“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 condo for $2,200 or $2,100, the above prospect will never see the ad…
…unless they increase their budget to stretch themselves or they plan to book a showing to haggle you down.
When setting your price, be very conscious 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.
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*The above information is not to be relied on as legal advice. If you require professional or legal advise for your personal circumstances, please reach out to us for a referral, or consult with us for property management services.
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