[quote=DWCAP]’He recently used Craigslist, a popular community website, to advertise a one-bedroom apartment on Federal Avenue in West L.A. Price: $1,495 a month. When no one bit, he dropped it to $1,395. When the vacancy hit the two-month mark, McCabe dropped it another $100 and found a renter.’
-LA times article posted above.
Now, lets do the math. Assuming rental income over 1 year.
10 months X 1495/month = 14’950
12 months X 1295/month = 15’540
This LL lost $550 in potental rental income because it was priced too high. Not to mention the cash flow impact assuming this LL had a morgage. I know this wont go over well here, but some times I think LL get alittle caught up in the idea that “my place is special”.
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I doubt that the McCabe, the president of property management firm Century West Properties really thinks that a 1-BR apartment in West LA is “special”.
