New Realities for Landlords
One sign of a tough rental market is that landlords are offering perks to tenants to get them to stay. Some rental property owners are turning to incentives like flat-screen TVs, new carpet, upgrades in kitchens and bathrooms, or cash rebates, while those in oversaturated markets are finding rent cuts necessary.
It’s easier than ever to comparison shop the housing market. Tenants need only go as far as their laptops to see what other property owners are offering—and despite the hassles of moving, many will go where the deals are. Check out your local rental scene, too—you might find out that the reason you’re losing tenants is because you’re one of few property owners who is still charging a pet deposit.
Some landlords are softening credit requirements to deal with the reality of more competition for tenants, as well as tenant credit issues due to job losses. As the number of mortgage foreclosures in the U.S. skyrockets, former homeowners are looking to rent, and are seeing less stigma attached to a foreclosure. Only you can decide if you will adjust your standards in the short term, but do continue to perform credit checks on tenant applicants—it’s the only way to know if they are credit worthy to your standards.
Should you offer cash or TVs as incentives? Knowing what your local rental market is doing is the best way to decide. Do your research to see what other property owners are offering, and be prepared to incentivize your good tenants to persuade them to renew a lease. Don’t be afraid to ask, “What can I do to keep you?”