Foundational Guide: Renewals

 

WHEN TO FOCUS ON RENEWALS?

Easy renewal conversations starts from the first day a person becomes a resident. Too many times communities have little interaction with residents throughout the lease process and are surprised to get a notice to vacate from a resident.

Our rate of renewals is really a reflection of the sum of all our interactions with that resident.

For a deeper dive, check out our guest educator, Jackie Ramstedt, in “Dear Resident! We Love You So Much We’re Raising Your Rent!”

We’re also sharing a fun outline of a 12-month resident retention strategy.

Click the image to download your 12-month retention plan.    Search the Sprout catalog here using 🔎 word.

Click the image to download your 12-month retention plan. Search the Sprout catalog here using 🔎 word.


A NOT-SO-CORPORATE APPROACH

If you’ve been in the habit of printing out your typical “corporate” renewal, you may want to hit pause, especially if that renewal letter includes an increase.

Asking people to pay more money (without an obvious value increase) deserves more of
a personal approach.

Remember, your residents are people too! If they’ve had an awful day (late for work, stuck in traffic, obnoxious boss, cranky kids) and then they come home to a renewal notice stuffed in their door WITH A PRICE INCREASE, it’s not going to be well-received.

So start by putting yourself in your resident’s shoes, so to speak!

The wrong way to do renewals

PREPARING YOUR TEAM

Help every team member be ready for a renewal conversation
by prepping in advance.

  • Discuss why price increases are necessary for the financial health of your community.

  • Get familiar with current market rates and competitor pricing and incentives.

  • List out any improvements that have been made to the community in the last year.

  • Familiarize yourself with the current cost of moving in your area. Include costs that aren’t just monetary. For example, if your prospect has children, will they be leaving behind a school district they know and love?

  • Review where and why you’ve lost past renewals. For example, if there is a trend in home purchasing, get comfortable talking about the perks of renting over buying. If you see you are losing to a certain competitor, find out why.

  • Practice having those conversations as a team. If you are the community manager, consider letting each team member individually sit in as you handle a renewal conversation. When it’s your employees turn, sit in with them and offer valuable feedback. Remember to highlight what went well!

  • In your weekly team meeting, discuss how the previous week went in terms of renewal conversations. What challenges were difficult to overcome? What could be done better?

  • Have a little fun and watch our Friendly Renewal Conversations Q & A! We are warning you… it’s an oldie, but a goodie!

An informed team is a team that can confidently tackle renewal conversations.


A RENEWED OUTLOOK ON RENEWALS

Flip the switch on boring renewals. Make it another moment to stand out as unique in your resident interaction.

You are a renewal ninja! Do a little dance and go get ‘em!