Experience tells me (with a few exceptions) the first two weeks of the month tend to net the following types of renters:
1. Those who are looking three months before they need to move, figuring they should start early and expect a landlord to be willing to hold a home for them.
2. Those desperate because they were supposed to be out of their home at the end of last month.
3. Nobody else.
The reason most renters tend to start looking into homes around mid-month because they have a paycheck to cover deposits. Also, traditionally, if people move out on the 31st, landlords don't have their homes cleaned and ready to rent until around the 10th, so inventory tends to be thin until mid-month anyway.
In my case, my tenants in Fultondale moved out mid-month, but truly, my home wasn't ready to even show until the 10th of August. Mr. 114 didn't finish all of his tasks until then. However, it didn't stop me from peppering my own Craig's List ads for the past two weeks. Nor did it stop me from pacing the floor, wondering what the hell Kirby was doing with all of his spare time. Why wasn't he spending it on my house?
Finally on Thursday I broke down and called him. Yes, I really waited 12 days. Kirby had no news for me, other than a few Section 8 folks. He respectfully declined on my behalf.
Kirby and I did bandy around a "move in special" or lowering the rent. But, opted to wait until next weekend and see what kind of results we got. Kirby also knows most people don't look to move the first two weeks of the month.
In a gigantic leap of faith, I gave Kirby the following directive: if you need to lower the rental price next week, do so. If you need a move-in special, do so. If he calls and asks me, I will waffle, sniffle and groan. So, just make it happen.
Think of it like pulling off a band-aid. There really is only one way to successfully accomplish a rent reduction--quickly. It only stings for a moment.
Of course, knowing this is "the" weekend most people will be looking, I am crossing my fingers and toes we won't have to go that rent reduction route. Maybe, just maybe, the sane, gainfully employed prospective tenant is out there looking. But if not, it is better to take $100 less than let it sit vacant another month.
Friday, August 13, 2010
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3 comments:
Being a marketing guru, I know you already know this but I felt inclined to comment on it anyway. Lowering the rent by $100 doesn't appeal to the common Joe like stating you are running a rent special that is worth $1200!!! Personally, I always bit at the ones that gave you 1/2 off the first months rent because it saved me a lot of money upfront with the moving fees. Were you to do that you would only be out $600 rather than the $1200 for the year. If you are still determined to do the $1200 deal, then offer then 1/2 off the first and last months rent. If they don't stay the year - they don't get the other $600 credit.
But that's just me.
By the way, I (and every other renter I have ever known) always (add extra always for emphasis) looked at the properties with rent specials before anything else. Given that the only rent specials in Birmingham are for apartments, I would think your traffic flow would increase quite a bit.
All true.
But experience tells me those who need a move-in special don't tend to have realistic expectations of the monthly rent. Those are the ones who send me (or in this case Kirby) the "I'm a little short this month because I went on vacation" e-mails.
For example, the two people I have given "move-in specials" to in the past were Ms. Betty and Ms. Kathy." Not a large sample size but in both cases I was very sorry. Even if Ms. Kathy is behaving herself now and acting like a model tenant (she paid by the way), it took a trip to Legal Eagle (and a sweet little talk from Legal Eagle) to straighten up Ms. Kathy. That cost me too.
The $1,200 for the year I loose (which part of is Kirby's management fee and part goes to me), is a lot less than the headaches and other extras that go with the above drama.
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