Offer renewal increase with incentive costing property $ZERO
I have been preaching for years to offer a current resident the same thing you would to a new resident…if that’s what it will take to keep them! If you have provided what your residents REALLY want, you will keep more residents and be able to renew their lease even with a good rent bump.
What do residents REALLY want? It is simpler than you think. Read it and believe:
What Our Residents REALLY Want!
- Immaculate Environment
- Fast, Efficient, & Professional Service (That includes friendly communication from the office staff)
- Good Neighbors (translation: safety and security)
- Fair and Equal Treatment
If you do not measure up to these four essentials, you are starting from behind in the resident renewal race.
Renewal Incentives That Cost Property $Zero
Use a well-devised strategy as you plan your lease renewals and a renewal rent increase. Set a rent increase percentage target. Then use some creativity to offer renewal discounts that do not impact the property income.
Let’s say your target rent increase is 8 percent. A resident paying $1500 a month would get a $120 monthly increase. Look at these persuasive and stimulating incentives:
- Early Renewal Discount – Raise the monthly rent by $150 and offer $30 off that monthly increase if the resident renews by a certain early date.
- 1st Month Renewal Discount – The monthly increase is $150 but the resident gets $350 off his renewal the first month on a 12-month renewal.
Want to keep even more residents? Combine these cost-free incentives with a door-to-door approach and you will be amazed at your success. Check the next blog for more!