Everyone has heard the wise expression; count your blessings. This essentially tells you to be grateful for what you have. The same is true in the apartment industry. When a current resident decides not to renew their lease, the turnover cost is typically between $3,000 and $4,000. How is this possible? We must consider vacancy loss, maintenance salary, vendors, leasing cost and salary, and other items. With this sizable cost, where exactly should our focus be, and what does the market say about this?
Resident retention is probably the most critical aspect of a property manager's job, but many do not always prioritize this. If you search social media, you will see ads like “lease today,” “special rates,” and “call now” to lease your property. While attracting prospects is essential, your current residents can be neglected. In addition, are we attracting the people we are advertising to? There is no denying that the youngest generation renting apartments differs from the generations before. Renting is no longer a short-term stepping-stone for many but a phase of life that will last for several years. So, what are they looking for, and how do we keep them?
The new generation of renters is not just looking for a place to sleep until they find the right home. They are looking for experience and a lifestyle. Buying a home is not as important to this generation as the last, and they are in no hurry to buy. They value being social, having certain home luxuries, and having experiences. They are more involved in the community and often seek new things to try. Your apartment or housing community must provide this through customer service, resident events, and incentives.
This generation is looking for wine tastings, pool parties, meet-and-greet gatherings, and live music in a new apartment complex. They want to see the managers putting in the effort and envision the fun they can have in their new community. And these activities can be utilized in marketing material. Take pictures at the event and put them on social media so that your residents know you go above and beyond, and even better, your prospects see this too. These marketing expenses are thus targeting retention and new Prospects. Also, with the turnover cost, incentivizing the current resident to renew may be more cost-effective. Advertise an incentive for residents who want to renew. Again, you care for both new and existing in one fell swoop.
Lastly, we must provide excellent customer service to our current residents. How many of us have had new prospects tell us that their existing community is nonresponsive, be it maintenance needs or the office staff just not answering the phone? Make your residents a priority. Learn about their lives and be interested. Don’t just talk to them when there is a problem or time to collect rent. Check on them and make them feel important. Remember that these people already chose your apartment complex, so now, as Management, make residents happy they have you too. Management can be the deciding factor in a resident choosing to stay, so they deserve the best you can give them!