National resident satisfaction study sheds light on keys to retention; by surveying residents, apartment building management teams are able to better identify the needs and wants of their residents. Survey results can be used to help them devise ways to increase retention rates.While the attention given to resident retention has clearly grown during the past decade, current soft market conditions make finding ways to "shut the back door" more critical than ever. The financial benefit of retaining residents is obvious. And while there are many potential components of a sound retention plan, in reviewing the findings from the most recent resident satisfaction telesurveys conducted with nearly 8,000 residents completed in half of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the findings again confirm that a significant percentage of turnover is controllable. The key to maximizing renewals is not "bells and whistles A slang English term for exceptional features in some product. In the computer field, it typically refers to functions in software that may be greatly appreciated by some users, even though they may not be necessary most of the time. ," but instead the effort to satisfy the basic needs of residents--such as promptly and properly taking care of service requests, and making sure their apartment and the community are well maintained and in good condition. Identifying the issues that most greatly affect retention does not have to be a mystery. Many firms have found resident surveys to be an effective way to obtain such information. "Resident surveys are a helpful strategic tool that takes a great deal of the guesswork out of developing marketing, resident retention and management plans," said Kimberly Kimberly may refer to:
Work Orders and Renewals Our research clearly shows that staff responsiveness has a significant effect on satisfaction and retention. As the tables in this article show, residents gave an "Average" satisfaction rating for "Office Staff Responsiveness" and "Maintenance Response Time." Along the same lines, another important score is that 28 percent of residents cited that maintenance problems still existed in their apartment after they submitted service requests. Our research shows a clear correlation between how service requests are handled and the likelihood of a renewal. Graph 1 looks at the effect outstanding work orders have on the likelihood for a renewal. Clearly, as the percentage of residents with outstanding maintenance problems increase, the percent of residents who responded that they were "Very Likely" to renew their lease dropped from 64 percent to 40 percent--a 38 percent decrease. As Graph 2 shows, the effect of outstanding service requests on overall satisfaction confirms the relationship--scores drop from the "Superior" to the "Red Flag" range as the percent of work orders outstanding increases. The same correlation is seen when reviewing the effect maintenance response time and work quality has on renewal rates. When considering the myriad Myriad is a classical Greek name for the number 104 = 10 000. In modern English the word refers to an unspecified large quantity. The term myriad is a progression in the commonly used system of describing numbers using tens and hundreds. retention program component options, our research seems to say that the biggest bang for the budget buck Buck after murder of his master, leads wolf pack. [Am. Lit.: The Call of the Wild] See : Dogs Buck clever and temerarious dog perseveres in the Klondike. [Am. Lit.: Call of the Wild] See : Resourcefulness could come from using funds to increase the maintenance staff's efficiency and work quality. For example, given a limited budget, it makes sense for a firm to consider saving some or all of the money spent on resident events, social activities, move-in gifts and newsletters, and instead invest it in ways to improve service, such as hiring additional maintenance staff. When comparing the survey results of one of our clients (Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. & Rocks Inc.) with the national average, based on our database, the variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality caught our attention. Allen & Rocks Inc. received scores across the board that were 10 percent to 15 percent higher for overall satisfaction, response time, work quality ratings and the percent responding "Very Likely" to renew. Even more eye-opening a. 1. Causing one suddenly to learn or understand what was not previously known; as, an eye-opening look into the private machinations of the governor s>. was that the percent of residents citing that maintenance problems still existed in their apartment was 47 percent lower than the national average. Dave Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , Vice President of Property Management for Allen & Rocks Inc., attributed his company's terrific scores to its approach to management. "We aim to staff appropriately for the routine, as well as special needs of each community," he