Raising Listed Rent Price After Listed or Receiving Applications

Raleigh, NC · Member since 2019 · 2 posts · 0 votes

Hi All,

Are there any rules to raising the listed rent price after it has been listed and you've received applications on the property? I think that the rental estimates are too low for the amount of interest I've received in my property. I'm curious if there could be any issues with raising the rent after some people have applied already. I'm in the Raleigh/Durham area of NC.

Thank you.

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Michele FischerPro Member

Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes

For any applicants who have already paid a screening fee, I personally would offer them the option to withdraw and refund the fee. Otherwise I would update/repost the ad right away and notify folks already in the process. When you show the unit, ask folks what they liked about it, try to see if there is something unique or extra marketable about your property or if the interest was mostly price based. Figure out what you can do next time to avoid this, get better rental comps going forward. And you could always use the high demand as an opportunity to get a high quality tentant and adjust rent at renewal.

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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
4y
No, you can change the price on your listing no worries.
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Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
4y
For any applicants who have already paid a screening fee, I personally would offer them the option to withdraw and refund the fee. Otherwise I would update/repost the ad right away and notify folks already in the process. When you show the unit, ask folks what they liked about it, try to see if there is something unique or extra marketable about your property or if the interest was mostly price based. Figure out what you can do next time to avoid this, get better rental comps going forward. And you could always use the high demand as an opportunity to get a high quality tentant and adjust rent at renewal.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
You are legally allowed to change the asking price at any time, up until a contract is signed. Morally, I think it's unacceptable to change the price after someone has already applied. You could let the current applicants know that you will honor $XXX if they are approved, but that you are changing the list price for any future applicants.
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- Paul S.
  Member since 2023 · 13 posts · 2 votes
  1y
  Quote from @Nathan Gesner:
  
  You are legally allowed to change the asking price at any time, up until a contract is signed. Morally, I think it's unacceptable to change the price after someone has already applied. You could let the current applicants know that you will honor $XXX if they are approved, but that you are changing the list price for any future applicants.
  If the increased rent still gets lots of interest, would it be ok for the landlord to share that information with the first applicant, and say: I will honor the originally advertised rent that you saw. If you wish, you are free to make a new offer.
  
  If a landlord receives a few more strong applications at the higher rent, is s/he obligated to accept the lower one?
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Crystal Granger
OP
Raleigh, NC · Member since 2019 · 2 posts · 0 votes
4y
Thank you all for your input. I agree that the price should be the same as when the application was filed and I definitely want to do the morally correct thing here. Thanks again!
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Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
There are federal laws and some state laws that regulate truth in advertising. Raising rent after getting applications isn't likely to land you in trouble, unless someone files a complaint or sues you. Even then, a claim could be hard to prove or you could just claim it was a mistake. It is doubtful someone would go to the trouble, unless you took money from them. You are more likely to be outed on social media. As @Michele Fischer said, you should offer refund of any fees paid, since they were taken under false pretense. Without financial loss, it limits the harm.
There could be several possibilities why you got so much interest:
1. You did a poor job estimating your rent value. You could have used a bad method or bad source for the information. Where did you get your rental value from?
2. Your advertisement did not contain prescreening. If your listing didn't contain an qualification standards, you could be getting interest from poorly qualified people.
3. You advertised in the wrong places. When I advertise on Facebook, I get tons of interest, but very low quality.
I would avoid raising the rent price and take it as a learning experience.
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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4y
It's no different than relisting a property for more money just because a super smart real estate agent told you too.

Buyers and tenants love seeing price increases. Said no one ever.
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