With over 12,000 units to manage from New York to Texas, one property management company is all too aware of the strains that high unemployment has placed on the rental market.
When it comes to tenant incentives, Morgan Management Company is cutting to the chase by offering an ‘out’ to those who lose their jobs during the term of the lease.
Dubbed the “No Fear Lease”, tenants who lose their jobs will have the option of either terminating early, or receiving a 20% reduction in rent for 90 days while they look for another job.
The plan mimics the deal Hyundai offered to new car buyers — if you lose your job, you can return the car.
As novel as the No Fear Lease strategy is, perhaps the more noteworthy accomplishment here is Morgan’s public relations coup.
Just like Hyundai’s plan saves the car manufacturer the costs of repossessions, encouraging the tenant to voluntarily terminate the lease before they default saves the costs of an eviction. But offering to work with the tenants in advance creates goodwill and a strong tenant referral network.
And it certainly doesn’t hurt to have your name in the news….
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See our feature, Smart Landlord Strategy for Filling Vacancies.
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