Property owners compete for the best tenants. Rental markets across the country can be very competitive. Many amenities have become standard table stakes. Standing out is harder than ever. In some communities, the answer to managing faster lease-ups and more consistent stabilization rates is offering move in specials, also called move in promotions, incentives, or leasing concessions.
Properties offer move in specials as marketing promotions. Landlords in competitive rental markets need to stand out. Offering a promotion attracts the attention of more potential tenants. Today, this is more important than ever before.
Properties need a comprehensive digital marketing strategy in addition to any physical marketing materials and on-site leasing support. Online apartment search and review tools only make the situation more competitive. What’s more, when properties attract more attention, landlords enjoy the luxury of choosing the best neighbors from an overall larger pool of applicants.
Another reason landlords choose to offer move in promotions is seasonality. Fewer tenants sign new leases in the winter, especially around the holidays. Marketing move in specials at this time of the year increases applications and reduces vacancies when landlords might otherwise struggle to generate interest.
Many properties choose to simply offer one month rent free. Upfront, the landlord trades a full month of rent in return for a good tenant and a full lease. This type of promotion works best when the property offers long term leases, like 12 months or longer. This is because the property trades immediate revenue for the potential to earn more in the future. The promotion makes sense when the residence would have remained vacant for longer than the one month traded for free rent.
Another common move in promotion is a reduced security deposit. Properties with shorter leases or higher turnover often prefer this kind of move in special. A reduced deposit is a smaller financial incentive than a full month rent free. Plus, it does not directly impact revenue. That said, lowering the deposit does mean reduced protection in instances where tenants cause damage.
Some properties choose to charge a rental application fee to offset the cost of screening potential tenants. Waiving this fee, often $20 to $60, incentivizes more potentially interested folks to apply. This kind of move in special provides a financial incentive while minimizing impact on revenue. $20 to $60 is not a lot of money relative to average monthly rents for one-bedroom apartments across the country well over $1,000.
Like offering the first month rent free, reduced rent is a move in concession that landlords use to fill a vacancy as quickly as possible. This type of special capitalizes on a powerful financial incentive to motivate renters. What’s more, under certain market conditions, reduced rent may be the only way to remain competitive if all other similar properties in your area offer a comparable living experience at a meaningfully lower price.
Nothing attracts potential customers better than free stuff. This kind of promotion works equally well in rental real estate. Offering free utilities, access to fitness equipment, on-site storage units, parking, and more can certainly attract more tenants. Many landlords view this kind of move in special as a strategy for retaining the highest quality tenants for longer leases.
The appeal of any move in special is relative. The allure to new tenants will depend on your local area, market dynamics, and type of property. Move in special can certainly attract more tenants and quality residents. That said, before implementing any move in incentives, consider your own unique situation. The best move in specials combine an elevated tenant experience with an increase to property revenue.
Safely Finance incentivizes new applications and increases revenue without any move in concessions. This is because Safely Finance is a financial amenity that aims to improve the renting experience both for landlords and tenants. Reduced deposits and waived fees decrease revenue and property protection. Safely Finance allows tenants to pay any fees over time, effectively removing barriers to leasing, while still fully funding the value of the deposit upfront. To learn more, reach out to sales@safelyfinance.co.
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