Using Move In Specials to Increase Occupancy
Rett Harmon - Thursday, November 10, 2011
Promotional rent rates should be used only in times of high vacancy in larger multi-unit properties. This is how it works. By offering a significantly discounted rental price for the first month, you can quickly fill properties with high vacancy rates. Now, the property owner must be prepared for the decreased potential cash flow in the short-term but if vacancy is an issue it should be considered as an option. We recently had a 50 unit property with 12 vacancies that we were having a hard time filling. We made a drastic reduction in the first month’s rent and now have a waiting list for units. There are two very important considerations you have to make when doing a move in special. One the owner has to be aware that there will be decreased revenue for each lease for one month. The next and most important consideration to make is move in specials will attract tenants who otherwise wouldn’t be able to afford your property. This means every tenant must be thoroughly screened and income verified prior to signing a lease.