Property Management Tip #17 – Don’t Overprice a Rental

Agents often give a price range when telling a seller or landlord what to expect for their property.  Owners have a natural tendency to want to reach toward the upper limit of that range.  With a sale, an overpriced listing MIGHT still get an offer at a lower price, but with a rental, applicants are more likely to see the price as a non-negotiable price-tag.  An overpriced rental will only attract unqualified tenants - they don't mind paying more because their credit is lousy, they left damage and unpaid bills at prior properties, or they have no job and hope you'll overlook that when taking application.  That is a generalization, I'm sure there are circumstances where they just want to live in that location for other reasons and are therefore willing to pay top dollar, but those situations are rare indeed.  If a tenant is happy to overpay for a property, that is likely the tenant you don't want in your property.