Topic: What Are U Doing? Bonus/Resident Retention Program

I'm working for an owner who has recently taken over all of their 3rd party managed assets. We are putting together a bonus program for everyone on-site (including maintenance and housekeeping). I have a few ideas to present, but I also wanted to get some feedback as to what is working out there in the real world.

I have also put a resident retention program into place, but that won't impact their current notices right away. Obviously, we will be implementing the program now, but I need some additional ideas on some things we can do that would make an impact on residents who are coming up for renewal between now and the next 120 days?

In most cases, half of the staff is brand new and most of the managers are new employees. Previously, resident weren't very happy with the previous management company and are skeptical.

I need instant gratification ideas that can be implemented quickly to supplement my resident retention program.

Thanks in advance for any feedback! Tracey

Tracey.. the first thing I would do honestly is ASK YOUR RESIDENTS what it will take for them to renew. In some cases it may be something as simple as repainting their living room and with others it might be something completely irrational. When I started here 4 years ago we had the same problem. Horrible management, horrible maintenance, our turnover was at almost 100% and no one of any quality wanted to live here. The first thing I did was sent out a letter introducing myself and letting them know things are changing. I then sent out a survey and even walked door to door with the survey asking for their input. You would be amazed by getting your residents involved changes the total atmosphere of your community.
It's four years later and I have a waiting list for people to move in here and the word of mouth is excellent and it all started with a survey and making small changes one at a time. The most important thing though is be true to your word... if you say things are going to change or you say you will do something you have to do it or you will lose your crediability before you even gain it.

Tracey Lott Heitzman wrote:

I have also put a resident retention program into place, but that won't impact their current notices right away. What are some things we can do that would make an impact on residents who are coming up for renewal now and in the next 120 days?

Tracey, until they turn in their keys you can impact the current notices... find out where they are moving is offering them to move and offer something better for them to stay... Someone told me the avg cost of turning a unit is almost $5000.00, I'm sure your owner can give you something to change their minds! I get notices to vacate and maybe 1 out of 10 or so I will change their mind about staying by giving them what they are really looking for and in some cases it's not much.

Thanks, Chrissy. I already have that included in my resident retention program. My plan is to survey everyone as well as do a meet and greet. In addition to those, do you have any other "last resort" ideas? How do you compensate your staff for renewals? Do you have a bonus program?

Our bonus program works by GPR only. If we receive 95% or higher of the GPR we will get a bonus percentage of the GPR. We do not give bonuses for performing a job that is part of the job description. The reason we do it for GPR is because it shows that you have kept up with customer service to keep renewals coming and leasing apartments without having to give concessions etc. I don't have a problem with bonuses because I know many companies do offer a bonus program and my old job did but what I began to notice is that the GPR was remaining low because so much was given away to get people to stay or move in. Although, my company is really good at employee appreciation as well, if occupancy is up we'll have a nice lunch with the management company as well as the owner and it's a nice break. My old company use to do employee appreciation every quarter where they would let us pick between 45 minute massages, flowers, candy, lunch, etc... It was a nice surprise when we got the email telling us that today is appreciation day! It made us really appreciate working there and work harder.

Thanks for your response, Chrissy. I like that idea. We were definitely thinking that renewals would be higher than 50% for commission/bonuses to kick in.