Moody

Last week I spoke with my first choice for property manager. In June, she told me I could get about $900 for Mr. Smith's home. Probably in June I could. In December, she is telling me I can get $700.

Her rental pricing reasoning was sound. This property is a bit out of town. Birmingham's economy is really awful right now (even the local Wal-Mart has done lay-offs) and who wants a one bathroom home anyway? I was crushed. I can't afford to rent this place out for $700 even without a property manager.

I started thinking about my rents. I always ask more than market for my rents. And, I have always gotten them. This is a small home with one bathroom. I had a bad agent who neglected to tell me it was a one bathroom when we purchased it. I only found out after we had owned the place for more than a year that it has one bathroom... but that agent is for another blog sometime when I feel like being really, really annoyed...

Did the property manager scare me by telling some things I suspected? Or, did Mr. Smith squash my spirit to the point where I want to give up? The answer is both.

The property manager pointed out I might get someone very desperate who is willing to pay extra for the Moody house (Moody is the town this home is located in. I just now decided I am tired of paying homage to Mr. Smith, so the hell with him!). But those people would have to be willing to want a small place that should rent for much less. I could spend the money and time to try to rent it out for more and let it sit vacant for months before I lower it down to market price. Or, I could price it competitively, loose money every month but hopefully find someone quickly.

As a business owner, I have to make decisions to best benefit all parties. In this case, I just don't have an answer.