Multifamily residents don't move as often as they used to. This is good news for property managers and owners, but it doesn't mean that residents aren't moving.

Resident retention is not something that happens by chance. It should not be left to residents. Property managers and owners can and should design and implement proactive programs that discourage residents from moving out. Renters staying put can increase rental income and lower marketing, leasing, and refurbishment costs for vacant properties.

Multifamily investors must make resident retention their top priority.

Staffing To Service

Recruitment and selection of renters who are likely to stay is the first step to retention. But that's just one aspect. It is essential to hire, train, and retain competent, likable professionals. Residents who love their staff and management are more likely to remain with you.

Staff that is well-trained and able to respond to tenants' needs day-to-day and offer exceptional customer service are critical components of resident retention. Front-line staff plays an important role in addressing complaints, answering questions, and planning social events.

Retention by Numbers

According to data analytics providers, 52.5% of the 50 largest U.S. cities saw resident retention in 2018. This was the same as the 2015 peak. In addition, on average, households that renewed their leases paid 4.5% less rent than the original lease.

This may be surprising considering the high pace of multifamily housing construction and low unemployment. However, other factors also played a role. Multifamily rentals were less competitive than for-sale properties because they had higher prices and had lower rents. In addition, renters looking to move, particularly in B- or C-class properties, had less choice due to high occupancy rates.

Retention efforts might be more important in new properties, which are located in desirable areas and have more competition.

The metro level saw resident retention range from 46% to 62% for the 50 largest U.S. cities in 2018. With 61.9% retention, Newark-Jersey City and Milwaukee topped the list. Next were Philadelphia, Providence, St. Louis, and Philadelphia.

Retention Tips

Understanding the renter profile is the first step to a successful resident retention program.

While asking residents to help you find out is one way to do so, the approach must be customized to your preferences. For example, while a formal survey might work in certain communities, a question that is posted to social media may receive a better response.

It's not hard to see those demographics play a role in resident retention. While millennials expect everything to be digital, older generations may prefer to visit the office to talk to someone.

Millennials, despite their preference for digital communication, will still show up to events.

They want to be able to return home, park their car and have entertainment and a place where they can socialize.

It can be a great way to feel connected by watching your local sports team play in the end-of-season playoffs or even enjoying a meal from a food truck that is parked on your property.

PittroTraining staff will call residents (and their pets!) by their names, pursue daily interactions, hold special events like Pet of the Month Awards and online contests, and offer personal lease renewal appointments.

We know that these personal touches have the greatest impact and result in a higher number of lease renewals based on resident feedback.

While resident retention programs won't solve all multifamily property problems, they can keep residents involved, reduce vacancies, and lower turnover costs.