The Hidden Cost of Vacancy: Why Chasing $100 Can Lose You $1,000

The Psychology of Overpricing

In a cooling market, many owners fall into the trap of listing “just a bit higher” to see what the market might yield. But tenants are savvy, and they’re price-sensitive. That $100 premium often means an extra 30 to 60 days of vacancy, which equals lost rent, delayed cash flow, and missed peak season exposure.

Real Math: The $100 Mistake

Let’s say you list at $2,200 instead of the market-aligned $2,100.

It sits empty for 30 days. You lose $2,100 in rent trying to gain $100/month over 12 months.

Net loss: $900, and that’s if the unit rents at the higher rate, which it often doesn’t.

The “Right Price” Isn’t the Low Price

As Property Managers, we’re not advising you to underprice; we’re guiding you to price where the market is moving, not where it used to be. A well-priced unit attracts more qualified applicants, faster decisions, and stronger lease terms.

A Smarter Way to Maximize Return

• Minimize vacancy gaps with pricing precision

• Use time on market as a signal; if you’ve had 3+ showings and no applications, the price is likely too high

• Preserve your rent by offering value-based incentives (cleaning, flexible terms) rather than slashing the rate

Final Thoughts

This summer, the most successful investors aren’t the ones charging the most; they’re the ones who move quickly, reduce vacancy, and adapt with confidence. If you're not adjusting, you’re absorbing loss where you don’t need to.

Want us to run a side-by-side pricing scenario on your next renewal or vacancy? Just reach out. We’ll put real numbers to work with you.