Renew and improve: increase your renewal rate by mapping out a plan and executing it early and often.

As apartment industry discounts and concessions end, lease renewals now signal the potential for some big rent increases and high turnover. Industry professionals diligently train on the leasing presentation--including scripting of calls, visits and follow up. Just as much attention should be paid to renewal training.

Onsite staff not only should be able to close a lease, but they also should be trained on:

* Selling the renewal

* Selling the new rate

* Overcoming objections to renewing

* Selling the benefits of staying in the neighborhood

* Closing on the renewal

Use a training handbook and staff meetings to help coach onsite staff members on overcoming typical objections they meet when negotiating the renewal.

Re-Rent vs. Renew

Know the cost of renewing versus leasing to a new resident at a higher rate.

Analyze turn costs, including vacancy loss and the cost of staff's time. Make sure the entire staff--particularly the leasing staff--is aware of those costs. As a team, calculate the payback time for the turnover costs so that everyone understands the value of a renewal versus the value of a new resident at a higher rate. Periodically recalculate the point at which it is better to lose a resident and lease to someone new at full rent, or the point at which it is better to renew at a discounted rate.

Sell the staff on the value of every dollar of increased revenue. Openly going through this exercise and discussing it fully helps to prevent the "rent increase resistance phenomena" that can prevent a team from believing in the renewal rates and fully promoting them.

Map the Renewal Plan

Map renewals at least six months to a year ahead. Analyze each expiring lease and set the increase amount for each unit so staff members can anticipate what their renewal rate goal will be. Property managers should do this with the entire leasing team so that everyone buys into the rates of increase and knows the goals.

Budget a "renewal allowance" for each apartment home that can be reinvested in the apartment to secure the renewal. Have a list of improvements a resident is eligible for as a benefit of renewing, such as new light fixtures, painting (perhaps with preselected custom colors), carpet cleaning or other options.

Offer the leasing team an incentive or bonus plan for meeting renewal goals and advertise the benefits.

Be In Touch

Many management teams fail because they contact their residents only at move-in, if rent is late, when there's a lease violation, if something's broken or when it's time to increase the rent.

Leasing teams should make ongoing contacts to ensure satisfaction, such as thanking residents individually for their business, offering help or coupons, extending inexpensive holiday or "no-reason" gifts and sharing event news. Because leasing teams are so busy, those simple contacts often don't happen unless management makes it easy.

Many apartment companies use lead management software for traffic tracking and follow up. Those programs are just as important for renewals. Use them to prompt the leasing team with reminders to contact individual residents each month and to keep records of the last type of contact.

Apartment managers also can use a resident retention card, similar to a guest card but designed for current residents. These tools provide a record of resident preferences and personal information, as well as a contact reminder and tracking system, to assist the leasing team in personal and ongoing contact with each resident. (A sample card is available at www.AptDynamics.com.)

Start Early

By the time the lease is in the 60- or 30-day notice period, most residents have already made their decisions to move, renew or go month to month. A fill-in-the-blank impersonal rent increase notice at this point is the proverbial "kick out the door."

Because most leases require a 60-day notice, onsite staff must contact residents at least 90 to 120 days prior.

First Contact: Do Something Nice For the Resident. Before the first contact about renewing, plan something nice for the resident.

One of the most mutually beneficial ideas for first contact is to schedule an annual or semi-annual maintenance tune up for the resident's home. Ask residents to let management know if they are aware of any specific repairs necessary. Leave a detailed checklist--similar to what a car mechanic might use--that shows what the maintenance team fixed and what was working properly. If applicable, tell the resident about any upgrades.

The checklist should be thorough, covering all appliances, cabinets, drawers, windows, doors, blinds, HVAC, hot water heater, lights and switches.

Second Contact: Visit Them in Their Homes. Meet residents where they live rather than sending a letter or calling them to the leasing office. Bring a small gift--as simple as a tiny gift bag filled with small chocolates--and a thank-you note that acknowledges their tenure. Extend a specific invitation to renew for another lease term. Meeting a resident at home rather than behind a leasing office desk is especially helpful if the renewal invitation is accompanied by a big increase. The encounter gives residents the opportunity to show the team member things that are not right in their homes--and gives management the opportunity to fix them.

Residents will probably want to consider their options. Offer to come back, and be sure to leave something that helps sell the renewal, such as a specially designed renewal brochure that resells the benefits of living at the community. It could include a comparison grid that identifies the community's strengths and possibly even compares the community's rates with other communities' that a resident might consider.

