BiggerPockets

These are questions that a good management company can tell you the answers to in a matter of minutes. If the management company can't, then you need to find out why (or better, ask them why) they don't know their market.

I'm no expert on Detroit but my understanding is there's absolutely no shortage of units available.

Who came up with the list price... you, or the PM company? Did you go based on what the market would bear for that property, or what you need to cover your mortgage?

They did tell me that it can take up to three months, and rental prices are starting to fall. I'm just not sure that it should be taking this long, regardless of the rental market.

I gave them a list price range that they could use to market the property. I did some basic market research and saw that my mortgage was on the higher end. So I gave them a range up to my mortgage. I gave them the option to select anywhere within that range given their expertise and knowledge of the market.

I was told that they chose to start with the higher end of the range since the property showed so well. Given that, I thought we might have many more showings than we've had, but there's been very little.

I don't have any issues lowering the price, but I am a bit surprised that there's been little action given how well I was told the property shows.

The amount of your mortgage payment is absolutely irrelevant to setting the rent. You, or really the manager, should know what the market rents would be for a place like yours. If you're is super nice relative to others, you may be able to get a slight premium. But being unusually nice vs. your competition may not get you the premium you might expect. Rents in any specific area tend to be roughly the same for similar units. More bedrooms, more baths and extra space will make more difference than nicer finishes.

Any feedback from the people who have seen it?

Two showings in two months probably indicates your price is too high. People hear the price and don't even want to bother.

Or, are there just tons of places available and prospective tenants?

My rule of thumb is that it takes ten showings to find a tenant.

Jean, what city is your condo in? Rentals in SE Michigan are very strong. If its positioned correctly it will move.

You should have more activity than you've had. Just north of you, in south Oakland County, we get 1-2 calls a day off of signs and haven't had a vacancy longer than a couple of weeks. Livonia should be getting the same results albeit at a slightly higher price-point.

Also, rental availability is going down, prices are going up.

i am also going to offer some insight. all my houses are in livonia and I have not been able to find a renter for my newly renovated house for 4 months. I even posted about this a few weeks ago.

With the previous 3, i was able to rent them in 1-2 months max and the phone calls would come in hourly. now, as if my ad does not even show up on craigslist - no one calls. It does show up on CL, but no one calls.

listed it with an agent, have had many showings, a few applications, but thing fell through. definitely more than 10 showings though.

my price was $1175, which is competitive for the area, now i am down by $75 and little change.

I am a little discouraged and instead of thinking of my next purchase, i am trying to plug the whole where my money is leaking out of.

joe, i agree with you. but to a point. and i base it on more than just numbers. but let's start with the numbers.

let's say i can eek an extra $150 per month. that's $1800 per year. when it costs me just $500 per month to keep the house empty, i can afford 3 months to find a good tenant. also, that extra would help me replace the carpet if i need it.

The lower the price, the sketchier the applicants. At the end of the day, i do not want people that can pay just $900 for their rent. I want to weed out the riffraff, so to speak. I know i can rent it in 3 days when i listed low, but i am trying to preserve the great condition of the house.

But yes, that's why i lowered the price and was considering lowering it even further. my agent is advising against it.