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9 Ways to Improve Your Resident Experience

Resident experience is the sum total of interactions and experiences a resident has with their property manager and the rental property itself – from the initial lease signing to the eventual move-out and all the day-to-day living moments in between. It encompasses everything from the quality of services provided, like timely maintenance and communication, to the overall livability and enjoyment of the property. In essence, it's how a resident perceives their rental journey in its entirety. Excellent resident experience management is the mark of a top-tier property management company. It boosts resident retention, satisfaction, and outcomes. In this article, we delve into nine actionable ways to enhance the resident experience in your single-family rental properties, fostering stronger relationships and, ultimately, achieving greater success in property management. Read the full report! If you haven’t already heard, we recently published our first-ever State of Resident Experience Report, which explores resident experience management: the pivotal touchpoints between a resident and a property manager. The report draws fresh insights from the SFR property management industry and explores the three top factors impacting resident experience right now. 1. A Seamless Move-In Experience Ah, the move-in process – the start of a beautiful friendship between the resident and the property manager. It's a bit like a first date – you're setting impressions that could make or break the relationship. A seamless move-in experience is your chance to roll out the red carpet for your new residents, showing them they've made the right choice (and have definitely swiped right on the best property around). And guess what? A resident who's had a great move-in experience is a happier one. Happier residents stay longer, pay on time, take care of the property, and make positive recommendations. Resident experience examples: How to build a perfect resident move-in experience Here's how to ensure your move-in experience hits all the right notes. Clear Communication: Provide detailed information about the new home and move-in process, including key collection, utility setup, and property rules. Who's handling utilities? Where's the best pizza joint nearby? Share all the important details. Welcome Packet: Roll out the resident red carpet with a welcome packet. Not only does it have all the must-know info, but it also says, "Hey, we're glad you're here." Include essential information such as garbage collection days, rules, important contact numbers, and a neighborhood guide. Property Readiness: Nothing dampens spirits like a flickering light on the first day. Ensure the property is thoroughly cleaned, all appliances are working, and any previous damages are repaired before the move-in date. Efficient Paperwork: Let's face it, nobody loves paperwork. Make it painless with easy online forms and digital sign-offs. Personal Touch: A little welcome gift can go a long way. It's like saying, "Welcome home, neighbor. We're going to rock this thing." Second Nature’s Resident Benefits Package includes a Move-in Concierge to ensure the process is seamless and personal. 2. Responsive Communication In the symphony of successful property management, responsive communication is your melody. It's the backbone of a harmonious resident experience, and when done right, it can elevate your property management status from “forgettable” to “virtuoso.” The sooner you respond to your resident’s queries or concerns, the more they'll feel valued. And a valued resident is a happier resident. Remember, good communication isn’t just about speed—it’s about clarity too. It's like being a great tour guide in the bustling city of property management—clear, informative, and always ready to help. Ways to improve communication with your residents Let's explore some best practices: Multiple Channels: Embrace the digital age! Offer various communication channels like emails, text messages, phone calls, and even a resident portal. Variety is the spice of life, right? Be Proactive: Don’t wait for your residents to reach out with issues. Regularly check in and ask if they need anything. Set Expectations: Be clear about your communication protocols. Let your residents know when and how they can reach you and when they can expect a response. No one likes to be left on read! Listen Actively: When your residents speak, lend them your ears! Show understanding and work collaboratively towards solutions. It's a two-way street, after all. Be Respectful: Always communicate with respect and professionalism. Treat your residents the way you’d want to be treated – it’s the golden rule, even in property management! 