Retention is an important factor for all multifamily operators. With more than 60% of revenue coming from renewals for most properties, a small decrease in renewals can have a tremendous impact on pricing power and NOI performance.
Regardless of the situation, resident loyalty has a significant impact on the bottom line. Resident satisfaction has a dramatic impact on renewals rates – even when renewals include a rent increase. A recent NMHC survey measureed the “…difference between the percentage of customers who are totally and completely satisfied (raving fans) and those who aren’t” and has found that loyal residents in fact renew and refer more often, with satisfied residents more likely to renew at 63% and dissatisfied residents renewing only 34% of the time.
Here are some simple actions you can take to enhance resident satisfaction, and thereby increase your renewal rates.Read More