Oh and you are correct - the reductions reflect the value of the house at the time of purchase (a no-utilities on bank foreclosure with ratty yard and zero appeal and prior owner theft and vandalism).

See the illustration below.In a declining market (or static if you do not adjust for inflation), current rents reflect the property prices from 2 to 10 years prior.

If so, your offer should reflect that.

Build your patience and your persistence or does your price reflect on any negotiation by moving your upward price?  

I care that my tenants are happy, and my ads reflect that, so I then get better tenants to choose from.Shooting from the hip on price, I'd say a $900-1,200 range sounds right unless it has been thoroughly and modernly updated.

Without that support, mortgage interest rates would be significantly higher to reflect the inherent risk in loaning out 6 figures+, severely limiting the buying pool.

Match their tone of voice, use similar words, be a reflection of that person so they feel comfortable with you.

I'd even make the argument that as a result of the extra storage that they are using on the property, their lease doesn't accurately reflect what they are currently using and it needs to be adjusted if this is to continue.

While most of what you said is true for a significant portion of the nation's markets,  it is not applicable everywhere.Funny enough, the ".67% rule" is actually the San Diego variation of the "1% rule" that I've reverse engineered to  better reflect the unique variables in our market. 

So, rents today reflect property prices 2 to 5 years prior.