Had 2 vacancies, now down to one. There are a couple of process changes I plan on making. The big on is they will not speak to me until they show up for the regularly scheduled showing.

Second change is my response to can we negotiate the rent. Currently I just say NO, and in my head NEXT! Going forward I plan on saying if you have EXCELLENT credit I will consider a discount. 99.99999% of renters do NOT have excellent credit. I am defining expectant credit as 720+.

My application is being updated to include in addition to employer info, Additional source of income question.

Laura, my Google Form combined with Google Sheets to hold the data has just been a game changer. I don't talk to anyone until I meet them at a pre-screened, scheduled showing. And I avoid dealing with the 99% who won't qualify, and only deal with those who will (unless they fail a background check!)

In our current round of "suspects we have gotten a fw more of these and the answer from us often is: "hmmmmm, OK....how about 50.00 more ?".

That puzzles them.

Then we send the on their way

Laura, it's always good to improve the methods we use in finding qualified tenants for our rentals.

In my last vacancy, a 600 square foot single apartment (Kitchen with bar seating, Living room with a Murphy pull down bed, long hallway with make-up area and closets and a large bathroom -- no bedroom, the tenant wasn't sure she was going to have her boyfriend move in with her in a couple of months and wanted to know if I'll give her a "RENTAL DISCOUNT".

Discounts sound logical because that's what retailers do. "Sale today! 80% off!"

Heh...they're good aren't they?

A discount, used correctly, should give the seller the opportunity to generate more income (I.e. make more sales) or suffer a smaller loss than otherwise is guaranteed (I.e. year end inventory clearance to avoid warehousing or return shipping costs). So instead of just giving people with good credit a discount, you should be asking yourself how does this short-term "loss" of cheaper rent earn me a long term gain?

What is the benefit to you of a discount? A tenant who stays longer? A vacancy filled more quickly (I.e. limit loss)? How will you measure whether or not the discount achieves its effect? If you stay at full price, how many weeks or months of potential lost income will it take to balance against the guaranteed loss of lower rent? What is the guaranteed loss you lock in by giving a lower than market rent if they stay 1 year, 3 years, 6 years? What if you discount and 5 months later they are such horrible people you have to get rid of them? The discount can backfire if not strategically managed.

Here's an example of a good discount strategy. Mike Butler (author of Lanlording on Autopilot) wanted to decrease his vacancy losses and turn over costs, so he has tenants stay for a minimum of 6 years. How? The first lease is 3 years. If the tenant successfully completes that, they receive 1 month's free rent in exchange for signing another 3 year lease. 1 month out of 72 is 1.4% of 6 years. Mr Butler has limited his loss to no more than 1.4% and has achieved lower vacancy and turn over costs which compensate him for the discount.

I am not saying do not discount. I am saying don't give away money for no reason. Define your reason for having a discount and we'll know how to offer better advice. "They have a good credit score" is not a clear enough reason. Why does that help you?

I equate the rent to my paycheck. Are they will to take a cut in pay just because someone asks them to? Didn't think so.

I actually don't have very many people negotiate rent because our rents are already close to the lowest they will find. Because our houses are the smallest they will find LOL! There's plenty of big houses out there for $1500, $1800, $2000...but under $1200, we are about it except for rooms and other shared spaces.

Hi Laura!

Some notes that might encourage you:

We don't answer the phone. The recording says "We work with the folks who have submitted an application. Submit yours now to determine what you qualify for. Free on our website www....

And for a Video Walk Thru go to YouTube and search 142GraysonProp.com to the home at 142 Main Street."

242 views on that one video.

(I don't call them virtual tours because realtors use that term for still shots.)

Younger prospects DO NOT want to talk to ANYONE, especially a Boomer!! until they have researched the home online.

Discount: I think to flat out deny this question is a huge mistake. In sales we learned that a question is not an objection, it is the customer's way of asking "Tell me more". It shows interest. NEVER turn away interest.

Respond "What did you have in mind? Let's get your app in and find out what you qualify for."

There are ways to make a deal, such as a discount on Animal Rent or supply an appliance at no extra charge, etc. Don't turn away a $1000 /month customer by being too rigid or impressing yourself with a snappy comeback.

Jeffrey did a great talk on this question in Indy.

Sure some are just tire kicking but that's normal. We never know which tire kicker has money and is ready to sign.

Plus we have multiple vacancies in various price ranges at any time. Great opportunity to cross sell.

And as always, you don't have to answer EVERY question. Sometimes they are simply making conversation or are trying to impress the LL with their sophisticated and savvy knowledge of renting.

Hope that helps!

BRAD