Community Value at Renewal

Digested from Multifamily Insiders

The “price is too high” as a move-out explanation may mean the customer no longer sees value in a community. Find out how to sell that value.

While location may be the overriding factor in securing a new lease, Lori Hammond, writing for Multifamily Insiders, says that customer satisfaction drives renewals. To ensure satisfaction, apartment owners must establish value.

If a resident cites the rent being too high as a reason for moving out, the apartment owner may not be establishing proper value.

“After all, the rent was acceptable to the resident at the time of move in, and possibly the rent hasn’t even changed,” Hammond writes. “The change may not involve the price; instead it’s the value the apartment represents.”

If maintenance calls placed by residents were not returned in a timely manner, the laundry was out of service or it is difficult to find a parking space, the resident may not be selling value in leasing with an apartment owner. It is up to the operator to establish value on renewals.

“The focus points in a renewal offer need to include reminders of value and focus on the convenience of staying,” Hammond writes. “Point out this apartment home is convenient for the resident. Explaining future plans that enhance resident convenience, demonstrate a customer service mindset.  Even continuity represents value.  A move certainly generates a great deal of change.  Change can have a painful time-consuming learning curve.”