Does charging to be on the waiting list create a sense of exclusivity?

One of the interesting aspects of sales is that people will give a value to something relative to how much you charge for it. Many people think that if you make something free, then more people will participate because it's free, but in reality, they will assume it isn't worth anything, and may not participate any more, or even as much as when it cost money.

I believe it was during one of Kate's webinars, and I was wondering, does charging to be on the waiting list create a sense of exclusivity and worth to being on that waiting list? What do you all think?

I would create a 'floating deposit' for prospective applicants when I have no availability. If the applicant moves in, this is accounted for in the move in money required. If the applicant is declined or refuses to move in when the unit comes available; this deposit is not refundable. If they rescind their application before a unit becomes available, they get their money back. This is where you do not deposit the funds until move in; you keep it in a locked file and a copy of the check with the application.


This holds the next available unit for this applicant's first right to refuse and removes it from the market until such time that the applicant declines for whatever reason.

I would establish definite guidelines to follow:

1) Applicant understands that a member of your staff will call them when it becomes known that a unit with the desired/needed floorplan is to come available and provide them with tentative move in date.
2) Applicant must understand that if they do not respond or decline the unit; they will not be entitled any refund, but this deposit is deducted from their move in funds at move in should they accept the unit.
3) This floating deposit 'locks in' the rent amount / concessions offered at the time the tour/application/deposit is taken; regardless if there is a change that they would not get if they were to wait.
4) Applicant must also understand that if they do not respond within 72 hours, they forfeit the deposit as it will be understood as a refusal.

This 'floating deposit' is funds that are separate from any application fees you collect.

Hello Brent,

I think that it depends on the market and the product and the buzz that is created in the community. I think that in every community there is a desired spot and for those desired spots if there is more than one to start a waiting list. For example it maybe a view that the residents have in one area that others do not have. Could be that certain units have additional amenities that the others do not have.

We can create a value. There was a street where we had single homes and to live there you had to have a certain rank. Well we had more ranks than we had assets, so there was a waiting list. These homes had amenities that other homes did not have and they were desired and people as soon as they obtained the rank got themselves on the waiting list.

Sometimes there is a unit which is positioned in a very convenient location and is desired and a waiting list can be established. Create a buzz and excitement and make your area like Beverly Hills and we know all kinds of people would like to live in Beverly Hills. It means you are hanging out with the rich and famous, this can be created in a community as well!

I like your point, Nate, about the Military housing waiting list! I think there could be problems with taking money and holding it though in a locked location. I sometimes wonder, too, how conventional properties handle their Waiting Lists. Do the leasing professionals follow an exact protocol for offering the next available apartment, as Johnny pointed out? I would like more information on this topic.

I think that those properties that cater to off base military housing are more than likely dealing with a base housing office that maintains a waitlist that contains specific contact information about those looking for housing:

1) Name
2) Rank
3) # of dependents
4) Unit contact information (usually the most senior NCO or unit commander) to use to contact the person when something comes available.
5) Direct contact information

It has been more than 20 years since I left the Army, and more than 2/3 of my time was overseas; so I do not recall much of how it works.

The properties do not put servicemembers on waiting lists, the housing office does. However, there should be a strong relationship between the property manager and the base housing office if you do serve the military. When you have vacancies and no waitlist applicants, you can contact the housing office and let them know that something available or pending to be available. If your relationship is strong; that housing office will put you at or near the top of the list to call when they need to procure housing for someone.

On Base housing offices have changed. Now there is the Housing Service Office (HSO) and they deal only with people that are renting or wanting to buy. They do not maintenaine a waiting list for people; however, they do varify that the housing meeting the standards. There is now a site where landlords can go online and cater to the military that is looking for civilian housing as well as the realtors. Check out this link: www.myarmyonesource.com/SoldierandFamily...sOffice/default.aspx

Those communities that are in the know ensure that they are listed. No waiting list is maintainted for off post housing; however, a list of places that are available are maintained.

This is a valuble site to go to and to stay on top of. Set up tours for the HSO folks so that they know what you have and what you can offer to the service members. Things have changed a lot since Johnny was in there. The system is light years ahead of where it used to be!