Homeowner · Kansas city MO · Member since 2017 · 18 posts · 5 votes
I’m getting ready to list 5100 Hardy Ct, Kansas City, MO 64133, which is one side of a duplex. I live in the other side.
When I purchased the property, the unit rented for $950 per month, making it one of the lowest-priced rentals in the neighborhood. After ending the previous tenancy and renovating over the summer, I increased the rent to $1,650—a roughly 74% increase—to bring it closer to market rent. The tenants who moved in have been there a little over two years and are leaving in the next week or so.
Neighboring rents have gradually caught up. A nearby unit is now asking $1,700, despite being in substantially worse condition than mine. The comparable listings I’m finding range from approximately $1,700 to $2,100, so I’m considering listing mine at $1,850.
Would that be a reasonable premium for the better condition and renovations? I’m also interested in whether other landlords have noticed a relationship between pricing and attracting reliable tenants.
My priority is finding a good tenant quickly. I’ll be busy with school starting in January and would like the property rented before then. Would you start at $1,850, or price it lower to reduce the chance of a longer vacancy?
Abram, with your timeline I'd run the vacancy math before picking the number. The gap between $1,850 and $1,750 is $100 a month, or $1,200 over a year. One extra month sitting empty at $1,850 costs you more than that whole year of difference. So the question isn't which price is "right," it's which one gets a good tenant signed before January.
What I'd do: list at $1,850, but decide your plan now. If you don't have solid showings and at least one application in the first 10 to 14 days, make a real move instead of trimming $10 at a time. Before you lock in the number, take Alex's point on utilities seriously. If any of the $1,700 to $2,100 comps include utilities and your tenant pays their own, add your unit's average monthly utility bill to the rent and compare that total against those listings. That's how a renter will compare them. $1,850 plus utilities could put you at the top of the range, or past it. If it's still quiet after two weeks, drop to the next tier, like $1,750. Pick that date and number today so you're not second-guessing it when school starts.
These days I run mid-term and short-term rentals, and I price off booking pace, not just comps. If dates aren't getting looked at by a certain point, that tells me more than any comp. Same idea here: count inquiries and showings each week. Lots of inquiries but no applications usually points to the listing or your criteria. Few inquiries usually points to price.
On reliable tenants: price alone doesn't buy you a better tenant. Two things do. First, clear written screening criteria (income, rental history, references) applied the same way to every applicant. I learned that the hard way with my first long-term rentals in Orlando. Tenants who could only pay weekly meant constant issues, so I tightened screening to tenants who could comfortably pay monthly. I also stopped taking personal checks for move-in money after back-to-back bounced checks on a single-family I owned. I got judgments and never collected a dime. Certified funds or electronic payment only.
Second, set your standards from day one. Go over the lease rules at move-in, explain how rent is paid and how maintenance requests come in, and then enforce them the first time something slips, whether it's a late payment or a lawn that isn't mowed. You're basically training the tenant in the first 60 days. If you let small things slide early, they become the norm. If you're consistent from the start, most tenants rise to it. Living next door makes that easier, but it also makes it more tempting to be the nice neighbor instead of the landlord, so keep the two separate.
@Abram Edawrd Inman Once I determine the comps I set it at the higher end of the range. If it doesn't get any tours, or applications after 2-3 weeks I'll lower it $5-10, rinse and repeat.
I use to drop the rent $25-$50 if I thought it would lease faster but then I'm giving up more than necessary.
As for the pricing and reliable tenant relationship. I haven't noticed it, but my units are Class C Multifamily so maybe not a fair comparison to your situation. There is a correlation between higher rents disqualifying some people from applying so there is that.
Also consider that people aren't moving a lot during the 4th qtr /winter months, inquires / tours will be down. May not be a reflection of your unit just the timing of your vacancy.
I'd compare that $950 with nearby places that have the same bedroom count and are in similar shape. Much more useful than the neighborhood average. Are utilities included in those rents too? I'd check that.
For Kansas City now through February is slow and tough to rent. With the colder weather and Holidays. I'd go conservative if you can. Good area in KC so hopefully it goes quickly!
