This is a very simple concept that many owners miss - if the market rent is $1000 you are not magically going to rent it for $1200 AND the longer the property sits vacant over priced the less actual monthly rent will receive. In Phoenix, listing your rental property for a price at market or even a tad below market will increase the odds of getting the property rented quickly and the value of getting the home rented fast far exceeds getting a nominal amount over market rent.
Let's take a look at the following example of a similar rental home in Phoenix in which market rent is $1000.
Mr. Myhouserocks is in love with his house. He is convinced it is worth a rent of $1200 a month (even though the house across the street rents for $1000 and it is the same model) and as such lists it for $1200 on January 1.
On the other hand, Mr. Rentitiquick lists his vacant Phoenix rental at $975 on January 1 which is a bit below the $1000 market rent.
New tenants sign a lease for Mr. Rentitquick's house in January and move in February 1 with a first rent collection paid on that day. Mr. Rentitquick's total rent collected for the 12 month lease is $11700 and his actual rent per month for the full 13 months is $900/month.
Now, back to Mr. Myhouserocks, January and February go by with very little interested in his home so finally March 1st he reluctantly lowers the price to $1100.00. March goes by with still little interest and finally April 1st he lowers the price to $1050. New tenant's sign a lease in April with a May 1st move in and Mr. Myhouserocks thinks he "won" because he is getting $50 over market rent. His total rent collected for the 12 month lease is $12600 however his actual rent per month for the full 16 months is $787.50 which is more than $100 less than Mr. Rentitquick. Also, Myhouserocks had to pay utility bills for three more months than Mr. Rentitiquick and by April Phoenix is starting to get hot!