Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
7y
@Colleen F.
Just thought that this subgroup of renters would be great for the community. They tend to have a passion for this career and are possibly long term tenants in the area. Thought that the stability may help the neighborhood/area.
Just a thought really. Would you consider any rent discounts to any tenants?
Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes
7y
I realize this is a nice thing you are thinking about. To give a little extra help to people you feel give back to the community. I almost didn't post because I hate to throw in some negativity, but here is a different perspective.
You're also inadvertently leaving out people who CAN'T have those jobs, ie retired people and some people with disabilities. So I'm pretty torn on this general idea.
I was diagnosed with a major medical condition fairly young. I never had the choice to join the military or the police/fire dept. in a First Responder capacity. Or a host of other occupations that my medical condition precludes. I really do try not to be resentful of all the special favors certain professions get or just resentful, period. And most of the time I'm successful with that and count my blessings. But sometimes, that constant bombardment of discounts/freebies coupled with everything I go through on a daily basis, is like death from a thousand small cuts.
But would I really want to take those things away from people who risk their lives for others, even though it can feel hurtful to me and others? I absolutely wouldn't. But a discount/special favor that not everyone would have had the ability to achieve is also not something I could bring my own self to do either.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
@Alf Holst I wouldn't. I have heard of people giving cops discounts in MF complexes thinking it increases safety and that may be the case in some area but that isn't for me, but those areas also aren't for me. Your idea is more a general that these professions are good for the area but is that just your feeling or is there data that backs that up? And if you think that you could just give them more points on screening so they are more likely to get your place then other professions, without a discount. The discount is more a direct payment to that individual rather then support of those groups as a whole. You are donating $600 a year to an individual because they are xyz profession and you hope they stay in the community longer because of that. I know businesses do it but I would rather directly support the causes I believe in. Just my thoughts. The only discount I give is for electronic payment on the first of the month.
Rental Property Investor · Conyers, GA · Member since 2017 · 51 posts · 14 votes
7y
@Colleen F.
I know a landlord that provides a discount for paying in the 1st by $25. After that it’s “full” rent. He said it’s more of an incentive to get his tenants to pay on time.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Alf Holst as far as offering a discount to certain professions, I can see that being called into question as discriminatory. By giving incentives one group, you are not doing the same for others. Although profession is not a protected class, Fair Housing continually reaches further into these types of things.
Your definition of "good professions" seems pretty arbitrary. Why are first responders, teachers and health care workers better than other people? What about mechanics, attorneys, bank managers, auto sales, accountants, insurance brokers, realtors and similar? You are saying they are not good people, not stable, not good for the community? Good and bad people come in all professions.
Screen people based on income / credit and you will get good tenants.
As far as a discount to pay on time, it is more customary to charge a late fee if they don't pay on time. What you will find is tenants will take the early pay discount even if they don't pay by the first. Ultimately tenants who pay on time will do so regardless of the discount, so you are probably just throwing money out the door by giving money to people who would just pay on time anyways.
I do recommend a discount for electronic payment. It is better to offer a discount than to just require it. Requiring electronic payment as the only payment could violate federal law. There is rules around this which is why loans and utilities all offer multiple payment options. There is also some states with specific laws, such as in California you must offer at least one other method of payment that is neither cash or online payment. (California Civil Code Section 1947.3). By offering a discount to pay electronically, you avoid any issues that arise from forcing people to pay electronically.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
7y
@Tim Harwick I give an electronic discount of $10 if paid on the first of the month, it is written in the lease and l show the full rent amount too. If I don't receive electronically on the first I notify them that they get a $10 charge. If a holiday falls I the 1st I don't ding the people when it shows on the 2nd but in general it works well for me.
@Alf Holst another way to achieve what you want is to give preference on occupancy to those employed in town. Not sure what fair housing would say but a lot of the affordable housing programs seem to do it. However in some areas just about everyone already meets that criteria!
Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes
7y
In theory it sounds great. You’re appealing individuals that have good, steady income. I don’t, however, know if this falls under some discrimination category. I feel like it probably does.... I’d maybe say do a discount if ya pay on the first of the month....
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
I thought about it ... then I thought about how I will be losing money over such an arrangement which breaks my number one rule - never lose money . I just can’t do that to myself
Santa Rosa, CA · Member since 2017 · 325 posts · 701 votes
7y
The large upscale apartment buildings in my town offer 1 month of free rent to anyone from my company that signs a 1 year lease. So at month 13 you don't pay then sign a new 1 year lease for year 2 (it only applies to the 1st year). At the time I didn't really understand why, since you had to pass the income and credit checks regardless and there were only 2 companies that owned all the upscale places so not a huge supply.
