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

The Secret Ingredient For An Effective Lease Renewal Offer

Weekend hours

People 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 / want convenience. They have a busy life style, whether they’re a career individual, single parent, or a senior citizen enjoying a carefree schedule.  Emphasizing the value will improve the chances of a renewal.

Can you point out the value in your closing on a renewal or a lease?

Rate this blog entry:

People in this conversation

Leave your comments

By 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 satisfa...
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 negat...
“… And they never come back!” That’s exactly what you want to hear... if you are the Manager of the Cape Town Stadium in South Africa and you’re talking about the birds that have been plaguing your stadium for the past few months. It’s what you want to hear when you hired a trainer to fly his falcon around the stadium every few days to scare these birds. It’s exactly what you want to hear when you decided it was time to scale back to one flight every month. That’s what I was told ...