Tip #45: Do the Math
In this economy, you may be one of many landlords sitting with vacancies longer than usual.
One key to quick rental is setting the right rent.
If you start out too high, you scare away prospects at a critical time. The result: another month’s vacancy.
If you are in a high-vacancy market, consider lowering the rent slightly before you advertise the unit. It may save you in the long-run.
Here’s an example:
If units like yours are going for $750, your daily prorated rent is $25. Offer the unit for $725, and you just may get a better selection of applicants. You “lose” $300 over the term of a 12 month lease ($25 x 12), versus losing $750 if your unit sits vacant for another month.
You can also offset the reduction if you lease for 6 months, and increase the rent at renewal — maybe the market will have improved by then!
See last week’s Landlord Quick Tip.
Do you have a quick tip to share with other landlords? If so, please email our editor at [email protected]
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