Then What’s Your Price Point?
Want to fill your properties faster when they’re vacant? Then take a page from Walmart.
Have you ever shopped at Walmart? I think I know the answer, but humour me.
Everywhere you look, items are priced at $19.97, $39.99, $89.97 or even $99.99. They are never priced at $20, $40, $90 or $100 and there is a reason for it.
It’s the same reason you should never advertise your unit for $1,000, $800 or $1,500. Psychologically people think of $995, $797 and $1,499 as lower numbers. Rational thought jumps out of the window and people feel it is less, even if the difference is just a few pennies or even five dollars.
This can be extremely powerful when you are trying to rent out a property, so humour me again and never rent your property out for an even dollar amount!
Bonus Tip
Here’s a quick bonus tip to help ensure your properties get found more often. If you advertise on any of the online rental sites (and I highly recommend you start if you aren’t already doing this) make sure you understand their search functions on the site.
Often the systems allow renters to search by price and you always want to be just under any cut off points. If they break the increments down by $50 it might be tougher to stand out, but if they break them into larger increments, you can make sure your rental fits in the right spot!
If the cut off points are $750, $1,000, $1,250 and increase by $250 from there, you want to fit just under those cut off points. Think $749, $999 and even $1,249. Don’t be afraid to experiment and even try $747, 997 and $1,247. Experiments have shown the number 7 included in a price actually sells better than 9!