Resident turnover happens when a resident vacates a rental property. This is expensive for the owner and property management firm, as the property must often be cleaned, repaired, and painted before a new resident settles in. Additionally, a new Resident may not be available immediately, which results in a loss of rental income. Add in advertising expenses to attract new Residents and it is clearly in management’s best interest to reduce Resident turnover.
Advertising Cost – Print and web based classified ads, signs, staffing for open houses, etc.
Showing Cost – Staff to field phone calls, set appointments, and actually showing it to potential Residents.
Lost Income Cost –When an apartment stands vacant, it is not generating any revenue at all.
All of these costs add up quickly. So what do you do to keep Resident turnover as low as possible? The best solution to the turnover problem is to never let it get to that point; encouraging renewals is always better than turnover.
Maintain your properties, respond to and communicate with your residents – No one wants to rent a slum, or put a request in and get no response. Keep your grass cut, common areas clean, and your marketing fresh. To keep good Residents long term, you have to communicate and be responsive all the time. Don’t save a penny here, just to lose thousands in vacancy costs. You can combine communication and maintenance by using maintenance door hangers that include a survey or checklist on the back, or that provide urgent proactive information like freeze warnings.
The renewal process starts when you sign the lease the first time. You just spent time and money to gain the resident, now it’s time to start working on the renewal and referrals by building good will. Welcome Gifts solidify the renewal a year later and build a culture of good will, apartment welcome gift options can be found through this link.
As renewal time approaches communicate that fact to your resident; 120, 90, 60 and 30 days out. Use your database to generate a tickler file. When each pre-renewal date rolls around send an email, text message and leave a door hanger for the resident. I’m including a link to resident retention and renewal door hangers here.
When they renew ensure that you leave them with a good feeling about their decision. You have to combat buyer remorse. The best way to do that is to reinforce their decision by giving them a gift. Everyone likes to receive a gift, here are some apartment renewal gift ideas, just follow this link.