Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
I know laws vary, but in general terms is it likely possible for me to offer different rent options to tenants for an apartment complex?
For instance:
Option 1: $100 deposit and $495/mo
Option 2: No deposit and $520/mo
I'd like to advertise the lower rent option, but have the second option for those that do not like putting down deposits. Normally I require deposits, but this area has other apartments that do not require one.
Norwood, NJ · Member since 2013 · 47 posts · 5 votes
13y
Deposit is a layer of protection, I would rather have it. But weigh the two options that you have, after three month, option two earned 105 dollar more than option one, and will continue to do so by 35 dollar per month, from economic point, I will go for option two as landlord.
Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
13y
I didn't have enough activity with $520 only. I'm now advertising $495 rent w/ $150 deposit or an option of $520 rent with no deposit. I prefer $520, especially since it increases the NOI and thus increases the property's value.
Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
13y
I have 1 full month's rent deposit on all my SF homes. But this apartment, the demographics are not having it. They'd rather pay $525/mo with no deposit than $490/mo with $100 deposit. Strange, but I'll take the increased income to pad the NOI.