How long should I wait before lowering my rental fee

[Kinross Mitchell]

Hi there,

I am not getting any offers from tenants to rent my 2 bedroom flat even though it’s lower priced than others in the complex. How long should I wait before lowering the asking price and wait are the risks associated?

Thanks

[Brad Hammond]

Hi @Kinross Mitchell, it depends on your local market but if I don't get much traction within the first week, I will do an adjustment.  December is not a good month to be looking for tenants so that could be part of your issue.  Instead of lowering the rent, you could also try to give a few free weeks of rent with a signed lease.  That might be cheaper for you in the long run and you can still increase their rent based on the higher amount when they renew.  You could also try to allow pets if you are not already.  The key is to get your property to pop up for as many people as possible when they are searching for a property.  One last thing, compare how long your property has been on the market with others in the building.  They could be having a similar issue.  

[Kinross Mitchell]

@Brad Hammond thanks. I didn’t think about the option about a rent free period. I appreciate your advice.

[Zachary Elliott]

I agree with @Brad Hammond on this one. And while December is definitely not an ideal time to be trying to fill a vacancy, it happens. I had a lot of luck with Facebook Marketplace this time around and the appetite for my recent vacancy in November didn't cause any problems. The free rent idea is a good one, since it provides incentive while also keeping your market rate higher. If you aren't seeing anything soon, I'd make some changes. 

Where are you advertising?

[Kinross Mitchell]

@Zachary Elliott thanks for your advice. I am a South African and trying to rent out in Durbanville, Cape Town.

[Theresa Harris]

Not sure if you rented it yet, but start by looking at the ad and the photos and were the ad is posted.  Each town has one or two places that most renters tend to look for ads and it differs by location.  Make sure the photos do the place justice and the description is well written and sells the place.  If you aren't getting any calls about the place, then make sure the price is right.  Think about how much you are losing by having it vacant for a month vs lowering the price a bit.  If you want to do a free month at the end of the lease make sure that is clearly spelled out that it is at the end of a one year lease and they have to stay the full year.