Overpricing rental properties by even small amounts can result in significantly higher total costs due to extended vacancy periods, as the accumulated loss from empty units often far exceeds the potential rent increase. For example, a landlord who overpriced by $300 and waited 3 months lost $15,000 in vacancy costs, while another lost $8,400 by overpricing by $300 for 2 months. The key principle is that vacancy is not a pause but a daily cost that accumulates silently, making slightly lower rent today more profitable than a higher 'dream price' that sits empty.
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The Hidden Cost Of Waiting For Higher Rent #singaporeproperty #singaporerealestateAdded:
You know ah, last time I was so very confident one. I tell my agent, "One month vacant only, what? Relax lah."
You know ah, market rent was 4,700.
I insist [music] on 5,000.
Got $300 difference only. Uncle think he very smart ah.
One month passed, no tenant. I say never mind. Second month, I still waiting.
By the time I secure tenant, three month empty.
>> [snorts] >> That's $15,000 gone just for extra $300 per month for her.
And this one, not just me.
I have a friend in Punggol.
Wanted 4,200.
Market was 3,900.
He waited [music] two months and lost 8,400.
And up, he rented out at 3,900 anyways.
Hiya.
You think you waiting to earn more?
Actually ah, you're bleeding slowly.
Vacancy during lead time >> [music] >> is cost.
Wrong pricing don't earn you more, it cost you more.
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