3. Better Maintenance Services with Quick Response Times Think of maintenance services as the superheroes of the property management world. When done right, they swoop in to save the day, ensuring minor issues don't escalate into supervillain-sized problems. Quick response times? That's your superhero's super speed. The quicker the response, the happier your resident, and the safer the day. How to improve maintenance services and response times Here's how to get your property management cape (sorry) flapping in the wind: 24/7 Maintenance Line: Offer a dedicated line for maintenance requests. To belabor our superhero analogy, it’s like having a bat signal for your tenants – they know help is just a call away. Online Reporting: Make it easy for tenants to report issues. An online system can keep things organized and ensures no request gets lost in the shuffle. Prompt Follow-up: Act swiftly on maintenance requests. Even if you can't fix the issue immediately, acknowledging the request and providing a timeline can ease the resident's mind. Regular Inspections: Regular property inspections can help you catch potential issues before they become major headaches. It's all about that ounce of prevention! Trusted Vendors: Work with reliable and professional vendors who provide quality work in a timely manner. They're your sidekicks in maintaining property harmony. 4. Resident Surveys and Active Feedback Gathering Resident surveys and feedback gathering are your property's annual check-up, a key health indicator for your relationship with residents. These invaluable tools allow you to take the pulse of resident satisfaction, uncover hidden issues, and celebrate what's working well. When residents see their feedback being valued and acted upon, it creates a sense of involvement and community, enhancing their overall living experience and driving resident retention. Importantly, active feedback gathering shows your residents that their voices matter. It instills a sense of ownership and care that can often lead to better property care and longer tenancies. How to turn resident feedback into a better resident experience Here are some ways to champion feedback in your property management: Regular Surveys: Don't just wait for the annual survey. Keep the feedback coming in regularly, like a monthly check-in or a quick poll after a service call. It's like catching up over a virtual cup of coffee – relaxed and informative. Feedback Boxes: Consider setting up a digital feedback box where residents can drop their thoughts, ideas, or concerns anonymously. Think of it as your modern suggestion box. Act on Feedback: Here's the real deal – taking action. Show your residents that their feedback isn't just being heard, it's being actioned. 5. Resident Rewards Resident Rewards are a huge factor in resident retention and satisfaction. Rewards make residents feel appreciated and have proven to incentivize habits like on-time payments and better care for the property. Perks like this can significantly boost resident satisfaction, increase lease renewals, and even stimulate referrals. It's a win-win all around! For multifamily and apartment community managers, that might look like community-focused programs. For single-family property managers, we’ve got some other tips. Second Nature’s Resident Benefits Package includes a robust resident rewards program. How to improve the resident experience with resident rewards Here's how you can sprinkle some rewarding magic into your resident experience: On-Time Rent Rewards: Create a system that rewards residents for consistently paying their rent on time. It could be a small discount or a gift card to a local coffee shop. Longevity Rewards: Celebrate lease renewals or long-term residents. A gift, a discount, or even a personalized note can make your residents feel valued for their loyalty. Referral Rewards: Turn your residents into ambassadors! Offer a discount or a bonus for any referral they make that signs a lease. Surprise Rewards: Keep the excitement alive with occasional surprise rewards. It could be as simple as a movie ticket or a voucher for a free car wash. 6. Incentive Programs Incentive programs are the next level of resident engagement that professional PMs offer. They can positively influence resident behavior, promote a sense of belonging, and even enhance your property's appeal to prospective residents. When residents feel that their good habits (like timely rent payments) are being recognized or they're being offered valuable services (like credit reporting or identity protection), it builds loyalty and satisfaction. It's like saying, "We're in this together, and we've got your back!" How incentive programs can boost the resident experience Here's how to serve up a great menu of incentives for your residents: Credit Reporting: Offer a program that reports timely rent payments to credit bureaus. It's a win-win: they pay their rent on time, and they build their credit! Identity Protection: In a world where digital safety is paramount, offering identity protection services can be a powerful incentive. It's like providing an invisible, protective bubble around your residents. Rent Discount for Referrals: Encourage residents to become your ambassadors. Offer a rent discount or a gift for successful referrals. It's like having your very own fan club. Early Payment Incentives: Reward residents who pay their rent well before the due date. It could be a small discount or a token gift, but it makes them feel appreciated. Rewards for Green Habits: Encourage residents to adopt environmentally friendly habits, like recycling or energy conservation, and offer incentives for their green efforts. This can really help in SFR when you don’t have the same level of control as PMs managing an apartment building. 