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The key to effective lease renewals is accountability
“Lease Renewals are Very Important”….so we say. But do we act like it? Does the onsite team really see it as a priority?
New technology has automated the renewal process providing some great resources and tools to make the renewal process more efficient (I love https://heyrenew.com, an industry application that helps organize and coordinate lease terms and the renewal process.) Yet, I fear this automation is going to further reduce the industry’s lease renewal and resident retention potential. Here’s why.
• Turnover is Down – The numbers I see show resident turnover has dropped in many markets. Before we take credit for this, we should note that the economic climate, including rising rents and inflation, may have more to do with reduced turnover than our onsite efforts.
• Automation Does Make a Difference – But the lease renewal applications may become a crutch and hide the difference more human interaction can make in the renewal process. Technology enhances our lease renewal efforts, and the difference is measurable. How much MORE impact would be made if we add back more of the human touch.
Take Advantage of Technology But Include These Action Items in Your Lease Renewal Program
1. Confirm Lease Renewal Rates – Consider the status of every renewal before allowing an algorithm driven renewal rate to be sent to a resident.
2. Somebody Talk to the Resident – Start the process on time and in an orderly, fair housing-friendly fashion with automation. But somebody at some strategic time talk to the resident and find out their “renewal temperature” and possible renewal concerns.
3. Most Important – One Person is Accountable! – Property Management is a team effort but lease renewals should be a one-on-one sport. Just as in the initial leasing presentation, renewals are a sales effort, not just an automated transaction. You are re-leasing the apartment to the current resident. One team member should be fully accountable for the renewal.
In my small management company, we have a daily KWIK Meet, usually at 9am. We discuss every renewal – quickly – but one person is responsible for each. The team supports the effort but ultimately a single team member seals the deal…gets the renewal commitment.
The renewal process is often relegated to the back office. Typically, the person responsible is the assistant manager or whomever might be in charge of accounting. If the renewal is actually a sales presentation, it makes sense to have the leasing professionals doing the renewals.
