According to the National Association of Home Builders, 943,000 units of multifamily housing will be under construction in 2023 – an almost 50-year record high. Rent rates are also expected to decline by 4.3% in 2023. 1
Don’t you wish you could increase rent to boost your revenue and cover your operating costs? But with rent control in some states and tight competition, increasing the rent is counterproductive and regulated. This makes attracting and retaining tenants crucial for maintaining steady revenue streams. As a property manager or owner, how do you attract and retain the best tenants without increasing rent?
According to Rent., 29% of renters will move if the property has better amenities.2 Maybe it’s time for you to explore offering a resident benefits package.
A resident benefits package is an assortment of perks and amenities you can offer to renters in addition to their rent payments. This can be offered for free or at a premium to grow your revenue without increasing your rent.
What can you include in your resident benefits package?
Benefits or services you already provide the renters that cost you little to nothing.This could be services like allowing renters to move in a day or two early, giving them a proper move-in checklist and inspection documentation, offering 24/7 maintenance support, waiving one late rent, or even as simple as a basket of baked goodies to welcome them to their new home.
Amenities with a cost associated that you could offer to renters at a premium. You may tap suppliers of services or amenities like personal insurance, air filter supplies, and battery supplies for their smoke and CO detectors to name a few. Many service providers are offering discounted rates for apartment communities in exchange for guaranteed business. These amenities come with a cost, but you may pass on the cost to tenants and even offer this at a premium so you can increase your revenue.
You could also include a rent payment reporting service like what Sperlonga Data & Analytics is offering. This allows property managers and owners like you to easily report rent payments to the credit bureaus like TransUnion and Equifax. According to a TransUnion study, 2 of 3 renters are more likely to choose a property that reports their rent than one that doesn’t offer this. Aside from making your property competitive, this ensures consistent on-time rent payments. When renters know that their payments are being reported, they’re likely to avoid missing or paying late.
Sperlonga’s Rent Payment Reporting includes a great collection of amenities you can include in your resident benefit package.
• Report rent payments to TransUnion and Equifax. This is a great amenity to add to your resident benefit package since renters can build or boost their credit scores with each on-time rent payment. This opens a lot of better financial opportunities like lower interest rates, higher loan approvals, and more.
• Identity Theft Insurance of up to $1M which protects your tenants from fraud and financial loss.
• Credit Score Dashboard where tenants can view their recent and historical credit scores. This also alerts them on changes in their credit score and report.
By offering a resident benefits package, property management companies and owners can differentiate themselves from their competition, tap ancillary revenue and attract or retain renters looking for additional value. Renters are likely to pay higher or be more likely to renew their lease when they feel they’re getting a good deal and their needs are met or exceeded.
Overall, a resident benefits package is a win-win situation for both tenants and property management companies/owners. Renters get additional value, while property management companies and owners can differentiate themselves from their competition, increase tenant satisfaction, and potentially increase revenue.
If you are interested to learn more about Sperlonga Rent Payment Reporting, reach out to us here.
1 Current Population Survey/Housing Vacancy Survey. U.S. Census Bureau. January 31, 2023.
2 2023 Apartment Housing Outlook. National Apartment Association. January 12, 2023.