Rental Pricing Question

[Anna Buffkin]

I have a new rental in Greenwood, SC, which is not renting.  I am concerned it is price.

 I could not find much in the way of comps, so I made an educated guess.  The 3 bedroom townhouses about a mile away rent for $850-$895, and my friend rented a 4 bedroom older house on this side of town for $1200. 

I have a 12 year old 3/2/1 in a good part of town though it is on the main road. The Zillow zestimate is $1018 with the upper range at $1200. The house is well done with laminate wood flooring, large master suite, standard neutral paint.  

I listed  it at $1095 which includes water, sewer, and trash service. I have received no calls.  

My question is how much of a price change should generate qualified tenant calls? Do I need to go $100 dollars or will $50 generate some interest?

[Jon Holdman]

A busy road can have more of an impact than you might think.  I took a beating on a deal involving a busy road and that road was a major factor.

How are you advertising it?  The upside of a busy road is that a yard sign will be seen by a lot of folks.  Put up a yard sign and see if you get calls.  That will let you gauge demand.  If you get few calls, then you have a bigger problem than the price.  If you get lots of calls, do some price testing.  Tell different callers different prices and see how they react.  Ask them "What else have you looked at in this area?  How much did they want?"  If a caller seems knowledgeable and is willing to talk, ask them what they would pay.