PRICE FOR THE MARKET WITHOUT SACRIFICING YOUR CRITERIA
That takes us to the last step: Is your pricing consistent with the demographics of the area that can also meet your screening requirements? For example, you may want three times the rent on a property where you are asking for $3,000/ month. That means your tenant must make $9,000 per month or $108,000 per year. But what if the average income in that area is $90,000 per year? Then you need to lower your price to
accommodate the market. It becomes a tradeoff. The lower the price, the larger the pool of tenants that can qualify. If your unit is still vacant, the marketing is strong, and you do not intend to adjust your criteria, then revisiting the price is the only option. It may not feel great, but it is certainly better than doing an eviction later.
THE LOWER THE PRICE, THE LARGER THE POOL OF TENANTS THAT CAN QUALIFY.
FINAL THOUGHTS
It is a balancing act. The goal is to secure a qualified tenant in the shortest reasonable amount of time. Success comes from aligning your property, pricing, and criteria with the realities of your market to attract a qualified tenant without unnecessary vacancy.
RICK ALBERT Broker Associate LAMERICA Real Estate Connect with Rick
Rick Albert is a Real Estate Broker Associate based in the Los Angeles area with a focus on the residential space. He is also a multifamily out of state investor, real estate commentator, and host of The Key to the City of Angels podcast.
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