Is my rent too low?

[Doug Smith]

I have two properties that both came up for rent on May 1st. One is an investment property in Pittsburgh, PA. The other was our primary residence in San Francisco. (We’re moving out of the PR and renting it out). I put both properties on Zillow at Noon on Sunday. Using Rentometer, we priced both properties in the 90%-range for our areas. In the first 24 hours in California, we had 4-5 people request showings, and the Pittsburgh property has >15 inquiries. I set up 30 minute tours, and filled 8 spots in a space of a few hours. I have at least 3 people in Pittsburgh (all residents at the local hospital) who have said they’ll take the property sight unseen.

My question is this: Are we charging too little rent? The properties are both very nice and I certainly like not having any vacancies, but are we leaving money on the table?

What is your average response curve (how many showings requested in the first 24 hours/ first week, etc.)

Thansk

[Curtis Mears]

@Doug Smith

I often have 30 to 40 applicants on the first few days. I would much rather have this than 1 or 2, or no responses. I have a process to minimize unqualified applicants that requires minimal effort on my part. When I receive an interested renter, I have a short requirements paragraph I email or text them (I never answer the phone as it wastes time and to easy for me to forget some of the requirements). Even though the requirements are in the ad, noone ever seems to read that far down. After sending the requirements to prospective tenants, 70 to 80% never contact me again (because they were not qualified), the remaining are usually qualified, although you still get the occasional unqualified straggler try to slip through. These are hopefully weeded out once app is submitted.