True Rent

“True Rent”, never heard the term before? That’s no surprise. Most management companies don’t want you to know about it. Leasing out a property is hard work and there are only a few items that can be adjusted to entice a person to rent a unit. These include: physical characteristics of the home, amenities, rental price, and rent specials. While property managers have little control over the physical characteristic or the amenities of a home, they do have control over rental pricing and rent specials, and that is where they can manipulate the desirability of a property.

The rental price of a home is one of the main things a potential tenant looks at. No matter how great a home is, if the rental price is too high, there will be no interest in the property. It’s a careful balancing act between asking for as much monthly rent as you can without making a home too expensive and undesirable. One of the tactics property managers use is to hide fees and other costs by placing them in the rental price amount. While this may attract tenants by lowering their monthly costs, it takes money away from the Owner. We call this “Junk Rent”, a rental price amount filled with other costs the owner pays out of pocket.

“True Rent” is rent that contains no other fees or charges in it. “True Rent” is harder for a property manager to get and manage, but it creates a higher ROI for the owner. With “True Rent” other costs are billed separately to the tenant to reimburse the owner and allowing the owner to have greater financial control. At Provident we strive to rent every unit using “True Rent”!