How to Boost Your Apartment Tenant Retention

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Tenant retention is a crucial way to drive value at an apartment building. There is a big cost to turning a unit, and reducing those costs can result in significant operational savings. But, with booming apartment development throughout the West Coast, residents have a lot of options for quality apartment living. However, property management companies like P.B. Bell understand the importance of tenant retention and are focused on executing thoughtful tenant-retention strategies.

“When you have lower resident turnover that equates to lower operating costs overall which is the biggest reason why resident retention is so important to the value and success of a multifamily investment,” Debbie D. Willis, president and designated broker for P.B. Bell, tells GlobeSt.com. “When residents stay long term, they are more invested and more involved in their community. There is also the continuity of neighbors and a sense of inclusivity for residents when a community is less transient. Communities with lower resident turnover are often more likely to have residents who talk about their good experiences and they also receive more resident referrals, all of which helps to build value and allow for the success of a multifamily investment.”

A successful tenant retention strategy is more than just providing services. Property managers need to understand the demographics and community culture and needs to retain tenants. “Understanding the demographics and psychographics of the residents within an individual community to know what they value, want, and need is necessary when creating a resident retention strategy,” says Willis. “When you know who your residents are, you can customize their experience at your community to fit what they’re looking for. The key to the success of a resident retention strategy, however, is rather simple. You need to be communicative, transparent, and attentive at all times. By doing this, you create a bond with residents which builds loyalty and maintains a high resident retention.”

While residents have options for other properties, occupancy rates in many markets are at an all-time high, and in some markets there is a shortage of apartment living. Despite these dynamics, focusing on tenant retention is still important. “It will always benefit a community when they have a resident retention plan in place,” says Willis. “It’s cheaper to retain a resident than it is to find a new one, but that’s not the only thing that matters. We’re in the business of people and it’s our responsibility to take care of those who choose to live in our buildings. They could have gone anywhere else, but they chose our community to call home, and we recognize that. When we understand and take care of their needs, they will stick around longer, and in turn, our resident retention and occupancy will remain high.”