When to Adjust Your Rental Property Pricing

When to Adjust Your Rental Property Pricing

Many landlords make the costly mistake of waiting weeks or even months before adjusting their rental price when a property sits vacant. The truth is, the market gives you clear signals much sooner, and recognizing these early warning signs can save you thousands in lost rental income.

The Critical First Week

The first 3-7 days after listing your rental property are the most telling. During this period, you should receive:

• At least 2-3 inquiries a day from interested prospects

• Have at least 2-3 showings in the first full weekend after posting

• At least 1-2 applications in the first two weeks of showing

If your property isn't generating this level of interest within the first weeks, it's a strong indication that your price is too high for the current market.

Early Warning Signs Your Price Needs Adjustment

1. Low online traffic: Most rental platforms provide metrics on how many people view your listing. If views are significantly lower than comparable properties in your area, pricing could be the issue.

2. Showings without follow-through: If people contact you about the property but lose interest after viewing the property, that's a clear signal that they don't believe the home is worth the price.

3. Applications who ghost your: When applicants are applying to the home, but end up ghosting or finding another property, it may mean your home is just not attractive enough at that price point.

The Cost of Waiting

Waiting too long to adjust your price can cost significantly more than making a prompt adjustment:

A $2,000 monthly rental that sits vacant for an extra month costs you $2,000 in lost income. Reducing the price by $100 would only "cost" $1,200 over a year but would likely get the property rented much faster.

How Much to Adjust

The general rule of thumb is to reduce your asking price by 3-5% if you're not seeing adequate activity within the first week. This is usually enough to generate renewed interest without drastically affecting your annual income.

The Bottom Line

The most expensive rental is an empty one. Being responsive to market signals within the first week of listing can significantly reduce vacancy time and maximize your annual rental income, even if it means charging slightly less than your initial target price.

Remember: It's better to make a small adjustment faster than to wait a longer time and eat away at those vacancy costs.

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