Guide

How to set rent prices without guessing

Rent pricing is a market question with a deadline. Price too high and you pay in vacancy days; price too low and you pay for the whole lease term.

The short answer

Price from currently listed comparable units, not from sold or historic data, adjust for condition and amenities, then check the number against how long similar units are taking to let.

Overview

Rent pricing is a market question with a deadline. Price too high and you pay in vacancy days; price too low and you pay for the whole lease term.

Why it works this way

Rent is set by what is available right now at that size in that area. Last year's rent and the mortgage payment are inputs to your decision to own, not to the market's willingness to pay.

Days on market is the correction signal. Two weeks with tours and no applications is a pricing answer; so is a flood of unqualified inquiries in three days.

Do it in this order

1. Pull three to five comps within a mile at the same bed/bath count. 2. Adjust for condition, parking, laundry, and pet policy. 3. Check days-on-market for the comps — long listings mean the asking price is above market. 4. Set a floor you will not go below and a target you list at. 5. Reprice after 10 days with no qualified inquiries.

Common mistakes

  • Pricing off last year's rent instead of current comps.
  • Ignoring seasonality in markets with a school-year cycle.
  • Holding an asking price for 45 days rather than losing $80 a month.

Checklist

  • Pull three to five comps within a mile at the same bed/bath count.
  • Adjust for condition, parking, laundry, and pet policy.
  • Check days-on-market for the comps — long listings mean the asking price is above market.
  • Set a floor you will not go below and a target you list at.
  • Reprice after 10 days with no qualified inquiries.
FAQ

Frequently asked

How often should I reprice?

At renewal and at each vacancy. Mid-lease increases are generally not available on a fixed term, and where they are, they need notice in the form the lease and state law require.

Related resources

Keep exploring

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