7. Support Tools Support services work behind the scenes, often unnoticed, but they play a crucial role in streamlining the resident experience. From filter delivery subscriptions to online payments, these services add a layer of convenience and assurance for your residents. Integrating support services into your property management strategy can not only elevate resident satisfaction but also reduce your workload. It's like having a friendly assistant who's always ready to lend a hand, both to you and your residents. How to create support services that add convenience to your resident experience Here are a few ways you can amplify your resident experience through support services: Filter Delivery Subscription: Offering a filter delivery service for your residents ensures their HVAC system is always protected. It reduces your maintenance issues and costs and ensures they have a safe living environment. Second Nature’s filter delivery reduces resident and PM costs by hundreds of dollars a year. Online Rent Payment: Providing an easy-to-use online portal to process and automate rent payments and lease renewals adds a layer of convenience for you and your residents. Maintenance Request Portal: An online system for maintenance requests helps keep track of issues and ensures timely response. It's like having a 24/7 maintenance desk at their fingertips. Digital Notifications: Use email or SMS notifications to keep residents updated about important things like maintenance schedules, community events, or changes in property rules. Proptech solutions can help with digital support. Resident Portal: A comprehensive resident portal where tenants can access services, find information, and connect with management can significantly enhance the overall resident experience. 8. Concierge Services Concierge services are the above-and-beyond offerings that can truly set your property apart from the rest. This personalized attention can transform the often stressful processes into a smooth and enjoyable experience. How concierge services help with resident experience Here are some other examples of concierge services: Move-in Concierge: Who doesn’t want a personal assistant during the often chaotic time of moving? A move-in concierge helps with utility setup and pricing comparisons and provides local area information. Learn more about Second Nature’s Move-in Concierge in our Resident Benefits Package. Cleaning Services: Offering access to trusted cleaning services, whether for regular use or during the move-out process, can be a huge convenience. Maintenance Scheduling: A service to help residents schedule routine maintenance can keep their homes running smoothly without them having to worry about coordination. 9. Insurance While, as a property manager, you carry insurance for the physical property, it's equally important for your residents to have renter's insurance. Your coverage protects your owners' real estate investment. Renter’s insurance protects residents’ personal belongings and covers them for liability, and it's a small investment for significant protection. Plus, in case of a mishap, it can help the recovery process go much more smoothly. Resident experience examples: How to leverage a renter’s insurance program Here's how you can integrate insurance into your resident experience: Educate Residents: Make sure your residents understand the importance of renter's insurance, what it covers, and what it doesn't. This is critical information that every renter should know. Insurance Requirements in Lease: Include a clause about renter's insurance in your lease agreement. This helps to set the expectation right from the start. Annual Reminders: Send out annual reminders for policy renewals. It's a small step, but it ensures continuous protection for your residents. Renter’s Insurance Program: While most property managers require insurance, less than half of renters maintain coverage. Second Nature has developed a renter’s insurance program that has 100% compliance and leaves residents – and you – with the coverage they need. How SecondNature Improves Resident Experience Resident experience – those pivotal touchpoints between a resident and a property manager – can significantly shape the success of a single-family rental home. At Second Nature, we’ve built our entire company on the idea that resident experience can change the game in property management. Our Resident Benefits Package wraps up each of these strategies into an all-in-one resource for property management companies. It saves money for you and your residents and delivers the best in convenience and resident experience. Learn more about the Resident Benefits Package or read our State of Resident Experience Report.