said. "For a typical 250- to 300-unit community, a maintenance staff of three should be sufficient--but we have four. And we maintain our communities in first-class condition because we know how important curb appeal is to our marketing and retention efforts. Our owners are very responsive to each community's needs--and they know that reinvesting properly has a tremendous payback Payback The length of time it takes to recover the initial cost of a project, without regard to the time value of money. ." Allen & Rocks' peers also have seen the difference in how the company manages its assets, selecting three of Allen & Rocks' seven properties as top community award winners during their local apartment association's recent award competition. Issues Impacting Renewals One critical question the survey asks residents is, "How likely will you be to renew your lease when it expires?" The 48 percent who did not respond that they were "Very Likely" were then asked why they did not answer that way. Fifty-nine Adj. 1. fifty-nine - being nine more than fifty 59, ilx cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" percent of these residents cited reasons that are under the control of the property staff and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. senior management. The majority said providing acceptable levels of service and meeting basic apartment and community expectations as the reason for their answer. The next table shows the top reasons for not answering "Very Likely." Many of the main issues are within the staff and/or senior management's control. Seven of the top 10 reasons, and 13 of the top 20 are controllable to varying degrees. Regarding the effect of how well service requests are handled, it is significant that "Office Staff Responsiveness" and "Maintenance Response Times" were the most frequently listed staff issues. What effect does an issue cited by 3 percent of the residents have? Three percent of a 300-unit property's 150 move-outs equals five residents. If each move-out costs $2,500 (turnover, vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. and marketing costs), the bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. effect of just one of these controllable issues is $12,500. Even some issues that do not appear to be controllable should still be addressed. Consider the top cited reason "Buying Home." Can you stop a person from buying a home? Probably not, but you can attempt to delay it by developing a strategic alliance with a homebuilder to offer a "rent-to-own" program. As the resident earns credits that can be applied toward a down payment or closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, , these programs create for residents who plan on buying a home an incentive to increase their length of stay in the rental property. Or, resident managers can at least try to promote to young, career-oriented, mobile professionals the advantages of renting, such as the flexibility it permits in regard to relocating. Anything that can be done to increase the average length of stay--even by just one month--clearly has a dramatic effect on the bottom-line. And then there's the infamous in·fa·mous adj. 1. Having an exceedingly bad reputation; notorious. 2. Causing or deserving infamy; heinous: an infamous deed. 3. Law a. rent increase. As increases are "controllable" by senior management, does this mean rents shouldn't should·n't Contraction of should not. shouldn't should not shouldn't should be increased and that a property should not try to grow the income generated for its ownership? Of course not. It's important to find the balance between aggressive increases and forcing excessive turnover. Some turnover due to increases should be expected. If no residents cited this, then one could argue the property is not being aggressive enough. As the old saying goes, "If you're 100 percent occupied, then your rents are too low." Jennifer Nevitt, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bravo BRAVO Cardiology A clinical trial–Blockade of the GP IIB/IIIA Receptor to Avoid Vascular Occlusion– which evaluated lotrafiban in preventing strokes and acute MI. See GP IIB/IIIA. Strategic Marketing, has the following perspective. "If our industry is only losing 13.2 percent of its residents due to rent increases, that should build confidence with our leasing professionals to not fear selling renewal increases," she said. "Let's assume management is able to raise rents for all apartment homes throughout the year at a community. If it only lost 13.2 percent of the residents because of the increase, the net gain to the bottom line is significant. It means rents were successfully raised for all of the other apartments that are occupied or leased. This is astounding a·stound tr.v. a·stound·ed, a·stound·ing, a·stounds To astonish and bewilder. See Synonyms at surprise. [From Middle English astoned, past participle of astonen, , given the fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. responsibility to investors."
