Janisse: There is a measurable financial return when a tenant base is stable. Value-based living through the implementation of programs and services improves resident retention and rent collections while reducing crime and turn over costs, just to name a few key line items. The improved financial performance of an asset with resident services is undeniable.

GlobeSt.com: What are the biggest factors contributing to resident turnover in multifamily communities?

Janisse: I think turnover is unique to each community. It may be driven by the demographic or geographic area, crime or, in many instances, the job market for unskilled labor as well as blue-collar employment opportunities.

GlobeSt.com: Would you say certain resident services play a bigger part than others in making communities better and reducing resident turnover?

Janisse: Yes, there are certain resident services that support a greater impact than others. On-site programs and service have the greatest impact to a community. Implementations of youth enrichment programs play a very critical role in garnering participation of individuals and families. We find the programs and services targeted at building upon ones potential are well-received versus those characterized as supporting a deficiency.

GlobeSt.com: One of the big pushes by Rainbow is resident health, and offering service programs that provide various health screenings and follow up treatments. How does resident health ultimately impact the market?

Janisse: Rainbow recognizes that health care is critical to the well-being of individuals and families in any environment. We recognize that low to no cost medical services can minimize out of pocket expenses to those we serve thus reserving resources for housing, utilities, food and transportation. Truly a healthy family has a greater capacity to thrive and improve their self-sufficiency.

GlobeSt.com: Does financial literacy and job readiness of the resident populations really impact the investors'/developer's bottom line in a significant way?

Janisse: The ability for an individual or family to cover basic expenses, with housing as a priority, improves as their financial stability progresses. Improving the likelihood of employability, and developing a money management skill set, will increase the potential for stabilized tenants. The self-sufficiency of a tenant base impacts rent collections and reduces turnover expense through resident retention. If, on average, two tenants were “saved” from eviction each month the average cost for legal, reletting and turnover would be no less than $3,000 ($1,500 each) per month or $36,000 per year. This example only assumes two evictions per month, while in most instances you may find greater turnover significantly affecting the financial performance of an asset.