Looking from the inside out provides a glance at proactive resident retention options: reaching out to residents who are moving in can help with retention in the long run. Berry explains how relationship building through continued communication makes a multifamily community a real community.

Not all new communities managed by NAA members offer amenities that would make a king smile. No matter how many "bells and whistles" a community may have, many opportunities exist to maximize resident retention. Customer service and resident retention start from the moment the keys are handed to the new resident, and does not end until the keys are given hack.

Frequently, communities are evaluated from the outside in. The real key to resident retention may lie on the inside, so management companies should be looking from the inside out.

Over the years new forms of communication--Internet, e-mail, cell phones, fax machines--have created new expectations of how people communicate with each other, as well as the level of communication. Multifamily housing, along with all businesses, has had to adjust its way of thinking to satisfy the additional expectations of residents. Specifically, residents look for more communications and instantaneous communications. They want communication "now" and through various means. A phone call may not be enough anymore. Residents also may want an e-mail communication in addition to a phone call. What have not change are the basic needs of residents and their expectations.

When prospective residents evaluate where to live and current residents contemplate whether to renew their leases, they consider where they will be most satisfied or if their expectations have been met. As resident demands have increased with the types of amenities in communities, so have the number of choices of where to live. Expansive development in many markets has provided additional competition, and the popularity of the option to buy instead of rent is also on the rise. This is where exceeding and not just meeting resident expectations can be the difference in reaching goals.

Everything Is Not Always OK

Once residents finally decide to live in a community, sign leases and move into apartments, they often drop into a dark cavern and are forgotten until it is time to collect rent or respond to a call with a request or problem. As tools have been developed that provide almost instantaneous communication, the principles of the most effective type of communication may have been forgotten--proactive and person-to-person.

While resident and prospect demands have increased, the ability to meet those demands in many cases has fallen short. For the most part, the perception is that if residents do not contact management, everything must be OK! This is usually the case until their departure notice arrives, stating that they are buying a home or relocating to another community. Employees want continual and effective communication in their jobs, from their employers. Maybe residents demand the same.

If more than one week lapses from the time a resident rents an apartment home and the day the moving truck arrives, management should contact the future resident to offer assistance. The lease and addenda were signed in advance to make moving day less traumatic. Resident retention starts not on the day a resident moves in, but on the day the prospect is notified that the application has been accepted. A simple telephone call or postcard offering assistance can leave an impression of how management cares and how management will take care of valued residents.

If residents are coming from out of town, send a copy of the local newspaper, the community's monthly newsletter and a map of the area. Next, walk the apartment home and community with a new move-in. Omitting this action is the second missed step to resident retention. The excuse of being too busy pales in comparison to how much time and money it costs to rent the apartment later. Another gesture is to place a "Welcome Home" banner on the front door and let the neighbors know someone is moving into the vacant apartment near them. Don't forget to ask the neighbors to say hello should they see the move in progress or recently completed. We "advertise ourselves as communities, but seldom reinforce the concept.

Two days after move-in, maintenance should show up at the door with paint and brush to touch-up any scratches or bruises and go over any information about operation of the features. They can leave a baby food jar of paint and a foam brush to allow for additional touch-up should the resident not like the picture or other furnishings where they first placed them. This not only provides additional communication, but also allows the new resident to meet the people that will take care of maintenance needs.

Within four days of the move-in, management should make a courtesy call and deliver a welcome basket, faxable maintenance request forms, a brief questionnaire about how satisfied they are with their new home and community and an invitation to the new resident orientation at the clubhouse. Also, notify them that the local Welcome Wagon representative was called, and supply a second set of area merchant coupons not included in the welcome package.

At the 30-day point, management should have had at least three direct communiques with the new resident from the day the resident accepted the new keys. On this date management should be sending a separate inquiry or making another direct contact just to see how things are going and ask if further service is needed.

Follow that up with a contact at 60 days and 90 days, and the first impression by a new resident will no doubt be above average. Further, asking every resident who is met on the grounds or in the office, "How is everything in your apartment home?" will no doubt exceed expectations. Action in customer service is much greater than words.

