BiggerPockets

The absolutely, positively best incentive I've ever used on tenants is this:

I don't evict them if they pay on time and keep all clauses of their lease! No other incentive expected or required, this is a BUSINESS relationship, not a DATING relationship.

frank

First month free seems to be a good incentive to getting people in the door. Also, offering a small discount on rent if it is paid before it is due can help. Of course there should be a sharp stick if they are late as well.

I am kind of a data hound, so...wanted to share some of my conclusions from the American Housing Survey of 1995/6: [comments are mine from a paper written on the subject, not from the study directly]

"On average, renters move out most commonly due to factors not influenced by the owner/landlord such as a new job, job transfer, to shorten the commute, to purchase their own home, or to move into a larger unit. Remarkably, fewer than 6% of tenants cited moving because the rent was too expensive, which may suggest that rent increases are not the primary—or even a common—reason for moving out. Amazingly, when renters were asked to identify the main reason for choosing their current rental unit, "kitchen," "exterior appearance" and "quality of construction" combined for less than 3% of the total responses while answers relating to issues largely beyond the control of the landlord totaled the remainder, e.g. location. These should be factored in when determining whether or not to offer rental incentives as a matter of practice, whether or not to increase rents on an annual basis (to keep up with inflation or mirror increasing market rents), or whether to spend money upgrading the kitchen in your rental apartment ." [specific table @ http://www.census.gov/hhes/www/housing/poms/pomtsum4.html]

--I should caveat this by saying that I definitely offer free high-speed internet access whenever possible to get people IN the door. Once they are renters, just keep the rent increases modest, don't run them out of dodge. Everyone loves a $25 Starbucks or Blockbuster gift card, but it won't make the difference between staying or leaving for anybody. The lesson I am slowly learning over the years is that the best incentive/treat for tenants is to be professional, incredibly responsive and efficient, and totally businesslike. Few people go looking for a rental apartment because they want to make best friends with a landlord! :pup:

I have tried incentives before and free give aways do not work! They are a waste of time. The most I will do is $100 off first months rent! I feel giving a month free is just too much.

Marc
www.greenfieldent.com
purchasing without competition

I always give my tenants a small gift around the holidays, and if something breaks in their apartment, I always try to replace it with something nicer than what was there. These things won't make a tenant necessarily stay longer; moving is generally due to other factors. However, maintaining a good relationship with my tenants is very important to me; not only are they my neighbors ( I live in the lower unit of my duplex,) but I am also counting on them to take good care of their apartment.