How to Approach Renewal Trade-Outs This Fall
by Donald Davidoff | Sep 1, 2020 12:00:00 AMAs we begin to enter a lower season while still dealing with the effects of the COVID-19 pandemic and concomitant recession, we thought it would be a good idea to take some time and focus on renewals. With new rents declining in new markets even during this past summer and thus almost sure to decline more at least until next spring, renewals and renewal rents are even more important than ever. So when is it ok to keep renewal increases flat versus giving minimums? And are there times where we would actively offer rent decreases in our renewal offers? In normal times, most operators implement a 1-2% minimum increase. At the start of the recession, most operators went to flat renewals. But now that we’re almost six months into the recession, what should we do?