Should You Offer A Deal to Get New Renters?
Should You Offer A Deal to Get New Renters?
In some cases, it may be difficult to retain reliable tenants in your property.
Resultantly, you might want to consider improving the deal.
These considerations may include the provision of incentives or reduction of rent.
Even if your property is awesome, you may still face this challenge.
Perhaps due to bad luck with only attracting tenants.
Or maybe the competition in the area is intense.
Environmental nuisances such as construction projects in the neighbourhood may also contribute.
In these situations, you need to improve your offer.
A discount can come in handy to increase the chances of getting a tenant or to lower the financial effects of vacancies.
Simply put, you may gain immensely from spending more cash to fill up your vacancies.
However, you should first conduct a cost-benefit analysis.
This ensures that the incentive does not consume most of your income.
Check out the seven practical tips that can help you:
1. Lower your fees
Take some moments to review your lease contract.
Try to make the contract more flexible by reducing some of the fees.
A few tenants take their time to review the lease agreement before signing.
Such tenants will probably sign the agreement if your contact has no excessive extra charges.
For example, you may have additional charges for parking or laundry.
Nevertheless, waiving such charges may help you get a reliable renter.
If it will not affect your income, consider waiving the application fee.
You should rather focus on background and credit checks.
Do not forget that you need tenants at this point.
Therefore, you need to convince renters that renting with you is beneficial.
You should make them feel that you are offering them the best deal.
You will lose more from having an unoccupied apartment than forgoing fee collection.
However, you must be careful when using this method.
Ensure you trust the potential renter. Also, make sure that your screening process is reliable.
2. Give your tenants discounted rates
Potential tenants like discounted rates.
Nevertheless, you must calculate everything well before doing this.
Assess your expenses and how much your competitions are offering.
Also, decide how much an extended vacancy will cost you.
Afterwards, compare it to the costs of reducing your monthly charges.
This should assist you to decide whether offering such discounted rates is profitable or not.
If possible, lower your rates while still making a profit.
Similarly, consider giving discounts to your tenants for more convenience.
For instance, you can offer a discount to a renter who pays rent through electronic methods.
3. Think about a shorter or longer lease
You can consider offering a lower monthly rate for anyone signing an extended lease.
The extended lease will lower the chances of experiencing extended vacancies.
With an extended lease, the tenants will stay longer in your property.
This means that they contribute more to your business.
However, pay attention to your local market to know about any potential problem of the extended lease.
Also, keep an eye on any proposed changes in the tax.
This will ensure that the rent you get for your property is consistent and reliable.
Otherwise, a few tenants may have doubts about staying for long.
Therefore, by offering a shorter lease, you may attract these tenants.
You will gain a lot from this if you are in need of renters in an off-season.
If the end date of the shorter lease is summer, getting long-term tenant will be likely easier.
4. Establish more flexible terms
Renting a unit comes with great commitments.
Therefore, a strict lease may be enough to scare away some potential renters.
However, if you make your terms flexible, applicants may be more willing to rent.
Also, you can change some affordable things in your contract to attract more applicants.
Sometimes, an exceptional tenant may need more flexible terms.
So, be different from other applicants by offering a flexible agreement.
For example, making your apartments pet-friendly make an appeal to many animal lovers.
Giving permissions to the tenant to decorate their units may help too.
Including an early lease termination clause in your agreement may be great too.
Many landlords do not offer these flexible terms.
Resultantly, offering the terms makes you look special.
5. Give your tenants some upgrades
Property upgrades are some other great incentives to attract new renters.
New wall painting, replacing old utensils, and improving storage are great examples of upgrades.
In addition, these upgrades will improve the values of your property.
This is because they will attract tenants for many years.
Nevertheless, you need to be careful when upgrading your property.
Do not allow the upgrades to cut the majority of your profits.
Remember that you will still need to pay for maintenance at the end of the day.
Make the upgrades to be modest.
You can attract more applicants without breaking the bank.
6. Offer a gift basket
Consider welcoming your new tenant by offering them a gift basket.
This is a good way to establish a good landlord-tenant relationship.
It reassures your tenant of your concern for their welfare.
Also, it enhances contract renewal.
You do not have to buy an expensive gift basket.
There are gift cards, movie ticket, foods, and bottles of wine are suitable for your gift basket.
They are affordable but make a good impression.
7. Offer a rent-free first month
Well, this offer sounds ridiculous at the first consideration.
Nonetheless, it may be worthwhile.
Considering how much you lost already when your property was vacant, offering a free month may not be significant.
Notably, this single activity may open doors for more tenants to come into your property.
When Can A Deal Be Considered As A Gimmick?
A few tenants see special deals as gimmicks.
They feel landlords only want to trap gullible tenants.
They may assume that the property has a problem that makes it difficult to attract tenants.
So, let your ads show that the property has no issue.
Through this, you can allay the fears of potential tenants.
If you want to attract good renters, Reneza can help you.
We provide an array of services that can improve the appeal of your rentals.
Call us now and enjoy top-notch real estate solutions.