So are you going to be ruthless and squeeze every last cent out of your tenant by charging the most rent you can get, or do you take pity on some working guy and give him a break?

Well, you could take the first approach, and right now there are thousands of landlords out there signed up with agents that promised to get them the highest rent.

Tenants are very price sensitive, and not a particularly loyal bunch, if they find a better deal they will go elsewhere. People who charge the most may find themselves with an empty house for a bit longer than optimal, and may have to take whatever tenant comes along who is desperate enough to settle for such a deal. Missing out on just a few weeks of rent is a substantial amount of money to lose, if you are charging $150 a week then you have lost $600 for just four weeks of having no tenant. That is a lot of money and it is obvious that vacant rental properties are one of the most serious financial problems that face landlords. When finally someone comes along, the opportunity to screen a tenant will be much less, you might have no choice but to take whoever makes an offer.

Why not try the alternative approach? Charge $10 a week less than the average market rate for the area, and if you advertise on a Saturday, you will get to see 20 hopefuls on Sunday, giving a great opportunity to select better tenants. $10 a week is $520 a year, which is less than a month of lost income for an empty house, and having a choice of tenants means you might be able to choose someone who isn't going to vanish one night with a large amount of money outstanding and leaving you with a $2000 repair bill and three more empty house weeks while you get the cleanup done.

Be a friend of your tenant, if they know they are getting a really great deal on the house then their attitude towards you and your house should be much better, they might even put up with such indignities as having to pay rent in advance and more regular inspections. You are providing them a great deal, and they in turn are paying for your investments. Everything works better when people get along.