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Best Incentives for Retaining Tenants InfoGraphic
Retaining residents is less costly than finding new ones, so what can property managers do to make them stay?
Software Advice, a software consultation company based in Austin, Texas, set out to find the answer by surveying approximately 4,600 former and current renters in order to learn which incentives are most appealing, the best time to offer perks and how to stay ahead of the competition.
Key findings from the survey concluded that a discount on rent is the most preferred monetary incentive while gym memberships and covered parking are most preferred non-monetary incentives. The study also found that the best time to offer these perks is during the initial lease or right before a resident’s lease expires.
Fifty-two percent of respondents said they could be swayed by a monetary incentive such as a rent discount. Forty-one per cent of those respondents were aged 25-34, the age range that the majority of renters fall within according to Taylor Short, managing editor, Software Advice.
“To ensure residents in this group continue to renew their lease, [property managers] should consider offering monetary rewards,” Short said.
Incentive Preference by Type
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When it came to resigning a lease, 35 percent of respondents said they would be more inclined if it came with a free covered parking spot and 47 percent would be more inclined if they were offered a free gym membership.
“Parking is a major factor for those looking for an apartment, so offering a protective covering for a resident’s vehicle along with a more comfortable walk through inclement weather could be just what you need to retain their business,” Short explained. “Apartment managers should also consider providing off-site incentives with high value (like gym memberships) to convince renters to stay.”
Free services are also a determining factor for lease renewals with 41 percent of respondents citing free TV/cable service as one of the most convincing ways to get them to stay.
BEST TIME TO OFFER INCENTIVES
The best time to offer tenants an incentive is a few months before their current lease is up or during the initial lease signing.
“These are the times when residents are weighing every feature and option about their living environment,” Short said. “So tossing in an extra perk, free service or item can be the final nudge a renter needs to stay at your property.”
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Overall, the survey data shows that residents are mostly likely to respond and renew their lease if they’re offered incentives that save them money or provide convenience.
While it’s important to offer convenience for tenants, it is worthy to note that property managers also need convenience and that’s what 360 Visibility’s Property Manager Software solution is designed for.
Acting as an integral part of the Dynamics NAV application, 360 Property Manger provides property managers with full integration and help with service and maintenance management, contract management, order processing, invoicing and finance.
Contact us to find out how we can customize the 360 Property Manager solution to fulfill your business needs.
Click here to view the Slide Share version of the report by Software Advice.
About 360 Visibility Inc
360 Visibility is a Toronto-based Microsoft technology solutions provider, dedicated to enabling small/medium, enterprise and government organizations to make swift, well-informed, and profitable business decisions.
We are a Microsoft Gold Partner for Dynamics Accounting/ERP Software, Office 365 and Microsoft Azure Cloud Services, and the winner of the 2015 Microsoft Canada IMPACT Award for Fastest Growing SMB Cloud Provider in Canada.
360 Visibility provides organizations with Enterprise Resource Planning software (ERP) and robust cloud infrastructure technology, leveraging Microsoft Dynamics and Azure, to deliver solutions that address specific customer challenges. Each solution is meticulously designed using our Business Impact Assessment (BIA) approach to ensure your current and future needs are addressed, allowing you to effectively pilot your business, capitalize on opportunities, and avoid pitfalls.
Learn more at www.360visibility.com or call (905) 907-3600.
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