Enter your email address for weekly access to top multifamily blogs!

Property Management Minutes

Thoughts and Observations on Marketing, Leasing, Maintenance and Property Management Operations

Six Suggestions For Resident Retention

time-to-renew

Many property management reports focus on occupancy. Every week, how many move ins will you have? What do you have as preleases? The number of lease renewals is also important.

Renewal is a Satisfaction Indicator

Securing the move in is only the first step toward building a relationship with a new resident. As time goes by, one of the true indicators of property success is the number of residents that renew their leases. Residents demonstrate their satisfaction at a property when they make the decision to continue living in their apartment home.  Residents who are frustrated with poor maintenance, lack of follow up, poor communication and yes sometimes rent increases, may never call the leasing office to ask questions or voice concerns, they simply turn in a move out notice and move away.

Renewals Reduce Turnover, Reduce Expenses

Reducing turnover has the potential to save a property thousands of dollars in expenses. In addition to the rent loss from a vacant apartment and advertising costs, consider the time for the maintenance team to complete the turnover process  preparing the apartment for the new move in. The combination of labor, supplies and lost rent can quickly total $1000 or more for each move out. Imagine if each month you were able to convert one move out notice to a lease renewal. This could save $12,000 in maintenance expenses!

The decision to renew or move is strongly influenced by the performance of the leasing and maintenance staff, not the potential increase in rent.

Laying the groundwork for lease renewal starts on move in day. The turning point where an applicant becomes your resident.

Resident Retention Ideas

1.  Make sure to demonstrate the mechanical apartment systems, (air conditioning, furnace, programmable thermostat) during the move in inspection.

2.  Review the features benefits, during the move in inspection, create excitement and anticipation about their new HOME.

3.  Contact new move ins during their first month of occupancy, ask if the resident has questions or concerns. Use a reminder program to contact residents at 3 month and 6 month intervals, positive contact will confirm you have concerns in addition to the timeliness of rental payments.

4.   Take the time at lease signing to review the entire lease, offer to review again in the future, because the focus is probably elsewhere on moving day.

5.  Leave survey and comment cards with service orders. When a comment or suggestion is received, Acknowledge the response,regardless of the nature of the comment. RESPOND and acknowledge

6.   Whenever some one calls to voice a concern, complain, vent or maybe even offer a suggestion , thank them for taking the time to make the call.

Taking a proactive position, communicating with your residents throughout the course of the year can create customer loyalty. The renewal process starts proactively with positive resident contacts to test the waters and get a feel for the mindset of your resident, moving out of town, loss of income, change in family status there are some move outs that cannot be influenced. But if the renewal process starts on Day One of a new residents lease, the number of leases that renew will increase.

Rate this blog entry:
1
 

Leave your comments

The best word to describe the renter journey is “complicated.” There are multiple points along the path to lease, and recent marketing data tells us that the experience should no longer be considered linear. Instead, it’s a multi-stage journey in which the renter visits multiple sources within the marketing lifecycle.   Even though the marketing funnel has clearly identified stages, each channel can be applied to various stages of the renter journey, depending on the type of information th...
  Implement a maximum resident vehicle rule into your lease agreements. This sounds like a fairly simplistic procedure to help fight parking issues, but I’ve seen several communities who do not disclose this information upfront to tenants, ultimately allowing residents the opportunity to bring several vehicles onto the property. By having communication directly with your residents and indicating this restriction during the leasing process, you will take the first step in preventing too man...
  What is Lifecycle Programming? Lifecycle Programming is a way to automate customer lifecycle marketing for Multifamily.It combines customer lifecycle marketing efforts from employees and the digital workforce to build stronger customer relationships. Let’s dive deeper.   How Does it Work? Using a series of plays, Lifecycle Programming provides targeted content to customers. The customer’s stage in the lifecycle determines the play used. Each play is a collection of...