As property managers and multifamily marketers, our daily tasks have always blown past our original job descriptions. In truth, we hold more than one title — we are each a jack of all trades and that fact has never been more evident than in this COVID-19 world.

There’s just not enough time to do it all. More specifically, we are juggling too many projects to have any “free” or “extra” time. That means we need to maximize our time.  

You want to attract new renters and you want to keep your current ones happy — but with only so many hours in the day — where should you devote more time? 

Let’s discuss: 

Reasons to Focus on New Leases

Besides being a new property, here are the top reasons we find our multifamily clients focus on winning new leases:

• More units available than current residents — the ratio between these two is important data to keep track of as you re-evaluate your strategy every quarter.
• Money has been invested into unit upgrades or new amenities. 
• There has been a change in rental price. 
• New demographic to target — as time goes by, the type of people you want to rent to changes; for example, many properties are slowly attracting more Gen Z than Millennials as they become the dominant renter demographic. 

Reasons to Focus on Resident Satisfaction

Here is when we see that our multifamily clients need to focus more on resident satistication:

• Relatively new property — being that the property is new, it has yet to establish any kind of reputation online or through word of mouth.
• High turnover rate — usually a high turnover rate has nothing to do with rental price and everything to do with customer experience. 
• There are more negative than positive reviews left by residents. 
• There is a current or upcoming economic downturn.

How COVID-19 Impacts Lease and Resident Focus 

While the above bullet lists are good starting points, COVID-19 kind of throws a wrench into the whole mix. But it might not be the wrench you think. 

Usually, it would be safe to assume that residents are not in the mood to move during a national pandemic. However, studies have shown that COVID-19 hasn’t significantly negatively impacted renters’ perception of or desire to move during this time. 

Here are the highlights from an expansive RentCafe study on this topic: 

• 56% of renters still plan to move during this time
• 45% of renters have no particular concerns about moving during this time
• 60% do not plan on postponing their move
• 49% say that none of their renting preferences have changed due to COVID-19
• 51% say that this situation has not affected their apartment selection process

This shows that the overwhelming majority are continuing with their current moving plans. 

More Expensive to Keep a Current Renter or Win a New One?

When it comes to deciding where to devote more of your time as a property manager or marketer, cost is one of the most important factors — it always is. 

Let’s say your property is pretty balanced: over 50% leased up, average turnover rate, and solid online reputation. That means, your decision of where to focus comes down to money. Properties always need to cut down on expenses, especially now. 

The question of whether it costs more to win a new customer or retain a current one has been asked for years and there is a clear answer. 

It is more expensive to win a new customer than retain a current when. Even though residents can be viewed as a slightly different group than customers, who say, buy a new car, this fact is still true for the multifamily industry. As well, increasing resident retention through satisfaction can increase profits.

Here’s some stats: 

• Depending on the industry you're in, acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one.
• Increasing customer retention by 5% can increase profits by 25%.
• The success rate of selling to a customer you already have is around 60%, while the success rate of selling to a new customer is from 5% to 20%.

So, a resident strategy that is less expensive and can be more profitable as time goes on? We say YES.

What are your thoughts on this topic? Where does your property focus? Have you experienced more success one way or another?