Most people would agree that moving is among life’s most stressful events. Moving is expensive, exhausting, and back-breaking! Given how unpleasant the experience can be, you might think people would be reluctant to go through it and simply stay put.
Yet according to the National Apartment Association, the 15-year average resident turnover rate for professionally managed rental housing communities is 53%. That means more than half of apartment community residents move out every year—leaving a lot of vacant apartment homes to be re-rented.
Resident turnover doesn’t just create a marketing and leasing burden, of course. It also creates a significant financial burden. It’s estimated that each time a resident moves out, it costs a rental community an average of $4,000. This estimate includes costs such as vacancy loss, maintenance and repairs, and hourly wages for the team to prepare the apartment home for a new resident.
Imagine the positive impact you would make to your community’s financial performance if you could sign more lease renewals. Just a slight improvement in resident retention would result in massive savings straight to the bottom line!
What does it take to improve resident retention? Focusing on a positive resident experience is the key to creating a great landlord/tenant relationship. Residents who are satisfied with their rental experience stick around.
Here are three proactive strategies for improving the landlord/tenant relationship, delighting your apartment community residents, and earning their renewal lease.
You know what they say--you only get one chance to make a first impression. Moving day is your opportunity to demonstrate that the resident experience at your community is convenient and pleasant.
Moving can be a hectic, nerve-wracking experience. When your brand-new residents arrive at your door with a truck packed full of all of their earthly possessions, they’re under a lot of pressure. Make it your business to ensure that their move-in experience is as easy and low-stress as it can possibly be. Some suggestions:
Residents often complain that the level of service they receive from the community team drops dramatically once they transition from “prospective resident” to “existing resident.” To some, it can feel that once they sign a lease and move in, the honeymoon is over as the team sets their sights on their next new lease. This should not be the case.
Instead, aspire to deliver friendly service to your residents with every encounter. Enlist every member of the community team in this effort. Some suggestions:
One of the best features about renting is the convenience. Look for every opportunity you can find to make living at your community an easy, convenient, and rewarding resident experience. Residents will be more likely to stay if they feel like the staff is responsive to their needs and they can’t live without all that life at your community affords them. Here are some ideas:
Recently, a multifamily professional shared this stylized quote in an industry discussion group on Facebook: “Our residents do not live in our workplace, we work in their home.” What a powerful message for rental housing professionals to keep in mind! While you and your coworkers may be simply going about your workday and doing your jobs, never forget just how personal your work is to the residents who call your community home. Strive every day to create a community where residents feel comfortable, cared for, and catered to—so they stick around.
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