I HATE stooping to this but it's working great. I posted a little something earlier, but here's more info.

Do the math and give it a try. Something is better than nothing.

At the advice of some dicussion here about 10 days ago, we're advertising "$99 Move In Special".

We have several vacancies which I KNOW will sit empty for the next 30-60 days from normal seasonal flow.

I can stop whenever I want and go back to normal.

Most people are flat busted right now, so a full deposit is RARE or IMPOSSIBLE.

The houses will likely sit empty until Mid Feb or March when and IF tax refunds start appearing.

Rented 2 just before Christmas.

On both got $150 pet fee + 99 = $240 for Jan and will get $35 additional rent for the next ____ months. They will also be paing their despoit in January.

Tenant will pay the heat. Whew!

RENTED for Feb - not HOPING to rent in Feb.

Have 14 APPLICATIONS in process and approval calls back to several.

Let's hope you screen well......

I seem to remember the banks loaning money to people and they did not pay them back, and done quite a bit of damage....to the economy....

Brad20K,

Give more details here. Is the $99.00 the first month's rent? Do you still charge the normal deposit but divide it into payments? I find it interesting these 'flat busted tenants' can still pay a $150.00 pet fee.

I ran it in '08 and still do if I mutliple openings. $500 deposit, $99 first months rent. Then I pro-rate the second months rent to get them to the first of the month. Then full market or a little more after that.

In '08-9 time frame, I know of alot of LL that just simply dropped the rent. Some $75 or more. Mine stayed the same or was $10 down. But I offered the $99 first month and kept the rent up. I still have over 1/2 those people living there.

Brad 20k,

I am also curious about the $99 move in special and many apt complexes are doing this around here.

I am thinking about calling them to see how they are managing to survive with just 99 bucks to move in

In,

Congrats on raising the rents by $100! Wow!

I spend my money improving the properties..

Universities are raising the dorm fees...

Minimum wages are going up...

People have more money to spend...

Our poor have cars cell phone, computers, even eat out, take vacations...and collect Welfare...God Bless Them.

You can cater to the 99 cent group if you like...me I limit my liabilities...

If you lower your price 10% you will need to increase your gross 25% to make the same profit....

glad you've implemented brad....

I've used $99 move-ins for two years now. Gets a lot of buzz going! I expect a full deposit, though, no "work with me" pleas accepted.

There are a lot of riff-raff to sort thru, but I still end up getting a quality tenant at the end, and usually within 2 weeks. Some even pre-lease before the current tenant moves out, so only 1 day down-time for clean up and make-ready.

Given:

-several vacancies. Rent income slipping away, never to be receaptured

-slim to non chance of getting the rented over Christmas break, or even early to mid Jan.

-tax checks disappear rapidly in Feb, faster than we can respond.

Tenant Given:

-CASH is the road block. Even good applicants do not have ANY cash reserves. The deal can be great all day long but they don;t have $700 for a depsoit.

BUT...they CAN borrow scrape together 99 bucks from Granny, return some gift cards, etc.

Find a way to rent to people who have good aplications & jobs but NO CASH.

As you noticed, some say "My lease isn't up until Jan 30" or "I have not given my 30 day notice yet" but for $99, they're in.

The Plan:

I GAVE them (choke, gasp, wheeze, LL heart attack!) the rest of Dec for free. I wasn't getting a penny anyway and it helped bring them in.

Rent for Jan is $99. (choke, gasp....) BUT IT IS RENTED!!

I CAUGHT the fish before they had a chance to spend their Feb tax refund elsewhere.

They sign a written payment plan for teh deposit during the month of Jan, so I still get $700 cash flow in Jan.

Feb rent is already lined up, ready to go while I spend my time on the other vacanies.

And if this helps...Roy, you'll like this...I bumped the rent up $20-25. So that's an additional $240-300/yr I'll bring in as a result of letting them in on a deal.

I think it is great advice Brad. When I tried to negotiate the commercial lease for my laundromat, the landlord was willing to help by discounting some of the initial costs but insisted on adding them on to the monthly rent over the lease term so the net to the landlord was the same. The real value of a tenant is over their anticipated lifetime as a long-term tenant, move in costs are not really that important. This only works with people who have income exceeding minimum criteria.

I have been taking a lein on car titles as deposit. So far have not had to exercise a lien. This is very effective and begins to separate the serious from the BS artists.

