A Question About Rent House Pricing

[curling]

I bought a rent house about 3 months ago for 63k and have put about 6k in it with carpet, tile, paint etc. I have priced a 925/mo and shown it 7 times. It still hasn't rented yet. Isn't there some rule that if you show a house 10 times without selling or renting it is priced to high? It's weird but I have another one in the same town that is the same quality and it rented very quickly.

any thoughts?

 

[the nature boy]

are you the one showing the place to the people?

 

[WODIN]

Location might be the problem. Did you check out the surrounding rental prices?

 

[curling]

are you the one showing the place to the people?

I am or my secretary. They seem to like it. ask for application but then don't ever act on it.

Wodin,

Yea the surrounding area dictates I should be able to get $925 what's funny nobody complains about the price when they see it.

 

[OKIE]

I would keep trying...7 times isn't that much. It just depends on how desperate you are to get tenants. If it is neccessary...lower the price. You can always increase it later.

 

[WODIN]

You might need to come down a bit in price....

 

[The Whole F/N Show]

You didn't say how many bedrooms and stuff but $925 a month seems a little high to me of course I don't know any specifics location, size, etc. Unless you are renting to people doing the roomate thing I'd think someone rather pay $925 towards a mortgage.

 

[curling]

ITs a 3/2/2 with around 1500sq ft.

 

[Y_lifter]

Take $70K and run it thru an Ammort program at the current
30 year fixed rate to see what payments would be if someone
bought it adding 5% for insurance/taxes etc.

If it is close to what you are asking, come down some in the rent
If is is more than it is either something wrong with the house or area.

 

[Y_lifter]

8-10% is not a bad return in todays market..

How much are you making with it sitting empty ?

 

[curling]

Take $70K and run it thru an Ammort program at the current
30 year fixed rate to see what payments would be if someone
bought it adding 5% for insurance/taxes etc.

If it is close to what you are asking, come down some in the rent
If is is more than it is either something wrong with the house or area.

But doing that I will only be getting around an 8% return I like getting around 15%. I know you how you are looking at it but renters usually pay higher for rent because they can't buy a house at a good rate because they have screwed up their credit or they can't come up with the down payment.

 

[curling]

8-10% is not a bad return in todays market..

How much are you making with it sitting empty ?

Well I guess negative since I have to pay taxes and insurance. But it has only been on the market for a month and 1/2 do you think that is too long?

 

[Y_lifter]

Give it 3 months and then lower it $50