Offering Discount for Early Renewal

[Blake C.]

I have middle income tenants in one of my properties. Overall, they have been good tenants. Clearly tenant turnover is costly (repairs, vanacy, work I have to do to fix it and show it). Have you ever considered giving a discount to having a tenant sign on to a new lease early? Their lease expires April 1st and I thought about giving them some kind of discount or incentive for signing back on a few months early.

I realize that the biggest reason why someone stays is if they like it, feel like its a value, and can afford it. By giving a $100 discount or doing some minor updates to keep them loving my place, I could save myself $1500-2000 in potential turnover costs. Or I could do nothing and hope for the best!

[Stephen S.]

Are you saying that if the tenant stays there are repairs and work to be done on the property which you would not do unless they left? Or am I failing to take your meaning properly?

But in regard to your question: yes; I would offer an inducement in order to create a greater benefit for myself. But I would not offer inducement in the form of work and upgrades which I should be doing for the property and tenants anyway.






Originally posted by @Blake C.:
I have middle income tenants in one of my properties. Overall, they have been good tenants. Clearly tenant turnover is costly (repairs, vanacy, work I have to do to fix it and show it). Have you ever considered giving a discount to having a tenant sign on to a new lease early? Their lease expires April 1st and I thought about giving them some kind of discount or incentive for signing back on a few months early.

I realize that the biggest reason why someone stays is if they like it, feel like its a value, and can afford it. By giving a $100 discount or doing some minor updates to keep them loving my place, I could save myself $1500-2000 in potential turnover costs. Or I could do nothing and hope for the best!