
Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
The Big Myth Every Chicago Landlord Believes
Most landlords in Chicago think this: If I charge the highest rent, I make the most money.
It sounds logical. Higher rent = more income, right?
Wrong.
In our 23 years at GC Realty & Development, after leasing over 5,000 rental units across Chicago and the suburbs, we’ve seen this mistake cost landlords tens of thousands of dollars. The truth? Your rental price isn’t just about “more rent.” It’s about strategy.
How you price your rental is your competitive advantage. Price it right, and you get:
Faster leasing
Better tenants
Lower turnover
Higher long-term profits
Price it wrong, and you bleed money in vacancies, evictions, and headaches.
Why Higher Rent Can Actually Lose You Money
Let’s get real: every extra day your unit sits empty costs you money. In Chicago, the average rent for a 2-bedroom is around $1,900–$2,200/month. That means $65–$75 lost per day when it sits vacant.
Now imagine your unit is overpriced by $100/month. It might sit empty for 60 extra days. That’s:
$4,000+ in lost rent
Way more than the $1,200 you “gain” from charging that higher rent over a year
See the math problem?
Case Study: Logan Square 2-Bedroom
A landlord came to us with a 2-bed in Logan Square. They wanted $2,400/month because “the neighbor got it.”
Problem: Their unit sat vacant for 72 days. That’s $5,400 lost.
When GC Realty stepped in, we priced it at $2,295. We leased it in 13 days. Over a year, that landlord made $4,200 more than if they had held out for $2,400.
Higher price = longer vacancy = less money.
If we made our point already and you want to price your place now, grab a free rental analysis in under a minute. (Download Free Rental Analysis)
The Vacancy Killer: Why Speed Beats Price
In Chicago, the rental cycle is seasonal.
Peak demand: May–August
Slow demand: October–February
If you overprice and miss peak season, you may sit vacant until spring. We’ve seen landlords lose 5 months of rent waiting for someone willing to overpay. That’s $10,000 gone.
At GC Realty, our average lease-up time is 21 days. We don’t just get tenants fast—we get the right tenants. And that speed protects your bottom line.
Why the “Right” Rent Brings the “Right” Tenant
Let’s talk about tenant quality.
High rent doesn’t always bring high-quality tenants. Often, it attracts desperate renters willing to stretch beyond their means. Those tenants are more likely to:
Pay late
Break leases early
Leave after one year
Creation of more ongoing maintenance
“The best educated, highest qualified tenant pool is attracted to the best looking and best priced rental units available and they get approved the fastest leaving everyone else for what is left…dont be in the what is left bucket.
Mark Ainley”
In contrast, when rent is priced strategically, you attract tenants who:
Can comfortably pay
Stay longer (reducing turnover costs)
Take care of the property
Want to be there and not just desperate for housing
GC Realty tracks this across thousands of leases. Our data shows: Properly priced units have 20% longer tenant retention compared to overpriced ones.
Case Study: South Loop Condo
An investor in the South Loop insisted on $3,000/month rent for a 1-bed condo. We advised $2,850, but they pushed for max rent. After sitting vacant for 77 days by the time someone moved in this is what happened.
The tenant we placed struggled to pay on time. By month 8, they broke the lease. Costs:
$2,400 in lost rent during re-leasing
$800 in legal/admin fees
$1,200 in turnover costs
HOA was pissed when the tenant didn't follow the rules
Total loss = $4,400.
In that same summer, two other investors in this building rented for $2800 and $2850, and 3 years later, both of those tenants are still living there. If they had listened and priced at $2,850, they would have had a stable tenant $0 losses, and zero turnover, possibly.
If you are a Chicagoland Realtor and you don't want to deal with rentals or managing properties for your clients, we will pay you for the referral. Check out our Chicago broker referral program and get paid and work less.
Turnover: The Silent Profit Killer
Turnover is the hidden cost landlords forget. Every time a tenant leaves, you pay for:
Vacancy days
Cleaning and repairs
Leasing fees
Marketing
HOA hassles
Squatter risk
Break in risk
Unnoticed maintenance issues while vacant such as backed up sump pump
Changing over of utilities
Average turnover cost in Chicago = $2,500–$3,500, depending on size and neighborhood.
Now here’s the kicker: Tenants in fairly priced units stay longer. In our portfolio, the average stay for well-priced units is 27 months, compared to 14 months for overpriced ones.
That’s almost double the stability.
The Math of Smart Pricing (Simple Example)
Let’s compare two strategies for a Lincoln Park 2-bed condo.
