Lower rent before end of summer? (Cypress/Cyfair ISD)

3 Replies

Hi all, new investor and finally closed on our first rental property a few weeks ago after searching for over a year. Got it at 150k + 6k in rehab = ~156k all in. I was conservatively estimating about $1,550/mo for rent, but after talking to my agent and re-checking the comps, we decided to list it for $1,650.

It's only been on the market for a week and the average DOM for this particular neighborhood is about 16-20 days, so I'm not exactly worried about it. But I was wondering if more experienced investors would recommend trying to get it rented sooner, especially before the school year started, by lowering the rent? I'm confident it'd go for $1,650 under most circumstances, but I was not sure how much the school year starting would potentially delay renting it out.

Even at $1,600, it'd still be above our initial projections and I'm anxious to get started on the next one once this ones finished up. Thanks for your insights!

You are in the peak right now.  If they are going to move they are moving now.  If you were just listing in mid/late August I might be more aggressive.  I might give it a week or two and see what kind of response you are getting.

@Tony Castronovo is right. For your price point, you need to try to rent it out before Sept. My strategy is usually if I don't want to lose one month rent waiting for tenant which equates $100 reduction in rent, I would rather reduce that and get it rented and move on..  If you are very confident about neighborhood and not many rentals around, you can wait but still..