Targeted Annual Income Awareness:
To maximize your annual rental income, it's essential to consider not just monthly rent, but also the potential vacancy time that comes with pricing above market.
Properties priced accurately at market rent typically lease within the first 3 weeks, when listing traffic is at its peak. After that, interest drops significantly, leading to extended vacancy periods.
Current national average Days on Market is 49 days, and homes priced above market can sit even longer—hurting overall returns.
Example Scenario: The True Cost of Overpricing
Option A: List at Market Rate ($2,500/month)
- Leased in 4 weeks (1 month of vacancy)
- Annual Rent Collected: $2,500 × 11 = $27,500
- Vacancy Loss (1 month): $2,500
Option B: List Above Market ($2,700/month)
- Vacant for 2.5 months or more
- Annual Rent Collected: $2,700 × 9.5 = $25,650
- Vacancy Loss (2.5 months): $6,750
Additional Extra Costs During Vacancy: Mortgage (P&I, taxes, insurance), Utilities (electricity, water, gas), Lawn care, pest control, HOA
Pricing above market rates (overpricing) can drastically increase vacancy periods, negatively impacting your total annual income. We strongly encourage realistic pricing based on current market conditions.