Even with a great rental property, there is always a chance you will experience bad tenants at some point, or even have issues trying to fill a unit. To help speed up the search for great tenants, many property owners consider a discount or other deal to help move the process along. But is it worth it? Should you do it?
Before offering a reduced rent, discounted rate, or other deal, it’s important to first run a cost-benefit analysis to ensure the incentive isn’t greater that your income.
If you decide that an incentive will work for you, here are some incentives you can offer, as well as a few tips.
Flexible Lease Terms
Making the decision to rent an apartment is a commitment but strict lease terms can turn off a potential tenant. By slightly relaxing your lease terms just enough that your rental property isn’t sacrificed, you can instantly incentivize potential tenants.
Some changes to lease terms that can be great incentives include:
- Early termination clause
- Allow pets
- Permit tenants to temporarily decorate and/or paint
- Allow for a co-signer
Shortening or lengthening the lease terms could also be a great incentive for potential tenants that are looking for something short- or long-term.
If you’re having trouble finding tenants for your rental property, especially during the COVID-19 pandemic, decreasing the monthly rent can help get it filled! While a decreased rent will bring in less money, a filled unit is better than a vacant one.
Give the First Month Free
Giving the first month free is one of the most common ways property owners, property management companies, and landlords entice tenants when they struggle to fill a unit.
With the high costs of moving, purchasing new furniture, and taking time off work, potential tenants are happy to not have to worry about paying the rent the first month, making it the perfect incentive!
Small property upgrades are a great option for not only incentivizing potential tenants, but also help increase property value and the amount you can charge for rent.
Some property upgrades that go a long way include:
- New appliances
- A fresh coat of paint
- Upgraded flooring
- Bathroom remodels
- Updated kitchen
- Professionally managed landscaping
Waiving the Application Fee
There are a lot of fees associated with moving, especially to a new rental property. From application and brokers fees, and security deposits to hiring movers and even utility fees, there’s a lot to pay for! By waiving the application fee, potential tenants can be persuaded to apply to your rental property over the competitor.
Online Rent Collection
In this day and age, people are utilizing technology more than ever before. By offering online rent collection, potential tenants don’t have to worry about the headache of mailing out a check every month. Plus, the convenience of online rent collection makes it easier for tenants to pay their rent on time.
Welcome packages are a great way to make a good first impression with a new tenant and build a relationship. When tenants are happy with their landlords, they’re more likely to treat a rental property with more care and are more likely to call when there is an issue.
Some great offerings to include in your welcome package include:
- Coupons to nearby attractions and services
- Gift certificates to local restaurants
- Indoor plants to decorate their home
- A bottle of wine or champagne
- Household items such as dish soap and paper towels
- Food and snacks to nibble on while they’re unpacking