I get a call from someone who is interested in seeing the condo. She and her boyfriend are students and want to see it right away. Unfortunately, my tenant cannot accommodate them on this day so they make an appointment for tomorrow. Later that night my brother sends me an email that he got from a realtor stating that the realtor has a potential tenant who will pay $1650/mo. I am advertising it at $1595/mo.
The next morning I call the realtor and she says that her client is ready to sign at $1650 for 21 months! However, the realtor will take one month’s rent as a finder’s fee, so this puts my rent at $1571/mo.
I tell her that I have someone viewing the condo right now and if they don’t want it then I’ll rent to her client. The couple viewing my condo call me after they see it and tell me that they’re interested. Now I have some leverage so I tell them that I need a decision now because someone is waiting behind them. The girl of the couple says that they’ll take it. But they want a 9 month lease because the boyfriend has a new construction condo that will be done in April 2007. I tell her, I want one year minimum and that I’m offering them the condo only because they were already viewing the condo when the other offer came in. I also told her my other offer was $1650. She says fine, they’ll do 1 year at $1595.
An hour later, the boyfriend calls me back and tells me about his new construction and that it is 80% that it will be done in April so basically they will be renting my unit for May, June, July when they don’t need to. I tell him that I would need more in rent to cover the shorter lease and we agree on $1700/mo. However, if the condo is not done they would keep renting and if they end up staying all 12 months, the rent is still $1700/mo.
I call the realtor back later and tell her the bad news. She tells me that her client is willing to pay $1700/mo for 21 months! I tell her that I am getting $1700/mo too. We both wonder if we are underpriced in the complex. She has 3 rental units in the same building.
My first 18 month lease was for $1225/mo. Now I’m getting $1700/mo. Boy was I underpriced. One good thing about this condo is that I haven’t put a payment dime in on it yet. It will have been rented every single day that I’ve owned it until April 2007, probably longer.