Identify Valuable Services

Everything about a community has value, especially service. Management must identify which services have value, and remember that the absence of service will usually lead a resident to look for value elsewhere. The topping on the service cake is adding and supporting services that would be missed if the resident were not living at a particular community. Services are far more than those generally provided by the staff, and can be at little or no expense to the site.

For managers who complain that they do not have an expansive clubhouse, alarm systems, large pool or state-of-the-art fitness center, resident retention and turnover is still an issue. No matter what price point or amenities are offered, services can be found that will increase chances of success. A vacant apartment, or the location of a local merchant or restaurant, may provide assistance.

Following are some services to consider. Between January 1 and April 15 tax returns are being processed. Contact one of the nationally known tax preparation services and ask if they would conduct a tax workshop at the community's clubhouse, vacant apartment or at their preparation facility.

Contact a local greenhouse or horticulturist about providing a workshop on patio plantings and care. Besides providing information services to residents, some great looking patios may result from the process.

Is the tennis court used more by squirrels than residents? Contact a local tennis instructor to provide lessons. Management may pay for a couple of introductory group lessons, and from that point the instructor can work out private lessons with residents.

Travel agencies will stumble over themselves to hold a seminar on summer get-aways in April, or for an older population of resident, quilting lessons may be their cup of tea.

From yard sales to cooking demonstrations, informational service programs can lead the way to higher resident retention. Computing, health, lifesaving, scuba lessons in the swimming pool, bird watching and birding, and a host of other topics are available. Talking with and knowing your resident profile will assist in the process.

Onsite Staff Should Exceed Expectations

Everyone on the maintenance and management staff should play a part in establishing and supporting a resident retention program. Asking maintenance to find one extra item in the apartment home to fix will not just meet but exceed the residents expectations, ensuring that the entire staff knows the difference between good and great resident service. Most everyone knows the importance of fixing something right the first time, but do they fully understand the ramifications if something is not 100 percent to the resident's expectations.

Train staff to communicate effectively, including maintenance techs. Effective communication means following up to ensure that what was communicated came across with the desired intent. How something is said is as much if not more important as what is said. Do maintenance techs know how to communicate effectively with a resident about what was done in an apartment home, and what action was taken to minimize the chance of the problem recurring? Often a service request is left, only to say it was fixed. Maintenance techs should explain what was done to eliminate the recurrence of the problem, and if there are any measures the resident can take to assist in the process. If maintenance is requested, don't send a person with only fair plumbing skills to perform a major repair. On the other hand, don't have an office person with only marginal communication skills discuss a sensitive matter with a resident. Sell the concept of follow-up calls on service requests as a resident retention and communication program, not as a means of looking over maintenance staff's shoulders. It's also not a bad idea for the manager to follow up on lease renewals with residents to ensure the renewal process was handled professionally and the residents were not left with any unanswered questions.

The staff can be the best asset or the greatest liability when it comes to resident retention. Sam Walton, founder of Wal-Mart once said, "The customer has the ability, to fire everyone in your company from the CEO on down, just by choosing to spend their money somewhere else."

Solving the Puzzle 

There is not one sure-fire method to improving resident retention. It takes dedication, commitment, teamwork and understanding to maximize resident retention. The bottom line is if the residents don't leave, you don't have to re-rent the apartment. Marketing does not have to be expanded as much, maintenance doesn't have to turn the apartment, leasing does not have to work extra hours to fill vacancies, income is maximized and expenses will be minimal. I once heard that every apartment community does not have a reputation ... only the best and the worst. How true it is!

Lawrence Berry, CPM, is President of Magic. Message and Motivation. He is a featured speaker for apartment associations, management companies and businesses, providing workshops and seminars. He has served on NAA's Education Committee, is a Past-President of the Triangle Apartment Association, is an instructor for CAM, CAPS and NALP courses, and is the author of Complex--A Guide to Apartment Management available at the NAA Bookstore. He can be reached at [e-mail]. 919/210-7330 or 919/872-3510.