Prospect’s don't rent apartments, they rent a lifestyle.  So, why is your apartment community a revolving door?

National studies have shown that the average tenure for a resident is nine months or less and it’s estimated that it costs 5 times as much to re-rent an apartment home as it does to keep an existing resident.

Multiply the cost to turn an apartment by the number of apartments in your community and multiply that result by the national average for resident turnover of 60 percent (NAA). This will give a ballpark figure of what vacancies could be costing your community annually.

For example, the average estimated cost to turn an apartment home is $4,047 (according to Axiometrics, Sept. 2010). Let’s take an apartment community with 200 apartment homes: 200 X $4,047 X 60%.   The result is a staggering $485,640 annual loss in potential revenue due to turnover.

So the moral of this fact is: It’s much less expensive to retain a resident than it is to acquire a new one!!

With resident appreciation being so important, why do many residents feel like they were "waited on" as a prospect, but now that they are a resident they now have to "wait on" everything we do for them?  While there has been a revolution in customer service in our industry, many residents indicate its only lip service.

Resident Appreciation is not a destination, but a journey. In our industry, many of us wear many different hats. Whether you are a Property Manager, Leasing Specialist or a part of the Maintenance team, we are all responsible for resident retention.

Ask yourself and your team this question, "What does a satisfied and happy resident look like?" Do they smile or wave when they pass you in the community, speak to you in a warm, friendly manner, call you by name when they greet you, refer friends and family to your community?

According to a 2009 survey conducted by J. Turner Research, a Multifamily Data Firm:

• 56% of managers are doing absolutely nothing to retain residents
• 30% of managers are just offering rental concessions
• 2% are increasing Customer Service

So, when does Resident Appreciation begin?  It begins at the first interaction your team has with the prospect and it continues throughout your resident’s ENTIRE residency.

The greatest impact you have on resident retention occurs when the prospect becomes a resident. Studies indicate that within the first 30 days of move-in people will decide whether to stay long term in their new homes.

• Create a Hassle-free & Perfect Move-in Process – New residents should be oriented to the community through a Pre Move-in Meeting where they receive a signed copy of the lease and other documents. Everything in the apartment should be in good working order and “white-glove” clean. Consider giving new residents a “move-in” kit with helpful information (area service guide), tips, coupons and contact numbers. Develop a special move-in package you will give each new resident.  It can be as simple as putting a few refreshments in the refrigerator and providing toilet paper and paper towels/hand soap for move-in day.
• New Resident Profile - Create a profile on each new resident at the time of move-in. Use this information to help plan the types of programs and services offered to your residents.
• Walk Right Inspection – A member from the maintenance team or the leasing office team is to create a checklist and do a walk-through with the new resident to ensure every apartment is 100% ready.  This is important because it puts it back on the resident if they find a maintenance issue after move-in: they already signed-off on and agreed that the apartment home was 100% complete.
• Move-in Survey – Survey existing residents to find out what’s going well and gather suggestions for improvement and determine what services they would like to see. Some residents may also be more willing to give feedback if they have the option of remaining anonymous.
• Service Requests – Only 76% of residents say maintenance requests were completed right the first time (Satisfacts Research).  Handle these requests quickly and have it done right the first time. Ask residents if there’s anything else you can do. Chances are that there is something else in the apartment that needs to be done and they forgot to tell you about it. Be sure to follow-up on the maintenance requests.  A service request is not complete until the resident confirms it is complete.
• Establish a “Culture of Responsiveness”– Return resident calls and emails promptly.  A shift in focus to the resident will cause a positive shift in retention numbers.
• Deliver Legendary Service – Greet residents with a smile whenever you see them. Ask how things are with their homes. Resolve problems quickly and properly. Let residents know you’re happy to have them at the community. Treat everyone fairly and consistently.
• Get to Know Your Residents – Develop a genuine interest in and admiration for your residents.  Residents are more likely to stay if they feel that they’re more than just another warm body occupying an apartment home.
• Resident Appreciation Events – According to NAA and the National Multifamily Housing Council, the number one amenity residents are looking for is a “sense of community”. Are there any unique or special services, you could offer residents that will offer them a sense of community? Be creative with your resident events.  For some great ideas, visit: www.residentevents.com
• Renewal Rewards – Offer residents incentives to stay. This could include gift certificates, apartment upgrades and services.
• Intent to Vacate Interviews – Management should concentrate even more energy on creating positive word-of-mouth at the time a resident decides to move out. Once a resident does leave, they are certain to talk about your community for a period of time. Know why your residents are leaving. This is crucial to pinpointing problems. Take or send a move-out gift to their place of employment. Imagine the impact on their co-workers.
• Train Your Team – Bottom line: a resident retention program cannot be effective if the frontline team is not properly trained to implement it.

Think of Resident Retention as SAVING marketing dollars so you can spend it elsewhere.  Maximize your investment of time and energy in your Residents and stay in touch throughout their lease term.  Use Microsoft Outlook or any other tool you have to give you reminders.  Phone calls, e-mails, notes or texts are quick and easy ways to let them know you still value their business!