I list my properties in MLS and also do rental open houses 2x/week. I have a newer rental property that I rented out for the first time last year, in July, got it rented in 2 weeks for $1600. This year, listed it August 1st for $1650 after looking at comps, got only 1 app from someone that didn't work out, so 11 days in on August 11th dropped the price to $1599, got WAY more MLS showings (24 in total scheduled which probably means 12 actual showings), 2 paid for applications we had to deny, 2 applications that have yet to have an app fee paid, one of which I am not crazy about because they just want to rent for a year and then buy a house, the other is a long term renter who's agent says he is notoriously hard to get a hold of so I doubt I will get the app fee soon from him. No more agent showings scheduled. Just dropped the price today,9 days since the last drop, to $1575. Losing a month rent is a bigger hit than losing $25-$100/mo less over a year. Since I'm in Chicago, I am nervous about getting more into the slower rental season. So far we've always gotten a ton of foot traffic during the open houses. I have checked Zillow, Trulia, Craiglist, MLS...inventory of 3 bedroom rentals appears low. Ours is in tiptop shape too, some people say it's like brand new since we just repainted and recarpeted.

@Kimberly H. while I haven't had your situation per se this is my approach. I must get 10-15 calls the first week. If not I drop the price. When I drop the price it's to the next price point. Your first one from $1,650 to $1,599 is great. I hate to be the bearer of bad news but the next drop is to $1,499. Even $50 per month won't make someone look at a stale listing much less your puny $25. In your situation, I would recommend that you examine yourself and your approach to renting. You've had lots of traffic and interest. Based on what you said I don't think in your case the price is the reason. From what you described, you are way too passive and your process is too time consuming and difficult for the applicant. When people take an application at the open house offer to take their ap fee on the spot and let them fax or email in the completed application. Better yet, have it online and suggest that people complete it there or print it out and bring it to the open house filled out. Waiting for them to turn in the fee? NO GO. Offer to meet them to get it when they say they are interested. Sure it takes a bit of time but compared to a month vacancy or $100 per month less in rent it makes the hourly rate a pretty good investment of your time. Once someone says they want your place, move fast. Don't give them time to shop, to ponder, to consider, to change their mind, or to find a place that is easier to apply to.

I've also listed properties at $5 or so below the next big price point - like $995 instead of $1000. I will drop the price in the first few days if there are no calls/email at all. Once the calls start regularly, I know I'm at the right price. If I get a strong candidate, and they ask for a reduction, I may go down $25 or so; $50 if it's a harder area to find good tenants. The PITA factor can't be ignored. If they have a list of issues when they first see the place, it won't get any better once they move in.

I also tried using the canned response with filters in Google, and had the same problem. However, I just tried setting up an autoresponder in Zapier and it worked great. Zaps work every 15 minutes, so it's not quite immediate, but it definitely beats me having to personally respond to every inquiry (even if I am using canned responses). I like to have a dedicated google account just for listings that autoresponds with a link to my scheduler (I use youcanbook.me) so I don't have to do anything but be notified of showings. If you like, you can check out my scheduling page through my website, listed in my signature (feel free to click on a time slot so you can see my screening questions, just don't book a showing please)

Offer Move In Special..Maybe $200 off 1st month. It helps sometimes to drop upfront cost..

I create 2 different ads in craigslist; well, they are basically the same, with enough differences in content, price and subject line that craigslist doesn't flag it as a duplicate. The rental amount is slightly different in each. I also tested out Hotpads from the renter's perspective, but it's been a while. I'll get to test it again soon enough, we're hopefully closing on a property at the end of September. That isn't an ideal time to look for tenants, but at least the property is in FL and there's no winter weather to contend with.

Only had to do it once. But the basic answer is my selling point is school district, and I would drop as much as I had to to get a tenant in August rather than wait till after the school year has started, or especially winter. So, on that applicant that only wants it for a year, isn't it a case of possible vacancy a year from now versus certain vacancy now? I'd be pushing them to complete the process and counting myself lucky if they took it for a year.

How Quick do you price drop your rental listings?

Daniel Raposo

Rental Property Investor · Norwalk, CT · Member since 2013 · 276 posts · 147 votes

How Quick do you price drop your rental listings?

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