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
Join the Largest Real Estate Investing Community
Basic membership is free, forever.