Abram, I price rent off what the house has to earn, not off the highest number in the area. On my Memphis 3-bedrooms, Section 8 rents run $1,395 to $1,950, and that rent has to cover vacancy, repairs, CapEx, property management, taxes, insurance, and the loan payment, and still pass the 1% rule against the ARV. If $1,850 leaves no room after those costs, the house does not work at $1,850, even if the top of the range is $2,100. A month empty at $1,850 costs more than the extra $150 a month you would get by holding out for the top number, so I would rather price it where it fills fast and stays filled. Check the same 3-bedroom, same ZIP, same condition, and price to the house in front of you, not to the range.
Abram, with your timeline I'd run the vacancy math before picking the number. The gap between $1,850 and $1,750 is $100 a month, or $1,200 over a year. One extra month sitting empty at $1,850 costs you more than that whole year of difference. So the question isn't which price is "right," it's which one gets a good tenant signed before January.
What I'd do: list at $1,850, but decide your plan now. If you don't have solid showings and at least one application in the first 10 to 14 days, make a real move instead of trimming $10 at a time. Before you lock in the number, take Alex's point on utilities seriously. If any of the $1,700 to $2,100 comps include utilities and your tenant pays their own, add your unit's average monthly utility bill to the rent and compare that total against those listings. That's how a renter will compare them. $1,850 plus utilities could put you at the top of the range, or past it. If it's still quiet after two weeks, drop to the next tier, like $1,750. Pick that date and number today so you're not second-guessing it when school starts.
These days I run mid-term and short-term rentals, and I price off booking pace, not just comps. If dates aren't getting looked at by a certain point, that tells me more than any comp. Same idea here: count inquiries and showings each week. Lots of inquiries but no applications usually points to the listing or your criteria. Few inquiries usually points to price.
On reliable tenants: price alone doesn't buy you a better tenant. Two things do. First, clear written screening criteria (income, rental history, references) applied the same way to every applicant. I learned that the hard way with my first long-term rentals in Orlando. Tenants who could only pay weekly meant constant issues, so I tightened screening to tenants who could comfortably pay monthly. I also stopped taking personal checks for move-in money after back-to-back bounced checks on a single-family I owned. I got judgments and never collected a dime. Certified funds or electronic payment only.
Second, set your standards from day one. Go over the lease rules at move-in, explain how rent is paid and how maintenance requests come in, and then enforce them the first time something slips, whether it's a late payment or a lawn that isn't mowed. You're basically training the tenant in the first 60 days. If you let small things slide early, they become the norm. If you're consistent from the start, most tenants rise to it. Living next door makes that easier, but it also makes it more tempting to be the nice neighbor instead of the landlord, so keep the two separate.
I would start at $1,850 given the renovations and the comparable rents in the area. However, pricing is only one part of attracting quality tenants. Strong screening, competitive terms, and marketing the property's condition are equally important.
I would monitor the level of interest during the first 7–10 days. If inquiries and qualified applicants are limited, you can always adjust the price before losing valuable time to vacancy. The goal is to find the right tenant while protecting your rental income.
$1,850 sounds reasonable for a renovated unit when comps run $1,700 to $2,100. Just keep in mind those are asking prices, not what they actually rented for. If you can, check how long the higher ones have been sitting. A unit listed at $2,100 for 60 days isn’t really a $2,100 comp.
The bigger factor for me is timing. You’re listing right as the holidays hit, which is usually the slowest stretch of the year, and you want it filled before January. I’d start at $1,850 but give yourself a deadline. If you’re not getting solid showings and applications within 10 to 14 days, drop it $50 and keep moving. One empty month costs you $1,850. Pricing $50 lower costs $600 a year. That math almost always favors filling it.
On your second question, yes, in our experience pricing right on market or just under attracts more applicants, and more applicants means you get to choose. When you’re living next door, that matters a lot. You want the best tenant out of ten, not the only one who applied.
On the price itself, it’s worth checking how renters search in your area. A lot of people set their filter at a round number, so a listing just over that cutoff may not show up for some of them at all. If you’re close to one of those lines, landing just under it can bring in noticeably more views without giving up much rent.
