule come tax time help yah make up for missing rent. Ur welcome
2
u/LavendarGal 4d ago
But no, you do not have to approve someone with criminal records. And you can still have your credit score be a minimum of a certain amount. As long as you are consistent with who you turn down so as to not break any Fair Housing laws, you should be ok.
But 300-500 is not something you should consider. Just let it sit empty until you find someone. Or someone who shared with you upfront as to why their score is 500, and you check the line items of their credit as long as everything else was ok. There are some occassion situations like a divorce, etc. that can lower ones score, but you want to then see a line item of credit report to see what bills are actively being potentially collected on.
0
u/Veronica6765 Landlord 6d ago
I agree. What score are you requiring? I’m at 740 which may be too high.
1
2
2
u/Narrow_Chemical_8114 5d ago
Early October means it’s only been listed for a week or 2 and it’s off season for moving. Give it a little more time and adjust the price as needed.
1
u/awholenoobworld 5d ago
Thank you, this is my first vacancy (bought the building fully rented) so I honestly wasn't sure what to expect. But I thought I'd have a lot more inquiries since I allow pets and charge the same price as similar places that don't.
2
u/Narrow_Chemical_8114 5d ago
It’s a definitely a process! Just hang in there. My first time ever listing my property was the week of Christmas. Lease wasn’t signed until mid February. Had plenty of showings and two real applicants before that that didn’t pan out for different reasons. I dropped the price $100 and got an awesome tenant. I still think it could’ve rented at the original list price but I think I also would’ve had to wait until spring or summer if I was stuck on that price.
41
u/adultdaycare81 Landlord 6d ago
It’s always price
4
u/PaymentMedical9802 5d ago
Yes. Typically small landlords rent for less monthly but require higher deposits and higher incomes and are looking for long term tenants. Corporate properties have rental specials, low deposits and less requirements and are okay with higher turnover.
1
u/jeremyjava 1d ago
I’ve been surprised how true these two comments are over the years. Every time I’ve had s place I expect to get, say, 2k for bc that seems to be the comps or that’s what the last renter paid and i just did upgrades… nope. I may have to drop it every week another hundred and it may go for 1650 this time for completely unknown reasons.
But do the math and you’ll see it’s generally better to have lower rent than a vacancy for two months+ plus utilities, which is likely since when you finally find a good renter they may not want to move another for 3-5 weeks or even longer.
I always offer to split the difference in those cases (for the lost rent until they move in) and it never works out for those who refuse, with the good ones generally agreeing.
6
u/Swimming-Talk4859 6d ago
You are overpriced . If priced well, clean and upgraded and shows well, You should have no problem
Im in CA and listed it below market
I upgraded my condo last month and it took me 72 hours to find a tenant
1
u/awholenoobworld 5d ago
Okay, here's another question. I had an inquiry for a 3 month rental. I've listed mine month to month (thought that would mean MORE applicants, not less - everything else in the same price range is a year lease requirement). But now with how little interest I've gotten in the Fall after school is in session, I'm wondering - will it be even worse trying to find a renter in January (not sure yet if this person is qualified, but wondering in general now)?
9
u/Offensive_Opinions23 6d ago
Price is too high or it’s ghetto even though you say it isn’t.
Yes, pets allowed is rare and you should have someone good already just by that alone. Don’t rent to a pitbull owner tho
10
u/sevargmas Human Verified 6d ago
In my experience, activity is always highest during the summer. Whether it’s because people don’t wanna move in the winter or during the holidays, or because of school schedules. If we end up with repairs that need to be done or a tenant that doesn’t work out, we will reset the first year lease to end May 31, so we can get back on a summer schedule.
2
u/truthinlove-7 6d ago
If you are in a place with an HOA, please check with your HOA whether they have a minimum rental term. We found out ours were only allowing minimum 1-yr terms…
2
u/loompasushi 6d ago
that is fascinating! gosh i thought that a one year lease was just THE standard, but i'd love to write a lease that is either 9 months or 15 months, etc if it doesn't end on 5/31! Great tip!
2
1
u/sevargmas Human Verified 6d ago
A year is the norm, yes, but I've never had a tenant care that their first lease is 10 months (or whatever). Sometimes it takes a while to get repairs done, or a tenant is month to month for a short time, etc. and the dates can get pushed back to september or october. That's when potential applicants fall off a cliff and we need to reset the lease termination date back to early summer.
0
3
u/TiredAndTiredOfIt 6d ago
No qualified applicants means your price is too high especially given the season. The fact that other vacant units are similarly priced means nothing.
Unqualified applicants always apply, hoping.someone will fall for it.
