Enticing renters through incentives to sign a lease is something within that landlords can do to get rid of vacant units fast. It’s perfectly acceptable to offer monetary rewards to attract new tenants. If you know a tenant is considering a few properties, try using one of these 5 monetary incentives to seal the deal.
1. Lower the Rent
Everyone is on a budget, and cost-savvy renters can be driven by rent savings. Even a $50 or $100 dollar reduction can be a way to motivate a renter to sign a lease. If the renter has good credit, this may be another reason to give them a rent decrease. You can even suggest having them sign a longer lease so you can have that rental stream of income locked in.
2. Reduce the Security Deposit
It’s not realistic to waive a security deposit, but you can reduce it. It’s common knowledge that moving into an apartment takes cash flow, and for some rental prospects, money can be tight. Paying for the first month, the last month, and a security deposit can be a tough sell for some renters.
Although you do need some security funds should they not pay their rent or damage the apartment, a reduction of security is a way to motivate some renters.
3. Waive a Pet Deposit
More and more renters have pets, and adding more to the tally of what they owe you could really make or break a lease agreement. Consider having an open conversation about your expectations about the pet in the apartment. If they assure you that they have a dog walker while they work, or if their roommate and they will share responsibility for the pet, think about waiving the pet deposit as a monetary incentive.
4. Spruce Up the Place
Renters want the best value for their money. While showing the property, either virtually or safely in person, mention that you plan to replace carpet, upgrade the fixtures, paint the bedroom and update the window dressings. If you are in the position and if the appliances are older, you can upgrade the appliances. The renter will perceive great value in property upgrades.
5. Offer Lease Terms that are Flexible
Maybe a student only wants to sign a 6-month lease, or a tenant is getting married later in the year and only needs the apartment for 9 months. By offering flexible lease terms, the renter can equate this as saving money. You can also add a clause in the lease about month-to-month tenancy with a 30-day notice.
How to Motivate Renters with Monetary Incentives
You can motivate renters by being creative and more flexible. Use strategies like decreasing rent, offering flexible lease terms, offering property upgrades, waiving pet deposit fees and reducing security deposits. Renters want to feel trusted and appreciated. By showing good faith and working with their budgets, you can create a lasting and positive relationship with your renter.