Is Offering Deals a Good Way to Attract New Tenants?

Vacancies are part of managing a rental place in Florida. A tenant may have ended a lease early or have decided not to sign a lease renewal.

You could have evicted a renter who was delinquent in paying the rent. So now, you are looking at an empty rental unit.

After thinking it over and deciding about the upsides of offering incentives, you keep reading this article and check out the following options:

Apply flexible leasing terms

You may have planned a traditional leasing term of two years and while this guarantees regular income for a fixed period, it can also be restrictive for some renters.

You can try to adjust your terms to encourage more tenants to sign a lease agreement.

You can also allow tenants with pets and even if this can expose you to risks, you can always perform a pet screening.

Some renters also hesitate to sign long-term leases since their jobs may require them to be assigned to another area after six months or a year. You can adjust the term period.

a hand handing a document to another hand

Another way to be less strict with the leasing conditions is to allow your renters a voice with renovations.

You can allow them to choose the paint of an accent wall or suggest simple upgrades, such as small appliances or furnishings.

Remember to be flexible with stretching or cutting down the leasing period, according to what a potential renter needs.

If you have a vacation rental, some may want a month-to-month lease arrangement. If you are trying to attract students or new professionals, they may want a shorter leasing term.

Reduce the rent

Another way to incentivize potential renters is to consider decreasing the rental fee. While you may end up with lower returns, having a regular passive income is better than losing money on opportunity loss.

Remember that you will stay for marketing and maintenance costs even without renters occupying your rental space.

In addition, your vacant rental space can also attract negative elements that can result in more damage. So it is recommended to find good renters quickly to reduce the risks your vacant rental faces.

Waive the first month of rent

Landlords and property managers encourage renters to sign up by offering a free first month of rent, especially when units have been vacant for some time.

This can lead to savings for new renters given that they have to spend on moving costs and new furniture.

a person sitting at a desk looking over financial documents and using a calculator

Although a Florida property owner may chalk the first month to a loss, this is a winning strategy compared to looking at a long stretch of vacancy which can be more expensive in the long run.

Update the property

Performing renovations or minor updates can also lead to more interest since it raises the value of the property. You can also increase the rental fee a bit given the new amenities you added to make the unit more habitable.

Consider upgrading on:

  • More energy-efficient appliances, which results in reducing a tenant’s utility bill
  • New paint coat since this gives your rental a refreshing appearance
  • Durable flooring material, which also leads to less damage
  • Kitchen amenities, such as counters and cabinets
  • Bathroom furnishings, such as adding more storage shelves or replacing shower heads
  • Outdoor landscaping to improve your property’s curb appeal

Allow free use of amenities

If you own a multi-family rental building, you can consider sharing parking spaces, storage areas, laundry, and other amenities.

Some renters own personal vehicles that they want to park securely. Some would also view it as an advantage to use a washer and dryer if they don’t own these items.

parking area

Offer free moving costs

As mentioned earlier, new tenants can pay for a lot of moving-related charges.

As a Florida property owner, you can encourage them to sign a lease agreement by offering to pay for a moving truck and other moving services.

Provide a welcome package

Renters often stay for the long term when they have a good relationship with a landlord. You can start by giving a good impression and welcoming new renters with a beneficial package, such as

  • Dining or entertainment coupons
  • Gift certificates for popular cafes or attractions
  • Home decor, which can include useful furnishing and plants
  • Cake or wine to celebrate the move-in day
  • Items that can be utilized in the home, such as cleaners and sanitizers
  • Food items to snack on while they’re busy rearranging their belongings

These things don’t have to be expensive. Little thoughtful items can make your new renters happy, which can start your landlord-tenant relationship on the right foot.

Bottom Line

Initially, as a landlord, you may feel that you got the shorter end of the stick when you offer these deals.

However, you need to think long-term and see the benefits that come with an occupied rental space even if you have less earnings at the beginning.

In the end, you can avoid long vacancies and earn a consistent passive income from your Florida investment properties.

If you’re looking for a reliable property management company that can help you create these deals, contact Gifford Property Management today!

Previous Post

Andrew Gifford and his team of professionals are easily the best realtors and property managers that I have ever worked with. They provide first rate service in an extremely timely manner. Whether you are a landlord, tenant, or prospective real estate buyer, I highly recommend the services of Andrew Gifford and his real estate team for all your property needs!

Jeff Tillman