Do you have a "sweet spot" for listing responses?

Question

When I list a property for rent, I like seeing a dozen or so inquiries in the first 24 hours as a validation it's priced neither too high or too low. Too high, and it's crickets, too low and there's a deluge of calls/texts/emails.

What kind of response rate do you like to see when you list a property? And bonus question- what levers do you pull if the response rate isn't optimal?

Account Closed · Answer

What a great question.  I had to think about this one.  When I was managing a building in Silicon Valley (Santa Clara, CA), I always got a big response to any ad because of the location.  So, my indication of the rent being too low or too high, was the type of applicant that called.

If the price was too low, the better tenants who had choices would be leery that it was a dump or that something was wrong with the apartment, so they'd pass.  So, if all I got were welfare recipients with horrible credit and iffy co-signers - it was time to raise the rent.

If I got high end tenants who weren't biting, after viewing the apartments, the rent was too high.

My apartments were in a great location, well maintained, full of quiet tenants - but - it was converted to apts during the housing crisis during WWII, and they had not been upgraded much, except for new cheap carpet LOL.  They had nice high ceilings, but tiny closets for the most part, no dishwashers, no balconies, not enough parking, etc.

They were perfect for techies who wanted to save up to buy a house, or students (preferably grad students) who went to the university across the street.  But, these students went to a very expensive university, and most of them could talk Mommy into a more expensive apt nearby with a huge walk-in closet, etc.  So, only certain students were willing to sacrifice ambiance or a prestigious apartment to be across the street from classes, or the students who needed to save money because they were on scholarships, etc.

So, I know exactly what you're talking about when you say "sweet spot."  My building needed a certain type of tenant in order to fit in and be quiet and be happy, yet be willing to pay just under market for a funky bare bones little apartment.  Most of my apts were tiny studios of about 250 square feet, with a few bigger studios and a few one bedrooms squeezed in.

George P. · Answer

we just listed one on friday and had 3 showings for friday and saturday. it was listed for $1100. 2 more showings sunday and 1 more monday.

we love getting the feedback and are so glad agents DO seem to provide feedback. they have all said the "price is right". depends on the weather, level of updates, etc, etc..