Creative Incentives to Attract New Renters

6/12/2024 (Permalink)

Incentives to Attract Renters

Great renters make running a rental property easy! However, attracting quality tenants requires work. With so many choices, renters sometimes need a little push to sign a lease. "Sweetening" the deal using leasing incentives for apartments can help. While you don't have to break your budget to be able to incentivize renters, it's important to remember that leaning into incentives can help you enjoy reliable long-term tenants instead of pouring money into constantly cycling through unit vacancies. This guide to seven easy renter incentives will help you to get high-quality tenants to commit.

1. Free Parking

Including free parking in a lease agreement is a major incentive! For many renters in cities, enjoying safe off-street parking is a priority. If free parking is too far for your operational budget, consider offering discounted parking that lets tenants park their vehicles in a covered parking lot for a cheaper rate compared to competing properties.

2. No Pet Fees

Finding pet-friendly apartments is a challenge for renters. Many resent the fact that they often have to pay a larger security deposit or higher monthly rental rate just for the privilege of being able to have a cherished four-legged family member live with them. One great way to stand out in the local rental market is to waive all pet fees. This is one of the best ways to have new renters practically lining up outside your door!

If you're going to pivot to waiving pet fees as one of your leasing incentives for apartments, you might want to consider making some alterations to your units first. If your units are currently carpeted, you could save money in the long run by upgrading to tile flooring that pets won't destroy. Property managers offering pet-friendly apartments generally charge more to account for the extra wear and tear that pets leave behind in apartments. Most actually replace carpets after pet owners move out. Tile will ensure you can get decades out of a single floor.

3. Reduced Security Deposits

Moving is expensive. The average renter spends thousands of dollars per move when accounting for the security deposit, first month's rent, moving trucks, new furniture, and new household wares. A renter in the middle of a move appreciates a little relief whenever they can get it! That's why a reduced security deposit for qualifying renters is one of the most elite leasing incentives for apartments. This can also be an incredible strategy for attracting reliable tenants.

Let's talk about how to structure this incentive. There's no need to reduce or waive security deposits across the board. This can be a perk reserved for lease applications with credit scores that meet a certain threshold.

4. Flexible Lease Terms

One of the biggest sources of anxiety when signing a lease is committing to a contract for a full year. What if you could attract tenants by alleviating that stress? For many people, the nature of their professional lives means contract work, semester-related assignments, or personal transitions. Very few circumstances in life fit neatly into a 12-month box. By offering flexible lease terms, you may attract dependable tenants needing shorter or irregular lease terms that won't force them to pay penalties.

"Flexible" doesn't always mean short! For example, a person taking a work contract may feel stuck in the middle because they plan to live in a city for 18 months. While you'll get a full year of paid rent from this tenant, they may be apprehensive about what will happen when they need to move out more than halfway through the second year's lease. Your flexible lease terms can allow both of you to "win" by creating clear and detailed lease details that allow for an irregular lease period.

5. Rent Discounts for Renewals

The best leasing incentives for apartments sometimes allow tenants to look into the future to see ongoing savings. You don't necessarily need to offer an incentive that benefits a renter from the beginning. One smart strategy that inspires new leases and resident retention is offering ongoing discounts for recurrent renters. If you're like most property managers, you increase rental rates every year. Consider freezing rental rates for five years for each tenant after a lease is signed. This puts a renter in the position of not being able to find a better deal in town by the time their lease is up! They will also feel encouraged by the fact that they are paying less compared to the new tenant moving in next door after the first, second, third, fourth, and fifth year.

Some property managers take a slightly different approach to lease renewal incentives. While you may still want to increase rental rates for all tenants, you can consider offering a lower increase for renewals than newly signed leases. The bottom line is that renters appreciate renewal discounts because this gives them the sense that they have locked in a good rate that insulates them against rising rental prices.

6. Laundry in Each Unit

Heading to a shared laundry room is considered a major hassle among renters. That's why you might consider adding a unit washer and dryer to each apartment in your complex. Seeing an in-unit washer and dryer setup in an apartment ad is a major incentive for busy renters!

7. Apartments That Feel "New"

While many landlords assume that they can entice renters with gift cards or grocery deliveries, the truth is that most people just want a safe, attractive place to live. Nobody likes to feel like they're moving into a unit that simply feels like it's been recycled from the previous tenant. That's why having a like-new interior in a unit when it's time for a prospective tenant to walk through is so important! In addition to cosmetic updates, correcting any issues from fire or water loss before opening an apartment for viewing is essential. You can also sweeten the deal by guaranteeing all appliances are under five years old.

Final Thoughts on Good Leasing Incentives for Property Owners

Property owners struggling to stand out in the rental real estate market can dramatically improve their situation using incentives. However, luring potential tenants with big promises will only waste your time and money if you don't have quality units to back them up! If your building in Arcadia needs remediation, don't hesitate to contact SERVPRO® for all your cleanup and restoration needs.