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

The Secret Ingredient For An Effective Lease Renewal Offer

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Value
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?

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This comment was minimized by the moderator on the site

Great reminder Lori!

  Kellie DeVilbiss

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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 recomme...
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.&n...
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 le...