Just got finished with our team meeting. I noticed one of our rental properties, which has been listed for a little over seven days, received very little interest over the last week. When I enquired further, I found out that the price set on the property was $200 over market. “How did that happen?” I demanded.
“The owner wanted to try for more money,” was the response from my agent. “In fact, the owner wanted to list it $500 over market, but I talked her down.”
This situation is not unusual for first time landlords. They are convinced that we are going to lowball the price in order to get the unit rented out quicker.
Just like real estate sales, rental properties move when they are priced at market and not above market. Here are four things that you as the property owner ought to consider.
- We rent our dozens of properties a month and you do not. Who do you think knows more about the current market?
- We told you how much to list the home for before you signed with us; thus, there is no way to lowball the rent. You knew what we recommended up front.
- Property managers are paid a percentage of the lease. The higher the rent the more money I make. Do you really think I am going to cut my own profits?
- Renting a property quicker puts more money in your pocket. However long you ignore my professional advice is directly proportional to the amount of money you will lose.
Let the experts do their job. The sooner you do, the sooner your home is rented, the sooner you are cashing checks.
Scott Taylor is the principal property manager and co-owner of SCV Leasing in Santa Clarita, California. SCV Leasing serves Valencia, Stevenson Ranch, Newhall, Santa Clarita, Saugus, Canyon Country, Fair Oaks Ranch, Castaic, Sand Canyon, and Westridge with homes for rent, condos for rent, and property management services.
His experience as a rental property owner and as a property manager makes him the best choice for managing your rental. SCV Leasing’s unsurpassed marketing plan puts renters in properties fast. Mr. Taylor can be reached at email@example.com.