A resident stating that the rent increase was the cause for concerns about renewing is not always the real issue. We find that in some cases the real issue is that longer-term residents see that they are paying the same rent for their older apartment, while they observe new residents moving into apartments that have received some updates (from repainting and carpet shampooing to varying degrees of renovation). In these cases, it appears the issue is not the increase--it is the resident's perception that they are not receiving as good a value as new residents, and that they are not being rewarded for their longevity longevity (lŏnjĕv`ĭtē), term denoting the length or duration of the life of an animal or plant, often used to indicate an unusually long life. . When a resident gives notice and cites the increase, they must be spoken with and probed. Is the rent now out of their budget, or is it something else? Perhaps it is unresolved Not completed; not finished; not linked together. See resolve. maintenance work, problems with their neighbor, or a perceived value issue? If the latter is the case, what can you do to resolve the issues and "save" the resident? If a move-out costs $2,500 and a resident feels their apartment is not as nice as the those being given to new residents who are moving in, would you not be willing to shampoo shampoo a cleaning agent, usually liquid, for hair; usually consists of a detergent and perfume. Some, usually referred to as medicated shampoos, contain therapeutic substances such as parasiticides, antimicrobials, ketatolytic agents, and antiseborrheic compounds such as selenium their carpet or paint their apartment in return for a renewal and long term loyalty? This issue presents a strong case for considering lease-renewal incentive menus. With such a program, renewing residents are able to select from a variety of in-unit improvements (shampooing carpets, painting, etc.) and the value of improvements offered increases the longer they have been a resident. If they move out, the property owner will have to spend much more, so why not spend less and increase resident satisfaction and renewals? Suggestions For Improvements Like the responses to the "Why not very likely to renew?" question, the responses to the question "What can be done to improve the community?" were equally enlightening en·light·en tr.v. en·light·ened, en·light·en·ing, en·light·ens 1. To give spiritual or intellectual insight to: . These results confirm that the answer as to how to reduce unnecessary turnover and improve a property's bottom-line begin with focusing on the staff, the delivery of prompt and professional service, as well as meeting residents' basic needs and expectations. As shown, the response of residents shows that it is important to focus on what are truly "basics" to sound property management: * A courteous cour·te·ous adj. Characterized by gracious consideration toward others. See Synonyms at polite. [Middle English corteis, courtly, from Old French, from cort, court; see , capable and dependable staff. * Promptly and properly handle service requests. * Offer the ability to park nearby. * Laundry Laundry can be:
Before industrialization facilities that are dean, well maintained and stocked with Adj. 1. stocked with - furnished with more than enough; "rivers well stocked with fish"; "a well-stocked store" stocked furnished, equipped - provided with whatever is necessary for a purpose (as furniture or equipment or authority); "a furnished apartment"; operable operable /op·er·a·ble/ (op´er-ah-b'l) subject to being operated upon with a reasonable degree of safety; appropriate for surgical removal. op·er·a·ble adj. equipment. * Buildings that are dean and well-maintained. * Common areas that are dean and well-maintained. * Offer a community where one can feel reasonably secure. * Apartment homes that are attractive and in good condition. * Meet these basic needs so that the value for the rent paid is clearly seen. Overall Ratings The final table shows ratings in a variety of important operational areas. The 3.92 overall national score says residents rate their satisfaction as "Average." Only two categories were rated in the "Superior" range--"Maintenance--Courteousness, Professionalism professionalism the upholding by individuals of the principles, laws, ethics and conventions of their profession. " and "Office--Courteousness, Professionalism." These findings are a reminder of the significance of the old proverb proverb, short statement of wisdom or advice that has passed into general use. More homely than aphorisms, proverbs generally refer to common experience and are often expressed in metaphor, alliteration, or rhyme, e.g. , "Don't open a shop if you can't smile." No other categories were rated "Superior"--all others were "Average." Think about the implications of these findings--and how important this tells you it is