Posted February 22, 2023 | by Keaton Bessey, Managing Broker
In our previous post we broke down the process you should go through to accurately price your rental property. Price Filters are a hugfe factor in this process so we highlight an interseting scenario to help you understand more how today's ad platforms work and how to navigate, take advantage when pricing your property.
"filters" on online marketing platforms are very similar to the ones you may use when you're looking to buy a property. People set filters in their search platforms either on their own or with their realtor.
The important filter for rental marketing is prospective tenants "top budget" filter. This is the amount prospective tenants enter into their search filter to limit their search results to only what they feel they can afford.
For example, a prospective tenant making $5,000 income per month, may be looking for a 1 bedroom condo between $1,500-$2,000.
If you priced your 1 bedroom condo for $2,200 or $2,100, the above prospect will never see the ad unless they get tired of looking and increase their budget to stretch or plan to see you condo and try to haggle you down.
When setting your price, be very concious of how a prospective tenant may set their price filter. We find that when your rental is priced under $2,000, sticking to $100 reductions where needed generally attracts a decent amount of new prospects as the market under $2,000 is very tight. Above $2,000 to $3,400, we find that $200 increments work well. Above $3,500, the market starts to thin out due to affordability, so if you look to reduce, $3,195 and $3,495 are great round price points. Above are $3,695 and $3,995.
If this article helped you or was missing something, we would love to hear your quick feedback on google: https://g.page/r/CY9STzAnxG_9EBM/review
Check out the whole process in our other blog post by CLICKING HERE
Here are some links to other resources, information, and content I've put together:
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