Time to drop rent price?

9 Replies

Hello! I have a SFH outside Nashville. Timing wasn't on my side when I closed. I knew it was going to be tight to get everything ready and hopefully rented by the time school started. I closed on the house on June 26th. Worked hard and repainted the whole thing and did some minor updating to get the house ready. Showings began on 7/5. I'm advertising on all the major free sites. Over the past week, I've had 15-20 calls/emails about the house. Had about 10 showings scheduled and 6 to actually show up. Right now there are 4 houses (including mine) for rent in the neighborhood close to the same sq ft as mine. I'm listed at 1225, then there are 2 at 1200 and one at 1250. I've had 1 couple apply and I denied due to them showing up 45 mins late to showing and they had terrible credit. One was going to apply until I told her (for 3rd time) no dogs. Another was going to apply except he had poor credit and his two room mates "didn't have credit". One couple loved house but master bedroom wouldn't fit their furniture. Another lady said she would be all over it if it was just her, but her and her friend each had teens that would have to share a room. Everyone has loved the house and how it looks. People say it's priced well. Just no takers. The reason I'm considering dropping price from $1225 to $1195 is school starts 8/10. I have 1 showing set up for Monday. Today is the first day I've not been contacted by anyone. Do I need to sit tight for another week or go ahead and drop price? Appreciate your help!

@Brandon C.

Sounds like the price is right.  Open the filter and select a applicant in the pipeline.  No applicant is perfect but based the decision on character.

Frank

Frank Romine, Real Estate Agent in CA (#01957844)

    @Brandon C.

    In my area the serious people come out the last 10 days of the month.  Last month I dropped the price on a rental $50 a month due to other rentals coming on the market at the same price.  Mine was nicer then those.  I rented it within three days when I dropped the price just below the market level of everyone else.  Those other rentals are still on the market.  I rented mine for $1,200 + $25 per month pet fee.  The people at $1,225 - $1,250 are still vacant.   I can easily get $1,275 for mine, but this time of year there is too much inventory on the market to compete with. 

    $1195 sounds better - try it ! Do not loose time !
    Just sign 9 months or 21 months lease in order next time you will look for tenants during spring. Offer them small discount if they have good credit and sign 21 months lease
    I've had much more traffic dropping the price just below a whole multiple of a hundred. My two are rented at $1295 and $695. Most folks likely think of rent capacity in terms of hundreds, especially at your rent range. A rent of $1225 excludes all who search at the $1200 level despite $1225 likely being in their capacity. You'll get it rented soon.
    Originally posted by @Brandon C. :

    The 'neighborhood' comps might be too narrow although somewhat accurate. What is a similar property (number of bedrooms/bathrooms/sqft ect) renting for in the same zip code? You may also have to loosen the rental policy to get it rented and to start getting some cash flow.

    You're right on point using all the free websites to advertise (Craigslist and Postlets pretty much hits them all). One question, have you renewed your Craigslist add to get it bumped back to the top? Doing so could go a long way in getting those inquires flowing again.

    Also, make sure that your ads, especially on Craigslist, are professional and detailed regarding property info, rental criteria, and include high quality photos. Doing so will help unqualified leads to pre-screen themselves and attract higher quality tenants overall. If I were looking for housing via Craigslist I would be very wary of any of those two-sentence ads you see with no photos and poor grammar.

    With all that said, dropping the price down to $1195 isn't a bad move necessarily, but if I were in your shoes I wouldn't feel in a rush to do so just yet. The rental market demand in Nashville is unbelievable right now, so as long as you are offering a clean/safe property and in the ballpark of what would be considered ¨market rent¨, you should be just fine.

    Thanks everyone for the responses. Much appreciated. So, I did end up dropping the rent to 1195 on Saturday night. I had 3 showings tonight and 2 turned in applications! Something I thought was interesting, after dropping the price, the people that called or came to the showings were all older than the previous batch of showings. Perhaps it was just coincidence, but I thought that was interesting given just a $30 decrease. Again thanks so much for the help!
    What about a co signer for the kids "without" credit?

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