I think I priced my first rental too low, 60+ interested people

[Carlos Guzman]

Hello,

So I bought a four-plex back in October (in Downtown Long Beach, CA), all units were rented by long term tenants (4+ years). I finally got my first vacancy last week and really wanted to remodel the unit to ask for more money but just don't have the time to do it now so I figured I'd just rent it out asap until I have more time and money. Tenant who left was paying $1,250 per month and so is another tenants in an identical unit. 

I listed my property for rent on Wednesday night for $1,350 and that same night I received 10 phone calls and 14 emails from people who were interested. It's now been about a day and half and I've got over 60 people who want the property. I listed ALL my requirements (which were strict) on the listing and have only showed it to 3 people so far and all 3 said "I'll take it!" (I scheduled almost every for this weekend, open house type of deal which I figured was easier than showing it to the 30 people who want to come on Saturday and several more on Sunday).

My question, clearly I priced it too low so what can I do about it now? I understood I priced it a little low for the size and location, this was done intentionally so I could pick out the best candidate (especially considering I live on the property) but I did not expect this many people. I have not sent out applications and I'm planning on putting them out on Saturday when everyone shows up. Of course I would like the most amount money but I am hesitant to raise the asking price now because I really don't want to make this look like a bait and switch. 

The only thing I am leaning towards doing is make them sign a 12month lease and put in the lease that after the 12 months it becomes month to month for $1,400-1,450

Do you guys have any other suggestions on how I can go about this? Also, I'm sure out of all those people, I am going to have more than enough qualified applicants. I want to chose the right one but without breaking any discrimination laws. If I have 2 qualified tenants but one makes more money than the other, can I base my decision on that? If 2 people have qualified credit scores can I chose one with 800 score vs someone with a 790 score? Even if the 790 guys applied first? Thanks.

[Mike Wood]

Good job attracting so many interested people.  Once you start showing it, you will find out the real number.  I often get 30-40 calls/emails/text when I list an apartment, but always have less than 10 show up, and of those, about half submit and application.

As for your questions, assuming that you let everyone know that you will be reviewing all applications at the same time, I see no reason you can not do what you are asking.  Now, if you review a 790 credit score applications on Monday, and wait till Saturday to show and review a 800 credit score application, you may be doing a disservice to the initial applicants, but not likely anything illegal.