Calendar icon July 18, 2023

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Should your RBP Rollout be Mandatory or Optional? | Second Nature

Is a mandatory resident benefits package (RBP) rollout right for your property management company? Let’s say you’ve set up a resident benefits package and you’re ready to start rolling this thing out, but you’re not sure whether to make it mandatory for all of your properties or give residents the option to participate in it. A mandatory rollout would result in more doors adopting it, but you fear the possibility of dissatisfied residents being forced to participate in it. Property managers also have to decide this when considering investor benefits packages (IBP). It’s a tough call, one that Second Nature’s Head of Sales and former property manager Bob Hansen is here to weigh in on. Key Learning Objectives: Why mandatory resident benefits packages work How to roll out a mandatory RBP Benefits of a mandatory RBP Challenges of an optional RBP What other property management companies are doing Benefits of Mandatory RBP Rollout Hansen and the Second Nature team recommend mandatory rollouts, and they do so for pretty simple reasons. Hansen is quick to note that while “mandatory” may scare some property managers, it shouldn't. Here are some of the benefits he has seen. You’re giving residents something they want “You have to look at the value that a resident benefits package brings to the investor and the resident, not just you as the property manager,” says Hansen. Hansen hits on a key point here about resident benefits packages: They’re desirable to the residents. RBPs are crafted specifically to address problems that residents want resolved. THey make life easier, and give residents incredible value, like credit building, identity protection, rewards, and more. Making these benefits clear to the resident allows an RBP to be adopted easier. Sure, there will be the occasional individual who is an exception, but very rarely is any pushback experienced on mandatory rollouts because the programs are creating value for the residents. Put simply, residents consider an RBP worth the increase in monthly cost. Mandatory rollouts make things easier on everyone “I think conceptually in [a property manager’s] mind, they think it’s not going to work out. But then when they do roll it out, they’re quite surprised at how easy it was,” Hansen says. Once you can internalize the idea that adding a Resident Benefits Package is not an inconvenience in the eyes of nearly every resident, it becomes an incredibly simple decision to install one at each home you manage without worrying about negative perception of the addition. The cost to the business is simply not what you may fear it to be, and making it mandatory allows you to roll it out to the maximum number of doors and the whole process is much more streamlined and easy to manage. You’ll accomplish it more quickly with a mandatory rollout, and see the benefits starting rolling in faster. Investors will have happier residents, and you’ll have better results. Residents rarely give pushback Hansen touched on how little headache resident pushback to mandatory rollout has actually created for Second Nature clients. “For those of you that are a little hesitant about rolling it out or unsure: I recall Dave Pruitt, Director of Property Management at West USA Realty, talked about rolling out his Resident Benefits Package on a podcast. He rolled it out to people real quick and I think of 80 people, one person pushed back.” That one person did not renew their lease as a result, but Pruitt filled the property with a willing renter a day after and never looked back. Challenges of Optional RBP Rollout The primary challenge of an optional RBP is that optional rollouts create unnecessary headaches. Exceptions leads to workarounds which lead to mistakes. “From running operations in a large management company myself in the past, if you’re making exceptions, you’re bound to mess something up. If you’re locking it in as mandatory, it’s a lot easier to manage from the property management side,” says Hansen. Constantly accounting for what services are on and what services are off for which properties creates a load of extra work – that frankly does not result in a payoff worth the lift. Generally the perceived benefit of making your rollout optional is that residents will be happier if given a choice. But rarely if ever do property managers see satisfaction go up when they give residents an option – and it can even go down. In the end, Hansen recommends sticking to a mandatory rollout. Residents end up happier, investors see better retention, and your team gets less headaches. If you’re looking to learn more about how to ensure a smooth RBP rollout, check out our interview on that exact topic.

Calendar icon May 18, 2023

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Resident Retention Ideas and Tips for Single Family Properties

Resident retention ideas help reduce turnover in leased properties–which is, of course, a key element of any property manager’s job. But the property managers we’ve spoken to have told us something interesting. Merely thinking about “resident retention” doesn’t capture the generative, behavior-changing work they do every day. Why? It’s too transactional and far too basic. Reframing the phrase “resident retention” is the first—and most important–step to brainstorming the type of resident retention ideas that will make an impact not only on your business but also on residents’ lives. Here are some of the best trends we’ve seen for resident retention in the property management industry. Related: State of Resident Experience Study What is resident retention, and why is it important? Resident retention is a key part of achieving a Triple Win in property management, whether it’s in single-family (our focus) or multifamily. In transactional terms, the ultimate goal of a resident retention strategy is to increase lease renewal and reduce resident