Increase Resident Retention with these Lease Renewal Incentives

Modern Gem Design :: Increase Resident Retention with these Lease Renewal Incentives

Attracting your ideal tenants with property upgrades is one thing, but keeping them is a whole other story. As a multi-family property owner, you know how important it is to make sure your property is as close to max occupancy as possible. There are many factors that tenants have to weigh before deciding if they will renew a lease or not, one of the biggest being price. According to a study done by Zillow, 57% of tenants that decided to move and not renew a lease indicated price being a factor for that decision. Beyond price, there are many other things that can come into consideration including location, quality of space, amenity options, and level of service provided by staff. While incentives may vary based on your market, they can be a nice way to let your tenants know that you appreciate them and help persuade them to renew their leases. Here are some of the options you can provide:

Amenity Kickbacks

Everyone wants to feel like they’re getting a deal, and offering amenity kickbacks can be a great incentive when it comes to enticing tenants to renew their leases. Depending on what amenities are offered at your property, you could provide vouchers for laundry units, a few months of free cable services, or car washing services. Doing so will require minimal investment for you to secure another year of rental income. Another option is to partner with local businesses to create a mutually beneficial relationship where you can offer gift certificates or other options that will get your tenants excited and also support local businesses.

Parking Upgrades

If your property offers parking this may be a perk you’d like to consider. Parking is often an additional expense so offering a few months free or a reduced price can be a nice perk. If you have street vs garage or covered parking, you could also offer upgraded options for a discounted price. This shows your tenants that you appreciate them living at your property while also providing them with an upgraded option they may not have considered the year prior.

Smart Home Upgrades

Another feature you may want to consider offering tenants as incentive to stay are smart home features. Installing Google Home, Nest or smart home lighting and thermostats can be an enticing feature to tenants, plus it can also make your units more energy efficient. This is a great option that tenants may wish they had in their home but may not have thought was an option. Plus, the investment is minimal compared to the cost of turning a unit.

No matter what incentives you consider, the key is to provide something that will improve your tenant’s quality of life and remind them of why they moved into your property to begin with. This in turn will be mutually beneficial to you as a property owner when they re-sign their leases.

Looking for more ideas on what you could offer to tenants or improvements you could make to your property? Contact us today!

3 Improvements To Help With Renter Retention

Whether you’re at full capacity at your multifamily property or not, the age old question is always how do you keep your residents happy so they continually renew their lease? This isn’t something to start thinking about right before the renewal process either. This should be an ongoing process that starts with the initial lease signing and should be on the forefront of the management staff’s mind. Here are three improvements you can focus on to help with renter retention:

Tailor Amenities to Renters’ Needs

Each property in your portfolio is different and most likely requires different amenities to cater to your residents’ needs. A lot of this will depend on your property’s location, resident demographics, and culture but adding niche amenities could be key to not only attracting new residents but maintaining renter retention. When the amenities satisfy your tenant’s needs, then they are less likely to look elsewhere when their leases end. Some examples of niche amenities you might want to consider include:

Modern Gem Design :: 3 Improvements to Help With Renter Retention
  • Pet washing and grooming stations
  • Community garden
  • Bike share or bike room
  • Rooftop lounge
  • Yoga space

Build a Community

Your community is just that… a community. Helping to build that community for your residents will make their apartments feel more like homes instead of just a temporary rental. When residents feel at home and like they belong in your community, they will tend to stay much longer. You can provide this sense of community both in-person and online for your residents.

A great way to do this is by utilizing your social media accounts. By doing so, you can share property information, provide customer service for residents, and give your current and potential tenants a sense of what is happening around the community in real time. It also provides the opportunity for residents to share their own photos, stories, and experiences which helps them connect with other residents and provides valuable feedback for you and future residents.

Hosting monthly events for your residents is also a great idea to help cultivate community in-person as well. You can host holiday gatherings, bring a food truck or another activity to your property to show your appreciation, and invite your residents to bring their friends and family members along to these activities. This not only welcomes your residents to the community and shows your appreciation but it also gives them an opportunity to meet others in the community.

Maintain Your Property

This may seem like a no brainer but your residents want to live in a community that is well cared for all year. This helps provide them with a beautiful, enjoyable environment to live in, which improves their overall quality of life.

If your property is located somewhere with different seasons, make sure the walkways, streets and parking areas are free of ice and snow during the winter months. In the summer, maintain the lawn and other landscaping. This will allow residents to enjoy the shared outdoor spaces as well as their own private patios and balconies if your property has them.

Most importantly, make sure you respond to any maintenance requests in a timely fashion. This is one of the best ways to keep your residents happy with your property. If something breaks or isn’t working properly in a unit, the last thing a resident wants is to wait for it to be fixed. Your residents will be appreciative of a timely response and help set you apart from other properties.

These improvements are fairly easy to start implementing in your community if you haven’t already but the biggest thing to remember is to ask for and listen to any feedback you receive from residents. If there is a continued trend in feedback it might be time to really consider some changes to keep residents happy.

