Apartment pricing is a bit like the old story of Goldilocks and the three bears: finding
the spot that’s “just right” can feel impossible. As a landlord, you’ve got to cover your costs and make a profit, but price your property too high, and you risk your unit sitting empty, waiting for a tenant who can afford it.
How will you know if your price is too high? Generally, if you haven’t received any inquiries after three days of publicly listing the rental, you’re probably charging too high a price. Ev
en if folks do come to take a look at your property, if they’re not filling out applications, chances are good they can’t afford to live there.
Your price can be too low, too. If you get lots of inquiries and prospective tenants insisting you take their deposit to hold their spot, it can be a sign that your price is too good.
So how do you know what price is right for your property? Do your research! Scott Safadi of Cal Bay Property Management recommends checking out similar units around town and comparing amenities, location and lease lengths. By understanding where you stand in the marketplace, you’ll have a better idea of how much to charge for your property’s rent.
– Scott Safadi, Cal Bay Property Management