How to Raise Rents: Tips from Kate Good
Residents never want to hear that you're raising rents, but according to nationally recognized apartment marketing expert Kate Good it's not only important to do so, it's vital that you maintain the confidence to do it.
By Lisa Iannucci, Contributing Writer
Residents never want to hear that you’re raising rents, but according to Kate Good, a nationally recognized apartment marketing expert, it’s not only important to do so, but it’s vital that you maintain the confidence to do it. In a recent webinar, she offered these tips when raising rents:
• Explain the reasons behind the increase in a non-defensive tone. “If you use the word ‘because’ it’s shown to induce a more accepting state in people,” she says. “For example, ‘we’re raising your rent because the cost of this-or-that has gone up.’”
• Highlight any additional investments that you have made in the business which will justify the increase. “Expect that some residents will say no,” she says. “It could be perception of value. If you are raising them $75, add a service to justify the cost.”
• Find a way to demonstrate the added value you can now provide to justify the increase.
• Know your market. “Be careful about your tipping point. When does it get too high and push people out?”
She also recommended two programs during the webinar, including VaultWare, a program that allows managers to receive an alert when the market changes, and BlueLink, a technology that allows you to monitor, analyze and manage resident perceptions or property performance at anytime.