Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
I am a out of state investor. I am exploring some strategies that would lead to extra longterm tenants. I was thinking of a policy that I would give a free December or half off months rent as an incentive to never want to bail. These are for c+ sfh. I think if a tenant knew their holidays were going to be a little easier each year that this might be enough incentive to stay much longer-term. Are there any issues with this policy?
Clive, IA · Member since 2013 · 141 posts · 89 votes
12y
I have not done any incentive. But just last month a long term tenant moved out of the area to go back to college and when they left the house SO clean with their deposit I sent another $100 and said thank you!
Investor · Delaware, OH · Member since 2013 · 224 posts · 64 votes
12y
Hi Matt. There have been some other discussions along these lines, with some very good ideas. You should do a quick search.
I haven't bonused tenants yet, but I'm planning on doing it this year. I have some excellent tenants who came with the duplex I bought last year. Just great, reasonable, hard-working folks, and I suspect they are going to stick around for a long time. I was just reviewing leases, and saw their 10-year anniversary is on valentines day (I've owned the place since last April). The hubby and I decided to give them a $100 gift card.
I have another duplex with leases up this summer. I'm considering offering each side $50 if they renew for another year. Those two apartments are a cinch to rent - easily within a couple of days - so I'm not going to go overboard with an incentive. They are fairly trouble-free tenants as well.
I think I'm going to stick with offering incentives on renewal dates, rather than the holidays.
Hi Matt. There have been some other discussions along these lines, with some very good ideas. You should do a quick search.
I haven't bonused tenants yet, but I'm planning on doing it this year.
Thanks Pam, I will check. That sounds like a great Vday thought too.
I think if they were in higher income areas I would not give away as much for sure. The gift card idea sounds like it's suited for that example. I'll bet no other landlord has done that for them before.
Minooka, IL · Member since 2013 · 353 posts · 85 votes
12y
In my rentals I already have them priced slightly below market, and they are A neighborhoods and rent within days so I stopped giving any inventive to stay. However I have one C home that I think I'll be giving a free month to if they stay.
Investor · Delaware, OH · Member since 2013 · 224 posts · 64 votes
12y
Matt - my properties all run around $600/month.I don't think the $50 is going to convince anyone to stay per se - but it may create some general goodwill and help foster a better relationship. I think it helps that tenants see us as "people," and not just landlords.
Clive, IA · Member since 2013 · 141 posts · 89 votes
12y
I have not done any incentive. But just last month a long term tenant moved out of the area to go back to college and when they left the house SO clean with their deposit I sent another $100 and said thank you!
Contractor · Easton, PA · Member since 2013 · 152 posts · 58 votes
12y
Typically my average rent is $1200 per month and with my better units where I get more I do not offer discounts for a long term lease. With my entry level units that rent for $1,000 for a 2 bedroom 1 bath townhouse that I built in 1974 I reduce the rent by $50 for a two year lease. These units at the lower end seem to have a higher turnover rate so this incentive helps my keep the unit occupied longer.
I have not done any incentive. But just last month a long term tenant moved out of the area to go back to college and when they left the house SO clean with their deposit I sent another $100 and said thank you!
Hi Tami, I like that good landlord karma you are creating.
Typically my average rent is $1200 per month and with my better units where I get more I do not offer discounts for a long term lease.
Hi Martin, that sounds like a good incentive. I wonder if $600 off every December as example would have any effect on perceived renter incentive? I will be renting all homes month to month as policy.
Investor · Saint Paul, MN · Member since 2012 · 128 posts · 56 votes
12y
It's often too easy to focus on getting new customers/renters versus retaining and thanking the current ones.
@Pam R. like the anniversary gift. I bet it made their day.
@Tami R. how thoughtful, especially for a student. Plus less than having to hire a move out service.
I'm happy to offer a small monthly discount ($25-50) for 24 month terms.
I've tried promotions during winter months when it's harder to find renters, but without much interest. I then rented for regular price when traffic picked up.
Investor · Charlotte, MI · Member since 2012 · 32 posts · 6 votes
12y
As others have mentioned, December seems to be the time that i give an incentive for the past year. Typically, I give a gift card to a restaurant or near by store. Treat people as you would want to be treated if you were there. - Golden Rule.