Hi Pat - You make such an excellent point. It really doesn't make sense to focus 100% on "reducing turnover." That's too big to put your arms around. What you have done is focus on what we can refer to as "daily homework." The things you do on a daily basis to make the resident experience the best it can be contributes directly to how much value they feel they are receiving for the amount of money they are paying. In other words, you are spot on!

The result of making it easy to be a resident, responding to needs and requests, resolving issues quickly, consistently enforcing rules and regulations in a respectful manner, and making it fun to be there - they all add up to less turnover.

Well done!

Brent Williams wrote:

Pat - I do not consider that bragging at all - Sharing success stories is how we all learn, so please continue to share! And you have a great case study about how focusing on some of the basic elements of property management done right have a bigger impact than many of the more "flashy" options out there. What I am curious about is whether your turnover has dropped down to the level of the non-savable turnover number (i.e., those who move out of the city). And if it has, then assessing whether your application criteria is 100% effective in maximizing length of stay and minimizing evictions, which you say you have. In other words, unless you are running an absolutely perfect ship, I don't see how cutting out move-out/retention surveys is a good idea, unless the cost can't be recouped by better practices.

Thank you for the kind words, Brent. I'm glad you saw that my intention was to share what works for me.
Let me give you a little synopsis:
When I took over managing this property, it was riddled with drug sellers, loud music day and night, trash everywhere, many apartments in terrible shape and approx. 20% of the tenants were at least 2 months behind in their rent.

I talked the owners into trusting me to set it right. They bit the bullet and let me evict as I saw fit. I evicted 18 families the first year. I cleaned up the property, hired a new gardener, pool service and pest control. I put in new plumbing fixtures, flooring and appliances as apartments went empty. I rigidly apply house rules and make sure that all tenant concerns are dealt with right away.

My turnover was at its worst last year - due to job losses. I had a few tenants who needed larger places for their growing families, and a couple of people purchased homes. However, during this high turnover - 15 in the year, my apartments stayed full. I had about 9 people per week applying for apartments and filled almost all the vacancies with referrals. Currently, 53% of my tenants are referrals.

My application criteria covers these points:
income - at least twice the monthly rent
credit - I'm only concerned with bankruptcies and unlawful detainers. I don't care if someone owes credit cards or medical. I just want to make sure they pay their housing.
criminal - zero tolerance for crime. I will not rent to anyone with any criminal history whatsoever.

I have more success with these criteria than my friend who manages property for a company that stresses excellent credit references.

As long as I do my job, the rest seems to come easy.

you are right! actually that $4,305 figure does include estimated maintenance and leasing cost per move-out. brilliant minds think alike...lol!

Pat - I do not consider that bragging at all - Sharing success stories is how we all learn, so please continue to share! And you have a great case study about how focusing on some of the basic elements of property management done right have a bigger impact than many of the more "flashy" options out there. What I am curious about is whether your turnover has dropped down to the level of the non-savable turnover number (i.e., those who move out of the city). And if it has, then assessing whether your application criteria is 100% effective in maximizing length of stay and minimizing evictions, which you say you have. In other words, unless you are running an absolutely perfect ship, I don't see how cutting out move-out/retention surveys is a good idea, unless the cost can't be recouped by better practices.

"Due to current concessions, vacancy loss days, turn costs, marketing costs - each move out costs $4,305 currently. And you can quantify the impact...with overall metrics like NOI changes, and specific best practices that most PM systems monitor and report."

Please don't forget wage+fringe in this calculation. It often goes unaccounted for!

I wish I could help with this topic, but my situation is different. Fifty-three percent of my tenants are referrals from other tenants. I am not afraid of evicting, so tenant retention is not something I focus on. I don't use marketing at all.

What I focus on is - maintaining the property in the best condition possible, responding immediately to tenant concerns, having ALL of the apartments treated by pest control EVERY MONTH, hosting barbecue parties for the tenants on some holidays, and taking immediate action against contract violators. And, most importantly, treating my tenants with respect.

I have 100% occupancy while the other apartment complexes in this neighborhood all have 'for rent' signs. I also have no past-due rents.

Sorry if it sounds like I'm bragging. I'm simply doing what needs to be done - and it works. I don't need surveys or even advertising. Do the job the way it's supposed to be done and it works.

Rather than considering a move-out survey, check into the above issues. You might find room for improvement.