Strategy A: Max Rent
List at $2,600 (over market). The unit sits empty for 60 days, then rents.
Yearly income: $26,000.Strategy B: Strategic Rent
List at $2,450 (market-competitive). Rented in 14 days. Tenant stays 2 years.
Yearly income: $29,400.
Difference: +$3,400 in profit. The math maths!
The lower rent actually made more money.
Curious how that works?
Run the numbers yourself with our Vacancy Loss Calculator and see how much you could be losing by sitting vacant.
Run the numbers now! CLICK HERE
Chicago Is Unique: Neighborhood Nuance Matters
You can’t price a Rogers Park unit the same way you price a Wicker Park unit. Neighborhood demand shifts fast.
Here’s what GC Realty knows from 23 years of leasing Chicago rentals:
Wicker Park: Young professionals move fast, but demand peaks in summer.
Rogers Park: Pricing too high means longer vacancies; student turnover is already high. Area is much more price sensitive then other pockets of Chicago
South Side (Bronzeville, Hyde Park): Strong demand for well-priced units near transit. Overprice and you’ll sit empty and attract characters from all walks of life.
Suburbs (Schaumburg, Naperville, Wood Dale, Roselle, Hoffman Estates): Tenants shop on value. Price matters more than flashy finishes.
We’ve seen it all. This hyper-local knowledge is what makes us experts.
Pain Points Landlords Face with Bad Pricing
Here’s what happens when landlords chase max rent:
Extended Vacancy
Every day costs you $65+. A month = $2,000 gone.High Turnover
Overpriced tenants stretch too thin, leave after a year.Poor Tenant Quality
Desperate tenants who can’t afford market rent are riskier.Stress and Burnout
Chasing rent payments, dealing with turnover, handling complaints.Lower Long-Term Profits
The math always catches up.
Why GC Realty Gets This Right (Authority)
Here’s why you can trust us:
23 years in business
5,000+ units leased across Chicago and suburbs
Average days on market: 21
Tenant retention rate: 20% higher than market average
We’ve tested pricing strategies on thousands of units. We know what works. We’ve saved landlords from losing $10,000+ per property by getting pricing right.
Don’t get me wrong, we have messed this formula up or have been too optimistic but that is the experience we have learned from.
Case Study: Avondale Multi-Unit Investor
One investor owned a 6-flat in Avondale. They priced 2-bedrooms at $1,950. Vacancies dragged 45+ days.
GC Realty adjusted the rent to $1,875. All units leased in under 20 days.
Vacancy loss is reduced by $15,000 annually.
Tenant retention improved by 18%.
Net cash flow went up by $12,000/year.
This is the power of pricing strategy.
Urgency: Why You Can’t Wait
If your unit is sitting empty right now, you’re losing money. Every day counts.
If you’re planning to list in fall or winter, pricing matters even more. One mistake could push you into a 3–4 month vacancy.
Landlords who switch to GC Realty often say the same thing: “I wish I had done this sooner.” Don’t wait until you’ve lost thousands.
The Competitive Edge You Can’t Ignore
Here’s the truth: Your rental price isn’t just a number. It’s your edge in the Chicago market.
Price too high = lose tenants, lose money.
Price smart = attract better tenants, faster, and keep them longer.
At GC Realty, we don’t guess. We use 23 years of data, 5,000+ leases, and deep neighborhood expertise to price rentals for maximum return — not maximum rent.
Your Next Step
If you’re ready to stop bleeding money on vacancies and turnover, it’s time to work with the experts.
Capitalize On Your Team
We’ve shared a lot of information here on investing in real estate locally in Chicagoland. If you live outside the area, it may seem overwhelming for those wanting to invest in the Chicago market. But we really just look at it as a team sport.
Who’s on your investing team? Do you even have a team? GC Realty & Development, LLC has a dedicated team of professionals willing to share decades of experience in all facets of real estate investment. We handle everything from brokerage, leasing, and property management. Whether you hire us or not, we’re happy to provide our resources and expertise.
What gets me up in the morning and keeps me going 12 hours a day is the ability to add value to local area investors in Chicago and beyond! Those who connect with me often hear me say that our goal is to bring value to everyone we come in contact with.
We hope that in return, they will one day hire us for our tenant placement or property management services, refer us to someone they know, or leave a review about our services. We would clearly love all three; however, we’re happy whenever we get the opportunity to help!
Reach out today!
Partner / Co-Host of Straight Up Chicago Investor Podcast