Contributed by Ronnie Marshall, Tarragon Management

You can order magnets. Laminated cards – small magnets that go on your residents fridge at move-in. Laminated pages of the promotion in the office to use during the leasing process. This idea does not work if your staff doesn't pump it up at move-ins/parties/flyers.

We wanted to create a way to get our current residents to renew for longer lease terms. We took our digital camera to Home Depot and took pictures of four upgrades that we wanted to do in our apartment homes.  Any design company can take the pictures and put them on a nice magnet that then goes on the resident’s fridge.  You sell it in your office at move in.  If the resident renews for 12-14 months they get a fan/15-18 fan+new kitchen faucet/19-21 fan+faucet+dining room light/22-24 fan+faucet+light+crown molding in living room.

Fan $129 Faucet $139 Light $149 & crown molding $171.  The cost for all for upgrades $588

Results: This is a brand new apartment community we just started this idea. Here is some food for thought. We also use this same program for resident referrals. 1 resident 1 upgrade/ 2 referrals equals the next upgrade.  $588 is not a big investment for a 24-month lease.

This program keeps your apartment homes looking new and modern on the inside.  If the resident ever does move out you have a nice upgraded apartment that will lease quick.

It also allows you to save the old fans/faucets/lights you take down to replace others that may break (lower expenses).

Contributed by Christopher Dembitz, Clark Whitehill Enterprises, Inc.

Reward the entire staff, especially maintenance personnel, when someone renews.

A key part of our compensation program is the lease renewal bonus.  Everyone at a site gets a monetary bonus (based on their position) when a lease is renewed.  This works very well for maintenance personnel, as they are often the deciding factor in whether or not someone renews.  It gives them an extra incentive to do the job right the first time, as well as to do the extras...helping someone carry in groceries, hanging a picture or just stopping to chat for a moment.  Often times, after someone moves in, they will visit the office very infrequently.  This makes the maintenance team the face of the property. By rewarding everyone at the site for renewals, it truly becomes a team effort. Sites create bulletin boards to track renewal performance.

Renewals have increased 5%-10% since we shifted more of the compensation package to renewal performance.  The only time it costs us more for this program is when renewals are higher than average...thus everyone wins.

Tami's 24-CITY SEMINAR TOUR is coming to a venue near you starting in MAY, so CHECK THE SCHEDULE HERE and register NOW!  Don't wait ... attendance will be limited in each city to ensure that everyone receives personalized training!

• Understand how, when, and why a rent increase is called for;
• Raise and use perceived and performance value to increase rents and sell renewals;
• Transition from a position of price to one of value;
• Persuade future residents and renewing residents with care instead of concessions;
• Deal effectively with today's deal-conscious customers and overcome their objections to higher rent;
• AND MUCH, MUCH MORE!

BECAUSE THE RESIDENT...

Because the Resident has a choice,

we must be the better choice.

Because the Resident always has a need,

we always have a job to do.

Because the Resident is special,

we must be flexible.

Because the Resident has high expectations,

we must excel.

Because the Resident has sensibilities,

we must be considerate.

Because the Resident has an urgency,

we must be ready.

Because the Resident has influence,

we have the hope of Future Residents.

Because of the Resident,

we exist!

Maintaining resident retention and solidifying the likelihood of lease renewal are two valuable goals of most property managers. That said, there’s a distinctive formula that must be in place to capitalize on tenant satisfaction and encourage tenure. And what exactly comprises this formula? Doug Miller, President of SatisFacts Research, explained that each unit turned over at the end of a tenant’s lease, averages a cost of $3900 to the property manager. This turnover cost includes the loss of rental days while vacant, concessions and maintenance. Miller’s research also demonstrates 54-percent of turnovers are, in fact, controllable. Making the effort to avoid controllable turnover is the first step to securing retention.

It all begins with customer service. It seems simple enough, but given the aforementioned figure, more than half of move-outs occur because of dissatisfaction with things like failing to follow-up after maintenance, lack of responsiveness and inattentive customer service. Miller says, “There’s no rocket science behind it. And it doesn’t cost any more to provide great service than mediocre service.” Providing what Miller calls “exceptional service” is the most valuable step in tenant retention.

Once those things are in place, creative and thoughtful strategies can be implemented to further appeal to resident’s perceived value. Lynette Hegeman, the VP of Marketing at Gables Residential, notes, “Integration doesn’t always mean you have to spend a lot of money. It’s about innovation.” Gables extends the Gables Great Rewards Program which rewards tenants for tenure with ‘thank-you’ gifts at the time of lease renewal. These ‘thank-yous’ can range from carpet cleanings to the painting of accent walls. Gables also hosts monthly events, some swanky and some simple, to encourage a sense of community within their residences.

Either way, the investment doesn’t have to be costly one. Hegeman notes, “Integration doesn’t always mean you have to spend a lot of money. It’s about innovation.”

That said, it seems a combination of customer service {first and foremost} and simple innovation will keep your residents around longer. See the original article for more quotes and expert advice from Doug Miller and SatisFact’s VP of Education and Consulting.

By Ashley Halligan, a Property Manager Software Analyst

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