Rental Rate Too High (4/1 Memphis, TN)?

[Mark S.]

4/1 SFR in Memphis, TN 38109, 1,150 sq ft. Freshly rehabbed and turned over.

Listed at $950/mo two weeks ago. Last week: 3 showings, 3 applications, 3 denials (poor rental history and poor credit). Not sure yet on this week’s stats (need to follow up w PM). Assuming not much different than last week, should we reduce rental amount?

Previously rented for $900/mo Section 8. Breakeven is probably $700/mo. I’d like to stay $900 or higher. Median area rent for similar properties $960/mo. I know 1BA is probably hurting me.

Are we priced too high? Wait longer or reduce now? Small drop to $925/mo? Bigger drop to $900/mo? Suggestions welcomed. Thanks.

4/1 SFR in Whitehaven area in Memphis, TN 38109.

[Chris Boselli]

I agree with @Sean Tagge, I would wait it out and see if you get a better applicant. Seems like there is solid interest at the current price (3 showings/3 applications), so all you need is the right tenant to come along. If it lasts more than 3-4 weeks and you get a bit more nervous, couldn’t hurt to drop the price. Might be worth it to drop the price straight to $900 instead of going $925 then $900 too, the $25 less per month won’t hurt you as much as an additional 2-3 weeks of vacancy. Best of luck