| The most successful businesses today are able to keep their customers paying for their services year after year. This ability to keep customers, or residents in our case, separates the successful, happy owners from the not so-successful. Keeping your residents long-term is the key to maximizing your cash flow. Yet many property managers (or owners, if there is no manager) are encouraging unneeded vacancies to occur by default. |
The cost of poor service.
Try to remember the last time you received poor service and think about your reaction to it. As an example, think about the last time you had an auto repair performed. Was the repair handled adequately? Was the car ready when promised? Did anyone follow up to see whether you were satisfied or not? Your answers to these questions will lead to the ultimate one: Was the service good enough that you would not consider using a ompetitor the next time you needed your car repaired?
Would you write a letter of complaint to the owner of the repair shop? Probably not. You’d just leave, complain to your friends, and never go back again. Now think about your tenants and the service they receive at your apartment building. How many days do they have to put up with that leaky faucet? Are they putting towels around the bottom of their 15 year-old refrigerator because you won’t get them a new one? When a toilet backs up on the weekend, does your manager make them wait until after the football game is over before he does anything? Are you starting to see why people might be moving out? It’s not the market - it may be your manager’s lack of service. Studies have shown that the top reasons good tenants move are neglected maintenance and slow or unresponsive management. It’s not price!
You must meet their expectations.
You have one product to offer - an apartment that works. Just like a car, if it works most of the time, you’re happy. if it breaks down too often, you’re not.
Your residents are pretty reasonable. They expect repair from time to
time. For example, the stove stops working or the toilet gets plugged.
How your manager reacts to these inconveniences is the key. It will make
or break you financially over time. The potential for dissatisfaction is
defined by the
difference between what your resident expects your response to be and
what your response actually is.
Apartment managers have the opportunity - and challenge - of pleasing
your residents with every
interaction. Obviously there will be different service level expectations
from a $400.00 per month 1 - bedroom rental versus a $950.00 per month
1 bedroom rental. You probably have a sense of your residents’ expectations
If not, surveys, questions and observation are the best ways to help you
determine this.
Start With Where You Are.
Your residents notice the smudges on the lobby windows and trash in the hall that doesn’t get picked up.
Is your staff easy to find? Do they chat with the residents and build
a sense of community? Are you renting a home or simply” four walls and
a rug”? It may sound simplistic but if all you’re
renting is the physical space, then you are selling on price alone
and that’s a weak place to be.
Here are the types of questions you can ask your tenants, either verbally or in a survey to get accurate answers.
• Have you ever asked for help with a repair in your apartment?
• Did the staff respond quickly?
• Were you satisfied with the quality of the service you received?
• Were you satisfied with the attitude of the maintenance people?
• How satisfied are you with the interaction you have with the management staff?
• Do you believe that your manager and the maintenance staff are doing a good job?
• What improvements could be made that would increase your enjoyment of your apartment?
• Do you believe you are getting good value in exchange for your monthly rent cheque?
• What do you consider good value?
Examine why your tenants move.
Your tenant’s problems will become your financial problem if you don’t act. Tenants are your customers you must find out whether your residents are bragging about where they live or complaining about it.
You can make where they live a better place for them and significantly
improve your bottom line at the same time!