What happens when your rental sits on the market?
It’s tempting to ask $100-$200 more in rent than what the market demands. Prospective residents can literally browse hundreds of rental properties on their phone within minutes and instantly know when a rental property is overpriced. It’s critical you know the rental market as well, if not better, than your potential residents.
The key is to set the rental price at its highest point without going over market value.
Here is the cost of an overpriced rental that sits on the market for 1 ½ months at $2,100 per month compared to the correct market value rental rate of $2,000 that rents immediately. In the example below, even if you got the higher rent rate, it would take you 32 months to recover from your property sitting on the market for only 1 ½ months.
In most cases, if you overprice, it will negatively impact your cash flow. Don’t bet on finding that one resident who wants to pay more than everyone else.
The key is to set the rental price at its highest point without going over market value.
Here is the cost of an overpriced rental that sits on the market for 1 ½ months at $2,100 per month compared to the correct market value rental rate of $2,000 that rents immediately. In the example below, even if you got the higher rent rate, it would take you 32 months to recover from your property sitting on the market for only 1 ½ months.
In most cases, if you overprice, it will negatively impact your cash flow. Don’t bet on finding that one resident who wants to pay more than everyone else.
Start Enjoying Your Rental Property
1. Schedule A Call A free, 15 minute no-obligation, initial phone call. We'll talk about your goals, your rental, how we can help, and answer your questions. |
2. Market Your Property We'll market your rental property to millions of rental shoppers on Zillow.com, Trulia, Yahoo!, HotPads, MyNewPlace, and more. |
3. Choose Your Tenant Applicants go through a comprehensive Identity, Credit, Income, and Criminal Check. Then choose a great tenant for your rental. |
4. Enjoy Your Investment Get your time back and reduce your stress. Become a confident rental property owner and watch your investment grow. |
