Incentives Landlords Can Use On Tenants

[Samuel Coicou]

Hello Bigger Pockets Community,

I am going to start renting a unit in the near future and I'm wondering if there's anything I can do to help get a tenant to sign a two year lease, and or establish an auto-debit to make sure the payments keep coming in. I have a couple ideas, including: Taking $50 off the rent if they sign a two lease, and taking $25 off rent if they sign up for auto debit.

Do you guys think these numbers are good? (Too much, too little?)

Any proven methods to incentivize tenants? (For example, are there options that don't reduce the rent?)

I welcome all ideas. Thank you all for your input!

[Jeff Rabinowitz]

A two year lease benefits the tenant not the landlord. The tenant can and will leave when they wish no matter what the lease states. The landlord is locked in to the rate and terms specified for the duration of the lease. I have only signed multi year leases a few times at the tenant's request and for their convenience. When I did so I figured in a rent increase in the second year. The tenant understood this. For "their" convenience I averaged the price of the rent for both years and used that price as the rent for the 2 years. It was a rent increase and the tenant paid more in the first year than I was asking. This was readily accepted by the tenant--after all, it was for their peace of mind.

You need not offer a discount if the tenant uses auto debit. You may make that a term of the lease and not rent to someone who does not agree to pay that way if you wish.

You incentivize tenants by providing quality housing and responding to repair requests promptly. In return, you expect and demand that rent is paid on time.