How Much Is My Renewal?

The question at hand.. how do you convince a resident to stay in their apartment when you are raising their rent to a price that is more expensive than what new prospects are paying? This is going to take lots of convincing and strength in selling the benefits. We should begin with the actual cost of moving. This is often helpful as the cost of moving is expensive and can run a couple thousand dollars depending on different factors. The resident would need movers, boxes, packing tape and also they would incur other costs such as application fees, deposit, maybe a pet deposit, admin fees, and even potential loss of revenue and productivity from time off work. Another point to make is the value of your service. Discuss the attentiveness and reliability of the maintenance team. If your team has won awards use this data. Bring up a specific issue, if you can recall when the maintenance staff has exceeded expectations for your resident. Build value by discussing the turn around time for service requests and emergency maintenance. If your community has future projects which will enhance the community, share those projects and the cost benefit to the resident. For example, if your community is adding a parking lot, or electric car charging stations, even valet waste services, talk about these things. Does your current resident have a renovated home, talk about the built in savings on utilities that they haven’t even realized. Build value by discussing the progress the community has made over the years, and how the goal is to continue to make improvements to the community. Everyone likes extras, so think about a few renewal incentives that you can offer without breaking the bank. Maybe a new countertop, surface carpet clean, upgraded kitchen cabinet fixtures, accent wall or a repainted apartment. Advise the resident that after the first year, the prospect coming in with the lower rent will be charged a higher rate at renewal. If yiur prospect received concessions wjen they moved in remind them of this as well. Sell yourself and the superior service you offer with regards to communication and perks including package delivery, notary service, office use such as copier, free wi-fi, etc. What it all boils down to is the customer experience and building value. Share your thoughts!

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