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

Multifamily Blogs

This is some blog description about this site

Your Resident Has Started to Shop Around! Can We Stop It?

Your Resident Has Started to Shop Around!  Can We Stop It?

In Donald Davidoff's excellent webinar a few weeks ago, he discussed how aggressive a community should be with their renewal rates.  (Seriously, check out that video - that one strategy will pay for the webinar several times over).  What he said had some pretty dramatic ramifications to how we see the renewal process over all, and possibly avoiding having our residents start shopping the competition.  (If you haven’t read my previous blog about avoiding the Buying Cycle, I recommend reading this.) In general, we are used to prospects coming into our communities in the middle of their Buying Cycle – they are actively shopping communities to find their new home.  But with our existing residents, there is a possibility they never actually start shopping around.  If there is no rent increase, for example, they may just renew their lease without much of a second thought, where the decision is to simply continue as is.  However, once we start increasing rents further and further, then they have a decision to make on whether they want to look elsewhere.  That, right there, is the first decision they make – do they want to actually shop around.  It’s a simple decision, but it has far reaching complications for your sales process! Prefer to watch the video blog instead?  Check this out: So the question is:  Can we avoid our renewing residents entering the Buying Cycle, but still raise rents at the same time?  In Donald’s webinar, he mentioned that the data showed that the higher th......
Continue reading
1674 Hits
0 Comments

When a Resident Starts Shopping Around, You Lose Control Of The Renewal


When it comes to a renewing resident, nobody would want that person out shopping the competition, learning about all the great bells and whistles that they offer and putting them in the hands of our competitor's trained sales force.  So in that sense, although it may sound callous, your biggest advantage in renewing that resident is their ignorance of what else is out there!  Unfortunately, in our business, we often increase rents, which ends up driving our residents to do just that.  And once they start shopping around, they enter the dreaded Buying Cycle. Prefer to watch the video blog instead?  Check this out: What is the Buying Cycle?  I'm sure many of you have gone through the phenomenon where you never really notice car commercials, billboards, etc until you finally decide you are ready to buy a car, and then suddenly they are everywhere!  Of course, that's a silly thought - it's not as if a billboard was suddenly thrown up because you decided you wanted a car - the reality is that they were always there, but you just didn't notice because you were not in the Buying Cycle.  Once you start shopping, however, then suddenly you are inundated with information about potential car purchases - models, reviews, prices, you name it.  And even more importantly, once you enter the Buying Cycle, it almost always wins.  In other words, once someone has started that process, seeing all the other shiny, new options, their current car/home/etc always seems lackluster in......
Continue reading
2033 Hits
1 Comment

The Secret Ingredient For An Effective Lease Renewal Offer

Weekend hoursPeople select a new apartment home largely based on location. Price point and lease terms are also taken into consideration. But when it comes to the choice to renew, the decision is based on customer satisfaction.  This satisfaction translates into the value experienced by the resident. Creating Value With a rent adjustment for the renewal, the apartment may be priced “right” as supported by a marketing survey; but will a resident see, appreciate and agree with the value? There is sometimes a confusing dynamic when a resident moves out identifying the reason as “rent too high.” Managers search to justify:-Possibly a change in household income-Job transfers or downsizing in employment status-Adjustments to household composition. After all the rent was acceptable at the time of move in, and possibly the rent hasn’t even changed. The change may not involve the price; instead its the value the apartment represents. -Has the resident needed to make repeated calls to resolve maintenance problems?-Is the coin operated laundry often out of service? -Is it difficult to locate a parking space? -Are there problems with neighbors that can’t be resolved?-Has the apartment home proven to be “less” than anticipated? The focus points in a renewal offer need to include reminders of value.  Point out this apartment home is convenient for the resident.  Explaining future plans that enhance resident convenience, demonstrate a customer service mindset.  Even continuity represents value.  A move certainly generates a great deal of change.  Change can have a painful time-consuming learning curve. Emphasis On Convenience Individuals who choose to rent, need / w......
Continue reading
3893 Hits
1 Comment

