[quote=paramount]I set the rent at a level that I thought would get the house rented quickly.[/quote]
[quote]They are also listing houses for rent in the same community for significantly less than what my house is currently listed at, so feel like they are undercutting me.[/quote]
These statements are contradictory. Every successful landlord I know rents below market, and every unhappy landlord I know rents above market. The former gets the better qualified tenants who have their pick of properties, the latter gets the tenants with questionable qualifications, because those are the only ones who will accept the higher rent. The higher priced places are also the ones that end up with more evictions and damage, and more vacancies means less of that higher rent anyway. Ask yourself if you would rather get 10 months/year at $1,450 from someone with a 500 fico, or 11 months/year at $1,350 from someone with a 680 fico.
As I recall, you’ve got a little over 20 years to go on the loan. If you can charge below market and come close to breaking even now, remember that the rent will only go up while your payment stays the same. I’d love to have an ATM like that in 20 years, right about retirement time.
Don’t accept what your property manager tells you the rent should be – do the research and decide for yourself. I wouldn’t even use a manager without significant positive cash flow, and I definitely wouldn’t use that particular one if they don’t know the basics.
