Installing Fence for Rental Property

[Travis Washington]

I have a house that has been vacant for roughly five months now.  The home is in good condition and we have had a lot of showings.  However, a major feedback we have been getting is the fact there is no fence.  We have listed the property in the past for $720 and $750 without a fence.  For those two times, the home was rented within one week and one month, respectfully.

We originally listed the home $800 and then dropped it to $750.  The quote we received for a new fence was $2,500 and I'm currently working to get a second quote.  I was against installing the fence due to the price but at this point, I am tired of the property sitting vacant and feel that a fence may also add value for resale and future rent.

My Question:

Would it be sound (and permissible) to raise the rent back up to $800 with the installation of the fence?  The property is located in Oklahoma.

Note: There is a duplex that I own as well right behind the house so a fence would provide some privacy.  Additionally, I had a bed management team prior and already had to spend close to $1,000 to get the property back into rent condition after switching management companies. 

[Nathan Gesner]

@Travis Washington let's start with a little math:

Rent = $750

Vacancy = 5 months

Total loss = $3,750

If the fence is really the reason, you could have saved $1,250 by installing it five months ago.

However, I find it hard to believe your property sat on the market for five months just because of a fence. I think something else is going on. Have you evaluated other rentals to confirm your price is accurate? Have you noticed any other rentals sit on the market for five months?

Before installing a fence and bumping the rent, I would try something else. Continue advertising it at the current rate. When someone looks at it, ask them if they would rent it for the higher price with a fence. If they say they would, tell them you will give them a written guarantee to install the fence if they sign a one-year lease at the higher rate. Once they put the deposit down and you've locked them in, then you can install the fence.