Well we have done it! The official launch of Rental Rewards!
As of January 1st, I have completed the Rental Rewards program, that was offered to each and every tenant (well, Section 8 got their own program). This program is in BETA version, as they say! It was overwhelmingly approved by the owners, to deliver rewards to our tenants, for their commitment!
It breaks down like this!
Open Market Tenants:
1. Successful completion of 36 month lease ( that’s 2 18 month terms, by the way) will earn a round trip ticket to anywhere in the Continental US,and 3 nights stay at a Marriott (our choice) in that city, or $500 CASH! There can be NO Late Pays, No excessive damage to apartment/house, No violations of the lease in anyway shape or form, basically the model tenant. Expense to the owner $500-600, estimated additional NET income produced on average, $6000-9000! This is based on the normal 12 month lease at $800 per month for a SFR, and $550 per month on a 2 bedroom apartment!
2. Successful completion of a 54 month lease (3 18 month agreements) and in succession, will be upgraded to round trip ticket anywhere in the US (even Hawaii), 3 nights stay at a Marriott (if they choose Hawaii, they will stay at a resort). Same rules apply. Estimated expense to the owner, $600-3000. Estimated additional NET income produced, $11,000.00-13,500! Again the numbers were based on same as above.
Section 8 tenants:
Same rewards as above, but they must complete 3 consecutive leases for #1, and 5 consecutive leases for #2! The only reason for this change is the fact we cannot sign up Section 8 tenants for more than 12 months at a time. Bummer!
PROS:
More Money!
Very Very Low Vacancy Rate!CONS:
Still thinking……………………….!!!!!!!!!
Let me know what you think!
The power of thinking is a beautiful thing, Right?
I will report back on how many of our tenants take us up on this offer. The letters went out on the 2nd, so to soon to call it right now!
John
Sounds like a great idea. You give the tenants a reason to pay on time and look after the property. Maybe add little gift cards every 6 months or something similar.
EngeloRumora | Ohio Cashflow
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engelo,
I appreciate the feedback. I think that’s a great idea, keeps them focused on the prize. I will come up with something and run it by the owners and see how they feel.
Thanks Again!
John
************UPDATE**********************
So the initial mailing of 114 letters went out to the tenants on the 2nd of January.
To date:
18 New Leases to officially enroll in the Rental Rewards Program, very happy with this many results this early. 8 of these leases were ready to expire within the next 90 days, so I’m very happy with that.
I am expecting at least a dozen more by the end of the month, fingers crossed.
I have had around two dozen say they are not interested at this point, but as their lease matures (most of these tenants were less than 4 months into their lease) they would consider it.
Overall and considering it’s only been about 2 weeks, I’m happy to this point.
If everyone is interested in how this turns out, I will update again in a few weeks.
John
John,
You can go on line and buy cruise certificates for next to nothing. I bought 20 5 day cruises out of New Oreleans for something like 2500 bucks. The person you give the cruise cert. just pays tax's, but its a nice fancy folder with big picture of the ship, and let me tell you your demographic loves those booze cruises out of Oreleans.
I use them here in the states for Open house gifts for realtors when I am opening up one of my new constructions for the first time. Let me tell you it works.
Now with tenants it will be interesting to see how that goes…. check it out, its something a little more tangable then airline tickets and a hotel. Alot of these tenants especially sec 8 may have never been on an airplane before,,,,, And Aussies I am not kidding. And many of these tenants will live and die within 10 square miles of these homes and maybe take one or two trips more than 100 miles in their entire lifetime.
I learned these little factiods from the used car dealers in the towns I made hard money loans in. I always wondered how the heck they can sell these cars with little down and no credit….. Answer there car never moves more than those 10 square miles and when they don't pay they can find it realitivily easy and reposses it.
I am going to try your approach with the cruise certs. as our inventory is within 3 to 5 hours of Orleans or Cape Canavral…
Lets compare notes.
In addition the sellers of these certs. will give you big poster boards and brochures included…. I use them in the Open houses when the agents walk in to drop their card for the drawing there is a nice big 2X4 poster with the big ship.
Let me know what you think good job on being creative.
jayhinrichs wrote:John,You can go on line and buy cruise certificates for next to nothing. I bought 20 5 day cruises out of New Oreleans for something like 2500 bucks. The person you give the cruise cert. just pays tax's, but its a nice fancy folder with big picture of the ship, and let me tell you your demographic loves those booze cruises out of Oreleans.
I use them here in the states for Open house gifts for realtors when I am opening up one of my new constructions for the first time. Let me tell you it works.
Now with tenants it will be interesting to see how that goes…. check it out, its something a little more tangable then airline tickets and a hotel. Alot of these tenants especially sec 8 may have never been on an airplane before,,,,, And Aussies I am not kidding. And many of these tenants will live and die within 10 square miles of these homes and maybe take one or two trips more than 100 miles in their entire lifetime.
I learned these little factiods from the used car dealers in the towns I made hard money loans in. I always wondered how the heck they can sell these cars with little down and no credit….. Answer there car never moves more than those 10 square miles and when they don't pay they can find it realitivily easy and reposses it.
I am going to try your approach with the cruise certs. as our inventory is within 3 to 5 hours of Orleans or Cape Canavral…
Lets compare notes.
In addition the sellers of these certs. will give you big poster boards and brochures included…. I use them in the Open houses when the agents walk in to drop their card for the drawing there is a nice big 2X4 poster with the big ship.
Let me know what you think good job on being creative.
jay,
I appreciate the comments.
Definitely let’s see how these programs work for each other. I will look into the cruise idea, I guess I never thought of it since I don’t like cruises myself. I am more of the guy that gets in the car and drives until I’m tired…hehe.
I will always be tinkering with this program to find what works out the best. So far I am pleased with the results…it’s going to be interesting to see how many of those tenants actually collect their prize..I hope all of them!!
John
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