Pay a Referral Fee. Get a New Tenant
Ask and You May Receive
If your vacant rentals are seeing little action, with few potential tenants calling you for a tour, you have many tools at your disposal to increase interest. Have you considered asking and/or paying for referrals?
Referrals are a great way to drum up business –no matter what business you’re in. Word of mouth has always been the best form of advertising; referring someone to a particular business is a perfect example of word of mouth advertising.
You probably do this all day long without thinking about it, like when a new tenant asks, “Where’s the best pizza in town?” Suggesting your favorite is a referral—and could mean the pizza shop owner owes you a favor! Next time you’re picking up a pie, let the owner know how many folks you’ve sent their way, and ask them to refer back to you. New employees, friends, or relatives might be in the market for a rental home or apartment.
This type of referral is common among business owners, and the reciprocal agreement is usually not fee-based.
Realtors are a good source of referrals. They are in the house-hunting business, and while their mission is to sell houses, some work with or run across renters as well. Try widening your realtor contacts; let them know that you welcome referrals. You can either work out a non-fee reciprocal agreement with one realtor, or accept all referrals and offer a small fee, like $50 in cash or a gift card whenever a realtor sends you a tenant. Of course, it makes the most sense to wait until the tenant has passed your application process, background screening and paid the first month’s rent and security deposit before you pay the fee!
Offer the same deal to your current tenants: a $50 or $100 referral fee paid when they bring you a good tenant (who signs a one-year lease and passes the tenant screening process, or whatever definition you prefer) can be a great incentive to folks these days.
Referrals can bring you new tenants. Working with other businesses, realtors, and your current tenants takes a little effort and creativity, so get out there and network—and ask for referrals!