When deciding to lower the asking rent amount because you've received no bites, do you contact prior interested prospects to advise of the rent reduction? If so, what do you say when you contact them?
Arthur - have you checked the rent comps? Were you ABOVE market in the first place? Or you were right, you just didn't have an interested party?
If it's the second option, I'd market really aggressive i the next month - Craigslist, zillow premium listing, hotpads. Heck place it on MLS and maybe a relator will bring you a qualified tenant (in which case you will pay them 1/2 of one month rent).
And if its the first option where you wanted more in the first place, lower the price and call back your tenant. Tell them something silly like your assistant messed up the rental comps and gave you the wrong information. Now you discovered that you were overcharging, so you want to see if they're interested at $X.
Chances are though, they didn't like the place, probably were ok with the price. People who like the place but feel you overpriced it, will try to negotiate. Just my thoughts.
found a few typos, but don't see the button EDIT .....
@George P. I checked the market early on (I have a post detailing my long journey to get this property purchased and rehabbed) but foolishly didn't check just before listing. At the time (late July/early August), I was just below market. It appears that with the rental season slowing down, the market has shifted and I didn't adjust with it. I looked this weekend and I'm right at market.
As far as people not liking the place, I'm sure some didn't, but I've gotten quite a bit of compliments on the place. More raves than "blahs". Maybe I don't have the "let's make a deal" face. I ran into prospect this weekend and hinted at the price being a bit higher than others. Same lady that said she loved the place. I also need to do a better job of asking questions about what they are seeing out there when showing the property. I like the idea of the clerical error. I'll see how the week plays out.
I am in the northwest suburbs so I am not to far from you. A few weeks ago I wrote a post asking for help since we were having difficulty getting a place rented that was listed August 1st. A few weeks after that someone in Palatine noted the same thing. We ended up renting for less than what we could have gotten in June. Ours was a single family and the other persons was a 2 bed condo; I think once people can't move before school starts the rental market here diminishes a lot.
I didn't contact people who had looked previously because I figured if they were still looking they would see my price drop on the websites. And because we normally get so many people contacting us it's hard enough to keep up with them.
If you are trying to rent right now, my advise is to cut your price aggressively at least once a week until you get it rented. Lower your application fee. Make sure you are on Craigslist, Trulia, and Hotpads. We also list in MLS but usually get the places rented without MLS.
I also do some light staging of the kitchen and bathrooms. It does make it look nicer.
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