Take a look at this video clip from the today show.

Response from NAA:

Many of you may have seen the segment that aired Tuesday morning on The Today Show about residents negotiating rent with their apartment owners. Please click here to view the clip of the interview between Meredith Vieira and real estate agent Barbara Corcoran about the rental market in these tough times.

Scenario: If a current resident or a prospective resident comes to your community’s leasing office and demands free rent and any other unreasonable amenities/concessions, be prepared to speak to the value of apartment living. Do not simply give in to their requests.

First and foremost, apartment staff must consider Fair Housing. It’s the law. What you offer to one resident, you legally must offer to all. And, whatever “deals” that may be offered to residents should first be put in writing by the owner and shared with the leasing staff. Leasing professionals should not “wheel and deal” with current residents or prospective residents and should not offer “rogue” renewal agreements.

Following are some other key “selling points” to use in such cases:

1. For current residents who are seeking a renewal, owners should consider offering the same concessions as they would to prospective, first-time renters. Again, details of such “deals” should be communicated in writing to leasing agents from upper-level management.

2. If a resident specifically mentions “The Today Show” segment, remind them that the guest on the show is from New York City, which operates in a different “type” of rental and economic climate (i.e. condos). What is acceptable in NYC does not necessarily equate to conditions in Seattle, Denver, Orlando or (fill in market) from most of the rest of the country.

3. Tout the benefits of living in a professionally managed apartment community, compared to signing a lease with inexperienced owners of condos or single-family homes. Staff at professionally managed communities are experienced and capable of serving their residents’ needs in an effective way.

4. Mention that the ownership of some single-family homes and condos can be unstable in today’s economic climate and these properties run the risk of suffering foreclosures in the near term. Apartment communities owned and managed by established companies are more stable, as their owners invested in these homes for the long term. Operating apartment buildings is their core business. They are not in it as part of a get-rich-quick plan.

5. For communities owned or managed by large firms, remind prospective residents that they have set their rents based on yield management software, which determines rental rates on a daily basis, using sophisticated formulas and algorithms, and that the resident truly is getting the best price, based on the competition, in that specific submarket.

6. If your community offers flexible lease terms (such as a monthly or six-month plan), promote the benefits of signing a lease under those conditions to create more flexibility for these residents’ lifestyles. And with a set rent rate, these residents are living “inflation free,” especially if they lock in their leases for longer term leases, such as two years.

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Today Show, Apartment Rental Market