Taking Advantage of this “right time” to increase rental income
Economic Conditions and Rental Demand have Created Opportunities to Substantially Raise Rent! So what can possibly hold us back from an aggressive increase at renewal time?
Some operators feel an aggressive rent increase just doesn’t seem to jive with our resident retention goals. How do we expect to raise rents and still keep our residents? Others might assume the conditions are right to kick in some stiff increases without considering the impact of their current management performance.
Welcome to this 4-part look at the “Art of Raising Rent”. No doubt the timing is right to raise rents and it would be neglectful to miss this chance. Yet, the direction you take in this increase can either fortify your resident fan base or force turnover. At the very least, poor implementation of rent increases will skyrocket resident discontent and negative online reviews.
Sure, raise rents, but like all onsite endeavors, remember your goal. Your efforts must maximize income while minimizing turnover. Click here for our Raising Rents KWIK Tips.
Start Here When You Raise Rents
- Provide STELLAR Customer Service – Add value to that rent increase by giving the resident more than they expected in their initial lease term. Does your property have a poor performance record? If so, you will have more resistance to rent increases.
- Consider the Residents’ Point of View – “We have just come out of COVID. Inflation is raising the cost of living. I have paid my rent on time for two years. And now you want to raise my rent?”, the residents will say. Be prepared for this response and listen with genuine concern. This increase may actually be a burden on the resident.
- Be Genuine and Authentic with Your Residents – Create opportunities to know and acknowledge your residents. A leading reason residents move out is “lack of appreciation from office staff”. Know names, jobs, pets, and even current life situations.
When a prospect moves in, your new and immediate goal is clear; keep this resident longer! That is, do whatever it takes to ensure the next lease renewal.
See the next three blogs that address raising rents while reducing turnover.
We have to accomplish both!