Imagine this: You’ve got a clean, updated rental unit in a desirable Billings neighborhood. You listed it online a few weeks ago with a fair market price—or so you thought. But now it’s been sitting. No calls. No showings. Maybe a couple of clicks, but no traction. You’re checking your listing every day wondering, “What am I missing?”
You’re not alone.
At Premier Property Management, we’ve worked with dozens of frustrated property owners who thought they were doing everything right—until they realized their rent price was quietly killing their chances.
Let’s unpack why rent pricing is often the silent deal-breaker—and how to fix it.
The Cost of Mispricing: It Adds Up Fast
Many owners believe they can start high and lower the price later if needed. On the surface, that sounds reasonable. But in reality, every day your property sits vacant, it’s costing you money.
Let’s do the math:
If your rent is listed at $1,600/month and it takes 6 extra weeks to lease because it’s overpriced, that’s $2,400 in lost income.
Even if you lower the rent later, the damage is done.
Worse, listings that sit for weeks start to feel stale. Renters assume something is wrong—either with the property or the management. That doubt lowers your chances of finding a high-quality tenant and might force you to offer concessions or accept less qualified applicants just to fill the vacancy.
Real Story: How a $75 Difference Cost an Owner $2,000
One of our recent clients, Sarah, came to us after trying to rent her West End 2-bed condo on her own. She’d priced it at $1,525 based on what a friend told her their rent was going for.
When we ran a market analysis, we found that most comparable units in that neighborhood—same size, amenities, and age—were actually leasing for $1,450–$1,475.
Sarah hesitated. “It’s worth more than that,” she said. “It has brand-new appliances and flooring.”
She decided to keep the original price.
Six weeks later, she called us again. Not a single qualified lead had come through. She was frustrated—and now out over $2,000 in potential rent.
We re-launched her listing with a price of $1,475. Within 3 days, she had 3 showings and a signed lease by the end of the week.
The Most Common Pricing Mistake Owners Make
It’s easy to think pricing your rental is as simple as choosing a number that feels “fair” or covers your expenses. But the most common mistake we see owners in Billings make is pricing emotionally or based on inaccurate sources—rather than using current market data.
Here’s a closer look at what that looks like in real life:
1. Pricing Based on What You Need to Cover Mortgage and Expenses
We hear this often:
“I can’t go below $1,800 or I won’t cover my mortgage, taxes, and HOA.”
We get it—your rental is an investment, and you want to protect your cash flow. But here’s the reality: the rental market doesn’t care what your expenses are.
Renters aren’t looking at your mortgage statement. They’re comparing your unit to others that meet their needs and budget. If they can rent a similar or nicer unit for $1,725 elsewhere, yours won’t get a second look—regardless of your financial goals.
Example:
One owner we worked with had a mortgage of $2,100/month and listed their home for $2,200 to “make it pencil.” Problem? Other similar homes in the neighborhood were renting for $1,950. The unit sat for over a month. Once they adjusted to $1,950, they secured a strong tenant in 4 days. Yes, they were $150 short of their goal, but they avoided another month of vacancy—which would’ve cost them $2,200 anyway.
Bottom line: Pricing based on your needs rather than market demand often backfires and ends up costing more than it saves.
2. Pricing Based on What You See on Zillow, Craigslist, or Facebook Marketplace
Online platforms can be a helpful starting point, but many owners mistakenly price their rentals based on what other properties are listed for—not what they’re actually renting for.
What’s the danger here?
- Listings don’t always reflect final rent amounts (many lease after price drops)
- Some have been sitting for weeks—unsuccessfully
- The listings might include utilities, amenities, or bonus features yours doesn’t
- Craigslist and Facebook often have fake or outdated listings still floating around
Data Point:
A recent review of 25 listings in Billings on Facebook Marketplace showed that 32% had been active for over 3 weeks—many of them with inflated prices well above market rate.
Think of it this way: Would you price your house to sell based only on what your neighbors want for their home—or based on what houses are actually selling for? The same logic applies to rentals.
3. Pricing Based on Renovations or Upgrades
You may have poured money into updating your kitchen, installing luxury vinyl plank flooring, or adding stainless steel appliances. These are great improvements that help attract attention—but they don’t always raise the rent as much as you’d hope.
