One of the most important responsibilities for any property manager is to communicate with their tenants. In the long-term, communicating frequently with tenants will enable many benefits for the property manager. Keeping communication at the center of the customer service strategy helps managers to better understand and cater to their tenant’s needs while tenants will have gained better insight into the unit they invest in. In this blog post, we discuss the long-term benefits that consistent property management communication has for the company.
1) Increased value for your business
Tenant retention drives immense value for your business and increases the bottom line, which is why it’s one of the most important functions of managing apartments. According to RentPrep, when you successfully retain one tenant itself, the company can save an average of $1,750 per unit per month from tenant turnover costs like administrative work, vacancy, and marketing. For a property of 100 units with a 95% retention rate, property management companies save close to $2 million per year. The best way to avoid turnover and increase retention is to keep your communications with tenants ongoing.
2) A sense of community in your properties
Following up with tenants regularly helps you to build a long-term relationship with them. In turn, they feel that they are part of the community. They will be more invested in the place they call home. Building positive relations will also lead to more harmony and fewer conflicts that managers would otherwise need to dedicate their time to. Here are a few ways that you can keep in touch with residents and foster positive apartment culture:
- When the tenant moves in, send them a welcome packet. The packet should contain information on amenities available and policies, service expectations, contact information, how to pay rent, and any local services to help them get acclimated in the area.
- Check-in with your new tenants regularly. Ask them how the move-in experience has been and if you could have made the transition better.
- Build tenant engagement by sending monthly newsletters. Talk about company news (such as a new property manager joining), events, and other important news within the town.
- Provide tenants with a list of resources for recreational or educational activities.
- Invite tenants to online social events or informational webinars.
3) Increase the Lifetime Value of a Customer (LTV)
Acquiring new tenants is much costlier and time-consuming than retaining a current tenant. Getting new tenants to sign on a lease costs thousands of dollars in marketing and vacancy expenses. Retaining a tenant is less-time consuming when you have good customer service and communication strategy. Tenants will be happier and are more willing to renew their lease with you. The longer tenants stay at the apartment, the higher the lifetime value of the tenant, or LTV. For example, if the average rent a tenant pays is $850/month and the average length of time they stay at an apartment is 3 years, your LTV is $30,600 per tenant. Consider how you can communicate with your tenants to increase the likelihood of renewals and LTV.
- Keep your tenants in the loop about building or unit maintenance throughout the progress.
- Send a survey to your tenants often. This will help you to maintain a pulse on tenant's expectations of your service, the building, and their unit. Additionally, it will make them feel that their opinion is valued.
- Send an email to your tenants when their lease is coming up for renewal. In your email, thank them for being a valued tenant, set the rent expectations (whether you are increasing or decreasing rent and why), and make the action for them to take clear.
4) Maintain the safety of your tenants
Many apartment communities face either human or natural-related disasters. Be proactive and inform residents quickly on what is occurring because it’s critical to ensuring safety and saving lives. Especially in light of the ongoing pandemic, it’s imperative for property managers to let tenants know about sanitization measures, amenity policies, and contactless payment methods, or any temporary payment deferment opportunities. Providing helpful resources and information at the right time gives tenants peace of mind and builds their trust in management.
Reaching out to your tenants on a regular basis with relevant information is crucial to improving their experience and perception of your company. The property management company is in a better position to build a positive reputation and grow revenue over time.