"Every week your rental property sits vacant, there is a 2% loss of the total potential annual rental income. Remember, you can write off expenses; you can't write off lost rent. Always price your property properly (that means competitively) and start the revenue stream sooner than later." - Michael Francis, RMP, MPM, TRLS, TRPM, Instructor, Broker

"With over 38 years of property management experience, I’ve consistently seen that “testing the waters” with an inflated rent price rarely works. A slightly underpriced property will lease quickly, while an overpriced one often sits vacant until the rent is brought in line with the market. Time and again, I see owners make this mistake—longer vacancies ultimately cost more than pricing correctly from the start."

Example #1: Your goal is to maximize your rental income, you think you can get $1,500/month for rent. The property is leased in 60 days.

Rental Rate: $1,500/month

Time Vacant: 2 months

Annual income: $1,500/month x 10 months: $15,000

Expenses: Water, electric, landscaping for two months $330.00 (or more in the summer)

Annual Net Income: $14,670

Example #2: Your goal is to rent the property quickly, so you sacrifice $100/month in rent and advertise the property at $1,400/month. The lower price increases the demand for the property, and is rented in 30 days:

Rental Rate: $1,400/month

Time Vacant: 1 month

Annual income: $1,400/month x 11 months $15,400

Expenses: Water, electric, landscaping for one month $ 160

Annual Net Income: $15,240

By reducing the rental rate $100* a month you have to increase your annual net cash flow by $570.00

What Our Leasing Experience Shows:

Renters are not buyers. They rarely negotiate. If the listed rate matches their budget, they’ll consider the property; if it’s overpriced compared to similar options, they won’t. Features such as a new roof, water heater, or HVAC are expected, not selling points.

Vacancy impacts perception. The longer a property sits on the market, the higher its Days on Market (DOM) count rises in the MLS. Over time, both agents and tenants may assume there’s an issue with the property, making it harder to lease.

Vacant properties carry risks. Unattended homes are more vulnerable to problems such as leaks, vandalism, or other damages. Some insurance policies even reduce or eliminate coverage after a property has been vacant for a set period—check with your insurance agent for details.

Agents search by price. Leasing agents filter listings based on their clients’ budgets. If your property is priced above market averages, it may not even appear in search results, and agents are less likely to recommend it.

Tenants are well-informed. With easy online access to market data, tenants know typical lease rates in an area and what they are willing to spend. Properties priced above market are often overlooked.

Vacancy has a cost. While your property is empty, expenses such as mortgage payments, utilities, and upkeep continue without rental income to offset them.

How do you arrive at the lease rate for my property?

We conduct a Market Lease Rate Analysis using MLS data and market insight. This analysis considers:

  1. Comparable properties: What similar homes are currently leasing for.

  2. Condition and updates: How your property compares to others. Is it updated and well-maintained, or does it appear dated? These factors directly impact rent.

  3. Competition: How many comparable properties are available and how long they’ve been on the market.

  4. Market activity: The average Days on Market in your area, along with what has recently leased in the last 30–60 days and at what rate.

The lease rate is then set using these variables combined with the property manager’s professional experience. Our goal is to help you succeed by securing:

  • The best tenant possible

  • The best rent in the shortest time

  • The best return on investment (ROI)

Remember: an A-grade tenant will not rent a B-grade property or an overpriced one. By pricing strategically, we maximize your chances of attracting the right tenant quickly.

* The $100 is for example purposes. Sometimes a simple $75.00 to $50.00 adjustment is all it takes, especially if we're going from $1,525.00 to $1,495.00. This minor adjustment in price opens your property to people who don't want to spend more than $1,500.00 a month and who otherwise wouldn't have seen your property.