No Landlord ever wants to drop the price of rent on their property. Usually, increasing it is ideal. However, sometimes a situation arises where it might be the best choice to keep your property afloat and paying for itself rather than becoming a burden on its owner.
How do you know when it is time to lower the rent?
When You Can’t Fill Your Properties
If you do not have anybody living in your property, then you are not making any money off of your property. And every day that your property sits empty is another day that you are not making any income off of it. And while that property does pay for itself, it can’t do that if no one is living in it and paying rent.
Dropping the price even just a little bit could be enough to attract you some new tenants or convince a current one to remain.
When Renovations Are Overdue
Usually, properties in a particular area will tend to have similar prices. But if your property does not have the same or competing amenities as the ones around it, or if it has not been updated or renovated in years while those in the area have, you might have some problems.
Even if your property does not have as many or the same amenities or has not been updated in a while does not make it unlivable by any means. But you might not be able to charge the same prices as your competition in the neighborhood.
When Your Competitors Drop the Price
Going along in the same vein, if your competitors drop their prices, it is likely that you will have to drop your prices as well. You know how gas stations in the same vicinity generally have the same price, but if one has a price that is even slightly higher, no customers go to it? It can often work the same way with properties.
Only you can decide if the time is right or if the decision to lower the asking monthly rental price of your property is best for you as every situation is different.