At Nestwell, we believe firmly in the power of real estate to create not just individual financial wellbeing, but generational wealth. That’s one of the core reasons that we’ve developed Evernest, our homebuying program for residents who are looking to make the jump into ownership.
We offer a credit to residents who use one of our real estate agents to purchase their home, and in doing so we’re helping to build a stronger path to financial wellness, happier residents, and a true triple win experience.
At Nestwell, we truly believe that anyone can be a homebuyer. Unfortunately, for many renters, there’s a belief that homeownership will simply never be for them. There’s a persistent narrative that they’ll be renting forever, never able to take the next step.
We don’t want that to be the truth, and we don’t believe it to be the truth. We primarily manage A and B class housing, so if our residents are consistently paying rent on time, they’re probably a lot closer to homeownership than they might realize. That’s why we want to plant the seed of home ownership to break any limiting beliefs and provide an option for our most qualified residents.
When we designed our program, we decided not to build a system where residents earn credits with each month’s rent payment. Instead, we looked at the financials behind the program. As a property management company, we make consistent income from each rent check, but as a real estate company, we also receive compensation when people buy homes with us. So we wanted to focus on that sale rather than maximizing rent payments. In return, we’re willing to give a portion of those earnings back to the resident.
We give a portion of our real estate commission back to the residents as a credit, and, packaged with credits from the preferred lenders we work with, residents can save up to $6000.
We’re taking the long game approach, looking to earn those sales rather than keep qualified buyers in leases just so that they can “earn” credits with us. We consider the whole homebuying program to be a part of our resident benefits package, and it’s open to all of our residents, so long as they’re in good standing. For those residents who might not be as close to purchasing due to credit, we have a credit boosting program and also partner with credit repair companies to help residents overcome any financial or credit hurdles.
Our homebuying program isn’t something we bury deep in a resident handbook. Instead, it’s something we want to promote as much as possible, and make sure that residents truly understand it.
We educate residents at every step of the resident lifecycle. When we show homes to applicants, we talk to them about the Evernest program. When they sign a lease, not only do we include the addendum, but we reemphasize how the program works. When we move them in, we give them more content that spells out the opportunities of the program, and link them to resources where they can learn more.
Next, after about 90 days, our real estate agents divvy up our list of newer residents and reach out to touch base with them and ask about their experience with us so far. If they get a positive response, they introduce themselves as a real estate agent and let the resident know that they’re available when it comes time to purchase a home. In many cases, our leasing agents are also real estate agents, so they serve as a consistent point of contact from the very beginning.
We emphasize the program again during quarterly walkthroughs, asking residents whether they like their home, neighborhood, and if they’re hoping to stay long-term to put down roots. Then, with about 90 days left before their lease is up, we evaluate whether they’re going to be a serious candidate for the program. Our goal is to identify the best candidates and really engage with them in one-on-one conversations, rather than casting a net that’s too wide.
Nestwell has seen plenty of benefits from our homebuying program, and not just on the financial side. Whether it’s operational improvement, resident satisfaction, controlling the lease renewal workloads, or reputation, it’s been a boon all around.
Our goal is never to encourage good residents to break their leases. With that said, especially during periods where the market is hot, if someone wants to buy a home and they find one that’s right for them, they’re going to break that lease anyway. We might as well get ahead of it, be in control of the narrative, and know what’s coming.
If the property management arm of our business is properly communicating with the real estate arm, we have more notice, we can help control when that resident vacates, giving us more lead time to prepare for a turn, market that property, and get it filled sooner. We can keep costs lower for both the resident, the investor, and ourselves, and create a triple win in the process.
Providing up to $6,000 in homebuying credit is obviously going to help your residents feel a bit better about you. Even if they don’t end up using it, just knowing it's there can help shape their perception of you. But one thing we didn’t expect is how much the program has helped us manage the residents who don’t like us.
We’ll occasionally get complaints from residents about property evaluations, maintenance, or lease obligations that they feel are burdensome. Now, we have the opportunity to take that pain and reframe it. Our response isn’t something like, “Too bad, this is what you signed up for when you signed your lease.” Instead, we can say, “hey, it sounds like you would be a whole lot happier as a homeowner. Let’s see how we can make that happen.”
With other residents, the program gives us the opportunity to turn them into real estate investors. Sure, that first home might be their primary residence for a while, but down the line they may decide to turn it into an investment property.
We’ve had former residents come back to us years later with a small portfolio of properties that they need help managing, and they’ve said things like, “I remember when I was a resident, and you did regular walkthroughs every quarter. It was obnoxious at first, but you were fair about what you withheld from my security deposit. You had a great real estate team. Now, as a homeowner, I understand the reasons for all of that, and I need someone like you who will treat my residents well and behave professionally.”
They remember our management style and their experience as a resident so well that they trust us to manage their new investment.
Finally, our homebuying program helps us build a stronger reputation not just as great property managers, but as real estate agents who are easy to work with and go the extra mile. We want to make it known that we’re not just property managers, so creating a pipeline of clients for the real estate portion of our business is extremely valuable.
Creating a homebuying program can feel like an overwhelming proposition. The good news is, there’s no single right way to do it. We built a program that was right for Nestwell, but plenty of companies have taken their own approach and seen similar success.
Here’s my biggest advice if you decide to take the leap:
Remember, you can always start small, expand the program, and make changes along the way. Talk to your residents, hear them out, and do what you can to deliver the best experience possible.