Deposit Refunds for Resident Retention
Consider the benefits of keeping good residents longer. By providing a “cash back” incentive, you not only encourage longer stays but also increase the likelihood of a larger deposit refund for the resident. This strategy can significantly improve your property's stability and reduce turnover costs.
I expect to redo apartments every 4 to 5 years anyway, so why not offer to start sending back annual deposit refunds, perhaps in $100 installments, starting the 4th year and continue to do so as long as the resident stays, passes annual inspections, and there is a balance remaining on the deposit?
Four “Nevers” When Screening Potential Residents
- Never rent without asking for a picture ID
- Never rent to someone who needs to move in “right away.”
- Never rent to someone who flashes all rent and deposit in cash
- Never turn over the key before doing a credit check and receiving all monies due in certified funds.
Inspire Residents to Pay On Time!
Strengthen your rent payment system by rewarding tenants who consistently pay on time. For all tenants who have sent in every rent check on time and in full for one full year (any failure starts another year), offer a coupon for $30 off the rent in the month of their choice over the next three months – if it accompanies a check for the balance. This strategy has proven to be effective in inspiring timely rent payments.
I usually do this during the late fall months so they can use it around Christmas or the new year. This inspires them to get the rent to me on time for the new year (everyone loves a bargain, I guess, and this is entirely in their control).
I always get the rent from everyone on time, and usually early. I have no late fees, by the way; simply a clause that says I will begin eviction proceedings if the rent is late (I only had to do this once, but it was inspirational for the other tenants!)