Concession Ideas

Hello!

I just started at a new luxury apartment community this week, this is my first time working with luxury apartments. The community is a new build and expensive for the area. we are having a hard time renting our two bed two bath apartments. Our prospects are affluent so they don't really care for gift cards or reduced security deposits. Is there something i can offer them that would entice them, something I can get them that boasts there ego. Thanks for all your help!

What about a really high end bottle of win or Bourbon? What type of price range are you thinking?

That's a great idea! Would fair housing hit us because people younger than 21 can rent? Our budget for concessions is pretty high.

Oh that's a good point! Not sure about that - maybe have an option that isn't alcohol?

Butler services

Smart home tech package

House cleaning services... Mobile car detail services.

Let them choose from a few months of delivery services (meals, wine, bark box)

Round of golf, wine delivery subscription, concierge services

Wifi thermostats or security systems per unit. Conciege services. Valet parking. Mobile laundry dry cleaning discounts, limo car services uber black car, airport shuttles, train station shuttles just a few

Guys! These are genius thank you so much! Now, for the alcohol one, what if we offer cash equavalent gift cards to miners?

We are also a new luxury community. We have done a complimentary garage or 1 month free rent. You could even do half of that depending on your budget occupancy.

I'm not sure where you are from, but when someone in Michigan gets a garage and renews... they don't let that garage go.

Offer discounts across the board , all apartments.
Use the concession $
Examples:
1. $100 per month to seniors, once in they seldom move.
2. $100 per month to those who sign a 2 year lease. Many benefits to this, low turnover only one of many.
3. $100 per month for active duty or retired military.
Are the 2 bedrooms separate? Call it the mother in law plan. Do not call it the roommate plan.
Describe as 1 Bedroom and home office. A place for visitors, grand kids, etc,,

That's a great idea!

I've worked 3 luxury lease up properties since 2016 and understand the challenge of having a product that has a LOT of competition.

One of the big things affluent renters like is plenty of FREE parking. I know this may be limited in many areas, but giving a concession of free parking for a period of time (6 months tends to really get them on board) can really motivate potential tenants.

And don't think that affluent renters aren't motivated by free rent concessions. Everyone loves a bargain! If the free rent concessions aren't getting the deals closed, try working out the math on how much they'll be saving on a monthly basis.

What I mean by this is, if the unit is $2,500 a month and the property is throwing in 6 weeks free rent, then just calculate what their "Net Effective Rent" is once you've subtracted the concession from the annual rent.

$2500x12= 30,000 (annual rent w/o concessions)

30,000/52(weeks)= $576.92 (cost of rent by week)

576.92x6 (weeks)=$3461.54 (value of 6 weeks free concession)

30,000 (annual rent) - $3,461.54= 26,538.46 (adjusted annual rent)

$26,538.46/12= $2,211.53 (Monthly net effective rent)

I made a spreadsheet on my smartphone to calculate these figures on the fly with prospects to show them how much they are saving with their concessions. This system also works if you write it out for them on a legal pad and have them also work the calculator to see what the value of the concessions are based on the unit they are interested in.

People who are downsizing can be particularly averse to the high cost of luxury apartment rentals. For them I adjust my sales pitch to include the monetary value of the amenities based on comps in the area.

What I mean by this is: A community fitness center can save them $80 a month in gym membership, for instance.

I would also remind them of their most valuable resource: Time. The amount of time someone has to spend caring for a single family home (and let's be honest, they are also looking at SFHs along with luxury apartments). Yard care, snow removal, dragging trash cans to the curb every week, etc.

I had a closing ratio of 40% at my last luxury property. These sales methods work wonderfully!

Ultimately, the key is persistence. If they toured and you didn't call them within 24 hours, then you aren't doing your job as a leasing agent. (caveat below)*

*Unfortunately, many property management companies see their leasing agents as a kind of "catch all" employee. Sales is a skill and trade all on it's own, and it is usually treated like an afterthought when the management team has a minute away from the management duties of the property.

Sales people should be responsible for sales exclusively. Prospecting and follow ups are emotionally draining. The sales teams need time dedicated to these actives exclusively and not "do sales between calling the vendors and planning the resident events and coordinating UPS deliveries" kind of position.

Attention Property Management companies! Your Sales STAFF IS YOUR REVENUE SOURCE. Don't make sales an afterthought and don't leave sales up to people who are better suited to maintenance or accounting tasks.

Alcohol gets tricky, especially if a prospect is not a drinker. A person who is forbidden alcohol as part of their religion could cry fowl on an alcohol move-in gift, too.