Northland Investment Expects Its Vacancies to Fall With Roll Out of Rent Assurance Program

By Anuradha Kher, Online New EditorNewton, Mass.–Northland Investment Corp. has launched its Rent Assurance Program (RAP), which will allow a resident to walk away from his or her lease, without paying termination fees, in case he/she loses his or her income involuntarily. RAP is a program similar to the ones that many other multifamily developers have rolled out since the economy starting slowing down. It will apply to Northland’s entire multifamily portfolio, which includes 16,670 units in nine states—Massachusetts, Connecticut, Rhode Island, North Carolina, South Carolina, Tennessee, Florida, Texas, and Arizona. However, it will be offered to new move-ins and renewals of lease only.“In these challenging economic times, we believe it’s important to offer our residents peace of mind,” Diane Yensen, vice president of Multifamily at Northland Investment Corp. tells MHN. “Losing your income can be a scary situation, and RAP provides our residents with an ‘out’ in the event that they involuntarily lose their job and need to break their lease.”RAP expects to see occupancies rise as a result of this program. “RAP provides people with the peace of mind to enter into a lease, even when they are unsure of the stability of their situation,” adds Yensen.  Launched last week, Northland is still measuring feedback. “The initial response to the program has been very positive. One of our community managers said that all new leases and renewals have been signing.” Northland is sending the news out to residents who have given notice to vacate in hopes they may withdraw the notice.