by 
If You Must Offer Specials…: Part Two
2 Concession Rules We Always Follow
Last week we discussed the importance of keeping your specials really SPECIAL! I like to always use the word “SPECIAL” rather than “concession” for these rent incentives. A concession sounds like a defeat or a beat-down to me. Whatever you call your rent incentives, put a little razzle-dazzle, spirit, excitement, and enthusiasm into them and make them extra…SPECIAL!
Regardless of your terminology, use incentives correctly and with much thought and consideration. Be strategic. Think: Do I need a specialist to get prospects in the door OR to get a commitment during the property or virtual visit. Whatever the reason, don’t break these key concession rules.
2 Concession Rules We Always Follow
- Rule #1 – No Across-the-Board Specials – Offer specials only on the specific units that require that extra boost to get leased sooner than later. It is crazy to offer a special on your most popular floorplans or locations. Focus on floorplans that have excess vacancies or notices. Incentives might also be used on your updated apartments to attract prospects to the renovated inventory with the higher rental rates.
- Rule #2 – Never Give Away Rent Without Getting Something Back – We actually use specials to add value and income to the property; not because we are nice and want to give away rent! When offering a concession, extend the lease an extra month or more. Require a commitment and move-in deadline. Get additional protection by having a “Concession Agreement” that charges a penalty if the resident breaks the lease.
Here is an example script of how to follow these rules AND make your specials truly SPECIAL!
“Diane, I can tell you love this floorplan. It has everything you are looking for. The rent is a bit higher than you wanted but here is some good news. This morning our corporate office authorized me to offer a wonderful holiday gift on this apartment. If you move in by the first, they will allow up to one month at no cost. THAT is SPECIAL! We don’t often offer these kinds of rent discounts so I recommend you take care of the paperwork and leave your deposit RIGHT NOW. Then I can hold this very apartment home just for you!”
