There are benefits for an apartment community with a leasing concession.
First, ads offering dollars off attract more attention. This is an opportunity that we can maximize. Our adds include the information for the dollars saved, but we miss the opportunity to maximize this value.
Instead of simply stating $200 off the rent. If we annualize that saving to: $2400 saving this year. We want the largest impact we can get …the eye-catching difference between. Save $100 and save $1200 is significant.
Another perspective might be:
- NO Application fee
- NO Move In costs,
- $0 (zero dollars) for move in cost
But what value does this represent?
Save $125 with NO Move in cost.
We have to let our prospects see and feel the value that they will experience with this offer.
Another perspective is the percent of the savings…save 20% or 30% might be a better attention getter than the actual dollars. As with any advertisement, we want to stand out from our competition.
Concessions Can Be Problem Solvers
Whether the visits to your community have dropped or maybe there’s a floorplan or specific home that has been vacant for too long, a move in concession can be used to fix that problem.
Advertising dollars off creates interest in your homes.
Offering a one time concession, or a monthly reduction because an apartment is in a less than perfect location creates an economic benefit for someone that is shopping for a specific price point.
A Concession Can Be Your Closing Tool.
With the “If I could…would you” closing technique …creates several opportunities to close a sale that might be wavering, and just needs that little incentive needed to commit to the lease.
A concession is a resourceful tool for follow up…with a “Be Back”card, you can offer to reduce or waive an fee, if the prospect returns in 24 hours.
There are times when an apology is needed. An appointment is missed. Personal property of the resident is damaged during a repair.
We can use a concession as a good will offering to express our regrets that the problem occurred. The caution side of this can be the expectation, whenever there’s a problem, we’ll respond with a discount on rent.