How to Set the Best Rental Price for Your Grand Rapids Home


The object of setting a rental price is to ensure you get the most rental income possible. Right now, the rental market in Grand Rapids is strong, so there is no reason to list your property at a lower price just so you can be sure you’ll find a tenant quickly. Competition for rental property is tough, and tenants are willing to pay for the house they want.

Here’s an example. A property owner from New Jersey who had done a little research into the market wanted to list his single family rental home for $1,200 a month. With the market being so hot in this area, his Grand Rapids property manager felt like it would be possible to list that home for $1,495 and rent in less than a day. They tried a little experiment and listed the property at the high price of $1,895. They didn’t get a lot of calls, so they dropped it down to $1,795 after two or three days. Then they reduced the price to $1,695. Some interest was generated at that price point, so they knew they were close. After another two days, the price was dropped to $1,595, and two highly qualified renters wanted it that afternoon. So they could have listed the house at $1,495, but they earned extra money because of their strategy.

Set the best rental rate by starting high and dropping the price quickly every couple days. With the house on the market for two weeks, you’ll get more money for the property. In the example above, it meant $1,200 more in rental income that year.

If you have any questions about pricing strategy, or you need help listing your own rental home, please contact us at United Properties, and we’d be happy to help you.