Rental Price
Posted on September 18, 2007 - Filed Under Business |
It has been nearly two weeks since the ads started running for renting the house. During that time, several inquisitors called. Appointments have been made but then canceled. No one has actually "walked through" the house.
It is either one of two items.
First, the asking rent is too high. Checking rentometer.com, there are a few three bedroom rentals that are $3,000 plus. Granted, there are more for less than $2800 which is my asking price. A debate churns inside me, deciding on whether the rent should be dropped $100/month.
Second, the perspectives drive by the house and actually see it. While the interior may look incredible, the theorem "First Impressions" definitely applies. The exterior has not been touched at all, with the exception of watering the grass. People who may consider paying the rent won’t if they think the house is a dump. Based on the way the house looks at present, even I would be hard pressed into paying that level of rent.
A decision has to be made relatively quickly. Yet another month has walked by; with that another mortgage payment. It is time to re-run the ads. Maybe I’ll let another week go by and see if there are any results. If nothing then I’ll consider lowering the rental price.
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7 Responses to “Rental Price”
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Why not do something to the outside? If you can improve the exterior and get the extra rent, the work could pay for itself over a year lease.
Do you ads show pictures of the inside of the house?
Yeah, some paint on the outside, even badly done, will do wonders for the “curb appeal.” Think of it this way, if you’re going to pay someone to do a good job in the future, then you won’t lose anything by slapping on some gallons yourself as a band-aid to get the thing rented.
Does the ad mention the parking situation? Parking spaces are a hot commodity in the LBC.
How do you compare to the other houses on the block? Has the whole block been renovated or just your property?
A little paint and landscaping can go a long way. However if the rest of the block, the next block, or the overall condition of the neighborhood is not appealing, paint, landscape, AND drop the rent. That way you will get the best possible tenant for your neighborhood.
Oh, and do point out the “spacious off street parking” parking in your advertising and on your “for rent” sign. Each parking space is probably worth $100 to $200 in rent.
From my personal experience, I usually list my properties at the lower end of the market rate. Not because of its condition, but because I want to rent it out right away, as letting the property sitting vacant for an extra month usually wipe out the extra money you will gain for the year if you were to ask for a higher rent. Also, by attracting more applicant, I can pick and choose my tenant. As many of you knows, choosing the right tenant is key in landlording.
Shaun, I almost baulked at your suggestion of doing the outside myself. Then I said “Why not?” I read up online how to do it. It seems a very labor intensive process, one I don’t have time for at the moment.
Kenric, yes I have photos up of the interior. I also commented, just in case, that the exterior of the house is to be done next.
Engineer, oh you betcha! Two parking spots included!
AI, the interior of the house rivals that of any house on the street. I say that from personal experience: I’ve been inside four other really nice homes on the street.
The landscaping is an interesting comment. I wonder if some nice plants could make the house look better without having to do all the work of painting.
William, everyone has their own technique. I go higher-end to weed out those who really can’t afford the rent or have bad credit scores. Also, I need the front house to generate 80% of the income for the property. So for the moment, I’ll keep the price the same and gradually reduce it.
Free market economy: you gotta love it!