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Resident Retention: Movin' On Up

Resident Retention: Movin' On Up

  or  ?

I just got back from Boise, Idaho recently to visit family and enjoy the beautiful scenery of the Northwest U.S.  I found out a cousin who has been living with her parents for various family reasons is now looking for a rental situation. I asked her what kinds of deals she was finding in the apartment market in Boise, and while she told me what I expected to hear – that the move-in deals were pretty amazing – she had chosen to submit a rental application for a single family home with a yard. This is no new story to any of us, and she shared all the reasons we’ve heard before:

- Fenced in yard

- Same price as an apartment

- No shared walls

- Lots of space

- And the neighborhood even had a pool and clubhouse!

Yes, the shadow market is alive and well, there’s no point in denying that. We’re competing with it for prospects as well as our existing residents! While there are many experts on the leasing side who can offer strategies and approaches to get new prospects in the door, there is a need to continue to use some of these same strategies to keep the residents we have. Remember the TV show, The Jeffersons? The theme song is all about moving to a “deluxe apartment.”  How do we re-kindle that pride of residency in our own community?  When it comes to existing residents telling us at renewal time that they are considering renting a single family home or condo, it may be an opportune moment to remind them of some of the extra costs that could be associated with renting a single family home:

- How  quickly are maintenance issues resolved?

- What will it cost to maintain lawns/landscaping in summer or sidewalks and driveways in winter?

- Who pays for water/sewer/trash?

- What will utility bills look like in order to heat/cool the home?

- Who provides window coverings?

- Does the neighborhood have a pool, clubhouse, fitness room? If not, what will it cost for memberships at local facilities?

While the initial monthly rental rate may be equal to or better than the resident’s current rate, what other costs do they need to consider? And, ultimately, the renewal decision is most influenced by the service delivery the residents are experiencing. Are you offering your residents service that can not be matched? Meaning, do you return their calls and emails same day? Are their service requests completed in 24 hours, and are they completed right the first time? And as the theme song says, do your residents feel they have “finally got a piece of the pie?”

I'd love to hear what other important questions should be raised with residents who are considering renting a single family home rather than renewing with your community! 

 
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Hmm, this seems tough to me. I suppose one of the lines of questioning that I would take is in terms of satisfaction. Folks don't usually tell you outright when they're only mildly upset about something, and will instead offer a cover story that sounds agreeable to both parties. Maybe it's just a question of having only met, not exceeded, expectations - they're comfortable, but not wowed, so they're shopping around a bit for that taste of awesomeness, and for one reason or another they feel that their best bet lies with a single family home. So instead of trying to play devil's advocate, maybe the focus should be on how we can improve our residents' experience. I think Eric with Urbane has a good approach to this - his residents are getting an experience that is simply not going to be matched by moving to a rental home in the 'burbs.

  Sara Morrill
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Jen - One of the biggest points that I highlight to potential residents who admit that they are also interested in a single famiy home is this... Everyone loves the idea of it, but are you in love with the reality of it? And i just leave it hang there. More often than not, I don't have to qualify the statement, they fill in their own qualifications and potential concerns.

  Tara Smiley
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@Tara - possibly this is just my inexperience in multifamily speaking, but that seems to me like it ought to backfire. It feels a little too much like false concern, like, "Oh, but do you really understand what you're getting into?" If I heard a question like that, I might assume that my concerns weren't being taken seriously, or that I was being patronized, which would do nothing for me in terms of increasing my desire to renew my lease.

Maybe a better way to put that is that a discussion shouldn't focus on negatives, but on positives: not, what is our community lacking that your resident thinks a rental house can offer, but what does the resident *really* want that we can do better than a rental house? Instead of "So you want a yard? Do you really want to have to mow it?" you could talk about the beautiful landscaping your community offers and the nearby park (obviously will vary by location) that's all cared for by professional staff and maintenance, so it'll always look good without their having to lift a finger.

It's a difference in attitude, I think.

  Sara Morrill
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@Sara - I agree wholeheartedly about the focus on service delivery and finding, or re-discovering, how to 'wow' residents. If a resident feels they are being taken care of, it's less appealing to think about moving and having to start over!

@Tara - I'll bet there are indeed a lot of unvoiced concerns residents do have when they are considering moving to a single family home. Each leasing consultant and property manager has their own style when working with residents and prospects, so it sounds like that approach has worked well for you. Thanks for sharing!

  Jen Piccotti
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Sara - I should have better explained myself... when the issue is presented by a prospect (because i won't bring it up)... I left them fill in the blanks re: their concerns, questions, insecurities re: either leasing or purchasing a single family home, to which I am more than able to counter it with how our property presents none of their concerns. From that intro, we collectively, are able to build on the important items for them, and further build on the aspects of our properties that they didn't realize they would be able to capitalize on.
Landscaping, maintenance free living, zero (and I mean zero) complications with maintenance, questions, concerns, etc. I like to highlight our ability to meet the current and upcoming needs of our community members.
Hope this clears up my position.
And the last ditch effort, I am always willing (when asked) to provide my reasons for why I am lifelong leaser.)

  Tara Smiley
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@Tara - Oh, yes, that does clear it up quite a bit. Thank you! I realized that my earlier comment sounded a bit harsh and I apologize for that. It sounds like you have a system that works for you and, more importantly, your residents, so I'm happy for all of you.

  Sara Morrill
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It's so great to get these perspectives! Thank you!

  Jen Piccotti

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