Renewing a lease is far cheaper than looking for, vetting and approving a new resident. So with those goals in mind, how do you keep your residents? What factors impact their decisions? How can you address their concerns?
According to a study conducted by Kingsley Associates and MFE, lease retention is at an all-time low. Only 51.4 percent of respondents indicated they would “probably” or “definitely” renew their lease — down 0.9 percent from last year. With only half of residents stating they would renew, you may assume it's because of low resident satisfaction. However, Kingsley also found that 76.7 percent of residents were satisfied.
What accounts for the 20-percent gap between happy residents and low intention to renew? The answer comes in two parts. The first part is because market realities preclude many residents from securing alternative housing; The second part involves how the property was managed and the services offered.
Top Factors Renewing Lease
First, the market heavily favors property owners. Many cities have very high occupancy rates, so it's difficult for residents to secure alternative housing. For example, the two factors most respondents listed as primarily influencing their decision were the rental rate and location.
A property management company in San Diego can work with you to determine a fair market rate for your property. The last thing you need is to lose residents because you're charging too much for your property.
Second, some property owners take their residents for granted and fail to provide them with good service. Your residents are your customers, and you must keep them satisfied or risk losing them. The top-performing properties are ones that keep their residents happy. Happy residents are long-term investments in your property. The more your residents care about the property, the better care they will take and the more money you save in the long run.
Kingsley listed the following as the top renewal decision-influencing factors:
- Management of the property;
- Security of the property;
- Appearance of the community;
- Apartment features;
- Floor plan;
- Community amenities; and
- Lease terms.
As the study illustrates, one of the best ways to retain residents is by improving and increasing the number of services offered. A property management company in San Diego can accomplish both tasks.
All of these concerns can be addressed through active property management. Residents will let you know if someone is unsatisfactory; it's then up to you (and your property management company) to address their concerns.
The best way to deal with those factors is through responsive management. A property management company in San Diego can seamlessly provide residents with the ability to air their concerns. For example, many residents are impressed when property owners quickly and efficiently respond to maintenance requests.
Property management companies, like Property Advantage, are well-versed in effectively responding to maintenance requests. For instance, a significant chunk of your time may be spent finding and hiring a plumber to fix a clog in your residential property. Property Advantage, with their deep connections throughout Southern California, works with a network of contractors and handymen who can quickly address a variety of your resident’s concerns.
Some amenities, like a pool or fitness center, are outside of your ability to add. However, Property Advantage can work with your residents and property to offer other benefits, such as socials and mixers to connect residents, dog-walking services, personal trainers, and other amenities.
A property management company can keep all of those amenities and services coordinated to ensure that your residents are kept content and ready to renew their leases. Property Advantage is experienced at community engagement and can implement programs designed to bring your residents together
Furthermore, if your property is ready for a remodel, Property Advantage can use its considerable experience to advise you on floor plans that are popular in the market.
Mostly, the more effort you put into your properties, the easier it is to retain your residents. A property management company in San Diego is the most cost-effective way to improve resident retention without consuming a significant portion of your free time.
Property Advantage is a property management company in San Diego which specializes in serving residential property owners throughout San Diego, Riverside, and San Bernardino counties. Property Advantage is a full-service residential management company that can address all of the your residents' concerns. They focus all of their business on managing their client’s properties, so prospective clients can rest assured knowing that Property Advantage is fully committed.