Philosophy on setting rental rates
We will be listing our first rental property in the next week or so. I've spoken with two different PM's who have very different philosophies on setting rents.
One says to stay away from the high end of the rent range. Her thought process is that if you get the max rent and renters don't feel that they've gotten a good value, they'll "create value" in some other way - namely more maintenance calls translating to higher expenses. But if a tenant feels that they've gotten a good deal, they'll be low maintenance and more likely to stay longer term. This PM also doesn't believe in raising rent if you have a good tenant.
The other PM suggests setting the initial rent above the high end of the range, and then gradually lowering it to hit the "sweet spot".
I can see where both philosophies have merit, but I'm curious to know what others on BP think?