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Use inflation as a reason to stay put rather than move.
Inflation is at its highest level in 13 years. Everything seems to be increasing in cost including housing! Yet the average rent increase is still less than the market rate of a new lease. According to a Real Page study, true rent growth has been 16% compared to only 9% on lease renewals.
Renewal rent increases have generally grown slower than new lease rents in this current cycle. On average, the existing renter pays 10-11% below market right now. Once they go out looking for a new place to lease, renters realize it is cheaper to stay and renew their lease.
Click here for our Raising Rents KWIK Tips.
Everything Cost More Now…Including Moving!
Be prepared to show your residents the high toll of a move compared to their rent increase. You need more than that ‘ole “Cost of Moving” brochure. Get some real numbers from local moving companies as well as the actual cost of moving utilities and setting up a new household. Inflation has pushed up these costs, too! It is considerably more than your residents realize.
Finally, remind your residents of the great service, neighbors, and lifestyle they already receive in your community. “Is it really worth taking a chance going somewhere else that might not measure up to our community?”
It is better to just stay put! Just ask this question:
“Considering the high cost of moving, the current rental rates at other communities, plus the pure hassle of moving, why move somewhere that is an unknown? You can renew here where you know there is a great staff looking out for you!”
Raising rents while reducing turnover. We have to accomplish both!
