Value Is The Secret Ingredient With For Lease Renewals

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ValuePeople select a new apartment home largely based on location. Price point and lease terms are also taken into consideration. But when it comes to a renewal, the decision is based on customer satisfaction.  This satisfaction translates into the value experienced by the resident.  So value is the secret ingredient!

Creating Value

With a rent adjustment for the renewal, the apartment may be priced “right” as supported by a marketing survey; but will a resident see, appreciate and agree with the value?

There is sometimes a confusing dynamic when a resident moves out identifying the reason as “rent too high.”

Managers search to justify:
-Possibly a change in household income
-Job transfers or downsizing in employment status
-Adjustments to household composition.

After all the rent was acceptable at the time of move in, and possibly the rent hasn’t even changed. The change may not involve the price; instead its the value the apartment represents.

-Has the resident needed to make repeated calls to resolve maintenance problems?
-Is the coin operated laundry often out of service?

-Is it difficult to locate a parking space?

-Are there problems with neighbors that can’t be resolved?
-Has the apartment home proven to be “less” than anticipated?

The focus points in a renewal offer need to include reminders of value.  Point out this apartment home is convenient for the resident.  Explaining future plans that enhance resident convenience, demonstrate a customer service mindset.  Even continuity represents value.  A move certainly generates a great deal of change.  Change can have a painful time-consuming learning curve.

Emphasis On Convenience

Individuals who choose to rent, need / want convenience. They have a busy life style, whether they’re a career individual, single parent, or a senior citizen enjoying a carefree schedule.  Emphasizing the value will improve the chances of a renewal.

Can you point out the value in your closing on a renewal or a lease?

Lori Hammond
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