Renters prioritize location, layout, safety, and affordability. While upgrades can help you rent faster, they often don’t justify large jumps in rent—especially if similar upgraded units are already available for less.
Example:
One of our owners spent $10,000 upgrading an older duplex unit and tried to raise rent by $250/month. Problem: newer builds down the street with the same layout were going for the lower price—and had garages and more square footage. Renters didn’t see the value.
Yes, upgrades can help justify the top end of the market range—but they won’t stretch the market beyond what it can bear.
4. Pricing Based on “What My Neighbor Charges”
It’s tempting to ask around the neighborhood and base your rent on what a friend, coworker, or fellow investor says they're charging. But unless you know:
- When they leased the unit
- How long it sat vacant
- What condition it’s in
- Whether they’re offering concessions
- If they’re pricing low to avoid turnover
...you’re working off incomplete information.
Real Talk:
We had an owner insist their 3-bed unit was “worth $1,750 because the neighbor’s unit leased for that last year.” Turns out, that neighbor offered the first month free and included all utilities. Once we adjusted the expectations, the property leased quickly at $1,625—with no concessions.
Just because someone else got a certain rent once doesn’t mean you’ll get it now—or that it’s the right number for your situation.
The Market Doesn’t Care What You Want—Only What It Will Bear
This might sound harsh, but it’s one of the most important truths in real estate investing:
Your property is only worth what someone is willing to pay for it today.
And that value changes constantly—based on supply, demand, time of year, and local economic shifts.
Pricing your unit “because it’s what you should get” or “what you got last time” is like driving with your eyes in the rearview mirror. If you’re not adjusting to what renters are actually responding to right now, your unit will stay empty while others move quickly.
Understanding the “Sweet Spot” for Rent Pricing
The sweet spot is where:
- Your unit rents quickly (within 2-3 weeks)
- You attract qualified applicants
- You minimize vacancy and maximize cash flow
Here’s the trick: the sweet spot changes constantly. Rent prices shift seasonally and are influenced by neighborhood demand, supply of similar units, local employment, and even school start dates.
For example, in Q2 of 2025, West End 2-bedroom units averaged $1,485, down from $1,525 in Q4 2024 due to a spike in new construction inventory.
If you’re still pricing at last year’s numbers, you’re already behind.
How to Know If You’re Overpriced
Here are some red flags:
- You’ve had the listing up for more than 10–14 days with little to no inquiries
- You’re getting clicks but no showings
- Applicants keep ghosting after touring
- Other similar units are being rented—but yours isn’t
The Solution: Get Real Rental Data (Not Guesswork)
We get it—renting out your property is a business decision, and you want to make the most of your investment. That’s why we offer free, local rent assessments using real-time comps pulled directly from Billings neighborhoods.
Our in-house leasing experts track actual lease data—not just what properties are listed for, but what they’re actually renting at.
We also factor in:
- Unit condition and amenities
- Location-specific demand
- Current vacancy trends
- Average time on market
- Seasonal rental cycles
It’s not about underpricing. It’s about pricing smart.
Why It Works: Data Beats Instinct
A client recently brought us a property in Lockwood they were about to list at $1,695. Our data suggested the sweet spot was $1,595.
They followed our suggestion—and leased the unit in 48 hours.
Had they gone with their gut, they’d still be waiting, potentially racking up thousands in losses.
Call to Action:
Need a second opinion on your price point?
Our leasing team does free rent assessments with real comps from Billings—no guessing, just results.
Request Your Free Rent Analysis Today →
What You Can Do Right Now
- Use our rent analysis tool to find your property’s sweet spot
- Compare your unit to leased properties, not just listed ones
- Consider seasonality—are you pricing for peak or off-season?
- Don’t let pride or assumptions cost you real dollars
Next in the Series:
Part 2: “Great Unit, Bad Photos? Why Your Listing Isn’t Grabbing Attention”
Think your unit looks great? It might be—but if your listing photos don’t prove it, renters will scroll right past. From dim lighting to DIY phone pics, we’ll show you how poor visuals are costing you clicks and how to fix it fast.
Teaser:
"Today’s renters shop with their eyes—and if your photos don’t stop the scroll, your listing gets buried. In Part 2, we’ll reveal why visual presentation is just as important as the unit itself."