Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hypothetical situation:
There is an identical unit in the same building, right next door to your unit that is being advertised for $150 less per month than what you are advertising. This unit is identical in every way.
The prospective tenant offers to pay $200 less than your advertising price and points this out as leverage. Would you be willing to negotiate then?
Hypothetical situation:
There is an identical unit in the same building, right next door to your unit that is being advertised for $150 less per month than what you are advertising. This unit is identical in every way.
The prospective tenant offers to pay $200 less than your advertising price and points this out as leverage. Would you be willing to negotiate then?
Maybe. IF units are indentical, are terms/conditions also indentical? Maybe the more expensive unit allows folks with questionable credit or smokers or folks with pets. Because these rentals are harder to come by, they often demand higher rent due to the conditions.
Also, is the cheaper unit renting for 1 year but your unit is 6 months or month to month? Usually the longer the lease, the lower the rent.
Also, is other unit charging same security deposit and same first month/last month before move-in?
IF all conditions/terms are same (doubt they are), then maybe your unit is overpriced for the market. However, maybe the other unit is severly underpriced. What are other units renting for? If other unit is severly underpriced, I would keep my rent as-is and allow that unit to be rented fast and soon it will be off the market. If I find my unit to be overpriced, then I would be negotiable on the rent. BUT, I would not go $50 LESS than that comp unless the renter had stellar credit, was 1 person(less wear and tear on unit) that didn't smoke, had no pets and was in their job a long time and had good reference from prior landlord.
Maybe. IF units are indentical, are terms/conditions also indentical? Maybe the more expensive unit allows folks with questionable credit or smokers or folks with pets. Because these rentals are harder to come by, they often demand higher rent due to the conditions.
Also, is the cheaper unit renting for 1 year but your unit is 6 months or month to month? Usually the longer the lease, the lower the rent.
Also, is other unit charging same security deposit and same first month/last month before move-in?
IF all conditions/terms are same (doubt they are), then maybe your unit is overpriced for the market. However, maybe the other unit is severly underpriced. What are other units renting for? If other unit is severly underpriced, I would keep my rent as-is and allow that unit to be rented fast and soon it will be off the market. If I find my unit to be overpriced, then I would be negotiable on the rent. BUT, I would not go $50 LESS than that comp unless the renter had stellar credit, was 1 person(less wear and tear on unit) that didn't smoke, had no pets and was in their job a long time and had good reference from prior landlord.
When I said identical in every way, I meant every way...including terms and conditions of the lease (follow condo association rules, no pets, no smoking, etc.).
A little more info: The building is less than 6 years old, and sale prices in this building and comparable buildings nearby have dropped over 50% since the height of the market. It's possible the competing landlord has a lower cost structure because of when they purchased the unit.
When I said identical in every way, I meant every way...including terms and conditions of the lease (follow condo association rules, no pets, no smoking, etc.).
A little more info: The building is less than 6 years old, and sale prices in this building and comparable buildings nearby have dropped over 50% since the height of the market. It's possible the competing landlord has a lower cost structure because of when they purchased the unit.
what is market rate of rent? Charge that. Even if owner bought at the top of market for sales, need to charge market rate for rent even if owner takes a loss on renting it.
Why would you accept 50 dollars less than the other unit though?
really, you must learn market rate for rent in order to know whether your rent is too high or fair. If too high, you need to know correct rent price. pronto. Ignore what it cost to buy.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
