Sometimes
finding tenants for your Charlotte rental home can be difficult, especially when the market is experiencing a downturn. If you’ve tried numerous marketing strategies and still have an empty rental property, rent concessions might be the answer!
What are rent concessions?
Rent concessions are essentially discounts that a landlord gives to a potential renter. They can either be arranged for a short period or long-term to attract prospective tenants through a rent price incentive.
This helps keep occupants in your Charlotte rental property.
Having a
vacant rental unit can cause massive income loss. That’s why rent concessions can be a reasonable solution to property vacancies. When you have tenants renting, you always benefit from having a consistent income.
Landlords can waive the first month of rent for new renters as an added incentive to sign a lease contract. They can also apply the same incentive for tenants who are nearing their lease renewal.
Even if rent concessions reduce your rental income, they can still be a practical marketing strategy. An empty Charlotte rental property is more costly to maintain than one rented at a discounted rate.
What are the different types of rent concessions?
Landlords have many options when it comes to rent concessions! Among them are fee waivers, free use of amenities, and rent rebates. You can even offer a lower security deposit and provide
moving assistance. Landlords apply these concessions to minimize their vacancies and tenant turnover.
You also have the freedom to decide the duration of your rent concessions. Some can be one-time deals while others may be given every quarter or annually. This depends on the landlord’s preferences since rent concessions are often given discreetly. Some tenants request a rent concession before affixing their signature on the lease, these terms can be negotiated based on the needs of the renter.
However, the final decision will always be made by the landlord.
Commonly, rent concessions appear as discounts. This method is highly effective and will attract a wide pool of prospective tenants for your Charlotte rental property.
With this in mind, you can also apply rent concessions creatively!
Refer to the examples below to pick which rent concession is suitable to use in your Charlotte rental home:
1. Waive rent for the tenant’s first month in your Charlotte rental unit
2. Refrain from collecting parking fees, pet fees, or move-in charges for your rental space
3. Discount rent for tenants who sign a longer lease term period, such as 1-2 years
4. Provide moving assistance in the form of free moving trucks, movers, or a no-cost storage unit
5. Prorate rent on the first month of your tenant’s stay in your Charlotte rental property
6. Permit the tenant to make changes to the property such as choosing a
paint color or freely decorating the unit’s interior
7. Absorb the cost of internet and rental utility fees
8. Offer your prospective tenants no-charge parking and amenities, such as free use of the washer and dryer
9. Suspend security deposit collection for new tenants
10. Pay for rental property upgrades such as new appliances and decor
Are you thinking of investing in a Charlotte rental property? If so, it’s time to learn more about the following rent concessions:
1. Marketing concessions
When a rental property is renovated, landlords can attract new tenants through marketing concessions. For example, they may use an advertising tactic that offers higher rates than current average rental prices in the area.
2. Red flag concessions
Red flag concessions can be detrimental and you should think twice before investing in that rental property. These concessions can be offered as a means to limit vacancies. But, they can be a source of worry in the long term. It’s always better to take precautions before purchasing a property.
3. Lease-up concessions
For your newly constructed Charlotte rental property, a lease-up concession can be the best strategy. You can help raise the occupancy numbers of your commercial establishment which ensures a quick return on your investment!
Establishing the right timing for rent concessions
As a landlord, you want to raise significant interest in your Charlotte rental home. Using rent concessions will help you eliminate empty rental units! This method can be especially effective during an economic downturn. If you own a commercial building, you can still use concessions as a way to ensure high occupancy.
It’s beneficial to keep your best tenants and rent concessions are an easy way to inspire lease renewals. For your Charlotte rental property to prosper, your income needs to be stable. A consistent income enables you to perform more
property upgrades thereby elevating your property’s value!
So long as you have high-caliber tenants, rent concessions can be a rewarding method of reducing turnover. In exchange, you’ll have fewer worries over property damage and delayed rent payments.
An empty Charlotte rental property just doesn’t benefit you financially. It can even set you back due to marketing and maintenance expenses! If you want to avoid an empty rental space, you should consider implementing rent concessions for your Charlotte rental unit.
Confronting the cons of using rent concessions
Although rent concessions provide a wide range of benefits especially when acquiring long-term renters, there are also disadvantages. Setting up rent concessions may be easy but removing them can be tough. Tenants can become accustomed to your Charlotte rental property concessions and may want to extend the concessions beyond their expiry period.
As a rule, rent concessions are temporary solutions. This might be hard for renters to accept which can create a backlash such as your tenants ending their leasing agreement with you. Furthermore, conflicts may arise as renters may be resistant to paying the original rent price.
You can prevent this problem by clearly stating that the rent concession runs for a limited timeframe in your leasing contract. This method helps renters set reasonable expectations and encourages a positive relationship between you and your tenants.
Bottom Line
Are you experiencing stress in finding new tenants for your Charlotte rental property? Reach out to
Dawson Property Management. We’re proven and trusted when it comes to attracting the right kind of tenants!
