In a market climate where most people are looking to rent, if the vacancy rate has been steadily climbing then property management has to take immediate steps to attract tenants. The most direct and effective way to do this in any business is to provide incentives. Rentals are no different, and you need to make your community look special to gain a foothold in a fiercely competitive market.
Especially, when new properties have come up in your area, property management will have to think of different ways to attract prospects. Here are some of the incentives that are effective and can be used for convincing prospects to sign the leas or to encourage existing tenants to renew.
Decrease in Rent
Perhaps the most effective incentive is decreasing the rent. However, it should not be perceived to be a weakness in the property. Secondly, property management will have to do some hard calculations to make sure the business remains profitable. Perhaps a better approach would be decreasing the rent for people who are willing to sign a long-term lease.
People are more willing to sign leases, when the terms and conditions are not too strict of rigid. It could be flexibility in rules for pet owners or it could be early notice to break the lease. Such incentives will depend on the target market, but property manager will have to evaluate flexibility vs. risks, carefully.
Convenient and Safe Payment Options
People are used to making most payments through their debit and credit cards, and when they have to write a check or withdraw cash, it is a big hassle. Secure online payment options offer a stellar and fantastic convenience and most people will find this feature very attractive. Another convenient alternative would be to accept rent payments at the local store.
Reducing the Security Deposit
When you have an effective tenant screening process, reducing the security deposit could make a remarkable incentive. However, property management will have to evaluate the risks carefully in accordance with their target market. Alternatively, people could be given the choice of making the security deposit payment in a few monthly installments.
Better Features and Upgrades
Millennials are now not much bothered about the rent, as long as it matches up to similar properties in the area. However, they are attracted by better features and amenities, especially smart storage and high tech features. A simple kitchen remodel, or Wi-Fi upgrade can make the property very appealing. Here too, property management will have to consider the investment, and the returns it is likely to generate over the long term. Technology is advancing at a furious pace, and therefore things could be outdated rather quickly. Therefore, think carefully before investing a huge amount in such areas.
No Rent for the First Month
This is enticing to many people since their budget will be stretched while moving. However, the property management could run into cash flow problems unless it is a huge community. Secondly, the first month's rent can be included and spread over the remaining 11 months.