We’ve been fortunate in our industry to see the markets begin to improve. However, there is still a lot of uncertainty regarding the economy, so resident retention continues to be “Mission Critical” in order to increase or, at least, protect net operating income (NOI) no matter what occurs in our market. SatisFacts’ research shows that the average cost of turnover is now approximately $3,900 per move-out. To put it in perspective, even if you were able to re-rent that apartment for $50 more per month, it would take 78 months, or 6.5 years, to recoup that initial loss! The good news is that there are basic strategies to put in place to increase retention dramatically, and often they can be implemented beginning on move-in day!
After reviewing the results from the nearly half million units utilizing various SatisFacts survey programs, the data continues to show that maintenance issues at move in have an immediate impact on a new resident’s likelihood to renew. In fact, new residents (those who have moved in within the past 3 months) with an unresolved maintenance issue are one-quarter less likely to renew their lease than longer term residents.
Read more...Resident Retention Begins on Move-In Day Property Management Insider