There's no doubt about it. In Arizona rent amounts are up and they're not sitting vacant very long. Even so, here is my suggestion when it comes to determining what price to charge for rent:
If the comparable properties give a range of, say, $1200-$1300, I'd list it closer to $1200. This is especially the right strategy when the rental market is slower. Here are two reasons to list it on the lower end of what you could get:
1) Holding out for higher rent will often mean longer vacancy time. If you're trying to get that extra $100/month but it sits vacant an extra 60 days until someone is willing to pay the higher amount, you gained $1200/year but lost $2600 (two months rent) of income.
2) Tenants will know if they're getting a deal or not. Though not skilled necessarily in "running comps" and figuring out what market rent is compared to what they're paying, they will figure it out. It may be by talking to neighbors at the park and comparing rent amounts, but they will know halfway through their lease if they're getting robbed or a sweet deal on rent amount. Tenants who know they're getting a deal will be more likely to renew their lease at the end. If it saves you a month of vacancy and marketing costs that could be another $1500-$2000 you save by charging the lesser amount.
A happy tenant is a happy life. Give 'em a deal. Keep the property occupied.
Author:Treehouse Realty Phone: 480-426-1590 Dated: June 2nd 2015 Views: 692 About Treehouse: ...