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You Don’t Have To Be A Big Corporation To Start TOP QUALITY RESIDENCES

Resident retention is generally the forgotten factor in property management, as 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 is at apartment marketing and leasing, the more it could mask its shortcomings on the resident retention side. So much effort is made on the leasing side of the business our front line troops are called “Leasing Professionals.” Focusing on Leasing is not a bad idea; however, neglecting another half of your organization can alienate your residents, cause high turnover, and severely impact your important thing.

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 vitally important. In other words, to improve retention, we should not sacrifice leasing. Having said that, an increase in retention is vastly more beneficial than a rise in leasing. This should not be considered a surprising concept. When comparing a new resident to a preexisting resident, the existing resident is much more profitable, with hardly any make-ready costs no loss due to vacancy. Additionally, a long-term renter is a lot more likely to refer friends and coworkers than a new renter would.

When you start to see the difference in profitability between the two groups, it is shocking just how much more we devote to 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 your current residents, a situation you need to strongly avoid.

How come resident retention not on the radar?

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

Customer Service and Maintenance

Let me be clear relating to this: Customer service and maintenance are NOT resident retention programs. We constantly hear how important both of these items are, that is completely correct. However, rather than going above and beyond, these items are an expectation, not just a perk. Especially for Class A and Class B properties, residents usually do not see strong maintenance and customer support as a luxury item that they ought to be impressed with. They instead see these items 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 when this is the best trait the restaurant can provide, would you really expect the meals to be that great? For a community to advertise a feature that should be standard, they’re 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 an excellent investment. First of all, summer parties can be quite expensive if food emerges, generally which range from $1,500 to $3,000 for a 300-unit community. Ironically, you save money when you get a low resident turnout at these events. Imagine the cost 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 has 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 are spending roughly $2,000 to attain 18 residents – that’s $111 per resident! Even if the party influences several others that renew later in the year, investments in these parties usually do not justify the reward.

So what are some programs we are able to implement?

For starters, 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 one’s community. Additionally, instead of having one giant one-size-fits-all party, it is possible to coordinate several smaller, targeted parties throughout the year. Having more frequent parties enables you to target different demographic groups in your community at different times instead of “putting all your eggs in one basket” approach of large summer events. Spacing these events throughout the year will also guarantee that your events coincide with all of 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 could be quite popular! Have a sign up period for singles or couples. These groups then take turns rotating among their apartments hosting small dinner parties for each other.
Singles Crowd
Poker Night at the Clubhouse (for prizes instead of money)
Networking Night
Dance Classes
Sporting events
Children Friendly
Ice Cream Social
Kite Day
Scavenger Hunt
Also, remember that you have purchasing power! Most events around town offer group rates that you could pass along to your residents. This can make them feel part of an exclusive club with great deals all the time!

The future of resident retention

Have you heard the term “Resident Portal?” In the event that you haven’t, continue reading! A Resident Portal is essentially a website for the residents, adding a genuine social element to your community – contemplate it a “digital clubhouse.” Ki Residences Sunset Way If you haven’t noticed, the vast majority of 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 basic Resident Portal carries 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 can find a whole year of service for the same price of one summer party. When done properly, resident social interaction can create strong emotional bonds between your residents, leading to impressive improvements in your retention rates.

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