In the realm of property management, the landscape is ever-evolving, and it's crucial to adapt to changing market trends. Currently, properties are taking longer to rent, resulting in increased days on the market. However, the Wilmington market stands strong with healthy renewal rates and consistent rental rates. So, how can property owners navigate this landscape to ensure their properties don't sit on the market?
What are Concessions?
One effective strategy to differentiate yourself from the competition without resorting to lowering rent rates is through concessions. These are incentives offered to potential tenants, such as a $500 discount on the first month's rent or even a full month rent-free. Waving the application fee or other one-time fees can be enticing to prospective tenants. These are essentially special offers to encourage high-quality tenants to rent or re-sign with you. While concessions do represent a cost, it pales in comparison to the revenue lost from an extended vacancy.
Value of Concessions
At Sweyer Property Management, we've observed that our website attracts high-quality tenants actively seeking properties for rent. By offering a one-time concession instead of lowering the rent, you're securing a higher rental rate and increasing the likelihood of tenant renewal, with tenants choosing to renew their lease roughly 70% of the time.
As we approach the holiday season, our focus sharpens on filling properties promptly. This is where offering concessions proves invaluable. Rather than locking yourself into a lower rate for an extended period, it's far more advantageous to maintain a higher rental rate while incentivizing prospective tenants at the outset.
Market Trends
Historically, Wilmington has boasted impressive occupancy rates, even more so in recent years. Although we may not see the same rise as in 2021 and 2022, rental rates are projected to continue their upward trajectory. With an influx of individuals moving to Wilmington, the demand for rentals remains robust across various demographics, from college students to retirees to tourists to military families.
In light of these trends, it's essential for property owners to consider the long-term strategy for their rentals. We encourage you to reach out to us to discuss rates for your property. In a market as dynamic as this, having a solid plan with "staying power" is the key to maintaining high occupancy rates and ensuring a steady flow of rental income.