Monday, September 3, 2012

Incentives from Landlords




I came across an article about a Landlord in Los Angeles who was trying to rent out her apartment, by giving the new tenants a rescue dog and a monthly rental discount (for adopting the dog).  What the landlord offered was a discount of $150 A MONTH if somoene adopted the dog 'Big Louie'.

It got me thinking as to what landlords do to attract tenants to their properties.

Adopting Big Louie is one of the more extreme measures I've heard of (some would think that this is not an incentive in the slightest).  There have been plenty of schemes that I know that landlords have tried to attract tenants when vacancy rates are high.


But what are some typical incentives that you see when vacancy rates are high?
1st Month Free - This has been a well used incentive throughout the world. It is an expensive incentive, as it means the landlord has no income for quite some time. It is possible to talk with the tenant and split that discount through 12 months. This effectively gives the tenant lower rent for a year and the landlord income. However, be wary, because when the 12 month lease is up, the tenant may in fact jump ship and find a new apartment with a 'first month free' deal.

Waive the Application Fee. It's s simple low cost incentive, but tenants are looking to save money wherever they can. Since a lot of landlords and property managers charge an application fee, this maybe enough to set you apart.

Split up the Deposit. It is often hard to find all the money that is needed upfront to move in to a new place. If possible, consider splitting up the deposit over 2 or 3 months. The new tenants will appreciate the gesture and it doesn't cost the landlord anything.

Upgrades. Offering tenants the choice of paint colour, or new flooring is wise, especially if you are going to be painting or putting in new flooring anyway.  

New TV's. I've also heard of New TV's , iPods, iPads even cash being handed out to get tenants to sign the lease.

What incentives have you seen or used to get tenants to sign the lease? Do you need incentives at the moment, or are tenants knocking down your door?

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