Staying firm with rent rates or adjusting them due to Pandemic

[Dexter Bowling Jr]

Hello All,

I’m posting here to get another perspective on a current rental property in Fairfax, Va. I am a somewhat new investor. Pre covid, rents did 3k monthly essentially 1k per bedroom for college students at George Mason University. Currently I don’t have any renters due to a recent renovation but it was placed on the market 45 days ago and I’ve had to drop my price essentially 50 dollars a week. Not going below 2500. Currently My wife and I just eat the cost with no problem. However, we keep getting offers for renters for 2400 with a 18 month lease. 1800 difference over the term of the contract. I’m looking to see if it’s worth holding firm at my rate or dropping it based on the economy at this time. The mortgage on the property is about 2200 and the PM takes 7.9%. Essentially right below that 2400. However, if anything goes wrong in the house, I would need to come out of pocket resulting in a loss. Is the 100 difference worth the risk.

thank you

[Isaac Pepper]

@Dexter Bowling Jr tough situation, but holding out for another 100 bucks a month seems like stepping over a dollar to pick up a dime. Your missing out on roughly $80 per day in rent. $1800 "lost" over 18 months is nothing considering you'll "lose" $2400 in the next month if you dont fill the vacancy.

I would try to get the tenant to sign for $2400 per month for 10 months if you feel that you can fill the unit mid-August next year. That way your not locked so long on $2400 Otherwise do the 18 months. Then you would be up in March. Then try $3k per month again.

Im not familiar with turnover with students but this is what I'd do for non-students. Hope this helps!