12 Apr Exposing 5 Shocking Myths About Rental Property Pricing in St. Louis

Myths about rental property pricing in St. Louis are common—and they can cost landlords money or mislead tenants. St. Louis is a unique real estate market, rich in history, diverse in neighborhoods, and full of potential for both renters and investors. But when it comes to pricing rental properties, misinformation often circulates as fact. Whether you’re a landlord trying to set a competitive rent or a tenant wondering if you’re overpaying, it’s important to separate myth from reality.

Myths About Rental Property Pricing in St. Louis

Myth #1: You Can Price Based on What You Want to Make

Reality: Your desired profit must align with current market trends. Many landlords set their rent based on their mortgage or target income, but renters compare multiple listings. If your price doesn’t match comparable properties in the area, your unit may sit vacant—resulting in a bigger financial loss. Using rental comps in neighborhoods like Tower Grove, The Grove, or Central West End is key to setting a realistic price.

Myth #2: Rents Are the Same Across All of St. Louis

Reality: Rental prices can vary significantly from one neighborhood to another. A one-bedroom apartment in Clayton will typically rent for much more than one in South City or Florissant. Local factors such as amenities, school districts, walkability, and perceived safety heavily influence pricing. It’s crucial to analyze hyperlocal trends, even down to specific blocks or buildings.

Myth #3: Raising Rent Every Year Is Standard Practice

Reality: This doesn’t always work in St. Louis. Tenants here are more price-sensitive, and raising rent annually without a clear justification may drive good renters away. Instead, landlords should evaluate the condition of the market, the reliability of their tenant, and the current value of the property before making a decision. Often, keeping a good tenant at slightly below-market rent is more profitable than dealing with turnover and vacancy.

Myth #4: New Renovations Automatically Mean Higher Rent

Reality: Not necessarily. While upgrades like granite countertops and stainless steel appliances can increase appeal, they don’t guarantee a higher return—especially if the neighborhood doesn’t support premium pricing. In St. Louis, tenants often prioritize function over aesthetics. Features like in-unit laundry, off-street parking, and air conditioning tend to provide better value than cosmetic upgrades.

Myth #5: Short-Term Rentals Are Always More Profitable

Reality: They can be, but only in certain neighborhoods and with proper management. Short-term rentals like Airbnb can generate higher revenue in areas like Soulard or Downtown STL, but they also come with risks—higher turnover, cleaning costs, and potential regulation changes. Outside of tourist hotspots, short-term rentals can quickly become more trouble than they’re worth. Understanding local zoning laws and HOA rules is essential before considering this route.

Final Thoughts

Pricing your rental property in St. Louis isn’t about guesswork—it’s about having the right strategy. Whether you’re a landlord, investor, or tenant, understanding the real factors behind rental rates can help you avoid common mistakes, reduce vacancies, and make smarter real estate decisions.

For expert guidance on rental pricing in St. Louis, contact Hermann London at (314) 802-0797 or visit www.hermannlondon.com