Comments for Concessions Vs. Rent Decreases at http://www.multifamilyinsiders.com/home , comment 1 to 3 out of 3 comments http://www.multifamilyinsiders.com/home Sun, 21 Mar 2010 09:12:07 +0100 FeedCreator 1.7.3 http://www.multifamilyinsiders.com/home/multifamily-blogs/Concessions-Vs.-Rent-Decreases.html#comment-2698 Hi Kate, Thanks for the information. There is a love-hate relationship with concessions, I know. However, I think we take it to the extreme. How do we know when we are actually making the bottom line with so many concessions given out? I agree with you. Make the lease terms longer so that we can re-coup some of the lost rent and preserve vacancies in 2010. Thank you! - SARITA THOMAS Wed, 28 Oct 2009 07:32:02 +0100 http://www.multifamilyinsiders.com/home/multifamily-blogs/Concessions-Vs.-Rent-Decreases.html#comment-2688 I'm so glad to see this topic discussed. I too got my multi-family wings in markets where a concession next door warranted a "yes, I've heard they have problems" response. I like the solution of recouping and locking the renter in with a longer lease. I think that should work! Get us through 2010 as best possible, give the prospective resident a "good deal" they expect, and keep our rental rates as strong as possible in a very tough market. - Karen Long Tue, 27 Oct 2009 06:24:53 +0100 http://www.multifamilyinsiders.com/home/multifamily-blogs/Concessions-Vs.-Rent-Decreases.html#comment-2676 Thanks for the comment Danny. I have found the incentives do work in some markets. People just want to feel like they "got something." I agree that we have to think ahead about how lowering rent will effect our ability to renew. People are not going to stand for much of a market increase and it seems like a deep hole that will take years to crawl out of. With that said here are a few things to do BEFORE you drop a concession into your offer: 1. The phones are still ringing at the properties. I recently listened to 25 recorded leasing calls using Call Source. The results were pathetic. The consultant gave the price right away followed by the special offer. Hello! What ever happened to SELLING the VALUE BEFORE giving the price? And yes, I feel like i should yell that! Here is a new goal for all phone calls, defer the price question by asking a question such as "how soon are you looking to move in?" Now take control, ask questions and sell the apartments based on what you just heard the prospect say they needed. A good leasing consultant can defer the price for 3 min. That is a lot of selling time! 2. Do you have a tool to get the customer back for the second visit? Since the guest is usually visits a property two times before making a decision, I suggest having a tool to get them back. 3. Stop selling luxury. No one is buying it these days. 4. Individually price your apartments. Blanket, one price structures cause you to leave too much money on the table. I'll think of more and post again.....anyone have anything to ad? - Kate Good Mon, 26 Oct 2009 10:02:24 +0100