poppy Posted May 10, 2017 Share Posted May 10, 2017 We rent out our former home. First timers this year. We like our tenants. They pay on time, communicate well, nice when we had a package delivery mix up, etc. They're all we could have hoped for. We don't know if they are staying - asked once, they said not sure yet. My husband has suggested we offer to lower the rent next year by $100 a month. Which is just under 5%. He said co workers of his suggested it as incentive to keep good tenants. (These people who rent out multiple properties). I don't have a problem with this. Just wondering how typical it is and if you've ever done it. Quote Link to comment Share on other sites More sharing options...
luuknam Posted May 10, 2017 Share Posted May 10, 2017 I'm not sure the difference between $2000 vs $1900 is going to compel me to stay... I mean, I'm not going to go through the hassle of looking for an apartment and moving etc for a $1900 apartment when I'm in a $2000 apartment, if that makes sense, unless I'm really struggling to come up with the rent. But, it'd be nice, and it might have a *small* impact on likelihood of them staying... I just don't think it's going to make a big difference. Quote Link to comment Share on other sites More sharing options...
maize Posted May 10, 2017 Share Posted May 10, 2017 I would be delighted if a landlord did that and it would be an incentive to stay. Especially if accompanied by a note of appreciation for being a good tenant--would make me want to continue to live up to that expectation :) 8 Quote Link to comment Share on other sites More sharing options...
crazyforlatin Posted May 10, 2017 Share Posted May 10, 2017 A few large apartments in Silicon Valley do that. When rents go up annually, either lowering it or maintaining the same amount helps. Quote Link to comment Share on other sites More sharing options...
luuknam Posted May 10, 2017 Share Posted May 10, 2017 (edited) Come to think of it, I think I'd care more about whether the landlord is responsive to needed repairs and all that kind of stuff than about their willingness to offer a $100/month discount. Unless maybe these people moved there from out of town and they just took this apartment because they needed something and didn't have the opportunity to look around much before moving from the other side of the country, kwim? In which case, the cost difference might be more worthwhile since they've had more opportunity to really learn more about the rental market in your area etc. ETA: don't get me wrong - I'd love it if our landlord were to lower our rent by any amount - I'm just not sure a 5% rent reduction is going to have much of an impact on my likelihood of moving. Edited May 10, 2017 by luuknam 1 Quote Link to comment Share on other sites More sharing options...
SparklyUnicorn Posted May 10, 2017 Share Posted May 10, 2017 That would be sweet. 1 Quote Link to comment Share on other sites More sharing options...
Rebel Yell Posted May 10, 2017 Share Posted May 10, 2017 Over the year that is $1,200, which sounds like just over half of a month's rent? Not a huge savings, and probably very little impact on their decision. How about instead asking if there are any small updates that they would like? New carpet or professional cleaning, paint- not boring beige, new shower head... Things typically not in rentals, or only upgraded/redone when a tenant moves. I had a friend who was a 10+ year renter in a "lower upscale" rental community. Excellent tenant, but she planned to move out if they didn't replace her carpet. It was old, cheap, and no professional cleaning was going to make it better. Over the years she saw new carpet going into many units as tenants moved out, she just wanted something to feel new. She stayed several more years after. 6 Quote Link to comment Share on other sites More sharing options...
poppy Posted May 10, 2017 Author Share Posted May 10, 2017 Over the year that is $1,200, which sounds like just over half of a month's rent? Not a huge savings, and probably very little impact on their decision. How about instead asking if there are any small updates that they would like? New carpet or professional cleaning, paint- not boring beige, new shower head... Things typically not in rentals, or only upgraded/redone when a tenant moves. I had a friend who was a 10+ year renter in a "lower upscale" rental community. Excellent tenant, but she planned to move out if they didn't replace her carpet. It was old, cheap, and no professional cleaning was going to make it better. Over the years she saw new carpet going into many units as tenants moved out, she just wanted something to feel new. She stayed several more years after. This sounds great, but things are a bit tight..... we can budget to NOT get income more than we can spend, kwim? 2 Quote Link to comment Share on other sites More sharing options...
LucyStoner Posted May 10, 2017 Share Posted May 10, 2017 Rents here are climbing sharply. Any decrease in the rent or an understanding that the rent won't be hiked up would get most renters around here who could stay, to stay. Obviously, they may need to move away for other reasons or they may buy a home at some point but if they are planning to remain renters in the same place, any break on the rent is an incentive not to look around for a different rental. 6 Quote Link to comment Share on other sites More sharing options...
Bootsie Posted May 10, 2017 Share Posted May 10, 2017 $1200 over a year may not be enough by itself to get them to stay. But, they would be saving moving expenses and hassles, so the $1200 may be enough to convince them. (and if it isn't you haven't lost anything). If I were the landlord, I would consider doing it. It would be cheaper than having the house vacant for a month. It also saves on painting, rekeying, and all of the other things that come with changing tenants. Quote Link to comment Share on other sites More sharing options...
