People 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!
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?