3 Things Everyone Knows About TOP QUALITY RESIDENCES That You Don’t

Resident retention is generally 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 get optimal strategies to 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 our front line troops are called “Leasing Professionals.” Concentrating on Leasing is not a bad idea; however, neglecting the other half of your organization can alienate your residents, cause high turnover, and severely impact your bottom line.

Which is more important: Resident Retention or Apartment Marketing?

When we discuss the worthiness of Resident Retention, it isn’t to say that apartment marketing isn’t also quite crucial. In other words, to improve retention, we have to not sacrifice leasing. Having said that, a rise in retention is vastly more beneficial than an increase in leasing. This will not be considered a surprising concept. When you compare a new resident to an existing 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 likely to refer friends and coworkers when compared to a new renter would.

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

Why is resident retention not on the radar?

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

Customer Service and Maintenance

Let me be clear about this: Customer service and maintenance aren’t resident retention programs. We constantly hear how important these two items are, which is completely correct. However, rather than going above and beyond, these things are an expectation, not just a perk. Specifically for Class A and Class B properties, residents do not see strong maintenance and customer service as a luxury item they should be impressed with. They instead see these things as a required part of living at your community. Look at a restaurant advertising that its food is served warm. Isn’t that expected at a restaurant? And if this is the best trait the restaurant can offer, would you really expect the meals to be that great? Ki Residences Singapore For a residential area to advertise a feature that should be standard, they are actually implying that the others of their service isn’t too impressive!

The infamous summer party…

Summer parties can be a fun perk, but are rarely a great investment. To start with, summer parties could be very expensive if food emerges, generally ranging from $1,500 to $3,000 for a 300-unit community. Ironically, you spend less when you get a low resident turnout at these events. Imagine the price if 100 percent of one’s residents attended! However, more than likely, you will only have around 25 percent of your residents arrive. Of these, it’s likely that no more than 25 percent includes a lease coming up to create an impression on the renewal decision. Therefore, you are impacting only 6 percent of your “target audience.” This implies for an average community of 300 units, you’re spending roughly $2,000 to reach 18 residents – that’s $111 per resident! Even though the party influences a few others that renew later in the year, investments in these parties do not justify the reward.

So what are some programs we are able to implement?

First of all, know your community. Fair Housing laws limit how much demographic information we are able to 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, it is possible to 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 of your eggs in a single basket” approach of large summer events. Spacing these events over summer and winter will also guarantee that your events coincide with all your residents’ renewal periods, thus giving you the largest impact possible. Here some ideas that can it is possible to explore that are less costly:

Older Residents

Bridge or Mah Jongg Night
Dinner Rotation – This can be quite popular! Have a sign up period for singles or couples. These groups then take turns rotating amongst their apartments hosting small dinner parties for each 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 you can transfer to your residents. This can make them feel a part of an exclusive club with money saving deals all the time!

The future of resident retention

Have you heard the term “Resident Portal?” If you haven’t, keep reading! A Resident Portal is actually a website for your residents, adding a true social element to your community – consider it a “digital clubhouse.” In the event that 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 make a true “community” environment. A simple Resident Portal includes a community calendar of events, utility sign-up features, maintenance requests, and online rent payment. However, a few resident portals offer much more in terms of a community social experience. These expanded resident portals range from about $125/month to $200/month for a 300 unit community, meaning you will get a whole year of service for exactly the same price of one summer party. When done properly, resident social interaction can make strong emotional bonds between your residents, leading to impressive improvements in your retention rates.