The Dreaded Renewal Conversation

You want to raise my rent how much?

I have been involved in quite a few renewal conversations, and what always makes it difficult is when residents are taken by surprise.

Renewal conversations are difficult enough, and to have a resident come into it angry is not a good start.  I think if they knew what to expect from the beginning (move in or even during the initial tour), life would be easier on everyone.

Of course, this is easier said than done.  Many prospects that I have toured asked about renewal rates while looking at apartments.  This is most likely because they’re coming out of a community that surprised them with an increase, or they’ve had a bad experience somewhere along the way.

This is an ideal opportunity to begin the conversation about what they should expect at renewal time.  I don’t think being honest is going to kill the opportunity for a lease here.  No matter where this prospect goes, chances are rents will be raised at renewal.

What a great conversation to have with your team at the next team meeting.  How do they answer that question?  How are they dealing with residents at renewal?  And what can you do throughout the year to prepare your residents for renewal?

Here’s one suggestion: Total Transparency

What if you posted to residents (online or in social media) how much rents were raised on average this month?  You could even just post the fact that rents are increasing and why.  Do you know enough about why to be able to accomplish this?  If you don’t, then your team probably doesn’t either.

What are the calculations involved in raising rent?  Is it just being spit out of a database and fed to your residents?  You’re going to have to have the conversation eventually, why not prepare them for it?  Upset residents are going to go to review sites and complain anyway, why not just be honest about what’s happening in the marketplace?  The more the resident is prepared at renewal time, the better the outcome will be.

So my point is, start the conversation early and continue it throughout the lease.  Surprising residents with a renewal letter and hoping they don't question the increase is not a good strategy.

What are some ways you are preparing your residents for renewal?

Transparency these days is an exceptional trait that’s worth talking about.

If you build traits like this into your community’s culture, people will talk, and that’s a good thing.

I hope this article was helpful to you.  For more ideas like this visit us at www.HowToMarketApartments.com and request your FREE eBook.