Customer Retention Tactics and Ideas

Strong brands have been built on customer loyalty, and resident retention has never been more relevant than today.  It is no secret that the costs associated with resident turnover can be exorbitant. A 2011 SatisFacts study estimates move-out costs average around $3,900 per unit, which includes, among other items, $1,200 in lost rental income, nearly $800 in concessions and more than $700 in maintenance, readying and repairs.

Surveys have found that residents choose not to renew leases based on controllable reasons. Poor customer service, lack of responsiveness and dissatisfaction with maintenance requests were cited as the main reasons for resident turnover. Contrary to popular belief, no matter the property amenities, they will not make up for deficiencies in service. It is critical that all team members address resident concerns as they are brought to your attention.

Resident retention starts the first time you have contact with them, not when you are sending out their renewal letter.  Your leasing team puts their best foot forward when meeting a new prospective resident, that same attitude should continue with every contact made during their residency. Each month, do something for your residents to show them how much you care (a check-up phone call or visit to their door, a half hour of free maintenance, etc.)  Continue this all the way to their renewal date, and keep track of your contacts/gifts in a Resident Retention Book to ensure no one is left out.

Knowing your residents' names, family member’s names and pet names is always a great retention tool.  This makes a resident feel at home when visiting or calling the office which allows for greater retention opportunities.

Remember, your maintenance team is also an integral part of your retention efforts.  Make sure to include them in your team meetings and resident functions and ask them what they are hearing from residents.  Their insight might surprise you and assist in furthering your retention efforts.  Make sure they are given customer service training and prepare them to handle hot situations.

A property's appearance and overall condition has an obvious effect on retention. Residents want to feel proud of where they live.  Their ego and sense of status is often perceived by the environment they live in. Maintaining the cleanliness and upkeep of your community goes a long way toward preserving a property's curb appeal which makes it more desirable and marketable.

Resident complaints offset the morale of the property. Be proactive by providing more frequent interior and exterior maintenance and repairs, which will help reduce complaints. Quality of service is crucial to maintaining residents and should be taken seriously. If you ignore complaints or concerns, you could not only lose your current residents, but also your competitive edge.

Listen to your residents. Build a relationship and get to know them. Above all, let them know you appreciate them living at your community.  Not only is it less expensive to retain a resident than to acquire a new one, but loyal residents spend more and are more likely to refer new ones to your community. The longer a resident is loyal, the more profit you will see.

Team UCONN