Customer Service vs Resident Retention: Where Should You Place Your Efforts?
As a property manager for a multifamily building, you have many responsibilities to follow through with on a daily basis. Among those responsibilities, you will find customer service when finding new leases and resident retention for those you have already signed.
So, which of these two is of greater importance?
Today, we will discuss customer service vs resident retention and where you should place your efforts as a property manager in a multifamily industry.
Focusing on New Leases
Many multifamily property managers focus on new leases when there are more units available than current residents, money has been invested into upgrades or new amenities for the building, there has been a change in the rental prices, and when there is a new demographic to target. If any of these situations exist, it is a good idea to shift your focus to new leases to cover the costs incurred.
Focusing on Resident Retention
Some situations warrant more of a focus being placed on resident retention. For example, if the property is still relatively new, you have to take the time to establish more of a reputation in the area.
If you see a high turnover rate, it might have a lot to do with customer service rather than the rental prices. You may need to shift your focus if you have more negative reviews than positive reviews left by residents and a current or upcoming economic downturn.
Which Is More Expensive
The next question you might have is if it is more expensive to keep a current resident or sign a new lease. When you have to decide where to spend more of your time and focus, determining the costs involved is a major motivating factor.
If you have half the building leased and you have an average turnover rate and a good reputation, then your focus should be placed on money and where you can possibly cut down on your expenses.
Sometimes acquiring a new resident can be five times more expensive than working on resident retention. With resident retention, you can ultimately increase your profits by up to 25 percent.
For more information on resident retention and why it is an important focus, contact us at Occupancy Solutions today.