Setting rent. A little dilemma...

[Aaron Hale]

Hey All,

I've got a little situation that I could use some input on. We are about to complete renovation on a SFR and are nearly ready to place a tenant. This property is in my hometown and a friend recommended a couple that would be perfect for the place. He inquired about the estimated rent to which I responded that it would possibly be in the range of $1250-1350 with the caveat that we haven't completed our market research for the area for the appropriate rent rates and that it was a very rough estimate.

During the renovation, we came across many ways in which we could make upgrades to further increase the value and the rent potential. After doing our market analysis on comps in the area and speaking to various agents and a couple PMs, we have concluded that $1455 is more accurate for this area.

We just told the prospective tenants of the rent, we are getting, “But we were told $1250...” These  prospective tenants really are the model applicants, a doctor and a lawyer, and would possibly sign on to a 3yr lease. 

This property is a very nice suburban location with great upgrades. It would no doubt fetch what we are asking if we chose to market it to the public, but I’ve also got to consider vacancy, marketing, etc if we don’t place these applicants.

I don’t mind making a small concession to keep them attracted, but would would you recommend to keep them on the hook? Thanks!