With the apartment pipeline at historic levels, demand for tenants is picking up. That makes retaining residents critical. And while efforts often focus on the property itself through the right mix of amenities, property managers should never overlook the human element.
"I asked my team of experts (our leasing professionals) at Blanton Turner what was most important to resident retention," says Barry Blanton, IREM's immediate past president and chief problem solver at Seattle-based Blanton Turner, AMO. "The first thirty responses centered around relationships, communication and making people feel special and valued, and to view residents as "not just a rent check." Fundamentally it really comes down to individuals with unique personalities, and conversations about renewing it should never feel "scripted."
Customer-First Mentality
In successful resident retention, property managers are contending with the various life changes and stages their residents experience, Blanton notes. This could mean a change in relationship or finances, newer properties or concessions enticing a move, or a change in living priorities such as residing on an upper or lower floor.
Rather than draw up some apartment algorithm to streamline these dynamics, Blanton says resident retention comes down to some basics, like 1) whether or not they look forward to returning to the community at the end of the day; 2) if they're proud to tell people where they live; and 3) if their home supports or enhances their personal brand. These all play an important part in renewal.
"If people feel good about where they live, that's real value," Blanton adds.
People Helping People
Property managers should utilize the most effective resident communication practices to achieve better retention. Blanton emphasizes building and maintaining good relationships throughout the entire lease period, rather than just as a tool to close a deal.
"People will choose to live where they feel valued and cared about," says Blanton. "Personal touches — and they can be simple, but they must be sincere — are important from the moment you move in and throughout your residency. Providing an exceptional experience is more important than just offering concessions or gift cards."
Choosing great staff members is key, and team members should be recognized for their personal skills and ability to build relationships as much as for technical skills, according to Blanton. Staffing can't just be a selling tool: they should create authentic connections and become a valuable part of what the community is all about. This also extends to the maintenance staff, Blanton says.
"Our maintenance teams are essential to our whole customer experience and really are a framework for our entire relationship-building strategy," Blanton says. "They're the ones who see our residents every day, taking care of their problems and building connections with our customers."
Time Is of The Essence
Blanton reminds apartment owners and managers to use time to their advantage. Specifically, property managers should begin working on lease renewals long before the resident can go out to shop for other living options. The job of renewing a lease starts on the day the residents move in, Blanton asserts. Take advantage of the time before the renewal and develop a renewal work-back plan. And always remember, every two weeks of vacancy equates to 4% of the total rental revenue for a year.
To read more thought leadership from IREM, click here. To learn more about property management education and certification, click here.
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian A. Lee
Brian A. Lee is an Atlanta-based freelance writer and former editor of Western Real Estate Business magazine. The Wake Forest and University of Georgia graduate has covered commercial real estate since 2000.
