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Landlord friends, be careful. We’re in the middle of October. If your unit isn’t rented yet, unit or units aren’t rented yet, you need to consider making a price adjustment to what you’re asking for for rent. Too often are we seeing landlords who are getting fixated on, “Well, the one up the street is listed for this, the one up the street is listed for that.”
You sound like home sellers. That’s what the home sellers do. Well, that one is listed for this, that one– Who care what they’re listed for? What matters is what are they renting for. With sellers, what matters is what are they selling for. At the end of the day who cares? If people are coming through your apartment one after the other and not making an offer to rent the property, you have to consider bringing what you’re asking for down.
If you don’t, you could end up holding the unit throughout the entire winter. Take for example a unit that maybe is listed for $3,000 a month. If it’s not renting and you don’t make an adjustment like, let’s say, you’re being tough on coming down $100 or $200, well, that $100 or $200 is gone after a month of it not being rented. If you bring it down $100 a month, that’s $1,200 an year.
$3,000 in a month is obviously substantially more. So, if you do that month after month– Let’s say you hold the place three or four months, you’re eyeing $12,000 in the hole. Right now is the time to just– Obviously, you want to get as much as you can, but you’ve got to just look at it and say, “All right, what’s going to get the property rented?” Now, here is another tip.
When you get it re-rented at this time a year, don’t do a one-year lease if you can help it. Do either an eight-month, or do like an 18-month to get yourself back to the next spring of 2021. You don’t want to have your leases end in the fall if you can help it. This time a year is tougher. Hope that makes sense. Let us know if you have questions. Thank you.