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 90^th 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:

1. A big discount
2. More space
3. 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 crime
• 50% = Convenient utilities and amenities
• 48% = Large apartment sizes
• 38% = Near schools or job
• 33% = Good parking
• 26% = Allows pets
• 21% = Cool city/neighborhood
• 17% = Neighbors

For managers and owners, this should be considered a call to action. Incentives do not only come in the form of a coupon. Many prospective and current tenants view incentives as the things that are inherent to your property. So, if your property is located in safe neighborhood with a low crime rate, this should take priority billing in marketing materials, and should be targeted at tenants who do not currently live in such conditions. The same goes for amenities and unit size.

The key is to consider the property’s strengths and play to them—offering them to prospects as a benefit of making the move. And, because keeping a tenant is far less expensive than retaining new ones, you will also want to make sure not to overlook the loyal tenants you already have. Remember that they, too, are being lured by the competition. So, give them the same reasons to stay.