Resident Retention at All-Time High

Resident retention is at nearly 60%, and property managers expect it to improve in the next 12 months. The 2024 Resident Experience Management Report from Zego shows 59% of residents said they plan to renew their lease in the next year, and 75% of property managers forecasted retention will improve. This is the highest retention rate since the report began in 2021.

There is also the potential to improve relationships between property managers and residents. The cost of turns is now at $4,000 per unit, which includes lost rent, concessions and maintenance. Reasons for not renewing are similar but different priorities are placed on those reasons. Property managers reported noncontrollable reasons (outside of the property manager's control) as the top reasons for moving; residents provided reasons considered controllable by the property manager. Top reasons on the property manager's side were life changes, a more desirable location or community, and buying a home. All four were well down the list on the resident side, while rent price, safety, poor maintenance and communication from the property manager were among the top.

Residents are searching for maintenance and security as stated by 47% and 46%, respectively, with community appearance at 34%. Meanwhile, technology and more convenient amenities are the most important aspects of the resident experience from the property manager's perspective.

While 71% of property managers reported having a payment installment plan, 65% of residents said flexible payment options are not offered. Furthermore, 55% of property managers allow residents to choose their own due date for rent, but only 11% of residents reported the same.

Article from: naahq.org