EmilyGF Posted May 10, 2017 Share Posted May 10, 2017 For me, the best things landlords did was communicate that they trusted us. It made me so comfortable in my home when I felt like there was no animosity between me and the landlord. Now that landlord that was passive aggressive... wow, don't even get me started on her! Emily 1 Quote Link to comment Share on other sites More sharing options...
solascriptura Posted May 10, 2017 Share Posted May 10, 2017 It depends on why they would consider moving. Is it just about the money? 100 dollars may or my not help. 1 Quote Link to comment Share on other sites More sharing options...
Catwoman Posted May 10, 2017 Share Posted May 10, 2017 It depends on why they would consider moving. Is it just about the money? 100 dollars may or my not help. I agree. If they're thinking of moving because they are planning to buy a house, a discount on the rent probably won't sway them. Ditto if they don't like the location or want something considerably larger or smaller. This may not be a popular sentiment, but if you're charging a fair rental rate, I don't think you need to offer a discount. I would make it clear to the tenants that you won't be raising the rent this year because I think that would be viewed as a nice thing to do, but I think it could be a nasty precedent to start offering reductions, because they might expect to pay even less rent the following year. Also, if it's a nice property, why would you devalue it by lowering your rate? I don't know if it's a great idea to put the thought into your tenants' minds that the property might not be worth as much as they're paying. 3 Quote Link to comment Share on other sites More sharing options...
Rebel Yell Posted May 10, 2017 Share Posted May 10, 2017 This sounds great, but things are a bit tight..... we can budget to NOT get income more than we can spend, kwim? Sorry, I've never been a landlord. I guess I don't see a difference between not getting $100/month and taking the $100 and then turning it around into a few cans of paint or a shower head. Either way you don't end up with the $100. Not arguing, just not getting it. I do hope you're able to keep your good tenants, though! 3 Quote Link to comment Share on other sites More sharing options...
ThisIsTheDay Posted May 11, 2017 Share Posted May 11, 2017 I'm a landlord with multiple properties. We have considered offering a discount if the tenant pays ON or before the 1st of the month. No, it wouldn't be enough to make a difference in the long run, but in general, we think it would be an incentive to pay promptly. Imo, everyone wins. If I were in your situation, I might consider raising the rent slightly but offering a discount to the current rate as long as they pay by a certain date. Since they already pay timely, they wouldn't be charged an increase. We use a property manager though who makes all decisions. She's not interested in offering any discounts, so we haven't pushed it. It's very infrequent that anyone pays rent late (surprisingly). Quote Link to comment Share on other sites More sharing options...
barnwife Posted May 11, 2017 Share Posted May 11, 2017 When the annual lease was up for renewal last year, I took $100 off of that months rent. It was more of a thanks for being such a good tenant discount. She requested month to month this year so I added that to lease renewal with the $100 discount. This is more appropriate, and much cheaper too. Maybe a small gift, $100 off and a thank you card? If you're considering selling and it would possibly be sold as a rental, then the value is the rental amount. 1 Quote Link to comment Share on other sites More sharing options...
Plink Posted May 11, 2017 Share Posted May 11, 2017 Could you, instead, let them know that because they are such great tennants you would be intentionally setting aside $100 per month for whatever cosmetic upgrades they would like? Then, when you have saved enough for whatever they request, it will be easy to hire painters, build closet shelves, or replace a light fixture. You could even give them a running total of their "fun home projects" budget every few months and ask how you could help them enjoy their space more. 4 Quote Link to comment Share on other sites More sharing options...
StephanieZ Posted May 11, 2017 Share Posted May 11, 2017 I wouldn't discount the rent unasked. (If they asked, I'd likely comply with such a modest amount.) The cost of moving is large, and I can't imagine someone moving out over that small a rental difference. What I would do is to be quick to replace needed items (flooring, appliances, etc) and to encourage the renter to have input into what you select. Or to occasionally do some pleasant upgrade. We do this with our long term tenants. I have even given the renter full authority in choosing replacement appliances when they need to be replaced (within a set budget and with occasional limitations as the specs.) I let them paint the interior of the house in custom colors, just assuming the cost of likely repainting upon a tenant change . . . We let them put up a fence, etc. These sorts of things allow the tenant some of the perks of ownership, which I think is likely encouraging them to be happy longterm in our rental. Having a nice wood floor in the living areas of the house instead of old carpet, or nice ceiling fans or a step-up fridge . .. or some other similar perks, can really make a tenant happy, IMHO. 3 Quote Link to comment Share on other sites More sharing options...
eternalsummer Posted May 11, 2017 Share Posted May 11, 2017 As a tenant (and a pretty good one, imo) I'd be thrilled if our landlord said, "Hey, we really like having you here and we'd like to improve the place a bit every now and again, what things can you think of that you'd like? and we'll see what we can do." You don't have to shell out $4000 for wood floors all at once, but if they say they'd like a new washer, a new light fixture in the bathroom, a carpet cleaning - then you can say cool, we'll come out and do the light fixture next week and we'll be able to get in a new washer before Christmas and have the carpets cleaned this summer, etc. That way you're putting the $100 to use slowly, the tenant feels valued, and even if they do leave, you've done improvements to the property that will outlast the tenant anyway. I have had, unfortunately, pretty often had the opposite kind of landlord, hah. 5 Quote Link to comment Share on other sites More sharing options...
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