27
Oct 16

Don’t Wait for the Downturn: Design Renewal Programs with These Tips

Posted by: Entrata | Category: Management,RentSauce,Technology

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Rent growth, occupancy, revenue. The key performance indicators are all up across the country.

But the conversation about the metrics today is about when they’re going to start going down. Every veteran of the multifamily industry knows it’s going to happen … sometime. It might not be tomorrow, but the downturn in the cycle is going to happen.

When it does, the scramble to renew residents will commence in a hurry. Communities across the country will develop retention programs, improve customer service initiatives, slash renewal offers and even offer incentives to stay. The time to start some of those retention efforts, however, is now when times are good.

Waiting to implement that customer service initiative or retention program until your metrics go south will put you way behind the curve against your competitors. Implementing them today, when your leasing associates aren’t stressed to the max to meet their goals, could stave off the flood of move-outs when the market does turn. If you can get residents to renew when rent increases are this high, you can get them to renew under any market conditions.

Several owner/operators, such as Alliance Residential and Cardinal Group Management, are already prepared for the renewal scramble. At our 2016 Summit, they shared a few tips with us to help generate renewals:

While these suggestions don’t guarantee that residents will renew, they’re a great place to start preparing for the eventual downturn. Wait too long and you might be scrambling for  leftovers when the downturn officially hits.