Hold strong or Drop Price? Marketing strategy questions

[Nick Littleton]

I know it's December/January which is not an ideal time to neither sell or rent. Private landlords in the neighborhood that we invested in are renting their SFH at $2950, but they listed them in August/September. We finally had our house built and are trying to market it for that same price, but have had 0 bites so far. It also doesn't help that another investor that purchased 14 houses cash in the same area is undercutting everyone else and renting for $2550 through a property management company. So now that everyone knows the backstory - what would be some strategies that any of you have utilized to stand out and stay competitive? We have come to the realization that we will more than likely have to drop our initial price in order to stay competitive, but is there anything else or other marketing strategies that anyone else out there has used to say hey, pay more here, it's worth it because of X Y or Z.

Besides dropping the monthly rent some these are some other ideas we are thinking of, feel free to comment on any of these ideas.  We've toyed the idea of including internet and/or cable in the rent, but then that could get messy unless you pay for the most expensive package available, which doesn't sound ideal.  We have also thought about advertising that we are private land lords as opposed to a large property management, but we also don't want to get taken advantage of. We are currently just marketing online, but are going to purchase a for rent sign and print some flyers off to pair them with the rental application - has this been an effective method for any of you?

Any and all advise is much appreciated, and my wife and I both thank you in advance.

[Nathan Gesner]

Quote from @Nick Littleton:

Drop your price. Keeping the high price but adding more benefits is just a money shuffle.

Is the PM "under-cutting" your prices or are you priced too high? You've had "zero interest" which indicates it's priced too high. I suspect the PM just knows the market better than you and they are pushing realistic prices based on what the market supports. Demand is typically lower in winter months, particularly around the holidays, so a wise investor/PM will lower the price to keep occupancy rates up and then bump rates higher in the summer months. If you reduced your price $500 a month on a six-month lease, you will make more money than if you sit vacant for one month. Then you can bump your rates up and get on a summer-summer lease cycle.

Advertising that you are a private owner instead of a PM? That can bite you, as well. A lot of bad renters prefer working with private landlords because they are pushovers with non-existent or weak policies to deal with bad renters. Many Tenants prefer working with professional property managers that provide better services, more responsive maintenance, have a proven track record, and are beholden to a higher power (real estate commission).