However, I saw the point over time. 50-70% of the tenets all work together. We are all white collar professionals. Easier to work out problems without getting management involved. It is a big company so the paychecks always arrive on time and they set up auto-deposit the day after our pay day. They were grooming the property to be a certain thing. And renting to employees of one of the biggest employers in town didn't hurt with the government either.
I would say if you are trying to turn around a property, or keep it in a certain class (A or B) targeting cops or firefighters or teachers could be a good strategy. I agree there is probably a line there for discrimination, if you exclude others, but offering a discount is not the same as refusing anyone not in that category.
Gainesville, FL · Member since 2019 · 73 posts · 50 votes
7y
When I was in college, our next door neighbor was a cop, and he was living there with a reduced rent and was the on-call law enforcement officer in case anything ever went down.
We the neighbors were all underage - He would come over off duty and grab some beers...He would also call us and let us know that "Party Patrol," was on its way, so we could tell everyone to clear out before the on duty units could arrive on scene. This might make it sound like he was a bad guy, but I think he was just trying to be an okay neighbor....He was kind of straddling that line of not doing what his agreement with the complex was asking him to do...
Jon Taffer of Bar Rescue always says that people get comfortable with a discount because they come to expect it, and then get pissed when it gets taken away. Is there something else that you might offer to a first responder or other public safety personnel that isnt a rent reduction that can still be a benefit? Just a thought.
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
7y
If you want to do it, go ahead and do it. I sure wouldn't listen to anybody that says you shouldn't because others cannot get those jobs. So what? A lot of people can't get CEO jobs that make millions. And I have read similar posts before of some thinking it is discriminatory. Unless a lawyer shows me case precedent I think that's crap. You are offering something to certain people with a certain job. You are not taking away or denying from a protected class.
Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
7y
I have thought about this. My properties are in a city that has several military bases. Thought about Active Military discount.
It may work for certain type of properties, but I would not offer any discount of my properties manly because of the type and rent. Either they have the money (high pay jobs) or they don't.
Your strategy may work attracting good tenants, but be careful disregarding applications or denying the property to qualify individuals that are protected class.
Ephrata, PA · Member since 2019 · 40 posts · 11 votes
7y
I forget which episode of the podcast it was on but someone mentioned that they had ID badges made for their apartment complex and went around to local businesses to see what types of discounts or promotions they could offer their tenants when they showed their ID badge at checkout. It helped create a better sense of community in the complex because everyone felt they were a part of something having ID badges and it helped out the community and local businesses by having loyal customers coming to their stores. Sounded like a win win win situation to me. You win because you're not losing out on rent and still getting good tenants, the tenants win because they get discounts, and the community wins because the people were proud to live there and help out the local economy.
If I ever decide to get into big apartment complex investing I'd probably do something similar to this rather than giving discounts on rent or gifts or anything like that.
Great Falls, MT · Member since 2017 · 97 posts · 172 votes
7y
@Alf Holst
I used to reduce my deposit for military. Only on the AHRN site, because you must be military to look at it. I wouldn’t do that on a more public advertising forum, because some idiot will cry discrimination.
But it really had no effect. I wanted Military because they are a known entity to me (I’m Military). But really, they can be bad renters just like anyone can. Personally, I’ve never had a bad military tenant though. Also, they move a lot and can use SCRA.
I was also hoping to “give back”. But it just didn’t seem to make a difference to the tenants or to my business (increase in military applicants).
@Joe Splitrock, I don’t think you’d be in trouble for offering certain professionals a discounted rent. Occupations are not a protected class.
Of course, *I’m not a lawyer* and local/ state laws may vary.
You are correct, it is not a protected class. Of course we all know Fair Housing reaches beyond just the protected classes. They have mandated emotional support animals and have questioned landlords denying felons. I think they over reach continually, but we have to deal with it. My point was someone could easily claim discrimination. A 65 year old retiree cannot get the discount. A blind person cannot get the discount. The discount is there to encourage certain people to apply, therefore discourage other people. It ends up discouraging people who are part of a protected class. I don't know how fair housing would react to such a compliant. To my knowledge there are no HUD memos addressing this currently.
More than anything, it is not common to offer rent discounts for certain professions, because most landlords want to rent their property fast to good tenants. Even though you can legally discriminate against certain professions, there is really no reason to. Opening your business to a larger pool of renters is a better business move, as long as they make the necessary salary and have stable employment.