How long before you drop rent price when listing sitting?

Question

I've had interested but unqualified people (credit, criminal, weirdos, etc.). I've only relisted the property for a week, had a tenant the first showing, they then backed out.

No qualified prospects since then, about a week ago. I've now lowered the credit score requirement to match the neighborhood (from 700 to 650), allowed small dogs to catch a wider audience, and am debating lowering the price as well. But how long to wait before lowering the price?

I will say at least my listings now are clear enough about qualifications (posted at the top and bottom of listing) that I no longer get the 100 unqualified inquiries who missed the info.

The people who do contact me are usually qualified now, though I get less responses as a result of making it crystal clear what the requirements are.

Russell Brazil · Answer

I think your credit score requirement could possibly be more of an issue than your rent price. I dont know many 700 credit score renters. 620 is the minimum score you need to buy a house. Even at 650 you might be hard pressed to find renters. My credit score requirement is 600.

Thomas S. · Answer

I prefer a vacant unit over a bad tenant any day. Lowering your standards will only attract lower quality tenants.IT sound like you are a desperate landlord that does not know the actual rental value of your unit in your area. If you do know what it is worth never lower the rent below that number

Jack B. · Answer

You know, I've seen specials like that and thought about them long ago, but never applied to my own. Great reminder, genius idea. I'll give it a shot. Bonus points for it not costing me nearly as much money like reduced rent would.

Kaycee Miller · Answer

You could also consider a move in special. Like $100 off first months rent. That can get people who are on the fence between your place and another to choose you because of the move-in incentive. And then you wouldn't loose money every month like you would with a reduced rental rate.

John Thedford · Answer

I agree @Russell BrazilI use 600 minimum. Allowing dogs can get tenants and keep tenants. If you do that, be sure and get a non-refundable pet FEE...not deposit. You keep fees and deposits are liabilities and might have to be returned. Generally, I go about 1-2 weeks and if no response lower the price. I don't do large reductions, generally $25 and then see the results.

Account Closed · Answer

Are you confident what the market rent is for your neighborhood and property? How did you find out?

Rick Bassett · Answer

With Zillow keeping rent history online I don't like lowering it in advertisements as it stays publicly available. With slower moving rentals I may offer a special for qualified multiyear tenants where I do something like offer a lower rent price if they commit to two years, I put that in the ad but keep the advertised price the same. Since most of our properties are pet friendly, I may offer the second dog or second cat free which is worth $20 per pet per month. The trick is trying to get your rent price as close to market as you can when you start advertising it. Rick

John Thedford · Answer

Another thought: Be sure and have a written requirements handout when you show the property. It should detail your qualifications such as credit score requirements, employment requirements, income requirements, etc. I also charge a non-refundable app fee of $75. This will weed out those that aren't serious about renting the unit. I always have a one hour showing window. I accept multiple apps then, accept checks for the app fees, etc. I filter through the apps and try to make a decision on who looks best according to stability, income, etc. I run that single person and if they qualify I send back the other app fee checks. As another person stated, don't get desperate and take just anyone. Stick to your criteria. If you cannot find an applicant within a reasonable time you may be over priced.

Mags S. · Answer

@Jack B. - my criteria just says 'acceptable credit score', since I use places like mysmartmove and they only provide a renter's score, not a credit score, it leaves me with some leeway. For me, credit score doesn't tell the entire picture

Jack B. · Answer

Great, thanks guys, going to go to 600 credit score. I do charge the pet fee as a fee (allowed cats in the past, now allowing dogs) as opposed to a pet deposit. I think you guys are right, my requirements are impossible for most renters. I've only raised them recently due to bad experiences with low credit renters and good experiences with high credit renters.Even the bad low credit renters are not my preferred tenants, the previous low credit score tenants were not all so bad as to justify letting it sit empty. I'd rather have a tenant; even with their issues the units are still very profitable.