Raise Rent Without Raising Turnover
Retaining great, low maintenance tenants is every landlord’s dream! However, at some point you have to raise the rent on your units to compete with market value. In today’s blog, we will share with you how to raise the rent without raising your turnover.
Remember these two words: Authentic and Genuine.
The first thing to know is that it’s all about relationships! You want your tenants (and potential tenants) to know that you genuinely care. A lot of landlord’s think it’s all about price, but that’s wrong. It’s really about value. To build rapport with your customers consider these questions:
When did you last speak to each customer?
Do you only talk to your customers because they were late on payment, had a maintenance request or because they had a complaint? Get to know your customers outside of the office. Don’t be too personal, but be friendly.
What do you talk to your customers about?
Is everything always business or do you take the time to ask how your customers are doing? If you ask, make sure it’s authentic and genuine and you listen for their answer.
Is what you’re doing contributing to the asset?
The more people you can keep the more you contribute to the asset, so make sure you’re keeping good tenants!
When tenants are considering how much to pay for a rental unit, the most important factor in their decision making is their perception of value. Remember, they won’t automatically value what you value. It only matters what the customer thinks, because their perception is reality.
People value what they want and need””not what we think they want and need. You can’t fulfill an unknown need or want, so ask the tenants what they want. This can help you narrow down what customers are looking for. Some tenants might not know what they want; instead, you can ask what they would like to change about their current apartment/home.
Customers buy when you save them time, money and energy. Make sure you know which of the three (or combination of) you offer and make that your unique selling point. When it comes time to renew a lease, remind the current tenants of how you and your team save them time, money and energy. This will make the lease renewal process go smoothly and quickly!
Remember that every unit is unique. If you own apartment complexes, know that each unit really is different in some way. One might have a better view outside; one may have a balcony, while the others don’t; one may have updated features, and so on and so forth. If you have 100 different units, you should have 100 different prices. It’s really that simple. Be sure to ask yourself, “What does my community have that no other community does?” Your first answer should be you and your team. You and your team are nowhere else. The friendly service you provide should stand out from anything or anyone else!
Here are a couple strategies to maximize income and strengthen retention:
- Have a USP””a unique selling point. That will help you be more confident when telling tenants about your available units.
- Remember, every home is uniquely priced””make sure it’s priced appropriately.
- Dare to compare! Don’t be afraid to get out there and look at comparables. You can even show potential tenants what you offer versus what your competition offers.
- Round up rent prices up! What that means is, if your rent is $845 a month; raise it to $849 a month. That’s an extra $48 a year and if you have 100 units, ultimately another $4,800 per year you could be making. No one will notice or squawk over a $4 rise in price. If your rents end with a 5, raise it $4””no one notices!
- Strengthen retention by surveying your current tenants. You don’t want to survey them too often, but make sure you know what your tenants think of your services and what they would like.
As landlord’s, we always want that golden tenant to rent one of our units. More importantly, we make more money when they stay. Follow these tips and tenants will be forever faithful to you!