--149.76.xxx.x

Good thoughts to ponder. I've called back a few who didn't qualify due to not enough income ratio at the higher price. And I've had one who called me when they saw the price decrease asking if now I would consider. All times they worked out. Usually my decrease is $50 or $25 at a time and they have already found something affordable to their budget. But for a big decrease I would sure call an otherwise quality application back. --172.59.xxx.xxx

--149.76.xxx.x

Pricing a unit under the market price to start with is never a good idea. There are ohhh so many folks out there that for what ever reason don't raise rents. If you are starting out from behind that will snow ball. I set up what the rent increase is when the first year of the lease is signed so there are not any surprises for the tenant. I have been burned by doing that, but it does make raising rents so much easier. --24.101.xxx.xxx

So I upgraded the unit to include appliances, replaced the blinds and asked a higher monthly rent. I got $200 more in rent and rented the upgraded unit in 4 days. While before, in 4 weeks I had no luck. --47.155.xx.x

That's a big price drop. --76.129.xxx.xx

was it so over the market to begin with. --24.115.xx.xxx

The higher my list price, the more dreamers respond. Garbage credit, criminal, insufficient income and eviction history is common with almost every inquiry. Midway between my high list price and what I’ll actually rent for, I find: close to decent income or good income, but 1-2 months on the job. No landlord history, just below minimum credit, the ESA game ramps up or the income inspection fails. minor criminal or 1 applicant will be approved but the “fiancé” is a scumbag. Any combination of the above is typical. When I finally get to my rent price, I get the high income earners, great credit, great references, great Time on the current job. All the ducks lineup. So to me, when a place is affordable, it draws in people who are money minded, and are well on their way to a successful life. Not going to spend the money on an overpriced place. --24.152.xxx.xx

Mike, that was not over market. That was average market rent. It listed late summer and rented in December. I don’t think heading into winter helped. In bold print on top of my comparable rents page that I keep track of, it says to list 15% below the market average. Because that is what I always end up renting properties at or less. I think That it comes down to not being able to fully trust. What people advertise their places for versus what they actually end up, taking when somebody rents the place. So I have no problem at 15% below market when I first list properties. However, this one was a brand, new purchase, brand new rehab, so I figured I would give it a shot. I should’ve started 1200. I may have rented it in the summer. --24.152.xxx.xx

I think it depends on many factors and location. --24.115.xx.xxx

That is there as a result of my experiences time and time again. Here’s another example. I had a girl move out in February who I was getting ready to send a rent raise letter to. She was at 1200, She should’ve been at 1300. After a quick turnover, I advertised the unit at $1300 compared to market rent and nothing but crap so far and I am dropped down to 1200 now. So the market says it should be higher, but the reality is that she was right where she should’ve been. --24.152.xxx.xx

Is your market a zero sum game? --149.76.xxx.x

I’m not sure what you mean by zero sum game. A lot of my applicants are already somewhat in the area and moving to another job near me area and they want to be closer to that work. I see that often. --24.152.xxx.xx

BRAD --73.103.xxx.xxx

Probably because we are in the rust belt and have the same pool of applicants. People 100% on assistance, the ESA crowd, young people looking to move out of their parent's home for the FIRST time. People who work at big retail. Criminals and druggies, unstable single headed huge families with menageries. Older people "blending" for the first time. So you and your sweetheart want to live together? My units don't have training wheels. --64.246.xxx.xx

I am surprised at the $80k gross income families who don’t have $1500 per to feed and cloth themselves with. --149.76.xxx.x

Sisco, my experience with that doesn’t surprise me. It’s normal to see people blow every dime that they make. The high income earners with the good jobs who come to look at my places, when they are listed at market, often have some of the most abysmal credit of any of the applicants. I had a lady look at the house that I am referencing in this thread & her income was like $160,000 a year and her credit was in the 480s or something ridiculous like that. --24.152.xxx.xx

--184.4.xx.xx

Apologies... Credit = Debt.... --184.4.xx.xx

Those aren't my target market. I want the ones that are on solid financial ground. Most of us here are solid financial thinkers. What would you look for in your next deal? I doubt it is top of the market, that's the ones that are hoping they can fit the payment in their already packed budget. If they can't then their problems become yours. Nope, the ones I want are looking for a good mix of quality and price, they are deliberate in seeking value rather than if the rent will "fit" in the budget. So, I have slightly better, cleaner units at prices that are at or less than those that aren't fixed up as well. As a result, I get financially solid applicants (after I weed out the deadbeats). I rarely have problems with tenants paying, and they generally take good care of the place. Interestingly enough, once I changed from attempting to get top dollar my average tenancy length skyrocketed. Before it was 90% turnover at 1 year, now my average stay is approaching 4 years and climbing. Not losing a month or more in turnover is well worth the $50-100 I might be leaving on the table each month. --209.205.xxx.xx