As I write this, I'm sitting inside an air-conditioned coffee shop watching people melt as they walk from their car to the adjacent shopping center. It's 113 degrees outside and the mere fact that I'm writing about moving is giving me a small panic attack. If my lease were up for renewal this month I would much prefer to stay put than start trekking boxes from one community to another in brain-shrinking heat. According to recent statistics, I'm not alone. While heat is not the primary reason for this trend, retention rates are consistently up around the country. But (and this is a big but), increased retention is not necessarily connected to higher revenue. This probably doesn't come as a surprise to you, but it's data that backs up your intuition. According to a recent blog on Property Manager Insider, one reason may be that many managers are under pricing renewals.
So, is the solution simply to increase renewal rents beyond current expectations? You may have lower renewals, but you will hopefully gain some higher paying new residents. But, what if you could increase revenues even more with higher renewal rates for current residents? The savings of no turnover costs and the stability of proven residents.
Our CARES program helps enhance a sense of community so residents don't want to leave--even when renewal means increased rent. We would love to partner with you to discuss how we might partner with your team to foster a community of happy, healthy, involved residents as you enjoy steady revenue growth.