to strive to be the best you can be within your sub-market. Clearly, this will positively impact both retention and leasing. What are some of the reasons for the "Average" ratings? Reviewing the tables on issues impacting renewals and community suggestions sheds light on some of the underlying points. The second lowest rating was for the resident's apartment itself, which is significant. If a resident doesn't like their home, what are the chances they will be a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. resident? Low apartment scores appear to be due to appearance and condition. Likewise, the score for exterior curb appeal tends to be related to community cleanliness Cleanliness See also Orderliness. Cleverness (See CUNNING.) Berchta unkempt herself, demands cleanliness from others, especially children. [Ger. Folklore: Leach, 137] cat continually “washes” itself. and parking lot issues. Building interiors, with the lowest average score, tend to be impacted by issues regarding elevators, hallways, cleanliness and laundry rooms A laundry room (also called a utility room) is a room where clothes are washed. In a modern home, a laundry room would be equipped with an automatic washing machine and clothes dryer,and often a large basin, called a laundry tub, for hand-washing delicate articles of clothing such . Like other findings covered, these results show the importance of supporting the details of sound property management. Conference Speaker Doug Miller, along with Julie Smith, will present Resident Satisfaction and Renewals: What a National Study Reveals at the 2002 NAA NAA Nomina Anatomica Avium. Education Conference & Exposition exposition or exhibition, term frequently applied to an organized public fair or display of industrial and artistic productions, designed usually to promote trade and to reflect cultural progress. in Orlando, Fla. It will address the reasons that thousands of residents gave for why they were not very likely to renew, their suggestions for improving the community, as well as cover practical ideas that address these issues. The session runs 11:15 a.m. to 12:15 p.m. Thursday, June 27. [GRAPHICS OMITTED] Summary Of Controllable Non-Renewal Reasons (59.1%) Staff and Staff Performance Related 15.4% Staff Controllable Issues 18.6% Management Financial Decisions (i.e. rent increase) 13.2% Property Improvement Issues 4.6% Apartment Feature/Appearance Related 7.3% "Why Not Very Likely To Renew?"-Top Reasons * Category Frequency Buying Home 17.2% Rent Increase 13.2% Relocation 10.2% Moving Home 9.8% Can't Afford 3.3% Office Responsiveness 2.8% Maintenance Response Time 2.8% Office Courtesy 2.7% Maintenance Quality of Work 2.5% Found Better Deal 2.5% Neighbors 2.4% Roommate Change 2.2% Community Parking 2.0% Apt/Need Different Size 1.7% Maintenance Courtesy 1.6% Community Cleanliness 1.6% Convenience to Work 1.6% Renting Townhouse 1.5% Apt/Design 1.5% Safety -- Community 1.4% Office Quality of Work 1.3% * Expressed as a percentage of residents who did not respond "Very Likely" to renew How To Improve The Community-Top Suggestions Category Frequency Community Parking 8.2% Lower Rent 7.7% Community Cleanliness 6.5% Maintenance Response Time 6.4% Better Residents 5.6% Office Responsiveness 4.8% Safety -- Community 4.6% Safety -- Building 4.5% Maintenance Quality of Work 4.1% Office Courtesy 3.5% Safety -- Neighborhood 3.3% Recreational Facilities 3.0% Landscaping 3.0% Laundry Facilities 2.8% Maintenance Courtesy 2.5% Apt - Carpeting 2.5% Community Social Activities 2.3% Community Halls/Lobbies 2.3% Apt -- Painting 2.2% Apt -- Appearance 2.0% Average National SatisFaction Scores For 1-5 Scaled Response Questions * Category Score Comment Overall Average Score 3.92 Average Maintenance - Courteousness, Professionalism 4.12 Superior Office - Courteousness, Professionalism 4.10 Superior Office Responsiveness, Dependability 3.92 Average Maintenance - Quality of Work 3.93 Average Exterior Curb Appeal 3.94 Average Safety, Security 3.92 Average Maintenance - Response Time 3.80 Average Apartment 3.80 Average Building Interiors 3.76 Average Maintenance Problems Still Exist 28% -- "Very Likely" to Renew 52% -- * 5 point rating scale, with 1 "Extremely Dissatisfied" up to a 5 being "Extremely Satisfied". SatisFacts considers a score below 3.0 to be a "Warning Signal," a score of 3-3.5 a "Red Flag," 3.5-4.0 is "Average," while 4.0-4.5 is "Superior" and scores above 4.5 are "Exceptional." Doug Miller, President of SatisFacts Research and the Miller Marketing Group, has more than 16 years experience in multifamily marketing, research and training; and has worked with more than 500 communities nationwide. Chris Pulket is Research Analyst for SatisFacts. To reach SatisFacts, call 877/733-0672, send e-mail to info@satisfacts.net, or visit their Web site at www.satisfacts.net. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion