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?