The importance of Resident Retention.....

Resident retention should be a hot topic of conversation for every team, especially when considering current economic conditions. Rent growth has been limited in many markets, and when factoring in turnover costs, projected vacancy loss, or if concessions will be needed, we should be fighting tooth and nail to limit the number of move outs by keeping as many residents as possible.

Resident retention should start from the minute the prospective resident walks through your door. Ensuring everyone is treated in a friendly, professional manner will help make our residents feel welcome. Maintaining this demeanor throughout their residency is critical so that our residents feel appreciated. The bottom line is, when residents are unhappy they’re going to move out. It’s difficult to reestablish a relationship if a resident feels you have ignored them, or they perceive you have not addressed their issues in a timely manner. We try to focus on resident events and amenities, which are great in their own right, but ultimately it’s the rapport that we establish that keeps renewal closing ratios high.

Excellent customer service creates value, and can assure renewals even when there are rent increases. Make an effort to learn, and remember, something personal about your residents. If it’s their birthday or if they get a new pet, acknowledge that. A call to follow up on a service request is a very easy and very effective way to show residents that we want to provide a high level of service to them. Gone are the days of moving a resident in and waiting until 90 days before the lease expires to send a renewal letter. Renewal opportunities begin from the moment the resident steps inside their apartment home; use every day as an opportunity to win over your residents.

In addition to providing consistently excellent customer service, one way to sweeten the deal is by offering a renewal incentive to entice residents to stay. One idea that can be particularly effective in months with a high number of lease expirations is to offer “early bird” renewal rates if a resident signs a new lease more than a month before their current lease ends. Tiered renewal gifts based upon the number of years a resident has resided at your community can be effective as well.

Other popular incentives can include: one-time complimentary house cleaning, carpet cleaning, or even valet laundry service. Chances are you’ve already established good relationships with the vendors who offer these services, and giving them more business may result in lower pricing for the community.

Minor unit renovations could also provide the necessary incentive some residents are looking for. Upgrading interior finishes such as plumbing and lighting fixtures can add value, update the look of the apartment, and even save residents on their monthly utility bills.

Even if a resident has given you a notice to vacate, an effort should be made to retain them. Call the resident to make sure there are no unresolved issues, and remind them of your community’s transfer policy as residents’ needs can change. Some move outs are unavoidable, but your good residents should always be encouraged to return to the property in the future.

There’s no exact formula to guarantee a lease renewal, but if we are exceeding our residents’ customer service expectations and making them feel like a valued member of the community, the odds are certainly in our favor.

What is YOUR best renewal retention tool?


-The METS