04-25-2012, 08:25 PM
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Join Date: Apr 2012
| | Okay, here's **BREAKING NEW** for landlords!!!!!
(first just let me give you some advice: if your tires are low, you inflate them with air; if your rents are low...you 'inflate them' by extracting additional consumer surplus from your residents.)
Okay, the ** BREAKING NEWS ** is this:
1) Everyone looking at our 'affordable' studios ($1445) is in an angry mood.
2) Why the anger? here's what the 99%-ers are telling us when we do a showing:
"Why am I moving? I'll TELL you why. I just got a $150 rent increase!"
"Well we love our current place but we got a $100 rent increase!"
"My complex just gave every apartment a $75 a month rent increase. And they are cancelling our free cable TV and free Internet."
This is how we're working hard as landlords in this Fast Market to maximize everything:
"So this is the studio? And you're asking $1445 for this?"
'No, sorry, the $1445 studio in the ad -- we rented that, uh....JUST THIS MORNING. Yes we did, uh--at 10:30am, right before your appointment, sorry!'
"Okay - So how much is this one?"
'This one? Well, the reason I'm showing you THIS one is -- I felt bad about us having rented the one we were going to show you! Because we haven't even put this unit on the market yet. So we're giving YOU first dibs on it!'
"Okay - the one that got taken was $1445 -- how much IS this one?"
'This one is better, it's closer to the front of the complex -- we're asking $1650 for it.'
KEY STRATEGY TAKE-AWAY: In a 'fast market', leverage the opacity of how many units in your complex are available to make REAL-TIME ADJUSTMENTS to asking rents.