Landlords undercharging

[Sylvia B.]

This is more of a rant than anything. It seems to me that many landlords in my small town are unintentionally suppressing rental rates because they are afraid to ask a reasonable rent.

An acquaintance of ours is a general contractor who builds houses on spec. If they don't sell he rents them out. He just finished a 3/1/2 that he wants $95k for. He is renting it for $500/mo for 6 months, and then the rent goes to $600. Apparently the renter is someone he knows who is in financial difficulty and the guy wants to help him out.

For comparison, 2/1/1 duplexes less than 4 years old in a new development rent for $600. They are never vacant for more than a week or two.

It's frustrating.