Another rental idea


#1

Had a very clean 2/2 single with garage and screen room for rent. Had put new pergo and berber, paint, side by side fridge in unit.

spent 114 for a 10 day ad at 600 per month… Asking for 1 mo rent and 500 dep. I had four serious calls in 10 days.

Re-ran the ad with price of 585 and had 22 calls in four days. Ended up getting first, last and 1/2 of a 500 dep for move in!! The other portion of the dep will be paid next month.

WOW! a fifteen buck discount for a very good tenant. something that I missed was by overpricing the home, even by fifteen bucks per month a lot of quality folks had not called.

This is one of those things that is hard to measure. IE how many folks DIDN’T call. We are going to try and price these homes right from the git from now on.

This is a real learning curve for me! The fifteen bucks I discounted is more than made up for cost of a useless ad and 10 days vacant!

As an aside, we also rented a home available the 16th of this month from this ad. We have 3 vacant in 62 units…we call this full in our market.! Yes!!!


#2

Greg can you come and help me in NC. I am feeling the slow down. No sales in March. This is the first time we have had a finished home in the park that is not sold (4 of them) But as Ryan said this morning on the phone its just time to get creative.

Rick


#3

Greg,

Are you choosing to rent your homes by choice or is the market is so bad that you cant find buyers for Lonnie Deals?

Thx

Sean


#4

many LD’s. I concentrate on L/H pacs and the market here in FL is sucky.

  1. We have an insurance crisis. Insurance on a 1998 D/w on it’s own lot with stated value of 55K is 1700 per year with 2K deductible.

  2. We have a finacing crisis. Had a customer with mid 700 FICO fail because total DTI was 51%, max allowed was 50%…this after 4 months of struggle.

  3. We have a property tax crisis. Doubled last year in a declining market.

I have a very nice 1996 Fleetwood on 1/4 acre lot for sale for 59K appraises for 73K. Have 27K in the thing and can rent for 800 per month. I would rather rent it for a few years until market corrects. We have 20 month’s of unsold inventory in my County…Wow! 2 years ago we had 45 days unsold inventory.

Things will get better!

Greg


#5

Greg,

Wow, sounds like some challenges all right. Sounds like creative financing will be needed until the market comes back some. Good luck.

Sean