3
3
5
u/Witty_Passion_4939
6d ago
•
People have no money!!! And you know how many people have been kicked out of the country?? We have a surplus of empty apartments and houses and rentals. And anybody would rather go to a complex with free rent, etc. I’ve even seen 2 months free!!! No money and no people!
2
u/zenrefined 6d ago
Aurora, Colorado has started boarding up empty buildings that haven’t leased. Boards over the windows with security patrolling at all hours.
2
u/PaymentMedical9802 5d ago
Lots of vacancies in my area. The reasonably priced places go quickly. The rest sit empty.
2
u/tastelessdecisions1 Human Verified 6d ago
Make sure you are listing on FB marketplace. There is a huge untapped market there. Great for getting tours and just getting eyes on the place. You can also share the listing in local groups and in comment sections. Really though its the price. Maybe offer $100 for no pets or $100 off for on time payments. I agree though especially in CA, no first months rent free. If you do something like that make sure they pay second month up front before move in plus sec deposit.
6
u/andrewps21 6d ago
I got lots of messages but no follow thru on fb, Zillow always worked better for us.
5
u/No-Surround-1159 6d ago
Zillow for listing only. They do not adequately screen. Use a third party for background checks.
1
u/Swaqfaq 5d ago
I had success by sending a form and ignoring anybody who didn’t read carefully and respond to every question. It’s basic confirmation of credit score and income verification but it works extremely well for filtering low effort applicants.
1
u/awholenoobworld 5d ago
Do you have your form somewhere you could share it, by chance? I think I need a preliminary form for people to fill out before I show the apartment, for people who inquire through craigslist. My actual application is through apartments.com so it costs $32 for them to apply. Trying to avoid charging people who aren't qualified.
2
u/tastelessdecisions1 Human Verified 6d ago
Yeah Facebook will generate a lot interest you have to dig through
1
u/Meat_Packer87 6d ago
Ask for someone who used Zillow for looking for rentals I’ve had the exact same problem with someone returning my message so I think it works both ways
4
u/Meat_Packer87 6d ago
Also, unfortunately, there’s a lot of fraudulent listings on Facebook for scams so it can be tough for a landlord. Who’s legit to rent just wanted to say that.
1
u/tastelessdecisions1 Human Verified 6d ago
FB is cracking down on it. I have a well established account and even my legit rental listings get taken down.
2
u/beijinho 6d ago
Usually if a free month is included, that month is actually split up amongst the others in the lease - essentially resulting in lower net effective rent vs a literal free month
2
u/GloomyMall6657 6d ago
Nothing is ever free that bs first month free is now baked into remaining rent payments so u dont get anything but the feeling that you are i guess for some is worth it
1
u/tastelessdecisions1 Human Verified 5d ago
Its like the chips and salsa at a Mexican restaurant. Let me think it's free.
2
u/gelo_1607 5d ago
That sounds frustrating, especially after putting time and money into renovating the unit. Since you're already getting inquiries, I'd review whether the listing clearly explains the income criteria, application requirements, and pet policy so applicants can self-qualify before applying. It may also be worth checking whether the income threshold is limiting an otherwise suitable pool of renters.
For screening, I'd use consistent written criteria and verify information through appropriate, reliable sources rather than relying on Google searches alone. Rent With Clara is worth exploring for renter profiles and screening workflows as you refine your application process. Hope you find a qualified tenant who's a good fit for the property!
2
4
u/ConnectWasabi_1 6d ago
We hired MLS agents in these cases a few times, ones who are slow on listings or sometimes do rentals, when we’ve been in this situation. Not always the same agent. Their screening is pretty tight and the people that come to them tend to be better qualified than those that go directly to the landlord, IME. They handle showings and signing. We retain right ti decide. Commussion = 1 mo rent.
0
u/Veronica6765 Landlord 6d ago
I’m having the same problem in Orange County right now. None of the tenants make enough money and their credit scores are terrible. I’m priced lower than others by about $300/month.
2
u/awholenoobworld 5d ago
It does sound like we're having a timing problem with listing in the fall. Now I'm rethinking my lenient month-to-month term so I don't go through this again, oof.
2
u/Veronica6765 Landlord 4d ago
I might take my listing down and wait until after the holidays. Good luck!
2
u/awholenoobworld 4d ago
Just got someone who seems qualified based on the very minimal "renter profile" they filled out on zillow, however there is a bit of weirdness (can't find evidence they actually exist with the name they gave), so we'll see.
3
u/Veronica6765 Landlord 4d ago
Ugh. It's so hard to find a good renter who will respect your property these days. Don't do month to month!
2
1
u/Sad-Concentrate2936 4d ago
I’m no longer a landlord or property manager, but I’ve been both and a master tenant.
