Pricing Your Apartments

How do you fix a price point for an apartment?charging - for similar rentals. Then, advertise
Take a guess? Figure it based on your carryingyours to undersell the competition.
costs? Check comps and do a market analysis?Why undersell? It's a basic rule of economics that
Charge whatever the market will bear? If you'reprice is a great way to compete. If you offer a
looking to place quality tenants, less is sometimesgood product for slightly lower, you'll get a lot of
more.calls, which means you'll be able to screen more
We all want to make money with incomeapplicants and get the best possible tenant into
property; the more the better! When you'rethe unit. Once you have a quality tenant that likes
looking for a new tenant, however, don't assumethe place, you're golden - you can make increases
that you're going to make more money byannually that put your unit in line with others.
charging more. If your property is priced high forTenants who don't have slumlords for landlords
what you're offering, you won't get a lot of calls,won't go to the trouble of searching for a
and the ones you do get will be either uneducatedcheaper place because of the costs associated
about your local rental market, desperate,with moving. Your first-year discount got the best
unscrupulous, or a combination of any of these.tenant in the door, and providing quality housing
What to do? Perform your due diligence: checkwill keep them there.
the advertisements for similar apartments, makeIn conclusion, don't let your greed cloud your
appointments to look at them, talk to real estatejudgment when you're trying to find the right
agents and others in the business, and get a cleartenant.
idea of how much others are getting - not just