The Factors Behind Rental Retention: What Keeps Residents Coming Back and What Can You Do About It?
There are different factors at work when it comes to resident retention. So what is it that determines who, where, and why leases get re-signed? We found some interesting data in this Forbes article and boiled down the basics. Across the country, with more renters re-signing their leases instead of deciding the grass may be greener somewhere else, there are a lot of variables.
The local job market matters. A thriving economy means better job opportunity, yes – conversely it also means more mobility and less renters renewing leases as they pursue other housing opportunities. Upwardly mobile renters can move on to luxury apartments, condos, or home ownership thanks to a solid job market. In areas with stagnant job growth, studies found the rental market to be much less volatile, with more renters opting to stay put in their leases.
Available local apartments will also determine resident movement. In a growing area with lots of new apartment communities to choose from, residents are found to be more mobile than in an area with a solid base and little real estate growth. In this case, the supply (of apartments) actually seems to helpdetermine the demand (of renters finding a new lease).
Renter demographics also play a role in their mobility – which only makes sense. Younger renters who may be changing jobs and establishing families tend to renew leases less than older, more settled renters who may be set in their careers and content in their current living situation. Even geography matters; for instance, the Midwest has more renters staying in their leases, while the South and West have more renters on the move.
Rental communities that want to increase retention and ensure that current renters continue to call thatcommunity home should choose some practical methods. Simple, basic maintenance and care go a long way to keeping renters happy. By providing appealing grounds and attractive interiors, an apartment community can compete with new or more contemporary communities.
Another vital element in renter retention is to ensure that the community has a great staff available to develop quality relationships. The staff can go the extra mile to making the apartment community feel like home for the renters and also assist if any issues arise. For practical concerns like maintenance or service work, having a list of reputable contractors is handy. Being responsive to rental concerns is also very important and helps build a lasting positive reputation and can also create great word-of-mouth advertising.
Although many different factors go into renter mobility, from geography to age to the job market, there are always steps that an apartment community can take to help ensure that its renters want to renew their leases and call a community home! Be sure to check back for our upcoming article on The Benefits of Hiring a Property Management Company...