I shopped a property the other day and when I asked how much the rent was for a 1 bedroom apartment I was told it was on special for $695. I asked the girl what the rent was regularly and she didn't know. Really.....
Concessions have become so common in our industry that our own Leasing Agents don't even know the market value of the product. If the 1 bedroom in question had a market rent of $800, then we can now consider it completely devalued. What is the use of having a special if our sales people don't even know the value of the special?
Isn't that the point of the special, to show the prospect what he or she will be saving? To show the prospect that they can live in an $800/ month apartment for $695....
As far as I know the apartment in question has a $695 value. I am sure the owner would be thrilled to know that in the eyes of the prospect their asset just depreciated by $1,260 per unit annually.
If that’s how we are going to sell a concession then what is the point?
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