Changing rental price during apartment showing process : ezLandlordForms

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Linas V

started a topic over 12 years ago

I am currently showing an apartment in Chicago, and I think I have set my price for my apartment too low. The price was about where the market was 2 years ago when my original tenants signed the lease, but I think the market has started to recover because I am getting quite a few people coming to see the apartment and wanting to submit an application. Am I able to increase my asking price for the unit since I have not signed a lease yet? I have, however, accepted a few applications and am currently reviewing them. Is there anything illegal about increasing the asking price? I was planning on increasing the asking price by $100-$150, informing the applicants who already submitted an application of my intent on having a higher rent, and relist my apartment on craigslist for the higher amount.

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Bob R

said over 12 years ago

Looks like “bate & switch”. Having 2 applications and deciding to increase the rent is fuel for a lawsuit. But you knew that. That’s why you asked the question. Nothing says you have to do a long term lease. You can always do a month–to-month and increase the rent periodically as State/Local laws allow. Or, if applicants do not qualify for good reason (and it must be for good reason), than you might be able to change the asking rent. You’re walking on a very thin line here. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance

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Susan L

said over 12 years ago

Hi Bob, Read with interest your response above and wondered if the tenants not qualifying "it must be for a good reason" could be something simple like one applicant has no established credit? Dealing with a property that has multiple bad tenants, just took it over from a previous PM and want to avoid having the owners go through another eviction. The property is in a bad neighborhood but we have cleaned it up, however the quality of applicants is not great in the area. Rigorous credit checks are failing most of the applicants, and suddenly I now have two, neither so great but want to turn one down with the "no established credit" even though she had a job. Have no doubt they would be good tenants but got a better one who will not put as much wear and tear on the property. Advice? thanks, SP

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Bob R

said over 12 years ago

Hi Susan…LL should establish what LL considers a "qualified" tenant. Examples - It could be as simple as a credit score of no less than 700. Rent must be no greater than 25% of (monthly income – credit liabilities). Length of employment… if less than 1 yr, is new job in the same field? What ever method(s) you chose, it must be applied to all applicants. If 1 or more applicants are equal, offer should be made to applicant that submitted application 1st. Today’s qualifications may change the next time the property is rented. Economy dictates. Hope this helps. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with your State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance

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Joe B

said over 12 years ago

No, this is not bait and switch. Please stop misinforming people. Bait and switch is by definition offering a different product than the one advertised. Here, the landlord is offering the SAME apartment that was advertised. She is merely raising the advertised price indiscriminately. If she raised the price for one of the applicants and not the other, then that could be seen as discrimination. Just like real estate prices fluctuate with demand, rental prices can also fluctuate. You have not signed a contract with anyone, and you are not obligated to rent at a loss. Go ahead and give every applicant an update on rent price. You are not obligated to rent below market. An application is not a binding contract.