Massive Demand

[David Moore]

We have a home available for rent in a Southern, MN town where home prices have been appreciating decently.  I've notice rents going up on 2 bedroom homes from $650.00 a month to about $750.00 a month.  Some homes that are 3 bedroom are being advertised for up to $950.00 a month.  I know other investors with 3 bedroom homes in the same town who are keeping their rents around $750.00 a month.  

I have a 3 bedroom home in a nice neighborhood.  I placed ads three days ago for my home, located in the town (Albert Lea, MN).  i have been absolutely inundated with calls  and contacts.  i think I've had 50 contacts in the last three days.  I'm getting dizzy responding to all these inquiries.

Is market demand this severe an indication I set my rent too low, and if yes, should I raise it now just to thin out some of the calls?  How would some of you handle the same situation?  Have any of you encountered this?

[Account Closed]

@David Moore Yes, you need to charge more. You didn't mention how much you were asking.  I'd have no problem just relisting it on Craigslist, etc., at a higher rent.  If anyone whines, tell them you misjudged the market, sorry!  Nobody has a contract yet, so you can certainly just start over.  I would.

It is normal to get a lot of calls from people who will never qualify, compared to those who will.  No need to respond to them all.  What I did was let them all go to voicemail.  Then, when I felt like dealing with a bunch of voicemails, I'd listen to them one at a time, and make a list.  

If they're screaming obscenities at their kids or husband or whatever while leaving a message, they don't get called back.  If they sound like they don't even know what ad they're calling about, I don't call them back.  If they sound drunk or high, or someone's in the background telling them what to say, I don't call them back.

I keep a list and write a note about why I'm not calling them back.

Then, you start calling the others back, one at a time.  You don't need to call them all back, if your process is to deal with calls in a first come, first served manner.  You might love the first one you call back, and they might love the place and have great credit, great everything else, and you've got your tenant.

No need to kill yourself calling everyone back.  Just take them a few at a time.  And pre-screen them over the phone.  You'll end up with a few who are ready to come see the unit.

In the meantime, you can change your voicemail to say, "We are calling back interested parties in the order received.  If we haven't rented the unit when we get to your message, we will be calling you back in the next few days."

Something like that.  If you process in the order received, and have valid reasons for not calling people back, it's not discrimination.

People who scream obscenities at their kids or can't make their own phone calls - are not protected classes.  I'm not required to deal with them.