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Best Incentives for Renters

December 10, 2018

Top Landlord/Developer Concessions

Landlords and property managers in San Diego, San Francisco, Los Angeles, San Jose, Oakland, Denver, Phoenix, and Las Vegas are pulling out the stops to fill their rising vacancies and keep tenants in 2019. When vacancy rates rise, we all have to be more creative.

In these markets, business as usual doesn’t work so packaging the best incentives (landlord concessions) for your rental prospects can raise both your ROI and occupancy rates.

Rather than the usual landlord concessions, a nice mix of the incentives below could be more effective than you realize (e.g., free wifi + smart locks + home automation).

Read our post on what renters want before you select the enticements to offer.

Free Rent Should Enhanced by Another Benefit

If you really want to attract the best renters or the right renters, the incentives you offer may determine the type and quality of tenant. Free rent might seem a no brainer, yet it might not help ensure low turnover. It could make your rental seem more like a commodity.

Free Wifi, green friendly building, free solar power, and new kitchen appliances might work very well for millennial renters. Kitchen renos, enhanced security, and play areas for grandchildren are the kinds of perks that babyboomers might like.

And a key part of a great tenant attraction strategy is knowing which incentives create the best response. It’s the same for tenant retention.

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Is Incentivizing a Good Idea?

There’s a number of business people who don’t believe in incentives. They feel it erodes their current branding and value proposition if they start doling out freebies. However, if your building and units aren’t competitive enough in the market, it’s time to look at incentives intelligently and make this an advantage for you.  If you offer a strategic mix of renter incentives, it could add value continuously to grow demand, raise rents and lower turnover.

Advertising people are no strangers to sales incentives. They know the trick is to offer the right incentives at the right time for best results.

Renters are More Choosy and Mobile in 2019

With vacancy rates rising and rent prices flattening for 2019, you may have to consider one or a mix of these incentive ideas below to help you grow demand and keep tenants under lease.

  1. early or advance payment
  2. new appliances, barbecue, coffee machine
  3. free parking
  4. free wifi
  5. rent abatement or free months ren
  6. rent discount on first month
  7. gift cards upon signing lease renewal
  8. high tech smart door locks
  9. smart thermostats
  10. allow pets
  11. small tablet device or alexa smart home automation device
  12. freebies: led light bulbs, food,
  13. free moving truck rental as move in incentive
  14. new flooring

Which Renter Incentives Work Best?

What works best in California’s Bay Area may not work so well in Toronto, Edmonton, or New York. A little research might help you get particularly good at using incentives strategically.

When you’re advertising your units, use different incentives in different advertising channels. By segmenting your rental ads, you can discover which incentives give you the best results in terms of high quality renters and great ROI.

 

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