4 Tactics for Landlords to Entice Renters

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By Tali Wee of Zillow

Competition among landlords is rising as the rental market continues to thrive. The demand for rental units increased again last year, as foreclosed households and new families entered the rental market. The rise in demand caused an increase in the cost of rent, with a national increase of 4.2 percent 2012. Higher prices and demand require landlords to get creative to compete for the type of long-term, responsible tenants they all desire.

Landlords should begin by identifying their ideal tenants, evaluating the common needs of those candidates and focusing their marketing efforts to appeal to that target audience. Consider that responsible tenants generally want dependable, trustworthy and organized landlords. They want to live in clean, safe and well-kept properties. Generally, students need access to the university and library, city workers need to be within close proximity to the city center or public transit and families need dining rooms and great local schools. Landlords should boast about their units’ qualities that align with the desires of their model tenants and include statistics and pictures to back up the statements. All of the unit features and amenities should be advertised with verbiage specifically aimed at their target audience.

Advertisements should be placed in areas within the community where the target audience will likely see the ads. Landlords should take advantage of free online listings on craigslist, HotPads and Zillow. Ads should list unit features, such as the number of bedrooms and baths, but should also detail the unit-specific benefits of a welcoming home such as a beautiful view or tons of natural light.

Landlords should compare their units’ features with local, comparable prices. Some city-centered locations or luxurious units are worth expensive rents, but many renters are looking for a good deal because they are unable to afford a mortgage. Though prices rose nationally, tenants want to get what they are paying for. New carpet and appliances are worth higher prices. Landlords should be fair and competitive with their pricing in order to fill their vacancies quickly with quality tenants.

Renters love concessions regardless of the property’s price-range or locale. To be competitive in the rental market, landlords need to find a way to stand out from nearby availabilities. Here are four concession ideas to stimulate interest in vacant units.

1. Provide Free Internet & Cable Services

The concession of Internet and cable is a huge cost-savings for tenants, especially for single individuals. It’s tough to afford the steep prices of Internet and cable on an average salary when the bill isn’t divided between roommates or multiple incomes. When tenants have to organize all of the craziness of moving, it can be a major relief to avoid the installation scheduling and fees associated with these services. If tenants prefer a more personalized service with a faster connection or DVR then they can certainly set that up separately. Landlords can work this cost into the price of rent while making it come across as a more beneficial deal.

2. Promote Amenities

Another way to stand out from competitors is to promote unique amenities that boost interest in the property. If prices and properties are similar, tenants will likely select the option with additional amenities such as a pool, gym or courtyard with a barbeque. When prospective tenants narrow down their options they are likely to remember an unusual amenity such as a complimentary tanning bed or theater room. These amenities can be expensive to build and maintain for landlords. If the property has several units, then the wide appeal will keep the units full, creating a valuable return on the investment.

3. Supply Transportation Assistance

All tenants need transportation. Landlords can appeal to this need with a range of offers. If the property has several open parking spaces, the landlord can offer a free parking space for the length of the lease or for a few months. Tenants may also appreciate a reduced parking price for areas with competitive parking prices. Another offer is to provide new tenants with a prepaid public transportation pass, or unlimited local transit pass, for the first three months. Some properties with multiple units can offer a shuttle a few times per day from the property to the nearest transit hub and back. Depending on how much money the landlord is willing to spend, any of these options could draw a tenant away from a competitor.

4. Offer Move-In Cost Reductions

The expense to begin a new lease and the costs of moving can be overwhelming for renters. They are often expected to pay the first and last month’s rent in addition to a damage deposit. Landlords who have units to fill can use that initial cost burden to their benefit. They can offer the first month rent-free to relieve a portion of the moving expense and to outshine their competitors. This is generally not the direction that a landlord initially wants to go, but it will certainly draw attention. Another way to eliminate that move-in cost is to not collect a damage deposit. Landlords will still bill the renter for any damages once their lease is up, but the initial costs will be reduced at no expense of the landlords’ income.

Once landlords have reeled in their prospective tenants with these concession offers, they should present themselves and their properties in the best form possible. First impressions make an influential impact. Make sure the lawn is groomed, the building looks updated and the space is clean and organized. Landlords should dress and behave professionally while treating prospective tenants respectfully. If ads are directed at the ideal tenants with fair prices, appealing features and amenities and concessions, and the landlord presents the property with pride then units will be successfully filled.

Statistics collected from Zillow’s fourth quarter Real Estate Market Reports by Chief Economist Stan Humphries.

January Income – $2694.84

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Here is a breakdown of my income for January.

Online Income

 $350.51

Interest

$0.40

Dividends

$6.57

Cash Back

$60.34

Mystery Shopping

$25

Jobs

$2252.02

Total

$2694.84

My income was up quite a bit in January.  That isn’t too surprising since I started a new full-time job that pays more than I’ve ever made before. Plus, I still worked my part-time job.  The job income should be quite a bit more this month since I will have two complete pay period checks this month.  In January the first check from my full-time job was for just three days.

