Los Angeles Property Management companies know that sometimes providing incentives is required to keep and acquire customers.
The very same principles apply to landlords. To be able to find and keep great renters, a Los Angeles Property Management company will often provide incentives.
The Mind Of A Renter
Los Angeles Property Management companies say there are four factors that all renters seem to consider before even signing or renewing a lease. Location, Price, Condition, and the Los Angeles Property Management company.
Los Angeles Property Managers state that since the location of the property can’t be changed but the Los Angeles Property Management company is obviously wanting to require a higher price, a Los Angeles Property Management company provides an incentive that will improve the condition, convenience, and/or great customer service.
If the condition and location of the property is not ideal, and the property owner is not willing to make it better, then the Los Angeles Property Management company must provide financial incentives in order to spark up an interest. In reality, most people wouldn’t really care where they live, and specially in less than favorable conditions, if rent is cheap then that’s where the person is going to live.
Different Types Of Incentives
Los Angeles Property Management companies say whether trying to convince an applicant to sign a lease, or encouraging a great renter to renew, incentives act as a carrot at the end of a proverbial stick.
Early Payment Discount
Los Angeles Property Management companies believe that landlords shouldn’t give a discount to the renter if they pay on time, which normally means the very last day possible. Although, a small discount could be given if the renter pays from 10, or even 15 days early.
Decrease In Rent
Los Angeles Property Managers note that decreasing rent is a great way to convince a renter to sign another long term lease. In order for this to work, you really need to run the numbers. If a Los Angeles Property Management company give a $50 discount for 12 months, that would cost $600 a year. Think about vacancy and upkeep, you have to ask yourself “will keeping these renters for another year save me $600?”
Los Angeles Property Management companies say that upgrades benefit both the landlord and renter, a permanent change to the residency would be considered an upgrade. A renter who views the property as their “home”, will more than likely ask for an upgrade.
If an appliance is near the end of its life, a Los Angeles Property Management company would fix that issue very quickly, doing this might help the renter consider for a longer stay. Other simple upgrades include painting, new carpet, additional parking, or even remodeling of the bathroom and kitchen.
Flexibility With Lease Terms
Sometimes, the ability to break a lease with 30 day notice, or the approval to have pets, is valuable to a renter. Again, you have to weigh the risk vs. reward, but sometimes it’s worth it.
Further, allowing other flexible terms, such as the ability to sublet, will entice a new renter or keep a current one. Student renters often travel home for the summer and want the ability to sublet their room.
Online Rent Payments
Los Angeles Property Management companies say that for many people, their rent payment would be the only check they write in the month. Because of today, any renter would jump at the opportunity to pay their rent online. This adds convenience to new renters and instantly makes your property worth looking.
First Month Free
A large apartment complex has the additional cash flow to be able to give a free month worth of rent. Although sometimes, the 11 other months are increased by 1/11th the price to make up for the amount that was given for “free”. Los Angeles Property Management companies say this incentive allows a renter to spread the first month’s payment over the term or the lease. This gives an impression that they are getting something for free. This type of incentive appeals to renters with little or no cash liquidity.
Partial Security Deposit
Waiving the deposit requirement is very popular with large apartment complexes as a means to reduce a vacancy, but Los Angeles Property Management companies say it’s not likely for independent landlords. A landlord would need the deposit as security against unpaid rent and damages done to the unit. Without that, a landlord would have no leverage or protection.
Los Angeles Property Management companies say that spreading the deposit payments over the first three months will lighten the financial blow to the renter who sometimes cannot afford to pay for first month’s rent and a deposit at the same time. Although, it’s not wise to rent to someone who can’t pay the full deposit.
Los Angeles Property Management companies note that perhaps it’s best to let the renter request the incentive. It’s never known what they are thinking. For example, providing a partially furnished unit or even an early move in date would convince them to sign a lease.
Every landlord needs to market in a creative way to attract the best potential renter, and keeping the ones who care for the property and pay rent on time.
Los Angeles Property Management companies say that many times, it’s the incentive that provides the extra push that is needed to seal the deal.
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