Currently we offer leasing incentives at 6% of a 1 month rental rate for a year lease and less for shorter term leases or referrals to other properties. What are the norms for leasing incentives for properties?
We also offer a quarterly occupancy bonus for leasing as well as maintenance staff. There are different levels and amounts depending on the positions, but for example, if you're at 93% you get $300, 95% you get $500, 97% you get $750 and 98% or higher you get $1000.
We're happy with doing a portion of our quarterly bonuses, but would also like to consider collections being part of the quarterly bonuses. If you're full, that's great, but it doesn't mean the property is collecting the funds that are due to the property or working to get better leases in the door to increase rental income. We could be writing off thousands of dollars of uncollected AR. Does anyone do a bonus structure with collections as well? Or possibly have both options laid out? I would be curious to see if that works for others?
I'm the assistant property manager and 40% of my quarterly bonus is based on delinquencies, which is fair in my opinion. 20% is based on a quarterly property inspection score, 20% is monthly leasing goals, and 20% is Kinglsley scores. Leasing commissions are a flat rate ($250) and renewal leases are split between PM, APM, leasing, and chief engineer. Maintenace staff gets a separate quarterly renewal bonus. I like how our company structures it so we can still achieve some of the quarterly bonus, even if we don't hit all of the number in each area.
