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Help! Problems with our first properties.

DianneDachyshyn

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Joined
Oct 21, 2007
Messages
181
Okay everyone, this story just gets better and better. The couple came on Friday night and gave us the deposit for the first side and I posted my amazing story on here Saturday morning. The funny thing about Friday night was that we had left Edmonton without so much as an application form. No problem! The tenant had two in his truck, one from one management company and one from another! As they were filling out the form, he mentioned that they had already been approved by our property management company as they had been looking at other properties, but ours is by far the nicest one they had seen. Another interesting detail is that he had seen our ad in the paper. We hadn`t even put an ad in the paper this week! The Times-Herald ran our ad from the previous week by mistake and there it was in Friday`s paper!

Saturday we shivered in the brutal GP weather, putting up lawn signs, directional signs and posters. While we were working, the property manager drove up. We told her about the new tenants and gave her the completed form and the cheque. "How much rent are you getting?" she asked.

"$1800," I replied. I couldn`t help smiling as she drove away.

A few minutes later, the new tenant drove up with his three kids. He just wanted to show them where they would be living.

We bustled all day and were frozen solid. We went to supper and then to a show. When we came out of the show at 9:00 p.m., I turned on my cell and there was a message. "Hi, I`m calling about your duplex. We live across the street and saw your sign. Could we make an appointment to see it?"

We were stunned. We called them and they came right over. They loved the place and will move in December 1. The rent? $1800! This morning, the lady brought her daughter over to show it to her. Another nice family with two kids. Again, they didn`t even question the rent. They loved our place. Another interesting point. They had called about our place before, but couldn`t get through to the property management
company
. Isn`t that sad? She said that she doesn`t do well with large companies and menus and voice mail. So, when they saw us put out the signs, they wanted to call us and talk directly to the landlord.

Another interesting detail: the first couple prefered one side of the duplex, the second, the other for two different reasons. It`s as if the property was just waiting for them.

Wayne and I can`t really get over all of this. We learned a lot through it. We will market our own properties from now on. Now we know how, and we know that we are the best ones to do it. We have decided to let the company manage our properties, however, just because from this distance we would sleep better at night knowing that someone is there for our tenants. They can take care of rent collection, inspections, etc. and we will go on with our investing, which is what we want to spend our time doing. But marketing? We will look after that in the future.

Thanks again, everyone. That was one productive weekend and we likely wouldn`t have gone without the encouragement of everyone on the forum. Thanks! We owe you.

Wayne and Dianne Dachyshyn
 

LongWayFromHome

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Sep 18, 2007
Messages
15
Wow ... I am really impressed with the high quality responses here. Corey is right - a strategy I use all around the world (because some realtors lie so you have to do this) is pretend to be a renter and see how the property manager handles your enquiry, what they say etc. Best to do this before you buy or go unconditional on a contract though :)
The other responses are correct too: A property will not rent ONLY because of poor marketing, poor presentation or price. Figure out which one is wrong and fix it.
The good news is ... if you have a good feeling about the area and the fundamentals (what is really happening in the town/city/region) then hang in there and the rental situation may well come good. I have experienced this elsewhere. Especially true if there is infrastructure projects planned or anything causing population growth.
I`ve been reluctantly forced to manage some of my Canadian properties myself because in a couple of areas there are no property managers worth engaging.

[email protected]
 

Thomas Beyer

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REIN Member
Joined
Aug 30, 2007
Messages
13,881
QUOTE (Rascal @ Oct 22 2007, 04:18 PM) We could use some help. We are new REIN members who bought a duplex in Grande Prairie in July. We took possession mid-August and have yet to find renters.

We are on our second property manager. The first one didn`t even put signs in the windows. Both companies tell us that the market is dead and that they can`t rent our places out so the best way to handle it is to lower the rent.

Investors in the area tell us this isn`t so, that our rent of $1800 (two investors suggested that $1900 was more likely) is reasonable and that there is no shortage of renters.

Last week, we lowered our rent to $1600, which is lower than we want or think is fair. These are great properties, in a terrific neighbourhood (Mission) only 4 years old and immaculate.

We don`t know what to do next. We want to take charge of this, but we live in Edmonton. We want to advertise, but we think that we should raise the rent or at least settle on the rent once and for all (we have changed it down and back more than once). Maybe we should open it up to pets and raise the rent at the same time?

Any tips would help. These are our first properties and they are 100% financed. It`s costly to carry them, and we feel as if we cannot buy more properties until we have this settled. In addition, the management company is charging us $50 a month as long as they are vacant!

Help!

gas drilling is low right now .. so you have to be CREATIVE

run an ad such as "FREE RENT" .. and basically offer the downstairs or a room or 2 for free .. then in return this person has to rent teh rest of the house ..
or
"Lease to Own" i.e. $2000/month to rent and $200/month are counted against future purchase
or
6 months free rent: $2000/month .. for the first 12 months .. then the next 6 are free .. then 6 payable again .. i.e. a 2 year lease !

lots of ads for one weekend .. then go there yourself !

real estate is a risky game, especially 100% leveraged ...
if $2000 is the right rent .. then 3 month of vacancy cost you $6000 .. or $18,000 in income in 9 months
so: why not rent for $1500 for 12 month = $18,000 .. same rent AND LESS HEADACHES/STRESS .. then you can always raise rents in a year if the market improves !!

rent the garage and the basement separate from the rest of the house ! $1400 for the house, $200 for the garage ... $600 for the basement ...
 

CalvinPeters

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Sep 19, 2007
Messages
137
glad things worked out for you folks!

I think it was Don (Can I call him THE DON?!!) said that Property Managers are like children, you still have to make sure they do what they are supposed to! (and it`s much harder to fire our children, but that`s another story!)

Thomas, I like the way you think!
 

reiScout

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Oct 4, 2007
Messages
20
Fantastic...

Keeping your desired outcome in mind while ignoring opposing forces and taking steps towards your goal is definitely a recipe for success.

Job well done...
 
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