If you need help implementing these changes or renovating your property, contact us today!

Tips for a Smooth Multifamily Property Renovation

Renovating your multifamily property can not only allow you to increase the value of your property but can also increase your rental rates, which is always an attractive idea for property owners. Not only that but it can also help you attract your ideal tenants, and improve renter retention. That being said, renovation projects are not a small feat and it can be easy to get in over your head quickly with projects if you aren’t careful. There is a lot of planning involved and you want to make sure your project goes as smoothly as possible. This will not only help stay on budget but will also keep from disturbing current residents. Here is some advice to consider:

Focus on Renovations with High Return on Investment

When it comes to renovations, getting a high return on your investment is often top of mind. Depending on your per unit renovation budget, you will want to be selective of the upgrades that you make. For example, gut-renovations and changing the layout of apartments is much more costly than changing paint colors and upgrading the finishes throughout. It’s important to identify renovations that will have a high impact for your tenants while staying within your budget.

Another important piece of advice is to make sure that you don’t over-renovate. Before you begin any renovation project it is very important to be aware of your market and comparable units in the area. A costly mistake can be investing more into a property than you will be able to get back through rental rates.

Plan for the Unexpected

As with any renovation project, when you begin construction there is always the chance that something will go wrong. Whether that is unexpected expenses or a drawn-out timeline, it’s best to have a plan in effect to account for different scenarios. It is also very important that you do your research on the contractors and companies you work with on the renovation so that you are very clear on who is responsible if any issues should come up.

Don’t Forget Amenities, Curb Appeal, and Model Unit Renovations

Beyond unit renovations, don’t forget about renovations to your leasing office, clubhouse, property maintenance and amenities. This is especially important if you will be doing your renovations in phases while tenants are living on property. During construction, it is important to try and keep current tenants happy and excited about the improvements, while also capturing the interest of new tenants. Improving the curb appeal of your property with exterior paint and landscaping can be a great way to improve your property. Upgrading the amenities you offer or adding new ones can also be a big selling point for tenants.

Hire a Professional

Renovation projects can easily become overwhelming and hiring an expert, like Modern Gem, who specializes in multifamily properties can put your mind at ease. They can take most of the project off your plate coming to you when decisions and details need to be made. They’ll also handle coordination with trusted-contractors so you know your property is in good hands. This way you can make sure your project goes smoothly from beginning to end.

If you’re interested in learning more about our services, please contact us.

How Creating a Positive Environment is Key to Renter Retention

It often doesn’t take much for renters to decide to look for another place to live. It can be anything from wanting an upgraded apartment to dissatisfaction with the staff to wanting a new location. This makes maintaining your property and creating a welcoming environment for residents critical for renter retention. We often focus on the design renovation aspect which is essential to getting residents into your property and retaining them after they have signed the lease but if you’re residents aren’t happy with the staff, communication and accommodations, they’ll look for another property. Let’s take a look at how you can help create a positive environment to keep renter retention!

Staff

Having proper staffing is essential! These are the people residents will be interacting with on a regular basis. Your staff should not only be friendly but fully educated on the property and neighborhood and capable of handling resident requests, questions and any issues that may arise. This includes everyone on your staff from:

  • Your call center (if you have one)
  • Leasing agents
  • Maintenance professionals
  • Courtesy officers

Communication Strategy

According to a panel discussion at the Multifamily Executive Conference, developing a staffwide communication strategy was deemed crucial to renter retention.

  • How does your property welcome future residents? Is there a specific process you walk them through to provide a welcoming experience?
  • How do you process maintenance requests? Do you have a timeframe you complete these in?
  • How do you manage resident complaints and requests?

These are often the most common times staff interacts with residents so you want to make sure you have a communication strategy in place to ensure residents have the best experience possible. This could be anything from creating sparking conversation to learn more about residents and what they would like to see at the property to creating a policy around addressing maintenance requests within 24 hours for example.

Modern Gem Design: How Creating a Positive Environment is Key to Renter Retention
Modern Gem Design: How Creating a Positive Environment is Key to Renter Retention

Resident Events

One of the great things about living in a multifamily property is getting to know your community. Resident events are a great way to give your residents a space to meet their neighbors and the property’s staff as well as feel appreciated by community. From a staff point of view, you can get to know your residents much better in an informal setting which will ultimately allow you to communicate more easily with them in the future. This all equals happy residents!

Need some ideas for resident events? We have you covered!

  • Pizza party
  • Food trucks
  • Game/trivia night
  • Barbeque
  • Happy Hour
  • Fitness class
  • Kids crafts for families
  • Holiday parties

Another ways to keep your residents happy? Consider implementing an online portal for residents to pay their rent and submit maintenance requests. This makes life just a little easier for residents, which they will appreciate in the long run.

While updating your property is essential to getting new residents into your door, providing a welcoming community is essential to renter retention. Listening to residents and adjusting your strategy/policies to accommodate your residents will help keep them happy and in your community!

If you’re in need of some help with renovations and property updates, contact us today.