To increase rental price or not to?

2 Replies

Hello BP family! I’ve been gleaning your wisdom on here for a while now (thank you!) and am a little nervous to post a (likely) silly questIon. Nevertheless, here it goes! Here’s the scoop...we posted our rental a few weeks ago and received SO MUCH interest in the property...nearly 1,000 views on Zillow in four days! I showed the property during two different open houses and received several applications. Yes, I had listed our minimum requirements (they are pretty high) in the listing and gave everyone the list at the showings as well. Soon after the second open house, I found out that our flood insurance was going to more than double once it became a rental property (no longer our primary residence). We took the house off the market to figure that situation out. $400 and an elevation survey revealed that our flood insurance will actually decrease, so we’ve decided to continue with renting after all. So here’s the question...should we increase the asking price $100 since we had so much interest the first go-around? I’ve since lost my most promising applicant 😩 and have already denied a few applicants based on minimum requirements. I am confident that we will get another great applicant and have been told by friends/family to raise the rent. Here’s where it gets a little sticky...I told one of the applicants what was going on with the flood situation and she’s been waiting to hear back from me for a little over a week now. I could still disqualify her but overall her application looked pretty good...nothing crazy...although I stopped all research and haven’t followed up yet with her “claims”. Do I raise the rent and let her know? Is that allowed? Or do I just deny her application based on minimum standards and fingers crossed that we do actually get another good/better application? Sorry for the long post! Thanks in advance for any advice!

@Rachel C. , why disqualify her? If she has passes your screening, offer her the lease at the higher rate. You don't have to justify your price.

It's not like you offered the place to her already and then tried to up the rent.

Thanks for your advice. I will get back on the research train and figure out if she really does qualify. I did already have the listing set for a lower does that count for having already offered her the rental at a lower price? I haven’t re-listed yet...trying to decide if it’s a smart move to increase the rental amount or not. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here