Empty versus Drop Standards/Rent

[Account Closed]

I read quite a bit that it is better to leave a unit empty then to fill it by lowering your standards.

The economics would suggest otherwise. An empty unit equates to an 8+% drop in yearly rent for each month empty, wouldn't it be better to drop the rent and relax your standards a bit, rather then leaving a unit empty for too long?

For an 800.00 a month unit, three months empty winds up with a 25% loss of rent for the year or the equivalent of accepting a monthly rent of 600, and once the taxes, insurance, and maintenance are added to the equation, a loss for the year is pretty much guaranteed, oh the pleasure of dealing with tenants and having to kick in cash for the year !

So my question:

Wouldn't it be better to drop the 800 by at least 10% immediately, get well below the going rate right off the bat, and accept maybe a lower credit rating, you may not have to, as long as the deposits are there, and put the new tenant on a month-to-month contract?

When the economics allow,you can always increase the rents and go for a longer lease but at least the unit is not losing cash.