Rental value: How Low should I go?

[Gash Nag]

All,
I put my rental property for Rent, in San Diego. Currently it rents for $1975 and I tried to rent for same value and did not get a good response. Zilpy, Rentometer etc also show that this price as with in the range. (one site says 60% of homes are below that value; other says range is 1850-2050).

I did not have luck of good tenant yet, inspite of 3 weeks of being on Craigslist. I spoke to a local property management to see if they can get a client. Initially they advertised everywhere as $2000.0/month. Since they did not find any one now they want me to put at $1800.0. (property management company charges initial payment which I made already and if they get a client, they get some more. So I suspect they are looking to get clients over fair price.).

Question is: How do I decide how low should I put the rental value? I can put the lowest in the range, but that's like missing out. I am trying to go down in Steps. Any ideas or suggestions?

Thanks
Nagesh

PS: ad is here: http://sandiego.craigslist.org/csd/apa/1021935715.html
PPS: you have been of great help for my earlier questions. Thanks much.

[Rich Weese]

I'm not real familiar with San Diego, but with rentals in general I've found they are WAY over priced for their services. Since you live in the same area, I'd try lowering your rent, finding a WELL qualified tenant and save the mgmt. fee. As you get more properties and become more grounded in your investments, then go to mgmt.
This is kind of like a beginner investor. You should do the cleaning, painting and misc repairs when starting out to conserve cash flow. As you become more invested, get rid of that part also, imo.