Are you gonna pay the rent on time? Oh yeah I am never late with my rent! DO you have a deposit? No, no cash. Are you SURE that you will pay the rent on time? Oh yeah, I am NEVER late with my rent! How about I take a lien on the title of your car? Should be no worries if you do what you say you will do.

Quick update: rented 2 this week, that's 4 in the last 2 weeks - the hardest weeks of the entire year - Dec 23 thru Jan 4!

1 of those 4 was an very nice home that we kept off the $99 special. Got full deposit and full rent plus pet reigstration and pet rent.

This sounds like a good system, especially for this time of year!

Another update: Saturday 1-6-12

Not including the 4 we rented, we now have 24 apps (not calls) from the ad and have approved and offered houses to 4 families.

Steve C - change your wording to Non-Refundable Animal Registration Fee

-"deposits" are held and refunded.

-not all animals are "pets". Got hung on that one!

They don't blink at the $35 per pet fee. Recently signed a lease for 2 chihuahuas which added $70 per month.

I've tried to work with cars, but usually they are not worth more than the loan. I HAVE taken paid off cars, boats, and tool chests as downpayments.

You'll have to slow down a little for me on the details for the $99 move-in special. I just finished renovating a duplex and I've been advertising on CL for the past month. So, please run this by me s.l.o.w.l.y.

Anything we have empty after Thanksgiving can easily sit vacant through sometime in March. I like this idea, but I'm hesitant as to who the $99 might attract. Since most of my rentals require about $1,900 to move in (1st & last), I'm going to try a $499 Move In special to see how that works.

Update 1-10-12 $99 Move In Special

Signed 2 more leases today, making 6 new leases in 16 days (Dec 23 - Jan 10).

27 applications from the promo.

Problem: we're not equipped to process all 27! Prioritized: processing the high rent prospects first.

Turned my list of 10 empties into a list of 4.

Rented, not paying heat, Feb 1 rents are ready for autodraft, and getting weekly payments for depsoit. (some paid the depsoit).

Terry C - I'm typing this v e r y s l o w l y . . . :) First, you'll get what you think and talk about, so change your thinking to "When I rent this TOMORROW..."

The simplest explanation we give prospects is "$99 puts the keys in your hand. No rent until Feb. We'll work with you on the deposit."

The "hook" is to serve people who have no money (most everyone in this season!). Rent YOUR house while the other LLs refuse to budge on full deposit, first and last month rent. Their homes are vacant, paying heat, while MINE are occupied and off the list.

Traditional LLs EXPECT to sit on an empty during January, so they DO!

Prospects KNOW they cannot come up with deposit and first month, but anyone can scrape together $99. They BELIEVE they can rent from us.

Tax refund checks are now appearing in early to mid February due to rapid refunds. If you don't have the prospect lined up for YOUR rental, they can go ANYWHERE once they have cash. You are now competing with the pros.

Terry C - Love ya but you're over-thinking. The whole thing works because it creates excitement and a reason to "act now before the special ends". Customers need a reason to move forward.

Right now they cannot move forward because they are out of cash, so this promo catches their attention and they believe it can solve their problem.

With $99 we'll sign the lease and give you the keys. We write up a promissory note / payment plan for the depsoit and regular rent is due Feb 1.

when we started this just before Christmas it was a bigger deal. If you analyze too hard, the deeper we get into January the less of a deal.

It's about time for us to change it up a bit but with over 27 apps, we have people arguing over houses.

I think this varies by area too -- where you have enough people that you can still pick out MAYBE a "winner" now and then.

I could offer first month for $1 and GIVE them a gift certificate for free pizza and I STILL wouldn't even get 27 apps filled out in that amount of time here! :)

- John...

Also, I'm not a big fan of the "don't THINK about it; just DO it" concept when it comes to running your business. That's what TENANTS do. That's part of why they are tenants. We call that Tenant Logic. That's how they got a 50" plasma, but their car still needs new tires for winter -- they "just did" instead of "over-thinking about it." :)

- John...

I'm with John on this one -- I think he hit the nail on the head -- he thinks like a businessman. I also sympathize with the poster who asks for specific numbers to implement how the deal works. I don't have a clear idea of how it works either -- and those concepts better be clear and in writing or one could and will end up in court.

Gotta think like a fish to catch a fish. Gotta wiggle the bait they want.

If the home is vacant, the right bait is not being wiggled.

If all you catch are the bottomfeeders, then you end up not eating well in the long run...

;-)

- John...