Renewal Question…
How do you handle those who want to “negotiate renewal offers”?? I’ve always taken the firm position that we simply do not negotiate or change offered rates. A huge reason is because people gossip and would tell their neighbors to just ”go ask the office” to change the rate. However, sometimes a $25-$50 decrease on a large annual bump may make a difference to someone and avoid hundreds in turn costs. Thoughts?? ????
Kristina Janis
Show them the price on the website. Show them they are not paying what newcomers are paying. As you guys appreciate their loyalty and you agree it wouldn't be fair new comers getting lower than them. Show them the market rent amount vs what their going to pay. Be honest. Also ask if you can get their shampoo cleaned or house cleaned. Offer what you can countinue doing for them, great customer service etc. If the price on website is lower than their amount , offer a transfer at the end of lease.If you are low occupancy then you'll have to negotiate . Example:$50 increase to $30. I have even seen where even a $10 deduction makes them happy. So $40 renewal increase. Always works for me however it depends on the needs of your property. That's how you determine how to proceeded.
Shannon Stine
I let residents negotiate. It makes them feel good and that’s our end goal.
Alex Mann
I’m a big believer in sending your best and final offer out the first (and ideally last) time you provide the renewal offer to the resident. Turn costs are what they are - and they’re predictable. What isn’t always predictable is vacancy on the apartment. If you’re willing to let that apartment sit vacant a few weeks or even a few months (perhaps if you’re in a slower time of year) because you know the next resident will be paying $200+ more, stand your ground. It also depends on the needs of your owner. Some need that physical occupancy, but for others, the rent roll being at market rent is more important. That should dictate your renewal strategy and how far you’re willing to go.
Guest Insider
I take their request to my manager. If we can do better to keep a great resident, I’m all for it.
Jack Dewberry
If you negotiate they’ll do it every year and tell other people. There is other stuff you can do though like offering a carpet cleaning or touch up paint.
Guest Insider
I don’t negotiate. It is what it is.
Guest Insider
In some markets, you don't have an option but to negotiate. Currently working in a market where loss to lease is upside down and advertised prices are well below in place rents. Would you rather take on vacancy loss, or show a smaller increase and let a resident stay in their home? If your market is still right side up, congratulations.. stick to your guns.
Guest Insider
I’ll use myself on this….we rent a duplex. It was affordable when we moved in. Then during Covid, the owner upped our rent by $100. I didn’t have the heart to tell her that she couldn’t raise our rent during the pandemic so, we just paid it and hoped she wouldn’t increase it. Then, last sept, we got another increase of $165. $265 increase in the matter of a year. It’s now no longer affordable and we are moving. If she had done $50 increases, we would stay for several more years but, this kind of increases are too extreme. Plus, it’s hard when you know her daughter lives in the other unit for free so, we are paying the entire mortgage, property taxes and all utilities l (we are a high flat rate). So, that’s also something that weighs heavily on our minds.
Guest Insider
Be careful, negotiating is a potential fair housing issue. If you negotiate with one, you need to negotiate with all.
Guest Insider
“I did all the negotiating on your behalf to get you our best offer. You’re welcome!”
Brooke Frederickson
We may lower the rent a little but only offer a six-month lease instead.
Cindy Shearer
Unlike the Cable and Satellite companies, our renewal offerss are less than what we charge new customers. We figure we are trying to keep our residents by not raising their rents as much. Example: A renewal offer to one of our residents would be $625 for a one year lease for a one bedroom apartment. However, any new residents coming in would pay $650-$675 for the same 1 bedroom apartment.
Judy Green
Always negotiate! It makes the resident feel like they are apart of the community you just need to know your negotiating limits.I always ask my residents what do they feel is a fair increase.
Gerry Hunt
I negotiate. There is a percentage that I won't go under. If I have a resident who has been with us for 15 years, never been late, never any issues ~~ I negotiate!
Guest Insider
Do it for one, you do it for all. Fair housing 101.
Lilah Poltz
Removed
Laura Bruyere
Can't negotiate rents or renewal increases. Negotiating rents are a big Fair Housing no no. I think it's okay to offer a cap for long term residents. Make sure it's consistent (5% max cap for all 10+ year residents) in writing, in your policy procedure manual, and it's offered consistently to all of those individuals equally every time. The discount would be based on the length of their residency and think that may be acceptable.
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22 Jan