How To Increase Lease Renewals By Using Renewal Incentives

How To Increase Lease Renewals By Using Renewal Incentives
Resident retention is a particularly challenging facet of student housing. This is largely due to the renting tendencies of students, who are often considered as transient renters. What we mean by transient renters is that they frequently change their living accommodations over the course of their academic careers. This can be rather taxing to landlords and property managers, as low renewal rates create the constant need to find replacement tenants. But what if there was a simple way to boost lease renewals? Renewal incentives are incredibly easy to implement and often aren’t particularly costly; yet surprisingly, they aren’t very common in the student housing sector. In many cases, renewal incentives can help boost lease renewal rates and can also increase tenant satisfaction.A survey was conducted by The Rent Roll, which contains valuable information about what types of incentives are preferred. Some of the key findings were: Rent discounts were the most widely preferred monetary incentive. Covered parking facilities and gym memberships were the most preferred non-monetary incentives. The best time to offer incentives was during the lease signing or right before a tenant’s lease expires. Furthermore, the survey listed four key types of incentives and asked respondents their preferred type: Monetary – 52% Unit Upgrade – 27% Free Service – 11% Household Item – 11% Without a doubt, monetary incentives hold the most weight. The survey went on to detail what types of monetary incentives were most preferred: Discount on rent – 58% Cash – 28% Security deposit rebate – 10% Gift card to a popular r......
Continue reading
3036 Hits
6 Comments

Arguments VS Discussions - Know The Difference

Arguments VS Discussions - Know The Difference
Arguments VS Discussions Disagreements are unavoidable in any business relationship, and communication with your residents is no expectation. However, the disagreement itself is not the primary factor in the outcome. It is how you handle these conflicts that affect you, your reputation and your profit margins the most. If you approach disagreements with residents in an argumentative way, they will be less likely to sign a renewal on their lease. Also, unhappy residents are likely to write negative reviews that prospective residents will take in consideration before leasing with you. If you want to keep occupancy up, switch your style of commutation and have discussions instead of arguments. When you argue with someone, you have already made up in your mind that you are right, and they are wrong. Arguments are approached from a very one-sided point of view, and if your residents do not feel as if you care about their perspective, they are less likely to care about yours. In an agreement, we often take on an accusatory tone, and sometimes we are not even aware that we are doing it. This will likely result in the other party becoming defensive and reduces the odds of reaching a mutual agreement. Augments only serve to increase anger and bitterness. In a discussion, all parties involved maintain their composure. The disagreement is approached from a neutral point of view. The disagreement with your resident should be regarded as a problem that you are both working together to resolve. When someone sees......
Continue reading
1028 Hits
0 Comments

Keeping Lease Renewals High in 2013

Leasing Center SignBy Steve Boudreault, Buildium, Boston, MA Well here we are in a brand-new year, and if you're a property manager, you've no doubt drawn up your plan for keeping your residents and keeping them happy in 2013. Many property managers follow a fairly standard playbook when it comes to resident perks -- Super Bowl parties, free coffee in the mornings, discounts on multi-year leases, and so forth. But here's something to consider: SatisFacts, the apartment industry's authority on resident satisfaction and retention, discovered that the top three factors that influence a renewal decision are quality of maintenance service, safety and security, and quality of customer service provided by office staff. But what about the free peppermint candy in the leasing office? Nope. Not gonna cut it. So how can you use these three factors to your advantage? Let's take a look. The quality of maintenance service is a no-brainer. It can be a challenge for larger properties, but maintenance staff showing up quickly with the most likely tools they'll need for the issue can go a long way. And though many properties have switched to an online maintenance request system, most service requests still come via phone or in-person leasing office visit, so having staff on hand who are familiar with the most common issues and how to resolve them can be a real feather in your cap. Never having to worry about the malfunctioning garbage disposal? Who wouldn't want to renew? It's no surprise that safety and security are a......
Continue reading
1756 Hits
1 Comment