How to Build a Community Residents Stay Long-term

It’s easy to focus on filling vacant units, but what about the residents who already call your community home? In today's economic climate, where costs are rising and residents are feeling the squeeze, retaining your current residents is a must. While some residents move for reasons completely out of your control, like job relocations or homeownership, many are "on the fence," and your actions can either sway them to renew or push them out the door.

So, why do good residents move, and what can you do about it?

Communication Breakdowns

One of the biggest culprits is a poor communication strategy. When residents feel disconnected or uninformed, distrust can quickly set in. This often happens when there's a lack of transparency, especially around lease term changes or rent increases. If your communication isn't regular or timely, residents might feel like an afterthought, pushing them away even if they're low-maintenance and otherwise happy.

Beyond frequency, impersonal communication can also be a deal-breaker. In an age of sophisticated AI, generic emails that just pop a first name into the salutation no longer cut it. Residents expect personalized offers based on their rental history and preferences. Instead of a binary "stay or move" choice, they want to know their options, like a different unit size, an apartment with better amenities, or even flexible lease terms. The timing of renewal messages is also crucial. If you send them too late, you may give the impression you don't value them.

Inefficient Processes and Uncompetitive Rates

Nobody likes friction, especially when it comes to renewing their home. Inefficient and manual renewal processes can create unnecessary hurdles. Residents should be able to renew their lease online with ease, perhaps with a single click in a resident portal. If they have questions, direct communication with a leasing agent via the same channel should be seamless.

And then there's rent. The number one reason residents move, according to the Entrata Resident Report, is the cost of rent. Manually calculating competitive rates is time-consuming and often results in outdated pricing. You risk either leaving money on the table or, worse, pricing out a valued resident who would have otherwise renewed.

Building a Foundation for Retention

So, how do you address these challenges and build a community that stays?

Focus on the Resident Experience: From impeccably maintained common areas to an efficient, streamlined maintenance process, every interaction counts. Implementing a property management solution that simplifies resident interactions is a good place to start. Additionally, training site teams to deliver a consistent experience where they are both approachable and responsive is a good way to build trust with residents and increase satisfaction. 

Foster Community Through Communication: Proactive, personalized, and transparent communication is key. When developing your communication strategy, be sure to take an omnichannel approach that includes email, text, voice, and your online portal, so you can meet residents where they are. Next, regularly solicit feedback from residents via surveys to identity areas where you could improve, but be sure you act on that feedback. Finally, find ways you can show appreciation by acknowledging birthdays, lease anniversaries, or by holding community events.

Implement Efficient, Automated Renewal Process: When renewal time comes, it needs to be effortless. Properties should consider the following:

• Early notification of the renewal timeline.
• Transparent pricing and clear outlines of any changes to lease terms.
• Automated reminders.
• A dedicated renewal contact or AI agent. The ability to complete renewals and get questions answered online, combined with presenting flexible lease terms and personalized offers, dramatically reduces friction.

Use Data to Your Advantage: Understand why residents are leaving by analyzing turnover data. Use this information to improve the overall resident experience. Data can also help segment your audiences based on demographics and behavior to tailor renewal messages and incentives. When it comes to setting rental rates for renewals, revenue intelligence tools can provide real-time, data-backed suggestions, ensuring your offers are competitive and appealing.

Ultimately, by focusing on a holistic resident experience, clear communication, streamlined processes, and smart data utilization, you can turn the tide on turnover and build a community that not only thrives but stays.