turnover, which results in lower costs and less work for property management teams. However, a Triple Win mindset levels this up by asking, “How can we create experiences so good that residents never want to leave?” Resident satisfaction, in turn, maximizes the investor’s ROI and boosts the property manager’s success. A win for residents is a win for investors is a win for property managers. This mindset moves from approaching property management as a list of menial tasks into a more generative and entrepreneurial approach. You’re in the driver’s seat as the property manager, and you can create programs and solutions that residents will pay and stay for. What residents are saying about retention In a recent survey by Buildium, only 32% of single-family rental (SFR) residents said they were certain they’d renew their lease this year, and an additional 36% were on the fence. This means that more residents have a desire to move than we’ve seen historically. Why is that? A couple reasons… 22% said they planned to move to a rental with more appealing amenities or benefits. 13% said they planned to move because they weren’t happy with the experience at their current rental. That’s a huge chunk of residents whose main reason to leave is a lack of the kind of benefits they want or need. Property Managers share their best resident retention strategies These survey findings align with what many property managers are telling us, too. In fact, professional PMs tell us that a Resident Benefits Package is a powerful way to retain residents over the long term. RBPs can help with resident satisfaction and resident retention rates. After all, amproactive, differentiating approach to resident retention means building experiences that people will pay and stay for. In multifamily property management, resident retention strategies often center around resident events and building a sense of community. They may try things like holiday parties, happy hours, movie nights, and other get togethers. But in single-family property management, where you properties are likely very different and spread across a larger region, the strategies aren't always a straightforward. Here are the top strategies that professional PMs are talking about right now. These help with bringing in new residents and with retaining good residents. Build easy communication with residents Relationship building is an important part of resident retention, and the foundation of any good relationship is, as any dating advice will tell you, communication. The rise of digital apps, online portals, messaging services, and social media platforms has made it easier than ever to communicate. Studies show that text messaging is on the rise, and most single-family rental (SFR) residents prefer text to other communication channels. Here’s how one study found the breakdown of where residents are communicating the most. 49% are using text 43% are using email 41% are using phone PMs also know that convenience is key. If residents are attempting to contact you, they likely have an issue that needs resolution. That’s why strategic PMs meet residents where they’re at—and that’s probably online. More PMCs are using solutions like texting, ticketing/inbox, offshore or outsourced staffing, and automation to remain responsive. Another great communication channel is seeking feedback by sending surveys to current residents on a quarterly basis. Professional PMs ask what could be improved upon and use the data collected as a source for additional resident retention ideas. At Second Nature, we allow residents to survey and give feedback in their rewards app, and even incentivize it. When you are actively seeking feedback, you can more easily drive positive social reviews and reputation management. Invest resources in property maintenance Anyone can tell you that property maintenance management is critical to a positive resident experience. But sometimes newer property managers only know how to take a reactive approach. They might do an annual inspection or respond to complaints. But they may not be proactively developing strategies to improve the property for themselves and their residents. In contrast, excellent property management companies approach maintenance with a benefits-focused mindset. Instead of reacting to property problems, enterprising PMs tend to ask, “What habits and behaviors can I encourage in residents to help keep the property in tip-top shape?” First, by creating care and value, PMs encourage residents to care for and value the property. But beyond that, PMs can implement strategies that make those behaviors easy. For example, a Resident Benefits Package can include air filter subscriptions, 24/7 maintenance support lines, and a renters insurance program – all of which help support residents in maintaining and nurturing the property. After all, it’s easy to change your air filters on time when they show up on your doorstep. We’ve seen a trend of property managers developing proactive strategies that help residents take care of the property. It pays off in dividends. Provide a simple payment portal Speaking of paying off, most property management companies now offer online payments to residents. It’s true: 73% of residents say they prefer a digital method for payment. That’s the first step. But PMs have told us that many of those legacy payment systems can be difficult to use or don’t actively support residents in making timely payments. The next step is to ensure you’ve set residents up for success in making on-time payments. Some PMs set up rewards systems or incentives for on-time payments. These programs can help reduce the amount of time you spend following up on rent. For example, Second Nature’s Resident Benefits Package has a built-in credit-building service that rewards residents for on-time rental payments. We’ve helped residents increase their scores by as much as 20-40+ points. You can bet that if residents have the option to boost their credit score, they’re more motivated to pay on