In an effort to create peace of mind for its residents and to clarify any confusion about competing rent rates, terms and conditions, WC Smith created a program that guarantees a 5 percent ceiling for renewal increases to those signing leases at 2M Street Apartments, a Class A community in Washington, D.C., which opened last fall.
Holli Beckman, Vice President of Marketing, WC Smith, says that while conducting its market research, the WC Smith team spoke with rental prospects and they repeatedly said that they were frustrated with the rental increases they had received upon their first renewal at their previous communities.
Applying the company's mantra, "Do what your competition won't," it developed 2M Smart Pricing, Beckman says.
Smart Pricing is like the auto dealer's CarMax approach applied to apartment hunting, she says.
"We took all of the math and the guesswork out of the process," Beckman says. "No concessions to figure out; the price is the price. Then we took it a step further, and this is what our prospective residents really responded to: We created a lease addendum stating that, on renewal, the maximum rent increase the resident would receive is 5 percent.
"Our prospects are educated, savvy planners. Smart pricing gives them the ability to project their expenses for two years out. That was the actual need to fulfill: The need to be able to plan."
WC Smith Explains Honest, Transparent Rent for Residents on its Company Blog
Following is from the WC Smith corporate blog:
Are you tired of rent increases that manage to one-up your salary increase? Have you settled nicely into a shiny new apartment, only to be blindsided by an impossible price jump in your renewal letter? We know what you're going through, and want to do better by you. You're a smart cookie and you deserve an apartment experience that lives up to your standards.
Introducing Smart Pricing. At 2M Street, we believe in building a true community of residents who love calling us their home. Our residents should feel free to stay as long as they like and live without life-altering surprises.
While we can't control all that life throws our way, we can guarantee you this: Upon renewal, your rent will increase no more than 5 percent. That's an absolute MAX.
What does this mean? You can go ahead and budget for this year and next year (wow, you're on top of things!) with no worries and no stress. The length of your lease will not be stretched beyond
12 months unless you're into commitment, in which case we also offer 18-month leases. Heck, you can even sign for as short as six months, but let's be honest: We're going to treat you so
good, you'll never want to leave!
This promise is ours to keep. These terms are built into your lease, so you can take that promise to the bank along with your hefty savings.
So why are we doing this? No, we haven't gone crazy. We are renters, too. We know how frustrating it can be to live in uncertainty. We want you to know that we are committed to making your stay with us something special!
Go ahead. Relax and stay a while.