How much to lower the asking rent to generate more response?

4 Replies

I'm not getting much response at $1890. Departing tenant was paying $1770 and HUD said 2br here went up about $200 in 2 years so I went for it. Now the question is how low should I go to get interest. Does $100 make a lot of difference? My gut says no but people are funny. Arithmetic shows it's not worth losing a month for another $100. Thoughts?

The local pro pm I use as my role model says about $50 is the most you can raise rent each year and not ruffle feathers enough to prompt looking around. So yeah, $100 is something. My tenants moved here from another state and were telling me that while this is the highest rent they had ever paid, their utilities were lower so it almost evened out. It bothered them to pay so much...$1385. He makes over 100k.

Assuming rents have gone up $200 and you only raised yours $120 you are still under market. Be patient. For the best quality tenant you should be looking for someone to move in for June 1st at this point in time. You do not want someone that must move for May 1st. They are likely either being evicted or doing a midnight run. Confirm applicants have given their landlord proper legal notice. If you must take a tennat for May 1st put them on a M2M lease so you can get rid of them easier if necessary.

Don't base you decision on what HUD told you. Look at the newspaper, Zillow, Craigslist, and other sources to see what comparable rentals are renting for. It doesn't hurt to actually tour some comparable rentals to see how yours stacks up to the competition.

Before changing the asking rent, look at some of the other ads and compare how you described your rental.  Sometimes just adding some of the positives for your rental can make a difference.

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