at what point do you say screw it! - Posted by gymshoe (WA)

Posted by David Krulac on September 21, 2004 at 22:36:34:

gasoline is $1.749 instead of $1.75, why? Price point pricing. $0.99 always sounds lower than $1.00.

a $695 rent is moe attractive than $705. It just is.
lowering your rent to something ninety -five from what ever it is is a good move. If your rent is $1,200 and even if you have gotten $1,200 in the past, but are having lots of difficulties now, then lower the rent not to $1,195 but to $1,095 or even $995.

Vacancy is a rental profit killer. One month’s lost rent of $1,200, is the same yearly gross as charging $1,100 with no vacancy. Which is almost the same as $1,095. The rental market is tough in most arkets because of the low interest rates for mortgages and the abundance of programs for first time home buyers with little or nothing down. Until the interest rates increase there will be more people trying to buy than rent.

Study your market and appeal to those in your market who are the renters. Do your research and find out the demographics that you want to appeal to and make your product desirable to them both in asthetics and financial matters.

at what point do you say screw it! - Posted by gymshoe (WA)

Posted by gymshoe (WA) on September 20, 2004 at 16:39:32:

been trying to rent my former house out now for a month…
had a bunch call about it, i showed it to a few, … those that i showed it to took an application, but I haven’t gotten anything back yet. Lowered the price once already, current price should be in line with market. the thoughts of selling are creeping in my head, but I see good long term potential in the property and I really don’t want to sell (i’ll try lease optioning before out-right selling)… bah…getting discouraged, … 10/1 is approaching quickly when i start paying both mortgages out of pocket… i’ve done the signs, i’ve done the ad in the paper … … what else?.. more signs? lower the price more? … also…good friends of mine… put their house on the market 2 weeks after I did, … I made websites for both of our rental houses, we both did signs, flyers, ad in the same paper… our houses are 10 minutes apart… their phone has been ringing off the hook. Their house…4 bed/3bath … mine …3 bed/2bath. … I’m getting BUMMED! …

Re: at what point do you say screw it! - Posted by rdla

Posted by rdla on September 21, 2004 at 15:54:37:

Do you hold week end open house? This is the time tenants who are employed have time to look. use arrows and open house signs.
Try it , you’ll like it.


Re: at what point do you say screw it! - Posted by ken

Posted by ken on September 21, 2004 at 07:51:44:

You need to take apps on the spot do not let them leave without giving you a deposit, you can return it if you do not want to rent to them after you check them out. You need to be more aggressive

the market will tell you what the true rent - Posted by David Krulac

Posted by David Krulac on September 20, 2004 at 18:16:32:

should be by not renting it.

if the property truly has the long term potential you say and you are not just emotionally attached to your former residence, then lower the rent.

price point pricing does work IMHO.

to be continued…

Re: at what point do you say screw it! - Posted by Mark (SDCA)

Posted by Mark (SDCA) on September 20, 2004 at 17:29:23:

I like setting the initial rent for a vacant market slightly below market (5-10%). For exactly this reason. How many months of vacancy does it take for that 5-10% to seem not so important? I would rather have it rented and stop dealing with it. So my advice is lower it again.



Re: at what point do you say screw it! - Posted by JIM

Posted by JIM on September 20, 2004 at 17:06:41:

Sounds like you started out asking above market since you said the current price is now in line with market.

Since you said this has long term potential, stick with the program. You CANNOT FREAK everytime you have to make a mortgage payment or encounter an unexpected expense. If you, do you SHOULD NOT be a landlord.

Some time down the road you’ll be looking smart having stayed the course.

Good Luck!