What one factor can change a resident's likelihood to renew by over 60%?
If a resident goes from having no friends on-site to having 7 or more, the chance of that resident renewing goes up by 62%.
Because of this, many of our clients have become laser-focused on creating opportunities for residents to develop friendships. For example, prioritizing events or programs such as wine & paint nights, murder mystery parties, or fitness classes rather than taco trucks or breakfast giveaways. Not only will this result in more satisfied residents, but there are huge financial benefits to this strategy as well.
The cost of turning over an apartment is right under $4,000, so investing in programs that drastically increase the likelihood of renewals is a no-brainer. For example, if you are managing a 300 unit property, and you decrease your turnover by just 2%, you will add nearly $24,000 to your bottom-line.
Prioritize creating opportunities for resident to develop friendships, and you will have more satisfied residents and healthier cash flow.