I get this a lot. I don’t blame people for asking. The answer however is always no. I explain it this way: “Everyone on the property pays the same amount. I am very fair and equitable”. Usually people do understand and it doesn’t deter a potential renter. In the cases where it does, it is probably for the best. I don’t need a tenant that really can’t afford to rent my units. If it is stressful for them, it will become stressful for me in terms of late payments.

I charge everyone the same for like units. Otherwise it really does cause resentment. For instance, I did not charge one person a dog deposit. They had a very tiny chi and it was VERY well trained and quiet. Months later a tenant in the same building named Audrey brought a dog home without discussing it with me. When I found out and called Audrey and asked for the dog deposit she was irate! She new the people in the front had not paid and she resented having to pay. Never mind her dog was as big as a moose! The bottom line is that tenants talk and I NEVER do something for one and not for another.

Another consideration is that the value of a commercial building is based on income. Lower the rent and you are essentially lowering the value. I would rather have a couple of weeks of extra vacancy time while I look for a good payer than compromise the value of my property.

During a vacancy period, I use the time to polish my investment. I clean, spruce, update and fix. It is amazing how much of a difference it makes when the windows have any excess paint scraped away and are bright and shiny. Another tip is to buy and inexpensive welcome matt to greet a potential renter as they step through the front door. I buy them at Big Lots for $10.

Commercial real estate rule number one. Income is king! Never lower the rent. Polish your units until you find your new tenant.