Typically, with efforts to gain new customers, property managers often lose sight of long-term residents who have continued to live and pay rent in their building for over a year. Most time and money is spent on marketing to new residents to drive up business. However, it’s important to not lose sight of the tenants you’ve already gained.
When a long-term resident (someone who has lived in the building for a year or more) doesn’t renew their lease, property managers don’t always notice due to their continuously growing wait list. The misstep is the cost of turnovers is very expensive with the average cost about five times more to replace a resident.
Anne Sadovsky, recognized as an Apartment Associate of Greater Dallas (AAGD) lifetime member for her position as an industry trainer and consultant, reminds those in the industry to think about the impact a long-term resident has on the property.
“If they stay with you for 10 years, they’ve bought the apartment,” Sadovsky said in an interview with Property Management Insider. “Think about that: if you use $1,000 as a rent average per month, times 12 months times 10 years, that’s $120,000.”
Expressions of Gratitude
When it comes to retaining long-term residents, Sadovsky suggests property managers exert expressions of gratitude; but rather than a meaningless trinket or gift card, the property manager should think of something that adds more value to the property itself.
“It’s a great idea to offer incentives for renewals, while being smart enough to retain those incentives at the property. At the same time, the resident is being honored for staying at the property and paying rent, which ultimately encourages them to renew,” Sadovsky said.
Here are five incentives that can easily be infiltrated into any property manager’s reward system, and result in retention for residents.
Reserved Parking
In more urban areas, parking can become a huge issue. Offering a resident a reserved space for long-term residential living can be a very attractive amenity and can be an incentive to stay with the building complex.
A Little Cleanup Goes a Long Way
Make an apartment feel brand new again by sending in a maid service for a day. The best part about leasing a new apartment is knowing you are moving into a fresh, clean space. However, not many property managers send in cleaning services for those apartments up for renewal. Sending in someone in the first week of the renewal to clean up the showers, add fresh paint, and even clean mildew out from appliances can be very appealing.
Creating a Sense of Ownership
When it comes to home ownership, a huge perk is getting return on investment to home improvements. However, those who are renters have a hard time dipping into their wallet to improve the place knowing that the property is not actually theirs. Having a building that rewards tenants for minor upgrades creates a sense of ownership and improves retention rates while benefitting in value.
Becoming Part of the Lifestyle
Most tenants run out to grab a coffee or quick bite on their way to work, which can be timely and expensive. Offer up a Monday and Friday service of coffee, bagels, and muffins to start and end the week the right way to long-term tenants. The amenity will save them time and money, in addition to letting them know they’re valued.
Establish a Sense of Community
Planning simple events or gatherings can create a sense of community while allowing residents to get to know each other. People are less likely to move if they are close with their neighbors, and property managers should be the ones to help introduce and construct strong bonds.
Sadovsky notes that residents need to feel good about where they live, and while it’s a business for property managers its also a lifestyle for residents. Part of the job requires encouraging people to stay.
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