Rental Property Investor · Cape coral · Member since 2020 · 55 posts · 30 votes
Hey everyone,
I’m looking for a bit of your insight on what's working for you all in the Southwest Florida rental market.
We’re seeing a bit of an oversupply of long-term rentals lately, and we have been applying different strategies to promote ,positioning , house perks , house shine conditions and price reduction strategies on our rentals... as we have done in the past with the only difference feedback from tenants has been they have too many options to choose and resulting slow to keep fulfilling the vacancies compare what we used to see in the past
I’ve noticed some folks offering incentives like a free month of rent instead of just rent price reduction. So I'm curious: in your experience, have you found one strategy more effective than the other in getting solid tenants in a saturated market? I’d love to hear what’s been working for you or any insights you can share!
Can't speak to Southwest Florida specifically, but in thinking about rent concessions (e.g. a free month's rent) vs. a lower rate, try to focus long term.
Giving a free month is a one-off. Giving a lower rate is something that cuts away at your income over time and can cost a whole lot more. Especially if others see those lower rates and then you're under some pressure to apply it elsewhere.
Of course, it depends on how much one month is, and how much of a discount you might offer instead. But if the two values are the same over the lease term, I'd say concessions is usually cheaper and more logical. If that unit was going to be empty for that month anyway, it's not a major difference in cost from doing nothing.
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
11mo
Keep a close eye on the competition, and price your unit at or slightly below the other available units.
Offering a 'free month' is ok. I've never done that, but if I ever did, I'd offer the LAST month's rent, not the first one.
If you do offer the first month's rent 'free', I'd take an additional month's rent as security deposit. Know and always follow your l/t laws regarding security deposits.