Lowering monthly rent is something that many landlords are thinking to do. When a crisis is everywhere, then it can be fresh air. But really, it gives any benefit to the owner, the question is that. Actually, it has advantages and disadvantages. If you ask for our suggestion, then we will prefer that you read this article. Here you get to know how giving a concession in rent gives the benefits and how it doesn’t give. After that, you may make your mind.
Benefits for lowering the rent
If you are thinking of lowering the rent, then it gives you many advantages. Property management companies also admit the same. Want to know what those are, then follow the below write-up:
1. Tenant turnover will be lower
When you give the lower rent to your renters without eliminating other facilities, then people love it. Your tenants keep enjoying their stay. You get your rent on time and no cost for turnover. Is it not the benefit you love? Yes, It is.
You must admit that a good tenant is just perfect for keeping your investment awesome. You never know how the new people will be. What do you do if they don’t pay the rent and more? Obviously, these all become costly. If you compare both, you find that lower tenant turnover is always the best. Residential property management companies will also tell you the same.
2. Filing vacancies quickly will be possible
By lowering the rent, you can attract a pool of potential tenants. They show interest in your property. This becomes the reason for filling the vacancies quickly. Is it not something you love to? Surely, you have that smile on your face. So, for having those benefits, you can think to do lowering the rent
3. You can take care of tenants’ expectation
New renters love to be in a property that makes their stay perfect. At the same time, if it appreciates their budget, then no one is happier than them. Paying the rent on time and managing all will be easier. So, people love to stay there. Otherwise, keep changing the rental, paying the rent late and more are the problems that can knock. Are you okay with it? You will not be. So, keep controlling your rent, make it a lower one and enjoy the income without any problem. Really, you get such benefits if you control the rent.
Disadvantages of rental concessions
You must know that there are many disadvantages of rental concessions for the landlords. Want to know about that, then this brief is for you. Read this and know the same.
1. Issues with profit
When you think to give the rent concession, then the profit margin will not be the same. It will be lowered or not be there. Even the market is hot, and then also the problem remains there. By fixing the lower rent, you stop the chances to earn the profit. If you talk with property management companies in Maryland, then they will tell you the same. So, consider this as well. You need to be okay with this. This is a disadvantage without any doubt.
2. Difficulties in increasing the rent with renewals
When you decrease a rent once, then you can’t just ask for the higher one immediately. Claiming the market rent can take time. Yes, you read it right. If you hire the best property management company in Maryland, they may not help you in that. There must be many difficulties.
Along with that, when your rent is lower, then the income group can join, in a jump in rent, they can’t give the rent on time. You may face problems. It can lead to turnover. You must know that how challenging this one is. This asks for more costs, but your income is lower. Obviously, it creates many problems. It asks for your investment for the new lease agreement, but you don’t have that, then what do you do. So, there is no doubt that lower rent is not a good idea. It can create many problems. So, give importance to all, and then you may think to take your steps about that.
Related Article: The Pros and Cons of Collecting Last Month’s Rent
Well, you have the idea of how lowering rent gives you advantages and disadvantages. Now, you must take your call. Don’t assume anything. You have to trust only the reality. It depends on your personal situation as well. What you want now, this will give you an idea of what you should do. Everyone has their own aspect. So, give importance to it and taking paths accordingly will be beneficial for you. If these are not something easy for you, then you can hire a property manager. They will help you to make the right decision depending on your needs and the market.