Why do renters move out of your multifamily community?
It’s a question that drives property teams crazy. On paper, your community may be the place to live, but reality might tell a different story—which is frustrating. Losing renters is costly, and the process of filling a vacant apartment can be time-consuming.
But before you despair too much over your non-renewed leases, we have some helpful data to share.
Recently, RealPage analyzed more than 2.6 million apartment lease transactions. Specifically, the company studied renewal conversion rates, and discovered some interesting patterns.
Using the results of the study, here are five strategies that can improve your renewal rates.
- Boost commuter perks
The RealPage analysis found that renter retention was affected by the local job market. In particular, tenants renewed their leases at higher rates in areas with less employment growth. It makes sense—people stay at jobs longer if they don’t have a lot of other options. Therefore, they’re less likely to need to move.
So what can property managers do with this data? While you can’t change the job market, you can make commuting easier. Consider offering a discount on parking, or maybe three months free to renters when they renew their leases. You can also explore deals on public transportation, or even offer bike rentals for commuters.
These tactics can work no matter what the employment rate is in your area. Renters who are content in their jobs will appreciate the added convenience. Meanwhile, tenants in metro areas with robust employment opportunities may be more likely to renew their leases if you make commuting easier.
- Increase digital benefits for younger renters
Reportedly, areas with younger renters experience the highest turnover. When you’re younger, you may bounce between jobs searching for a good fit, which can cause you to move more. Or, with fewer roots, 20-somethings may want to explore different neighborhoods or cities.
No matter the explanation, the best thing you can do as a property manager hoping to increase renewals is to offer perks that will resonate with this demographic. The Millennial who will stop at nothing to find fast WiFi has become a stereotype, but on the other hand, boosting your digital access can help you appeal to a younger crowd. Whether it’s super-fast Internet, online rental payments or maintenance requests via text message, you’re more likely to keep your Millennial renters around if you offer greater online convenience.
- Host more community events
Digital perks aren’t the only benefits that will motivate younger renters to renew. See, single Millennials are more likely to socialize and meet people. That’s why you should host more community events.
Have a pool on property? Outdoor parties and poolside barbecues are excellent ways to bring people together. Just make sure you make them ongoing events. Creating a social lifestyle in your community will make it so much more than simply a place to live. Your renters won’t want to leave.
A friendly, social atmosphere can help you with older tenants as well. If you have renters with families, keep your community kid-friendly with games in the lobby, or if it’s feasible, a playground on the property.
- Top your competition
When’s the last time you analyzed your competition? According to the RealPage study, areas with the highest supply of apartment communities have more renter turnover. So if you run a property in a developing region, it’s a good time to figure out what you can learn from—and how you can beat—the companies around you.
What are their strengths? Where do they falter? Most importantly, what renter needs aren’t being met, and how can you answer them? Focus on what you can add or highlight what’s unique and superior about your property.
Note: this review process is especially important in areas like San Antonio that experience a high rate of turnover. Revisit and refine your competitive analysis often.
- Make renewals as simple as possible
It’s pretty simple logic. If your goal is to increase renewals, don’t make the process difficult.
Renters shouldn’t have to struggle with finding the right paperwork, filling out confusing forms, or even coming to the management office. Make it convenient by hosting the process online, and providing tenants with forms specific to your property and their unit. An easy renewal may not be the number-one reason renters continue to live in your community, but it certainly will tilt the odds in your favor.
Interested in streamlining the renewal process? Check out our online renewals page, and get a demo to see how they can help you retain renters longer.