Here Is A Method That Is Helping TOP QUALITY RESIDENCES

Resident retention is normally the forgotten element in property management, while the art of apartment marketing and leasing to new prospects continues to be studied, sliced, diced and pureed by the apartment industry to find optimal strategies of getting people in the door. Actually, the better a community reaches apartment marketing and leasing, the more it can mask its shortcomings on the resident retention side. So much effort is manufactured on the leasing side of the business enterprise that our front line troops are called “Leasing Professionals.” Concentrating on Leasing is not a negative idea; however, neglecting the other half of your business can alienate your residents, cause high turnover, and severely impact your important thing.

That is more important: Resident Retention or Apartment Marketing?

When we discuss the worthiness of Resident Retention, it is not to state that apartment marketing isn’t also quite crucial. In other words, to improve retention, we ought to not sacrifice leasing. Having said that, a rise in retention is vastly more beneficial than a rise in leasing. This will not be a surprising concept. When you compare a new resident to a preexisting resident, the existing resident is a lot more profitable, with hardly any make-ready costs and no loss because of vacancy. Additionally, a long-term renter is much more prone to refer friends and coworkers than a new renter would.

When you start to see the difference in profitability between your two groups, it really is shocking how much more we spend on prospects. While prospects and new residents get the advantage of cheaper rent and extensive marketing, existing residents, those that pay the bills, often obtain the short end of the stick. This difference can lead to alienation of one’s current residents, a situation you should strongly avoid.

How come resident retention not on the radar?

Even though most of us understand the idea of resident retention, surprisingly little is well known about how to perform it. Therefore, most communities choose to either ignore everything together or choose methods that do not achieve the expected goals. Let’s first consider a few of the most common mistakes manufactured in current retention “techniques.”

Customer Service and Maintenance

Let me be clear concerning this: Customer service and maintenance are NOT resident retention programs. We constantly hear how important both of these items are, which is completely correct. However, instead of going above and beyond, these items are an expectation, not just a perk. Especially for Class A and Class B properties, residents do not see strong maintenance and customer support as a luxury item they ought to be impressed with. They instead see these items as a required part of living at your community. Consider a restaurant advertising that its food is served warm. Isn’t that expected at a restaurant? And when that is the best trait the restaurant can offer, would you really expect the food to be that great? For a residential area to advertise a feature that needs to be standard, they’re actually implying that the rest of their service isn’t too impressive!

The infamous summer party…

Summer parties could be a fun perk, but are rarely a great investment. Firstly, summer parties can be quite expensive if food is offered, generally which range from $1,500 to $3,000 for a 300-unit community. Ironically, you save money when you get yourself a low resident turnout at these events. Imagine the price if 100 percent of one’s residents attended! However, probably, you’ll only have around 25 % of your residents show up. Of these, it’s likely that no more than 25 percent has a lease coming up to create an impression on the renewal decision. Therefore, you’re impacting only 6 percent of your “target audience.” This implies for an average community of 300 units, you’re spending roughly $2,000 to attain 18 residents – that’s $111 per resident! Even if the party influences a few others that renew later in the entire year, investments in these parties usually do not justify the reward.

Ki Residences Sunset Way So what are some programs we are able to implement?

Firstly, know your community. Fair Housing laws limit just how much demographic information we can keep about our residents, nevertheless, you should at least have an idea of the different faces of your community. Additionally, rather than having one giant one-size-fits-all party, you can coordinate several smaller, targeted parties throughout the year. Having more frequent parties lets you target different demographic groups in your community at differing times instead of “putting all your eggs in a single basket” approach of large summer events. Spacing these events over summer and winter will also guarantee your events coincide with all of your residents’ renewal periods, thus giving you the largest impact possible. Here a few ideas that can it is possible to explore that are less expensive:

Older Residents

Bridge or Mah Jongg Night
Dinner Rotation – This is often quite popular! Have an indicator up period for singles or couples. These groups then take turns rotating amongst their apartments hosting small dinner parties for every other.
Singles Crowd
Poker Night at the Clubhouse (for prizes rather than money)
Networking Night
Dance Classes
Sporting events
Children Friendly
Ice Cream Social
Kite Day
Scavenger Hunt
Also, understand that you have purchasing power! Most events around town offer group rates that you could transfer to your residents. This can make them feel a part of an exclusive club with great deals all the time!

The continuing future of resident retention

Have you heard the word “Resident Portal?” In the event that you haven’t, continue reading! A Resident Portal is actually a website for the residents, adding a genuine social element to your community – consider it a “digital clubhouse.” If you haven’t noticed, almost all residents have a social presence online. Resident Portals take that concept and merge it with traditional apartment properties to create a true “community” environment. A simple Resident Portal carries a community calendar of events, utility sign-up features, maintenance requests, and online rent payment. However, a few resident portals offer a lot more in terms of a residential area social experience. These expanded resident portals range between about $125/month to $200/month for a 300 unit community, meaning you can get an entire year of service for exactly the same price of one summer party. When done properly, resident social interaction can create strong emotional bonds in the middle of your residents, leading to impressive improvements in your retention rates.