Between Thanksgiving and New Years Day, it can be a tough time to close a rental or make a sale. Altruism aside, how can you get folks to step away from all that family-time and Christmas hub-ub and be inclined to move during what the industry reports as the slowest time of the year?
First, it's crucial that you have a full understanding of your demographics and marketing budget and how those two sing together to provide the smoking mirrors of TANSTAAFL (There Ain't No Such Thing As A Free Lunch.) Most of us do not have the luxury of time to throw marketing noodles at the wall and see what sticks. We need to be ready to switch gears NOW. If you wait too long, your holiday vacancy loss will eat into your budget so that you're racing to play catch-up in the second slowest part of the year... the New Year. Wouldn't it be great to start 2012 with a full house? Here's what you need to know:
Who are you marketing to and what do they need? How much can you spend?
Once you understand those two things, you can get busy creating your marketing plan.
If your clientel typically is struggling to make ends meet, this is the time, more than any other time of the year, that the "FREE RENT!" will pull them in. I recommend you skip the lures of no application fees, discounted rent, trips to Disneyland, gift certificates, etc... nothing means more to folks who are strapped right now than FREE RENT, AKA,MORE MONEY IN THEIR POCKETS. You might say, "but, how can I afford to give them a whole month of free rent?!" In comes TANSTAAFL: Think of it this way, if you fail to secure a renter NOW - get that qualified warm-blooded renter in your home ASAP - you stand to lose more than 45 days of rent. What does 45 days of rent look like? It looks like more than a free month's rent! Your bottom line is affected by both your vacancy loss and marketing dollars and why not let them work together? I always require a 1-year lease commitment for one-month of free rent and a 9-month lease when offering 1/2 of a month free.
If, on the other hand, your clientel is blessed and not strapped for cash around the holidays, you'll want to appeal to something else that motivates them. What about offering to custom paint the interior of the living room to match their personal taste? Or custom accessories through-out such as designer cabinetry handles or high-end faucets or a new built-in microwave? Basically, one-month's rent spent pampering them. These type of expenses offer tax write-offs verses dead-weight vacancy loss.
Be sure to safe-guard these marketing dollars spent to include a pay-back clause in your lease if the lease is broken. Thoughtful marketing and careful documentation will help you survive the holiday rental slump and bust into the new year ahead of the game.
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Janell is a member of Rentec Direct who provides property management solutions, tenant ach payment processing, Rentec credit, criminal, and eviction screening for property managers and landlords.
Learn more about tenant screening here: https://www.rentecdirect.com/blog/category/tenant-screening/
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