How to Utilize Move-In Specials
Why Are Move-In Specials a Good Idea?
Few things take as big a bite out of a landlord’s profits as a high vacancy rate or vacancies that take months to fill. In markets where the supply of apartments outstrips demand and prospective tenants have many similarly priced options, landlords need a way to attract good tenants. Even in markets where rental housing is in short supply, landlords need to attract multiple prospective tenants when there is a vacancy so they can choose the most qualified ones. Move-in specials help landlords and their properties stand out from the pack.
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If you decide to offer move-in specials, they can be time sensitive. Sometimes, move-in specials are a temporary measure to give a landlord a competitive advantage under temporarily disadvantageous conditions.
For example, it’s generally more difficult to fill vacancies in the fall, with the beginning of a new school year, colder weather in much of the country, and a busy holiday season. It can also be hard to attract new tenants when local roads are undergoing major construction, snarling traffic and complicating commutes.
What Are Some Effective Move-In Specials?
The following are a few of the more commonly offered move-in specials. See below to find one that would be helpful in your unique situation.
Reduced Security Deposit or No Security Deposit at All
Some landlords find that reducing what they normally require for a security deposit, or even waiving it altogether, gives them a bigger, more qualified pool of potential tenants. People appreciate saving some money at a time when they’re probably laying out a lot of it to move into a new rental property
Of course, landlords take a risk when they reduce or eliminate the security deposit requirement. If the tenant causes substantial damage to the apartment, the landlord may pay for repairs out of pocket. Careful tenant screening, however, can help minimize that risk.
First Month’s Rent Free
Another common move-in special is an offer to waive the first month’s rent. This can be effective when a unit has been vacant for a while and the landlord is having trouble finding a new tenant. The offer of a rent-free first month can make an ordinary apartment more attractive and pull in enough potential tenants to give the landlord some options for selecting the most qualified tenant. In many cases, losing the first month’s rent is preferable to a long term vacant unit.
Lower Rent
A rent reduction may be in order if it means charging a little less than the going rents for comparable rental units in the area. Everyone loves a bargain, and especially in times of high inflation, the ability to save something on rent every month, even if it’s only a 5% reduction, is likely to be a magnet for potential tenants. Some landlords who normally rent units on a month-to-month basis will offer reduced rent as a move-in special, but only for tenants who enter into a 12-month lease.
Fee Waivers
Another possible move-in special is to eliminate certain fees, such as any application or background check fees. Free parking is also a popular option in cases where tenants would normally pay a monthly fee for off-street parking. While fee waivers can be an effective way to attract potential tenants, the amount involved doesn’t put much of a dent in a landlord’s income stream.
Freebies
Finally, landlords can leverage the power of the word “free.” Everybody loves getting something for nothing. There’s plenty of room for creativity with attractive freebies. Free internet or cable, an upgraded kitchen appliance, a free television, gift cards, tickets to a sporting event or concert, passes to the local movie theater—you name it.
When Is It Appropriate to Offer a Move-In Special?
Whether to offer move-in specials is a decision landlords need to make based on a risk/reward analysis. Consider how often you need to replace a tenant and how long your rental units are likely to remain vacant before you find a qualified tenant. Compare the cost of offering move-in specials to the costs associated with vacancies and decide accordingly. Just bear in mind the absolute necessity of careful screening of all potential tenants before agreeing to rent.
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