With summer in full swing, well aside from the 8-inch snowstorm in early May, leasing season should be upon on us. Bright orange trailers, flying through Capitol Hill leaving side view mirrors in their wake. Students scouring furniture in alleys. And the phone calls, ohhhh the phone calls. At least, that’s what I was expecting. Quite the opposite occurrence is revealing itself this year as most of our tenants are staying put. Let’s delve in for a closer look…
Last summer, about 50% of our tenants renewed their leases. This summer, we have a 90% RENEWAL RATE. No one is moving, and those that are leaving are going out of state, or buying a home. Of course one would initially attribute this to the exorbitant rents in Denver. No one is moving because it is too expensive. Factor in the cost of moving plus a possible increase in rent and most people won’t even consider it. However, rents were increasing around the same rate last year, and this year vacancy is up, due to the plethora of units coming online (Denver Business Journal – Vacancy Rates). People are on the move, so why are people sticking with Proform?
1 – Setting The Property Up For Success.
We start this process at the very beginning of taking over management, providing an in-depth analysis and making recommendations regarding capital projects that set a tone for the property. We create comfortable and clean communities, urging our owners to take on these expenses in the beginning. We keep uniformity throughout each building, tying a building together tends to tie the occupants together. We actually present tenant requests for improvements to owners, along with our recommendation. Tenants want to stay in a building that they are tied to emotionally, especially if they feel comfortable and well cared for.
2 – Progressive Maintenance
Proform takes a long-term view of property maintenance. From a property intake evaluation to a timeline of maintenance needs, our properties are always under a watchful eye. Obviously this is in an owner’s best interest for property preservation, but try calling a tenant to resolve a problem they are not even aware exists.
This one is a no-brainer but property management has a bad reputation for getting this wrong. We have worked hard to set up systems, both organizational and digital, to make communication attainable. Our company is inundated with leasing requests, maintenance calls, owner calls, vendor calls, new prospects, billing, etc. However, we have found that the ability to speak with an actual human goes a long way with tenants.
Start off on the right foot, keep a watchful eye, and communicate. The simple yet astoundingly difficult recipe for tenant retention.