Trying to figure out the best rent amount to advertise for your vacancy can be difficult. Suppose I rent a 1-bedroom apartment in a certain neighborhood for $1295, while other apartment buildings in the area have similar units for $1200. You might say that I am charging more than the market rate and it will be harder for me to rent it.

However, I guarantee that the person who walks in and pays the $1295 for rent will be a better tenant in the long run than the one who pays $1200. Why?

It’s human psychology. If you charge more for something, people generally assume it's a better quality product or service. From my experience renting to hundreds of tenants, I have found that people who are cheap and fuss about price are less likely to pay their rent on time, even at the lower monthly rate. These bargain hunters also, for whatever reason, tend to be “high maintenance” tenants who create problems in your building.

So don’t be afraid of charging a somewhat higher rent to attract more affluent tenants. It may take a little longer to rent the unit, but it will be worth it in the long run.

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