Resident Retention Strategies
January 24th, 2012 by Ashley
By: Ashley Halligan, an analyst for a web resource for rental property software, recently wrote this article highlighting strategies to maintain and boost resident retention.
“It’s no secret that the costs associated with tenant turnover can be exorbitant. A 2011 SatisFacts study estimates move-out costs average around $3,900 per unit, which includes, among other items, $1,200 in lost rental income, nearly $800 in concessions and more than $700 in maintenance, readying and repairs. So, what can property managers do to encourage lease renewal? After interviewing property managers and retention research experts, I’ve collected a mix of three common sense and creative strategies to increase resident retention.”
-START WITH CUSTOMER SERVICE: It may seem like a common sense strategy, but more than half of residents who choose not to renew their leases fail to do so because of entirely avoidable circumstances, primarily – customer service. Usually there’s a dissatisfaction with a failure to follow-up post-maintenance or are unhappy with overall customer service. By perfecting customer service strategy, property managers can move on from there to offer thoughtful & creative extras.
-FOCUS ON VALUE: Value is a matter of a tenant’s perceived value. By drawing a picture for your residents that demonstrates to them that they’re receiving a substantial amount for what they’re paying, you will exceed their expectations. This is an essential part to securing tenture and surpassing expectations.
-INNOVATIVE PERKS: Once customer service has been skillfully mastered, creativity can be applied to retention plans. Some multifamily communities will incorporate events and gatherings for their residents. Other property managers may offer incentives for tenure, which is an attractive amenity to a tenant who’s considering renewing their lease at the end of their term.
By collectively addressing all of the above, beginning with attentive customer service, you’ll avoid most of the turnover in residents who wish to continue renting. Read the full article here.
Posted in General, Property Management
