I know I can rent my property out for $1200 a month. I've been looking at comparable properties in the immediate area, and I have found that some are charging $1300+ for the same sq ft and bed / bath. My question is that.. is it legal to list a property for $1200 a month, and if I get too many responses, increase it to a higher price? I don't want to wait a month or 2 to get the higher price, but I also want to get the best price I possibly can.
Legal, probably yes. Ethical - no.
Why not list at $1300 and see what action you get over a week? If no action, lower the price.
I think it's a good way to set yourself up for disgruntled tenants. Either list for the higher price or take the lower price and get a better crop of tenant choices. Ultimately, I'm not sure what "too many responses" entails unless they all come in a day or two. I route everyone to the application process, and if they pass the SmartMove, I send them the in-house app, and if that looks good I rent to them. So it's more or less first come, first serve, with the caveat being they have to pass the application process.
Realize though that if you are $50-100/mo cheaper than your competition, you'll have your pick of all the renters, and can pick the best ones. One month's vacancy, with associated turn over/repair costs will equal about 2 years or better of the "discount", a good trade off.
Thanks, that's what I'll do then. This sounds the most reasonable.
Not illegal or unethical, but also not a good tactic.
I would start at a higher price - $1350 even, then lower it in by $25 every 3 or 4 or 5 days until you start getting calls.
I live in a market where tenants have a horrible time finding a place to rent, so I always start at least $100 higher than I think I should charge and start lowering the price every 3 days until I get calls.
If you are getting numerous calls the first day or two it is listed your rent is too low.l
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