Be careful of the quick fix rental incentive, especially when you are in a competitive market. It can be easy to quickly reduce rent, security deposit and offer discounts, however it is important that these incentives don’t compromise your integrity or give mixed messages.
If you have a beautiful, modern, fully renovated suite – why offer a reduced rent or security deposit – does this not defeat the purpose of the type of rental you are offering and tenant you are looking for?
Instead think of specific incentives that attract the type of tenant you looking for:
- Discount on new furniture for their new home
- Restaurant gift card for the busy lifestyle
- Gas gift card – who doesn’t love free gas
- No pet fee on approved pet applications
- Family passes to Calaway Park or The Zoo
Offer these incentives for completing the application and deposit right away!
Some rewards already exist within your property – Market your existing features!
- Free Parking!
- In-suite Laundry
- Yard work included for condos/apt – never shovel or mow again!
- Utilities paid – including internet or cable too goes a long way
I am very cautious on incentives that may give the impression that the money side of the rental contract is not important:
- Rent or security deposit reductions – can be more than what your bargained for – even the best intended tenants can create ‘minor’ damages that can quickly add up in costs that I don’t want to have to pay out of my pocket if security deposit is reduced.
- Rental rewards system instead – offer as a reward $15 per month for rent paid at least a day early for entire term = $180 reduction on last month of lease
Reward incentives attached to the lease of course are completely withdrawn if there any late payments or issues during the term.
Think twice before offering a rental incentive. These can be great marketing tools, but don’t let them take control and jeopardize your rental business strategy! Use them to your advantage to match the right tenant to your property!
For more information tips or tricks please contact us we are happy to share our ideas!