Always ask what the resident wants or what it would take to help them make the decision to renew. Write all their thoughts down and keep an open mind.

A resident might not want the rent to increase or might prefer a different lease term. Be prepared to offer the resident options, such as carpet cleaning and interior painting, but keep in mind that most apartment communities offer those two items. Differentiate the community by offering more.

Perhaps the resident wants ceiling fans in all rooms, custom paint colors or new window treatments. If management has preset a budget for each renewal negotiation, then the leasing professional can agree to the terms and begin closing on the renewal immediately. The leasing professionals should fill out a personalized renewal invitation worksheet, outlining the renewal date and the items the residents asks for, and list items promised to the resident as a result of their requests, and the renewal rate options by length of lease.

If the resident needs time to consider before signing--or if the leasing professionals must ask management about specific requests--set a follow-up date and time, either at the resident's home or in the office. Promise to answer every open item. Leave a copy of the personalized renewal invitation worksheet with the resident.

Third Contact: Follow Through. Prepare for this most important renewal contact by reviewing the renewal worksheet. Make sure all remaining questions are answered. Be prepared and rehearsed to sell the answers to the resident's specific requests. This meeting should be the best opportunity to close on the lease renewal.

As with the initial lease, recognize that objections are signals of the resident's interest in remaining a part of the community. Be prepared to overcome the objections and be sure to invite the resident to renew.

Further Contacts: Ongoing Follow-Through. The follow-through phase may actually take more than one contact because residents may choose to visit other communities, research buying a house or seek other options. Be kindly persistent, making sure residents know the company wants their renewals because the company really values them as part of the neighborhood.

Whatever the renewal goals are, track and reward successful achievement and communicate with the entire team every step of the way. With the high cost of turning apartments, don't leave renewals to chance. Train the team, develop and communicate a renewal plan and then manage resident contacts so residents will want to stay.

RELATED ARTICLE: What have you done for me lately.

Who wouldn't love someone to unclog a smelly toilet for them? And after a hard workweek, the thought of going out on Saturday afternoon in 100-degree heat to mow, edge and blow--how does that compare to sitting by the community's swimming pool? Even though these are things apartment professionals do for residents every day, in a "what-have-you-done-for-me-lately" world, it is easy for residents to forget that at renewal time. To get more bang for the customer service buck, remind residents of the benefits of apartment living.

Clever Door Hangers. When it snows, include a photo on residents' door tags of a maintenance staff member shoveling walks that reads, "Reminder: He's out there so you can be in here." or "Good Morning! Your sidewalk is shoveled today. If you owned a house, you'd be out shoveling!"

On one of the hottest days of the summer when the mowers will be out, post door hangers that read, "Honk if you love Tim today--He's mowing the yard so you don't have to!" or "If you lived in a house, YOU would be mowing!"

The following is a sample monthly program of newsletter reminders for residents. Customize each month for what the community offers, and say it in a clever way.

January. "Snow removal is on us." Use a graphic showing someone doing back-breaking snow shoveling.

February. "Even if the groundhog sees his shadow, we'll keep your home warm all winter with our carefree maintenance."

March. "Quarterly tune up time! We're making sure your air conditioner works so you'll save money all summer."

Post this reminder for scheduled HVAC filter changes and coil and condensate line cleanings.

April. "April showers and we plant the flowers!"

May. "Memorial Day pool opening! Enjoy being part of the 'Country Club' without paying any dues."

June. "Be cool by the pool while we mow the lawn!" Include an illustration of someone sweating while pushing a lawnmower or a resident lying by the pool with a drink sitting under an umbrella.

July. "Celebrate your independence! No mortgage, no tax bill, no big insurance payments, no house upkeep, no lawn care."

August. "Enjoy the dog days of summer! Don't forget to enjoy all the benefits of your home. It's like a perpetual summer vacation!" Use a photo of the tennis court, pool or grill, or other amenities the community offers or that residents can do in the area.

September. "Back to school. The bus stops here!" Show a location on or near community where bus stops.

October. "No scary repair bills. We'll take care of all your repairs so you can relax and enjoy your spook-tacular home!"

November. "We're thankful for you!" Include a photo of entire onsite team holding the tools of their trades.

December. "Have happier holidays! Enjoy worry-free package delivery to your door in December!" or "Wrap your arms around this! Resident wrapping service at the office through Dec. 20."--M.G.

Mary Gwyn, CPM, is a trainer and marketing consultant for the apartment industry. Contact her at [e-mail] or www.AptDynamics.com.