My other sources of income were pretty poor.  I have cut way back on mystery shopping since it isn’t really worth my time now that I’m working at my jobs so much.  I’d like the online income to be higher, but it will probably remain low for the next few months.  When my full-time job is finished I’ll work on increasing my online income again.

My $2694 income was quite a bit higher than my $822 in expenses so I can’t complain.  February should be even better.

 

January Expenses – $822.34

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Here is a breakdown of my expenses for January.

Household

$407.92
Entertainment

$25.80

Transportation

 $73.02

Food

$149.13
Debt $5.00
Phone

$26.81
Health

$119.92
Electric

$14.74

Total

 $822.34

I’m pleased with the total of my January expenses. One of my goals for the year is to keep my expenses below the level of a minimum wage income, which would be about $1274 a month.  I managed to do that and even managed to keep my expenses well under my stretch goal of $1000.

My food expense were still higher than I would prefer. This is because I had fast food almost every single day. Fast food made up over $100 of the food total.  My goal for February is to keep my fast food spending under $25 for the month. That should result in an overall lower food bill.  If I have to spend a little extra to get healthy food that I actually want to eat though, I will do that.

Transportation was where I enjoyed my biggest savings.  I went from over $800 last month to under $100 this month. I only had to fill up my car a couple of times and I didn’t have to spend any money on maintenance, insurance, or taxes so it was a very cheap month.  Gas prices are going up and I have to make a trip to SW Missouri and back this month so I won’t be able to keep my transportation expenses as low in February. They still shouldn’t be much over $100 though.

Entertainment was also very cheap. I used a free movie gift card for a couple of trips to the movies and other than that I mostly enjoyed free entertainment.

All the other categories were about the same as the month before and will probably be about the same this month. It is a short month so maybe I can get my expenses under $800 this month.

 

 

 

 

The 18-Cent Breakfast

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For the past month or so my usual breakfast has been a couple of scrambled eggs. I’ve been able to get eggs on sale for $1 a dozen. That comes out to 8.33 cents per egg. Missouri charges sales tax on food so I figure my two egg costs about 18 cents. It might be another penny or two when you add in the cost of cooking spray, but it is still going to be less than two bits for breakfast.

A two egg breakfast is only about 160 calories which isn’t much for a meal so the calories need to be made up later. I’ve found that two eggs is a satisfying breakfast for me and three eggs seems to be too much. I could add a banana or orange for around a dime more to add some calories to the meal and make it a little more nutritious. I often take a piece of fruit to work and have it as a snack later in the morning. It works for me.

Back when I kept my food budget under $100, before I started indulging my penchant for junk food/fast food too often, people would wonder how I did it. Some would even say it wasn’t possible. There are a lot of cheap breakfasts and other cheap meals that are possible if you do a little research. The meals don’t have to be unhealthy just because they are cheap. How healthy having two eggs for breakfast is, is debatable, but that breakfast is still better than the fast food/junk food I normally eat.

Since I’ve started working my full-time job in addition to my part-time job I have been indulging in fast food way too often. I’m tired after work and it seems so much easier just to have some fast food, plus I tell myself I deserve it for all the hours I’m working. For the month of February I’m going to cut way back on my fast food/junk food purchases. My goal is to cut the amount I spend on junk food/fast food in half. I’m not going to worry about the cost of my healthier food, but I expect I will lower my overall food bill.

My $14.74 Electric Bill

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I was pleasantly surprised to find out that my electric bill for December was only $14.74. My actual energy charge was only $4.87, the rest of the bill was for the customer charge and taxes. This is why I didn’t want an apartment with natural gas heat. The gas company charges a $25 customer charge before you even use any gas. Electric heat ends up being much cheaper for me.

I used 66 kwh of electricity. The average household in Missouri uses 1,112 kwh of energy in a month. Since I am a single person and have a studio apartment rather than an average size household and house it makes sense that I would have a lower electric bill. There are several ways I save on electricity by living in a studio apartment. My hot water comes from a central boiler which allows me to take 15 minute hot showers without running up my electric bill. Another advantage I have for using less electricity is that I don’t have a washer/dryer. The biggest savings came from the fact that I didn’t use my heat at all. My apartment just seems to naturally stay warm. I guess that is from having a third story apartment with south facing windows. This could be a big disadvantage when it starts getting warmer.

There are some things I do to save electricity. I think they are all pretty well known electricity saving tips. I keep the microwave unplugged when I’m not using it. I use a fluorescent lamp rather than the overhead light in my bedroom. In the bathroom I use just one light bulb and keep the others unscrewed since one bulb provides plenty of light. Sometimes I shower in the dark. I don’t have a TV, I use my laptop for watching movies and other entertainment. I use sunlight for illumination during the day.

Even with all of that I’m surprised my electric bill was so low. I would have thought the refrigerator would have used that much electricity by itself. If the electric bill was a mistake I’ll find out next month. If not, I think I have my electricity costs about as low as they can go.