By Paul Branton, Director of Investor Services for Home Rental Services
In a marketing cycle that’s experiencing fewer qualified applicants than you would like to see, what are some ways to spur new interest and activity for your rental? There are actually a number of things you can do, but for the sake of this conversation, lets focus on just a few of my favorite INCENTIVE options.
Incentive for the LEASE START DATE
In this scenario, you offer a concession on rent for a lease that starts on a certain date. This creates a sense of urgency for the prospect to sign a lease in order to secure the lower price. For example, you might be advertising your property for rent at a rate of $1,750 but advertise that you’ll drop the price to $1,650 for a lease that starts by a certain date. Another option is to offer two weeks or one month of free rent.
Incentive for the LEASE END DATE
This scenario is basically the opposite of the one above. In this situation, you’re wanting the prospect to sign a lease that will end in a better time of year based on renewals. (Typically this means May, June or July.) In this example, if you have the property listed at $1,750, you would offer a lower rate with a lease that ends in your preferred month. (Generally only offered as an option to secure a lease that is longer than 12 months.)
Incentive to provide a PROPERTY IMPROVEMENT
With this promotion, you can combine the timing scenarios above (lease start and/or end date) and instead of a lesser rent, you offer to provide an upgrade or amenity to the property. For example, with a lease that starts by _____ or ends _____ we will install a WiFi thermostat or WiFi doorbell, you pick! This is a great incentive option as the improvement becomes an added value to the property in the future.
The first two of the above incentives are geared more toward securing a new tenant. While the third option can also be utilized to secure a new tenant, we have found it’s also a great way to motivate a current tenant to renew their lease.
If you haven’t tried using a leasing incentive, I encourage you to do so. These have all proven to be quite effective for our investor clients!