In recent years, landlords have decreased their offered incentives. Because the rental market is saturated, the competition means landlords need not provide extra motivation. So why should you offer leasing incentives?
Higher quality tenants mean better rental rates. Providing a space that the tenant loves may encourage better maintenance on your renter’s part, which can save you time and money in terms of repairs. You’ll also have a better chance of retaining tenants for longer periods of time. As turnovers can be costly, both in terms of money and time spent searching for new tenants, every landlord looks to secure that long-term, respectful tenant.
Leasing incentives are important for attracting new renters and retaining great tenants to avoid a turnover. It’s easier and cost effective to retain tenants, and enticing your current renters to stay in your property might often mean offering a little something extra. If you’re determining which leasing incentives to sweeten the deal for individuals renting your property, consider the following options.
Energy Efficient Appliances
We live in an increasingly socially conscious society, and this is especially true of younger generations. With many tenants searching for homes that take into consideration the eco-friendly features, it’s important to focus on amenities that will prove to be great for the environment, and also money-saving. Energy efficient appliances can be the ideal combination; they may present a large upfront cost but will save both you and your tenants money down the road. When polled, many renters have cited energy efficient appliances as an important factor in their decision to rent out a property, so it’s definitely a worthy investment to consider.
There are numerous reasons not to allow tenants to bring pets into the property. But at the same time, there are many reasons to allow it. Consider who makes up your target renter demographic. If it’s a millennial, keep in mind that 57 percent of millennial households own a cat or dog. If you’re renting to older, established families, consider the fact that pets become part of the family. Parents and kids alike won’t be rushing to live in a property that doesn’t allow their favorite furry friend.
Online Payment Options
We live in a world of connectivity. If you’re renting to millennials and their younger counterparts, you might be shocked to learn they’ve never actually written a check. In today’s world, it’s simply not necessary for most payments. Online payment options can provide a great deal of convenience, for both landlord and tenant. This also helps decrease any blurred lines that may exist regarding late rent. Offer tenants the opportunity to pay for a system like Venmo. It’s free for both parties and can be transferred to your bank account almost always within the next business day.
Monetary Rewards and Discounts
By far, the most popular and sought-after incentive revolves around monetary rewards, especially in cases where tenants are deciding between renewing their lease and moving on to another property. The thing with financial incentives is that they appeal to virtually everyone, so you’d spend less time determining what would most appeal to your ideal tenant. Whether it’s reduced rent, one month rent-free, a cash bonus upon lease renewal, or paying utilities for a few months, there are numerous ways you can use cash and discounts to your advantage. Of course, this depends on your personal financial situation. So it’s important to do the math on these options before extending the offer.
Incentives and Screening
If you’re looking for tenants for your first rental property or finding new tenants to replace those moving out, be sure to do your due diligence, especially if you’re offering lease incentives. Always screen your tenants, and make sure you use certified services to place them.
The trick to leasing incentives is finding the right balance. Determine what your target tenant would most appreciate, take a look at your neighborhood and pinpoint what draws in prospective renters, and capitalize on certain amenities to help secure a high-quality tenant that will stay in your property long term.