Situation with Market Rent

4 Replies

Hello BP,

I'm facing a difficult situation here with my duplex. The market rent has dropped here in the neighborhood with my duplex is, and I currently have a long term tenant that pays $525 and a vacant unit that I'm trying to fill. Similar duplexes in this neighborhood are renting in the range of $395-$475 in similar condition. I'm thinking on lowering my rent to $475 since I'm having trouble renting the unit, but I don't know what to do with my Tenant he has been a great tenant always pays on time and does not bother me with anything. Is the only solution here to lower both sides down to $475 or how can I justify renting one side for $475 and the other for $525. I'm just trying to be fair, but don't want to hurt my income neither. Both sides are identical.

Thanks in advance.

@Jordan Thibodeau

Hello Jordan, thanks for your input. My current tenant is on a month to month and has no intentions of moving anytime soon. If I lower the rents to market I will still cover the expenses and possibly still cash flow if nothing major happens. My current tenant does not complain about the rent at all. He also went through a foreclosure before he rented from me so his credit is not that good.

@Jordan Thibodeau

Yes, you are correct. He actually just renewed another year lease with me. I'm just going to honor the contract like a colleague or mine suggested and possibly lower the other side to fill it. Thanks