Skip to main content

Chicago Property Management Blog


How you price your rental is your competitive advantage..here’s why!

How you price your rental is your competitive advantage..here’s why!
Mark Ainley Author
I hope you have some takeaways from this blog. if you want our team to provide you tenant placement or property management. Click Here
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:

  1. Extended Vacancy
    Every day costs you $65+. A month = $2,000 gone.

  2. High Turnover
    Overpriced tenants stretch too thin, leave after a year.

  3. Poor Tenant Quality
    Desperate tenants who can’t afford market rent are riskier.

  4. Stress and Burnout
    Chasing rent payments, dealing with turnover, handling complaints.

  5. 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


back