I work for a property management company and this is apart of the training, thought it may be helpfull in your situation. Sorry it is kinda lengthy, copied and pasted...
OVERCOMING RENT ADJUSTMENT OBJECTIONS
I’ll sign a lease if you only give me a $5 increase.
"Our managers along with the corporate office put a great deal of thought into the renewal options provided to you. They take into consideration the value of your home in comparison to other similar apartments in the market, covering increased operating expenses for maintaining your apartment and building, as well as saving up for additional projects to improve your home. "
Our expenses as a management company continue to rise. This includes such things as maintenance supplies, utilities, lawn care and snow removal, as well as the operating expense to provide top notch professional management and maintenance personnel.I’m on a fixed income. I can’t have a rent increase.
It is ok to empathize with their situation. You can then refer to a statement similar to the one above explaining why the adjustment is happening. If they truly cannot afford the apartment, we may consider transferring them to a more affordable apartment within our community, or if none are available at your site, offer to help them search others.
Another tip is to review their past adjustments. Maybe the resident has had only minimal increases in the past, and this is their first bigger adjustment. Looking at their total increase over an extended period of time can sometimes work to your advantage and allow the resident to see they had it really good for a while and that we only give adjustments as needed.Why are you raising my rent again? This increase is too much!We are continually trying to ensure all residents are at the market rate of the apartment home. In some instances, the resident’s current rental rate is well below the market value. This often results in larger adjustments in order to bring them in line with the going rate. For example, the resident might be paying $500 a month currently, and received a renewal option of $530. However the apartment currently rents for $550. In this example, if they were to move out of their apartment and right back in to that same apartment again, it would actually go up to $550. Therefore, they are still getting a fantastic deal – look at it as a $20 a month discount!
In addition, you can reassure the resident that we are not singling them out for a rental adjustment. Rental adjustments of equal or even greater amounts are being seen with all of our residents as we continue to strive to provide quality service and continual improvement to our communities. Why don’t you offer specials for residents who have been here a long time?We offer one time specials to help entice prospective residents to live with us. From a business perspective, if we were to offer incentives for renewal, that would mea n we’d have to increase the rental amount by even more to recuperate that lost income. For example, if we were to offer a $100 incentive for a 12 month renewal, and that resident receives a $20 increase, now we’ve only actually gained $140 instead of $240. You never do anything around here. this is a great opportunity for us to overcome the resident’s objective and change their prospective. It is important to ask them what they feel isn’t being done to their satisfaction. Potentially there is an issue that we have overlooked or simply were not aware of. This gives usthe chance to satisfy their needs, by taking corrective action. This also shows them we truly care about them as an individual and want to make their time with us a positive experience.
Sometimes the improvements we are making to the building are not a tangible item the resident sees, such as new shingles, replacing the boiler/water heater, or fixing sewer lines. Other times, it may be that we currently do not have enough funds to complete the very same projects our residents would like to see, such as parking lot replacement, common area carpeting, new landscaping, etc. This is a great time to reassure the resident that this is also something we desire, and we are trying to make that happen for them. This does, however, result in an adjustment in the rental rate for our residents. I’ll sign a new lease if I can get new carpet. Carpet replacement or other such upgrades should be looked at on a case-by-case matter. In this instance we can notify the resident we would be glad to take a look at it and its current condition. You can make the resident aware that your PM/AM will gladly set up an inspection of their apartment. It is then up to the discretion of your PM/AM to determine if the upgrade is needed and/or desirable. If normal wear and tear has reached its lifespan, and we can afford the costs, we may look to fulfill their request. If it is found to be in satisfactory condition, or if it is damaged due to neglect or misuse of the resident, we might choose to withhold an upgrade. In addition, some upgrades do increase the value of the apartment home, and may result in a higher renewal rate than originally offered. I’ll sign a lease but it’s my last one! We should definitely be asking why this will be their last one. Potentially they are unhappy for a reason which can be overcome.
Maybe there situation has changed and this apartment no longer fits their needs. At this juncture we would want to establish what their new needs are, as maybe we can consider transferring the resident to a different apartment within our community or another community.
They may also think they can find an equal or greater value for the same price. If this is the case, what a great time to explain to our resident the high cost of moving. A rental adjustment of $20 a month equates to $240 a year. They will easily spend that amount in new deposits, application fees, pet fees, moving van, etc. Not to mention the time they will spend calling, viewing, packing, hauling, unpacking, etc!
