Author Topic: Priced Rental too low?  (Read 658 times)

rahby1us

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Priced Rental too low?
« on: May 09, 2019, 10:41:43 AM »
We had a multi year tenant move out and priced our unit at what we felt was on par with prices in the area but within days of posting we have had about 70+ people reach out. I am concerned now that we priced it way too low and am wondering if there is a good way to go about rectifying this without losing a bunch of potential candidates. We are having an open house on Sunday and wouldn't be opposed to a bidding war of sorts however I don't want someone to over extended themselves financially just to secure the apartment to their own detriment long term. Any suggestions?

srad

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Re: Priced Rental too low?
« Reply #1 on: May 09, 2019, 11:17:56 AM »
if you think its way too low, then i would just change the price online. If that filters out a few people, that's fine.  I wouldn't want to deal with over 70 people anyway. 

Finallyunderstand

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Re: Priced Rental too low?
« Reply #2 on: May 09, 2019, 01:30:40 PM »
yeah, just change the price online.  Plus you may be surprised how few people actually show up who are truly qualified to rent.

Villanelle

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Re: Priced Rental too low?
« Reply #3 on: May 09, 2019, 01:36:26 PM »
I would change the price online and contact the applicants and let them know that due to tremendous interest, the price has been increased to $x to be more in line with the market. And I'd ask them to let me know by X day if they are still interested in the property. 

rothwem

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Re: Priced Rental too low?
« Reply #4 on: May 10, 2019, 09:34:54 AM »
How do you feel about the price of the rental?  Can you still make a comfortable profit on the current rent price?  If so, it might be worthwhile using this opportunity to get a the best renter. 

Start out with a preliminary application, figure out who, of the 70 interested parties, is actually qualified to rent your place.  Take the remainder, and schedule them at 10 minute intervals, grouped on one day so you don't waste your time if a prospective renter doesn't show.  Select the best tenant, and wala, you're cooking with gas. 

Cubert

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Re: Priced Rental too low?
« Reply #5 on: May 11, 2019, 05:48:37 AM »
Just because you host an open house doesn't mean you have to accept any of the applicants. Clearly you have margin to increase the rent you're asking.

In my experience, the sweet spot is when you get 8 to 10 interested parties within a week, and sign on a tenant within a week thereafter. If you get crickets, you're priced too high. Any more than 10, you've got room to ratchet your asking price up a bit.

You can still offer a discount for a 2 year lease. This has worked quite well with our units. Good luck!

Dicey

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Re: Priced Rental too low?
« Reply #6 on: May 13, 2019, 10:59:56 PM »
How do you feel about the price of the rental?  Can you still make a comfortable profit on the current rent price?  If so, it might be worthwhile using this opportunity to get a the best renter. 

Start out with a preliminary application, figure out who, of the 70 interested parties, is actually qualified to rent your place.  Take the remainder, and schedule them at 10 minute intervals, grouped on one day so you don't waste your time if a prospective renter doesn't show.  Select the best tenant, and wala voila, you're cooking with gas.
Sorry, not sorry. Fixed that for you.

rothwem

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Re: Priced Rental too low?
« Reply #7 on: May 14, 2019, 03:25:16 AM »
How do you feel about the price of the rental?  Can you still make a comfortable profit on the current rent price?  If so, it might be worthwhile using this opportunity to get a the best renter. 

Start out with a preliminary application, figure out who, of the 70 interested parties, is actually qualified to rent your place.  Take the remainder, and schedule them at 10 minute intervals, grouped on one day so you don't waste your time if a prospective renter doesn't show.  Select the best tenant, and wala voila, you're cooking with gas.
Sorry, not sorry. Fixed that for you.

Haha not even mad.

I actually speak French okay, but for some reason it sounds funny to me to write “wala”. I get a giggle every time.

Dicey

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Re: Priced Rental too low?
« Reply #8 on: May 14, 2019, 04:29:29 AM »
How do you feel about the price of the rental?  Can you still make a comfortable profit on the current rent price?  If so, it might be worthwhile using this opportunity to get a the best renter. 

Start out with a preliminary application, figure out who, of the 70 interested parties, is actually qualified to rent your place.  Take the remainder, and schedule them at 10 minute intervals, grouped on one day so you don't waste your time if a prospective renter doesn't show.  Select the best tenant, and wala voila, you're cooking with gas.
Sorry, not sorry. Fixed that for you.

Haha not even mad.

I actually speak French okay, but for some reason it sounds funny to me to write “wala”. I get a giggle every time.
???

Enigma

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Re: Priced Rental too low?
« Reply #9 on: May 14, 2019, 01:04:59 PM »
"priced our unit at what we felt was on par with prices in the area but within days of posting we have had about 70+ people reach out. I am concerned now that we priced it way too low"
I get the same from FB marketplace.  Lots of lookie loos doesn't mean that you have priced it incorrectly.  This appears to be the time of year that everyone is looking.  Weather is getting warmer, leases are ending from last year, and everyone got their income tax refunds last month.  Be careful that you do not overprice it.  Otherwise you may get tenants that will move when they find something better and break their leases early.  IMO you would still want another multi-year tenant.

Le Poisson

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Re: Priced Rental too low?
« Reply #10 on: May 14, 2019, 01:54:53 PM »
Reply to the ads with a rental application. Let them know that once you have a completed application in hand, you will schedule a showing.

Better than half of them will drop out immediately.
15 of them will reply with a completed application.
7 will come for their scheduled showing.