SLC tenant update
June 12th, 2008 by KenricWell it has been 1.5 months without a tenant in one of my SLC townhomes. We’ve had a decent number of showings but no applications. This leads me to believe that I am priced a little too high. We’ve increased the rent $200 from $995 to $1195. My other identical townhome is getting $1095. I’m thinking of dropping the price by $50 or maybe even $100. Actually I think $100 is too steep.
A few potential tenants have asked about washer, dryer and fridge. My units do not come with one. However, I can supply the 3 appliances for about $1200. I can use my Home Depot card or Best Buy card and have no interest or payments for 12 months. My PM said I could increase my rent at least $100/mo after supplying these. My appliances would be paid for in one year.
I have to talk to my PM tomorrow and figure out how to price the unit with the extra appliances. We can either keep the $1195 and charge only $50 for the appliances to make it look more attractive, or I can drop the price to $1145 and make the new appliances an $100 option.
Posted in Real Estate | 
Stumble it!
The vacancy has already cost you more than lowering the rent would have. Lower the rent $100 and include appliances for an additional $50. You will have your pick of tenants and you will amortize the appliances over two years. With tenants, appliances seem to last 7 to 10 years. You will still be ahead and you will have happier tenants who on average will stay longer and ask for less.
By Another Investor on Jun 12, 2008
The appliance issue is a major drawback. I rented for years after school and would have never looked at a place without at least a fridge.
In Northern California I have never seen an apartment without a fridge. I understand LA is different and perhaps the SLC area is also - but you could get the fridge without the washer/dryer to open up a entire new class of tenants.
By Greg e on Jun 15, 2008