The rental property business is subject to the ebbs and flows of the economy and present competition. Some years, the demand for rental space around your neighborhood may be particularly high. At other times, it may be far lower. As a landlord, you need to be alert and proactive when this happens.
Offering a deal can be a great technique to continue attracting tenants for your Lancaster property. Here are some common deals that owners make:
1. Lessen Fees
Are there certain fees you can forgo while the market has cooled off? For example: can you offer a free parking space? When you want to develop customer retention, it might do you well to cut back on charging extra fees.
Since your goal is to hold onto your tenants, you want to win them over by helping them manage their budgets further. This gesture will be greatly appreciated, and will help them decide to renew their leases once they end.
Another avenue for cutting your fees may be in the rental application process itself. You can just ask for the bare minimum that you’ll have to pay for acquiring the necessary reports. This will attract more applicants.
With low application fees, prospects will be much more likely to scout around for deals, especially with similar properties. If you can provide them with fewer fees, they might just consider signing a lease with you.
2. Offer Incentivizing Discounts
Have you ever noticed the huge flock of people driven by sales promos? People can’t keep away from slashed prices. We all know the thrill in paying less than the regular price and feeling as though you’ve gotten a great deal. That’s why discounts are heavily used in shopping malls to draw in more people.
The same applies when you offer discounts to tenants. For example, you can offer rebates for those who pay the rent early. You can also offer rent discounts to those who use online transfer payments, for more convenience on your part.
Take note of the rent rates within your Lancaster property neighborhood. If you can earn a good profit despite offering a discount then go ahead.
3. Offer an Extended Lease
To help fill your Lancaster property vacancy, you can opt to offer an extended stay at a reduced rate. Whether a unit is occupied or not, you’ll continue to pay for maintenance.
Because of this, even earning a lower amount would be fine for covering the maintenance costs at least. This is even more applicable if your rental home is a vacation unit, since demand is highly seasonal.
As much as you want to enjoy the high returns from your rents, you also have to develop awareness over the current economic landscape. The key is to earn consistently, even if it might be lower compared to some years.
When demand picks up again or the market economy recovers, you can always revert back to your regular rent price. It’s beneficial to adjust to the highs and lows of a particular period. A lot of hotels also practice slashing their booking prices on off-peak months.
4. Be More Flexible
There’s no perfect leasing agreement. Sometimes, you’ll find yourself negotiating with prospective tenants over certain conditions. This is expected, since tenant needs will vary. Some tenants will request a pet-friendly rental space. Others will ask for an early termination clause, especially when their life is currently in flux.
As a landlord, the decision is up to you. However, being more adaptable and understanding will reward you.
If you’re able to relax some conditions and allow some form of leniency then you’ll find it easier to get tenants to sign up. Of course, you should still have standards in place, but tiny issues can be negligible.
For instance, a tenant may wish to redecorate their property and to paint one wall a particular color. This can be easy to allow and will not leave your unit messy and unattractive. However, you will need to establish limits beforehand to arrive at a mutual agreement.
5. Offer a Free First Month
You might recoil from this suggestion. However, if you analyze the situation, a vacant rental unit will diminish your cash flow in the form of maintenance expenses. What’s one more month of shouldering the expense, compared to the benefits of finding and keeping long term tenants?
You’ll be gaining more in the form of consistent returns over the remaining leasing period. The long-term benefits far outweigh the short-term cost. It’s vital to take the long view in the rental property business.
Another upside to this strategy is its rarely used by other landlords. This means that you stand a good chance of garnering attention from prospects. The first month for free method is popular in other businesses, such as instalment payments for expensive gadgets, to entice customers to commit to buying a particular product.
6. Put Together a Welcome Gift for New Renters
When a tenant moves into a new until, they’ll still be adjusting to their new environment. They may be likely to remember the treatment of their landlord during their very first day as a tenant. Did the landlord show up or leave the keys stashed somewhere? Were there helpful instructions?
Kind gestures matter. Making tenants feel comfortable and valued is important, particularly if you’re a new or first-time landlord. If you can be present, meet your tenant in person.
To start off your tenant-landlord relationship on a good footing, you can offer a welcome basket. This need not be expensive at all. You can just put together baked goodies or even provide restaurant vouchers. It’s the thought that counts.
Bottom Line
The flip side of this coin is that deals are sometimes misconstrued, and prospects can be wary of them. However, if you’re genuine with your offers, you’ll find those who are happy to take advantage of them.
It’s always wise to be adaptable during challenging times. Beyond the basics like keeping your property well-maintained, clean, and tidy, you can use innovating solutions to attract and hold onto tenants. Using this list, you can find ways to earn regular returns no matter the state of the current economy.