How to Retain Tenants During a Construction Boom
Southern California is in the midst of an apartment construction boom, but savvy property managers are hanging onto tenants as new supply delivers.
“The key to this steady renewal rate is a proactive approach to targeting, and the ability to deliver amenities and lifestyle attributes that fit each community’s specific demographics,” Max Sharkansky, managing partner at Trion Properties, tells GlobeSt.com. “For example, in apartment communities that cater to families with young children, we offer amenities such as after-school programs or day care services. Parents rely on these services, making them more inclined to renew their lease.”
In apartment communities with a strong millennial presence, different amenities become important. “Naturally, our millennial-focused apartment communities feature more tech and service-based amenities, delivering a convenience-first lifestyle that matches the demands of this generation,” says Sharkansky.
Catering to specific demographic groups and the local community can be essential to striking the right balance between rental rates and amenities. “While today’s robust multifamily development pipeline is filled with highly amenitized assets, we are focused on adding strategic upgrades and offerings to our existing properties, while keeping rental pricing affordable,” adds Sharkansky. “This is a key strategy in the current market. Today’s new developments are priced at the top of their respective markets, giving us the ability to retain residents by keeping properties competitively amenitized, yet priced lower than their new-to-market competitors.”
The success of this strategy is evidenced by the strong retention rate. “The more engaged apartment residents are, the less likely they are to move,” says Sharkansky. “Our current focus is on unique community areas and events that encourage residents to mingle and connect with one another. Physical amenities being added include gathering spaces such as rooftop lounge areas or courtyard fire pits.”
Social events have also become an important aspect of the modern apartment community. “Programming also plays a major role in this strategy. In our properties, we offer a series of events at different communities, including activities such as ice cream socials, fitness classes or various pet-friendly activities—all of which offer an opportunity for residents to gather together and creates a sense of community,” says Sharkansky. “Through these social events, we are ensuring that residents know they are appreciated. This leads to less turnover in the long run.”