The Ugly Truth About TOP QUALITY RESIDENCES

Resident retention is generally the forgotten element in property management, while the art of apartment marketing and leasing to new prospects is still studied, sliced, diced and pureed by the apartment industry to find optimal strategies of getting people in the door. In fact, 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 manufactured on the leasing side of the business enterprise that our front line troops are called “Leasing Professionals.” Concentrating on Leasing is not a bad idea; however, neglecting another half of your business 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 value of Resident Retention, it isn’t to say that apartment marketing isn’t also quite crucial. In other words, to boost retention, we ought to not sacrifice leasing. Having said that, an increase in retention is vastly more beneficial than an increase in leasing. This will not be a surprising concept. When comparing a new resident to an existing resident, the existing resident is much more profitable, with almost no make-ready costs no loss due to vacancy. Additionally, a long-term renter is a lot more likely to refer friends and coworkers when compared to a new renter would.

When you start to see the difference in profitability between the two groups, it really is shocking just how much more we devote to prospects. While prospects and new residents obtain 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 result in alienation of one’s current residents, a situation you need to strongly avoid.

How come resident retention not on the radar?

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

Customer Service and Maintenance

Let me be clear relating to this: Customer support and maintenance aren’t 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 things are an expectation, not just a perk. Especially for Class A and Class B properties, residents do not see strong maintenance and customer support as a luxury item that they should be impressed with. They instead see these things as a required part of living at your community. Consider a restaurant advertising that its food is served warm. Isn’t that expected at a restaurant? And if that 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’re actually implying that the others of their service isn’t too impressive!

The infamous summer party…

Summer parties can be quite a fun perk, but are rarely an excellent investment. To begin 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 cut costs when you get a low resident turnout at these events. Imagine the price if 100 percent of your residents attended! However, probably, you’ll only have around 25 % of your residents arrive. Of those, 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 means for the average community of 300 units, you are spending roughly $2,000 to attain 18 residents – that’s $111 per resident! Even though the party influences a few others that renew later in the entire year, investments in these parties do not justify the reward.

So what are some programs we can implement?

For starters, know your community. Fair Housing laws limit just how much demographic information we are able to keep about our residents, nevertheless, you should at least have a good 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 over summer and winter. 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 over summer and winter will also guarantee your events coincide with all of your residents’ renewal periods, thus giving you the biggest impact possible. Here a few ideas that can it is possible to explore that are less expensive:

Older Residents

Bridge or Mah Jongg Night
Dinner Rotation – This could be quite popular! Have an indicator up period for singles or couples. These groups then take turns rotating amongst their apartments hosting small dinner parties for every 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, understand that you have purchasing power! Most events around town offer group rates that one could transfer to your residents. This may make them feel part of an exclusive club with money saving deals all the time!

The future of resident retention

Have you heard the word “Resident Portal?” In the event that you haven’t, keep reading! A Resident Portal is actually a website for your residents, adding a true social element to your community – contemplate 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 create a true “community” environment. A basic Resident Portal includes a community calendar of events, utility sign-up features, maintenance requests, and online rent payment. However, several resident portals offer much more in terms of a residential area social experience. These expanded resident portals range from about $125/month to $200/month for a 300 unit community, meaning you can find an entire year of service for the same price of one summer party. When done properly, resident social interaction can create strong emotional bonds in the middle of your residents, resulting in impressive improvements in your retention rates.