Setting the rent on a turnover? 4 steps I use to price it

General Landlording & Rental Properties
2dFollow

Setting the rent on a turnover? 4 steps I use to price it

Leo SteinBusiness Member
Property Manager · Orange County, CA · Member since 2025 · 281 posts · 62 votes

Setting the rent on a rental turnover, here is the short process I use every time:

  1. Pull real comps. Look at recent rentals nearby with the same size, beds and condition. Asking prices on listings that have sat for weeks are not comps.

  2. Price it as it is. Set the rent for the home as it is today, not after the upgrades you plan to make someday.

  3. Watch the first two weeks. Showings and inquiries tell you fast. Lots of views and no showings usually means the price or the photos need work.

  4. Count the empty month. Weigh a small price change against a month with no rent coming in. Holding out for the top number can cost more than it earns.

General information, not legal advice.

For those who self-manage: how do you set the rent when a unit turns over?

[email protected]949-391-1019
Real Property Management Optimal 521 Reviews
WebsiteView Page
2Reply
187 views

9 Replies

Jump to latestLatest
  • Randy Schell
    Member since 2026 · 283 posts · 42 votes
    1d

    I like that you count the empty month, because that is the part people forget.

    One small thing that helped me is to look at how fast the first few inquiries come in. If nobody is calling in the first week, I take that as a gentle hint to adjust before the unit sits too long.

    Randy, Bunklow

    0Reply
  • Leo SteinBusiness Member
    OP
    Property Manager · Orange County, CA · Member since 2025 · 281 posts · 62 votes
    1d

    That first-week signal is useful, Randy. I like pairing inquiry pace with showing conversion: if calls come in but showings do not, photos or scheduling may be the friction; if both are quiet, price or exposure deserves a look. Do you reset after a set number of days, or wait for a certain gap in inquiries?

    [email protected]949-391-1019
    Real Property Management Optimal 521 Reviews
    WebsiteView Page
    0Reply
  • Matthew Tregoning
    Property Manager · Melbourne, FL · Member since 2019 · 551 posts · 188 votes
    1d

    Before interpreting quiet demand, I’d test the inquiry process from the renter’s side. Does the listing make availability clear, does someone answer promptly, and can they actually get a showing time? In vacation-rental operations, it’s easy to blame the listing when an unanswered question is the real obstacle. I’d keep those response and scheduling notes beside the inquiry count so the owner can see where people are dropping off.

    0Reply
  • Carl Millsap
    Investor · Midwest · Member since 2019 · 363 posts · 240 votes
    1d

    @Leo Stein Good question....I've been too stubborn on this and it's cost me a lot.


    I look at the market, but I also factor how much I have invested in the turn. Ideally I'd like that money back sooner than later.

    My units are Class C / working class units. I set my rents higher than most comps because I recognize a higher rent amount eliminates some prospective tenants.

    On one complex I refused to lower the rent for 60 days, occupancy was 80%. I had 5 units ready to rent and nothing was leasing. I dropped the rent $75 and those units went fast, my crew couldn't turn the remaining units fast enough. Within 30 days I went from 80% to 92% occupancy in that complex.

    The market changed and I didn't want to adjust.

    We had a huge supply issue in my area for about 2 years, but new inventory has come online so demand has changed. Supply has increased so much now, that new complexes have had to run 3 month free move in campaigns to lease units.

    0Reply
    • Leo SteinBusiness Member
      OP
      Property Manager · Orange County, CA · Member since 2025 · 281 posts · 62 votes
      1h

      Thanks for sharing what happened, Carl. It’s a good reminder to revisit assumptions when supply shifts and let vacancy and inquiry patterns inform the next step.

      [email protected]949-391-1019
      Real Property Management Optimal 521 Reviews
      WebsiteView Page
      0Reply
  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 601 posts · 383 votes
    1d

    We look at what the rents have been and what is for rent, In Boise we have a sub 4% vacancy now. So, if it takes longer than 2 weeks to fill a LTR you may have a pricing problem. If you have lots of viewings and no lease signed in my experience it is the condition of the property. It may be possible highlight photos were used to attract folks and the actual condition of the interior didn’t match the glamor shots posted online. Another thing worth mentioning in this market, we are seasonal for achieving premium rents. Spring/summer typically have a better chance of getting higher rents in comparison to late fall/winter.

    [email protected]208-600-2814
    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 1k+ posts · 693 votes
    3h

    Leo, your step 4 is the one I live by — count the empty month. I run 236 single-family rentals in Memphis, all Section 8, and my 3BR+ homes rent $1,395 to $1,950. On a turnover I do not chase the top number. The rent was set when I bought the house: under $100K, ARV $180K to $265K, and the 1% rule. If the house is rent-ready and the payment standard still supports it, I price to fill it and keep it filled, because an empty month costs more than the small bump I might get by holding out. A house that sits empty is not earning, no matter what the comp sheet says. What do you do when the comps say higher but the inquiries are slow?

    0Reply
    • Leo SteinBusiness Member
      OP
      Property Manager · Orange County, CA · Member since 2025 · 281 posts · 62 votes
      1h

      Thanks for sharing your perspective, James. I look at how many inquiries turn into showings and applications, then check exposure, scheduling and the property’s condition before deciding what to adjust.

      [email protected]949-391-1019
      Real Property Management Optimal 521 Reviews
      WebsiteView Page
      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    2m

    you also have to compare CONDITION of your property vs the competition.

    [email protected]248-209-6824
    Logical Property Management4.9462 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free