Is your investment property sitting vacant for too long? Many owners think the only option is to reduce the rent, but that is not always the case. What does TMG do in lieu of reducing the monthly rent?
First, consider what the current rent is set at. What does the market say? If the rent is set too high above what the current rental market dictates, then you may need to come down on your price, regardless. However, if your property is set at an appropriate amount but still isn’t getting the inquiries you’d like, consider offering a Rental Concession.
A Rental Concession is a benefit offered by a landlord to the tenants, typically as an incentive to moving in, and can be done in two different ways: material or monetary. In the current market, material concessions (typical items like televisions) are not very common. Monetary concessions, such as a free month of rent, reduced deposit, or reduced move-in costs, are used frequently to entice renters.
Another point to consider: Reducing the rent by $100 over the course of one year means a loss of $1200. However, if you offer a rental concession of $500, and keep the current rental rate, you’ve retained that $700 you would have otherwise missed out on.
Our TMG New Business Team and Property Managers are experts at renting properties at top market prices and renting them quickly. Want to know more? Contact us today.