Sometimes, residents are not happy with their apartment. It is not ideal, but it certainly happens. An apartment may have seemed like a great fit for them initially, but after move-in, the reality of renting creeps in. Few of us, after all, can accurately predict what the experience of living at a community will truly be like without actually living there. While a renter may choose to leave for numerous reasons — from issues with pricing and apartment conditions to problems with neighbors or utility services — this doesn’t mean that a renewal is off the table.
Consider the car buying experience, many of us may have threatened to walk out of a pricing negotiation, despite the fact that we actually wanted to buy the car, as a means of netting a better deal. Accordingly, the salesman lowers the price or throws in some free options. In this same way, rental property management companies and individual managers may be able to retain renters who are “walking out” on their apartments.
Know the ‘why’ behind a renter’s decision and you can learn ‘how’ to keep them
Money may play a large part in a renter’s decision to look for a different apartment. The grass always seems greener on the other side. Accordingly, renters may feel that for the price, they can find a larger apartment or one with greater amenities. As such, it may be a good idea to offer them a deal on a larger apartment within your community, or one with more appealing amenities. Of course the last resort in any lease renewal negotiation is to offer pricing breaks in exchange for a longer lease term.
However, keep in mind that the option to negotiate is up to you. The multifamily market is stronger than ever with more and more people deciding that renting simply makes more sense than owning a home in the current economic climate. Consequently, a greater amount of renters are competing for fewer vacancies. In short, it’s a seller’s market.
That said, making renters feel valued is key to winning their continued business. That does not mean you should buy them dinner and flowers, but you should be as helpful as you can to keep them happy and comfortable. If they complain about a certain aspect of living, be mindful of their grievance. If you show them you care about their situation, they may be more likely to get back on board. Even if they still plan on leaving, a positive conversation may encourage them to inform friends or family to move to your community in the future. A good motto to remember: What goes around, comes around.