Today’s landlords find themselves in a competitive real estate market. In order to get the best tenants, they’re forced to think creatively. Monthly rent can only be dropped so low because other expenses need to be taken care of, but there are plenty of other incentives landlords can offer renters.
When taking out apartment building loans, you want your investment to become profitable as soon as possible. However, you first have to understand the market and offer a better product than your competition. Here are some of the ways you can set yourself apart and attract the best renters.
Free Rent for All!
When landlords offer free rent, potential tenants may express some skepticism. In fact, they may want to examine the fine print of the lease agreement, just like investors should read the fine print when they receive apartment building financing.
But the reality is, offering free rent is a great way to attract some of the best long-term occupants. By offering the first month of living rent-free, a savvy renter can use the money saved to make some slight improvements to the home, appliances, or anything else. Giving away free rent isn’t always the best option for real estate investors, but sometimes a short-term financial hit can lead to long-term profitability.
More Money Offered For Improvements
Another incentive landlords use is giving cash to renters to make improvements to the home. Some renters want to feel like the home is theirs by having the ability to personalize the space. Landlords are sometimes hesitant to allow this, but it actually creates more long-term renters as a result. Giving renters the freedom to customize the space they live in helps them become more invested in the property, which makes them a better long-term investment for you.
Competition Will Drive Landlords to Offer More Incentives
Landlords are now forced to think outside the box when it comes to offering incentives to renters. And with some of the multifamily lending options available to investors today, they can afford to be more creative without going too far into the hole on a property. It’s important that investors find the best lender to obtain their apartment building loans so that they can offer more incentives to attract long-term tenants.
Commercial Mortgage Connection understands the need to appeal to renters in a competitive market. Our apartment building financing options take these incentives into consideration, so be sure to contact us to see what options we can offer you.