Give Renters What They Really Want
Competition for renters is tough these days. If you want to get the attention of qualified tenants for your rental or apartment community, you better be savvy on what your competition is offering. Otherwise, your occupancy rate may continue to stagnate or even get worse.
According to the National Multi Housing Council’s (NMHC) latest Quarterly Survey of Apartment Market Conditions 2009, the national vacancy rate rose to 7.5 percent. That is the highest level in more than 20 years. Also, due to the recession and falling home values, an increasing number of home owners are leasing their houses instead of selling them.
Add in the huge North American apartment-building boom of recent years, and supply of apartments and houses for rent is outweighing demand. So how can you keep your rental occupied in these tough economic times where people are moving in with family members or getting roommates?
Stay ahead of your competition by offering renters the following things they want most from managers and landlords.
One obvious way to attract tenants is to lower rental rates to stay competitive. But this may not always work. First, if there is no one calling your phone or dropping by your property, the rate is not likely to be an issue. But even if the lower rate does attract the attention of new tenants, they may not be the most qualified renters. Sue North manages Carriage House Apartments in Savannah, Ga. “If I lower my rates, we have problems”, North says. “Ours [rates] are already fairly competitive, but if we go too low we start to attract an undesirable tenant base – people without jobs and with questionable background records.” North says that she prefers to cater to long-term tenants rather than track down rent from more transient people.
If lowering the rent is not a wise option for you, consider running a special that is hard to refuse. North recently gained three new tenants with her “Christmas in October” special. Approved applicants who signed a lease in October got their December rent for free – just in time for the holidays. Another way to gain the business of qualified tenants is to simply work with them. Moving can be expensive and many people have a hard time coming up with the security deposit. Agree to stretch their security deposit out into a few separate monthly payments.
Do you allow dogs in your rental house or apartment community? If not, you may consider changing the policy. Offering a pet-friendly environment not only opens up a new market of renters for you, but pet owners are often easier to retain as loyal tenants. Don’t forget to charge a pet deposit or monthly fee to cover the cost of any damage that may occur. And if they do not follow the rules you set in the lease agreement (such as not picking up Fido’s poop,) you can always charge them a fine.
Renters want a safe place to call home. Does your property have enough street lights? Make sure that you take time to see what your apartment community or neighborhood looks like at night. Renters often cruise their prospective apartment complex when it’s dark outside to see how safe it feels. Landscaping can make all the difference when it comes to lighting. It is important to keep the trees around your rental house or apartment units well pruned. Not only will this protect the building, but it will allow porch and patio lights to shine brighter on walkways.
If you really want to get the attention of renters, consider offering paid utilities or cost-saving amenities such as a washer and dryer. Even if you have to charge a little more for rent, many people are happy not to receive an electric bill or water statement along with all their other bills. And having a washer and dryer in their apartment saves them time and money from having to purchase one themselves or make trips to a laundry mat. In today’s uncertain economy, many apartment communities reserve a few furnished units to cater to short-term leases. This is a great service for those tenants who are in the process of buying or selling a house or changing jobs.
In a nutshell, renters want the same things they have always wanted: competitive pricing, a quality product and convenience. But that doesn’t necessarily mean that they can afford it right now. Prepare to weather through some tough times still ahead and maybe do a little bargaining.
This article was written for apartmentguide.com