The Importance of Resident Retention

Resident retention is a critical aspect to any successful property. However, at times it can take a back seat to your ongoing leasing efforts due to time and money constraints. This should not be the case though as it is just as important as marketing and leasing to new residents. Happy residents are a property's best ambassadors and they can be critical to your ongoing leasing efforts. With the increasing reach of social media in the apartment industry positive online reviews from current residents are a very powerful tool to capture new rentals. Would you rather rent at a property with 95% positive reviews from residents or a property with one bad review after another?

Maintaining happy residents is also good for your property's bottom line. High resident retention reduces ongoing turnover expenses as well as renting expenses. It also results in less vacancy loss throughout the year. Reducing your property's annual turnover by even 5% can result in tremendous increases in NOI over the course of the year! On a 200 unit property that is 10 less units you have to turn, market and re-rent through out the year which not only saves a lot of money but it also frees up a lot of the property's staffs time as well. So dig in this week and think of so new and exciting ways to improve upon your property's resident retention! Below are some ideas to get you started!

An important aspect of resident retention is creating a sense of community.  One way to do this is by hosting resident events.  Some popular resident events include cookouts, pool parties, holiday parties, and yard sales.  These events give residents the important opportunity to meet their neighbors.  Another way to create a strong sense of community is by keeping up with community common area upkeep.  When residents have guests visit and the grounds are spotless and the path to their home clean and fresh, it creates a sense of pride and ownership.  They will want to continue to show off their community to their friends and families. 

Another aspect of resident retention is renewal incentives, which can help sway a resident to stay longer at your community.  Whether it is something as small as a gift card to their favorite eatery or something as large as a new carpet or fresh coat of paint, renewal incentives can help keep the residents who are on the fence about whether or not they want to continue to live at your property.   

Maintenance is also a very important important part of managing resident retention, and a quick response and solid maintenance skills will keep your community running smoothly and your residents happy. Respond promptly to any and all maintenance requests. Follow up with your residents after any work is completed to get feedback and see if there is anything you can improve upon. Fulfill any promises you make. If you have promised a new dishwasher or new carpeting, be true to your word and follow-through to completion.

When residents call in complaints, be sure to take their concerns seriously. If your resident takes the time to complain about anything, it is an issue that is important to them. Take prompt action and make sure that you advise them of both the action and the outcome; don’t make them call you for an update.

Also, take the time to get to know your resident’s names and acknowledge them personally whenever you see them. Feeling welcomed and showing a genuine interest goes a long way with making residents feel special!

Jeff's team