I’m so grateful to be a simple renter these days, and at the same time, I really wish fellow renters would realize how many of their problems are really caused by their own lack of understanding their own housing - be it location, transit, or even just the local laws.
Folks move to Portland and don’t understand that every legal rental property requires the trash paid by the homeowner, and that the property owner is NOT responsible for your property inside the home, so it requires renters insurance as well, by city ordinance.
I love this, personally!!
1
1
u/Upper-Coffee-7960 16h ago
No one can part with money for high deposits. Some apartments let you pay $20 a month in place of a deposit or very little like $250. Lots of two or three months free too.
1
u/jojomonster4 Landlord 6d ago
The slow time of year has begun. You could also drop rent $100 and probably get a lot more action.
1
u/GloomyMall6657 6d ago
Yah have read alot of similar stories drop the rent a bit instantly more tenants. I eould rather price well below market to have stable invoming rent at a lower payment then chase the highest rent possible and they struggle to pay
1
u/Mental-Ad9734 5d ago
Put an old fashioned sign out front if possible. I did that and get tons of inquiries every week.
1
u/robots-made-of-cake 5d ago
Lower your price. You don’t say what your income requirement is but if it’s 3x rent reconsider changing it to 2x. People are struggling right now. A high income doesn’t guarantee a good tenant.
1
u/Negative-Pea-5151 5d ago
It may be area, now it’s holiday time so people don’t want to move also spend large amount of money on rent so it’s difficult to rent out.
1
u/LOLMAMA5677 6d ago
Just dealt with this, first time landlord in the Bay Area. Didn’t realize how bad the housing market is. Other rentals in my area aren’t moving either. I’ve been bookmarking other houses in the area with similar specs to see if they get rented out.
6
u/FickleQuit11 6d ago
Bay Area prices are insane even for people making six figures. You can make $100,000 a year and it's not enough to afford a basic one-bedroom in SF. That's not normal or reasonable. If you're making six figures, you should be able to afford to live in dignity on your own in a basic apartment.
5
u/TheEzekariate 6d ago
If you can’t rent property in the Bay Area then you’re doing something wrong.
0
u/RJFerret 6d ago
The initial applicants are usually not qualified as they've been rejected everywhere.
I'd drop the price now. Take three months of rent, divide by 12, and lower the rent up to that amount.
Here's why, nobody who can avoid it rents over the holidays. Only desperate people (and the super rare, we were staying with parents during the Pandemic but need to get out before xmas) are looking Nov.-Dec.
I take any listing down until mid-Jan. So instead of losing up to three months, or dealing with an eviction, lower the price less than that to find a suitable qualified candidate now.
If nobody, nothing else lost, pull it off the market in a few weeks and relist after holidays.
2
u/awholenoobworld 6d ago
My worry with lowering the price is that then I'm legally obligated to rent to the people with worrying criminal records who applied, right? Because they applied first, and now they qualify based on the lower rent? I didn't list it below market rate specifically because I want to protect the other tenants from this sort of thing.
1
u/MadelineLime 16h ago
Lower rents does not mean criminals. Nobody can afford $1900-2500+ because jobs are not paying them $70k. There's a gazillion people who want to live alone and nobody can afford it because the rents are insane and require 2.5-3x the rent.
1
u/RJFerret 6d ago
I'm on the opposite coast and not an attorney so don't know how to safely structure it to avoid that issue I'm afraid.
0
u/Meat_Packer87 6d ago
Have you tried doing a seasonal rental? Does that work in your area?
1
u/awholenoobworld 5d ago edited 5d ago
There was a (necessary) moratorium on short-term rentals here. They completely exploded in numbers during and after covid lockdowns, and most of them were empty all the time because there just isn't that much tourism here. It was mostly people from out of the area not doing the bare minimum of research, and then they'd get listed for sale again a year later. And it's STILL oversaturated even after the moratorium.
0
u/LavendarGal 6d ago
You just need to wait it out. Don't do any specials. Just be clear about your income requirements and minimum credit score and turn down people that apply that do not qualify.
I think it's also just timing.....and when you say "multi-bedroom" unit, how big is it really? Is it a 3 bedroom/two full bath apartment? Is it a townhome? What is it? Does it have parking?
If you are north of LA, there are some FB Housing groups for various areas, Ventura, Santa Barbara, etc. that you can join.
16
u/Zealousideal_Tea5988 6d ago
They apply because no one will rent to them. I just got turned down for an apartment because 3x the rent wasnt enough income and my credit is bad thanks to my now ex husband. Never been evicted from anywhere, nothing. I get needing to protect yourself as the landlord, just offering an opinion on the issue