All-inclusive Rent Rate

There are some really great arguments on both sides of this topic.

Are you nickeling-and-diming your prospects or residents when you charge for things like pets?

Or, are you simply charging a premium for an amazing experience that you offer to pet owners?

Penalizing the Customer

In the all-inclusive model I think it is fair to ask the question; are you penalizing the person who does not care about all the built-in extras?

I can see the advantage of all-inclusive from a marketing perspective. Many cite the example of southwest airlines not charging for bags; this works brilliantly for the airline. But what about that day trip guy/gal that didn’t bring a bag. Does he/she care? What about the guy or gal that chooses not to have peanuts or a drink while in route? Should he/she have to pay the all-inclusive price?

Turn it Upside Down

I think we should all raise our prices by the right amount and then discount based on what the prospect or resident really wants or doesn’t want. For example your apartment rents for $1000 but if you do not own a pet it rents for $950.

You’re just not sold on all-inclusive pricing Multifamily Maniac,

M

Author: Mike Brewer

Out to put a dent in the multifamily universe. Love compelling conversation...