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Five Ways to Encourage Residents to Pay Their Rent On Time

Making sure residents pay their rent on time and in full: it's possibly the most important task facing an apartment operator. Without the expected cash flow from renters, operating expenses become tough to cover and a community's bottom line takes a pounding. So how can operators encourage their residents to fulfill the terms of their leases? Below are five suggestions. Report rental payment historyWhen operators report their residents' positive rental payment history to the credit bureaus, they help those residents build their credit history. A strong, positive credit history makes it easier for them to secure car loans, credit cards and mortgages – and to do so at favorable interest rates. When residents understand how they can create a better financial future by paying their rent on time, they will be highly motivated to do so. A couple of studies have demonstrated the significant impact of reporting positive rental payment history. In 2013 and 2014, the Credit Builders Alliance conducted a pilot project in which eight affordable-housing providers reported the rental payment history of more than 1,250 low-income residents. Nearly 80 percent of the residents saw their credit scores increase, with an average rise of 23 points. Similarly, an Experian RentBureau study on the effect of positive rent reporting in nearly 20,000 subsidized housing residents revealed a considerable beneficial impact on the thickness of the renters' credit files. According to the study, 23 percent of thin-file residents moved to the thick-file category after their positive payment history was reported. Bottom line: r......
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Why Incentives Are Still a Necessity

Why Incentives Are Still a Necessity
Just five years ago, we were all talking about concessions and the need for property managers and owners to make them. From discounts on rent and waiving deposits, to freebies and even more creative incentives, there was a real need to be more competitive when it came to getting the interest of tenants. The vacancy rates were high and there was a real need to incent tenants to consider one property over another. The tables have turned, however, and this simply isn’t the case today. With occupancy rates in the 90th percentile in most major markets, we’ve seen incentives such as these all but disappear. Yet, according to a recent survey conducted by Apartments.com, tenants can be swayed to consider a move to a new property for the right incentive. And, in fact, only 6% of respondents said there was nothing that could be done to convince them to leave their current property. What this says is that incentives has a real place in the marketing plan of any multifamily property. As such, it’s necessary to understand what will excite tenants enough to influence their decision in favor of your property. According to this same survey, there were three things that motivate: A big discount More space A free month’s rent Taking #1 and #3 together, this means that financial incentives are perceived with highest value. Yet, it’s not all about money. Respondents also noted a number of factors that significantly impact their rental decisions. These include: 57% = Safe area with low......
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