It’s a tough concept to define. It’s even tougher when “Rent-To-Value” is ranked the #2 reason why residents are not likely to renew their lease, according to the New SatisFacts Index.
To be fair, though, residents have had a bit of a rough year. Rental rates are going up, in some cases very significantly. If we think back a couple of years, there were many residents who had no rent increases at all at renewal or even rent decreases!
With that reality in very recent memory, getting hit with a renewal increase of $100 or $200 more per month is a punch to the gut! The valid question on their minds is, “They want me to pay more? For what?”
And they may have a point. What are they getting for their money? The honor of living in your presence?
(C’mon! You know that comment has crossed their minds!)
Need I mention that “Rent Increase” ranks #1 on that list of residents’ reasons not to renew their lease?
Rationalizing Rent Increases: How Residents Define Value
When it comes to value, cost does play a part. A big part. But there is more to the equation. What are they getting for that price? What product and service is being delivered? And how easy is it to enjoy that product and service?
In your community, how easy is it for your residents to be a resident? Do you have:
- Service requests completed within 24? 48? hours
- Calls and emails that are returned same day
- Online service request system
- Online rent payments
- Great cell phone reception
- Reliable cable/Internet service providers
- Wi-Fi in all common areas
- Package acceptance
- Trash valet
Resident Satisfaction Means Resident Retention
What is it about your community that makes life better, less stressful, and more convenient than living at the community down the street? Define those things and then talk about them with your residents. Remind them of how easy it is to get in touch with someone at the office. How quickly you’ll get that service request completed. How nice it is to be able to surf the net while sitting by the pool.
Demonstrate this kind of value on a daily basis, and you’ll make it that much easier for your resident to sign that lease renewal.
Reprint from PropertyManagementInsider.com by Jen Piccotti