time. Focus on resident security Creating safe spaces to live helps protect both the residents and the properties that you manage. Making it clear that safety is a priority is also an effective way to build a reputation as a property management company that cares. Property managers can emphasize the safety of single-family homes through standard practices like ensuring rental properties have flood lights, working smoke detectors, carbon monoxide alarms, and solid locks changed after each move-out or before move-in. Surveys can also help assess how safe residents feel in their homes and if your company can do anything to improve security. Regular inspections and good communication go a long way to maintaining excellent security. For a Triple Win, property management companies provide holistic, hassle-free insurance. This minimizes hassle for PMs, protects the investor’s assets, and gives holistic coverage to the resident. Adopt new technology Technology brings ease and automation to every element of property management – and every individual involved. In fact, 79% of SFR residents prefer to complete at least some rental processes online. Technology helps you deliver competitive features without breaking the bank or slowing you down. And it gives ease and convenience to residents, too. These days, property managers have digital solutions for basically every part of their job, including: Online payments Maintenance request tracking Online rental listings & applications Text and email communication Renters insurance programs Resident screening Document signing, sharing, and storage Using SMS messaging platforms, online rent payment systems, and resident portals adds more efficiency for property managers while offering convenience to residents. The ability to pay rent, make a property maintenance request, or register a new pet or vehicle online creates a seamless experience that the resident can manage independently on their own time while also creating an organized system for leasing agents to respond to those requests. No more scribbling a repair request on a sticky note—now you can automate everything. It’s the best option for everyone involved. Be proactive The best PMs are always aggressive. They visit each property at least once each year, not just when something goes wrong. They have automated systems in place to alert them when new needs pop up. They design or invest in benefits packages and perks to serve their residents and stand out from the crowd. In “The 7 Habits of Highly Effective People,” Dr. Stephen Covey’s second habit is, “Begin with the end in mind.” Professional property managers who are ready for the future proactively identify opportunities to improve the resident experience. Ask things like: “What can I do this coming year to improve the living experience for my residents?” Maybe that’s new programs, new roles on the team, new technology, etc. Whatever creates value for residents is worth an investment because the payoff lasts. For all of the above, invest in a resident benefits package As we’ve seen, resident benefits packages are the best way to build these experiences and perks that residents want. Benefits packages are bundled services that help drive revenue for your investor and drive satisfaction for your residents. At Second Nature, we offer services in a custom resident benefits package (RBP) designed by you and managed by us. We developed and designed each pillar of the RBP based on pain points that property managers shared with us – turning those pain points into benefits. These services include supports like: Routine air filter delivery: This is a cornerstone of our benefits package because one of the most common causes of HVAC maintenance requests is a failure to change air filters on time. We’ve seen a total reduction of 38% in HVAC requests. $1 million identity theft protection: Our benefits package includes identity fraud alerts and protection. Your residents can rest easy knowing every adult on the lease has coverage. Credit building: As we’ve mentioned, we report on-time payments to the credit bureaus so your residents can automatically boost their credit scores just by paying rent on time. Rental rewards: People love rewards! We include the cost of rental rewards in our total package, so PMs don’t pay more. We include perks like gift cards to local businesses, restaurant cards, cash rewards, and more. Move-in concierge: The first thing most residents do on move-in is make several calls to set up utilities. With our move-in concierge service, residents turn four phone calls into one. They don’t have to contact utility companies; we do it for them and identify the best rates. Renters Insurance Program: Our benefits package includes price-competitive insurance options to apply to all residents – at one group rate. A benefits package puts PMs ahead of the game, proactively building the environment residents pay and stay for. How 1,000+ professional management companies create Triple Win experiences Resident retention is far more than a transactional arrangement. We know that a high percentage of residents leave when they aren’t getting benefits they could get elsewhere. Forward-thinking property managers take a proactive approach to resident retention by developing experiences that residents are looking for. By creating a fantastic resident experience through offering benefits and support, property managers drive a triple win for residents, investors, and themselves. Higher retention can drive referrals to prospective residents and clients, too. Offering a resident benefits package that adds value to the leasing and living experience of your residents is as easy as Second Nature.

Calendar icon May 11, 2023

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How To Ensure A Smooth Resident Benefits Package Rollout

Rollout is a high stress time for any new program, but it doesn't have to be. One of the leading concerns for property managers any time they seek to roll out a new program is resident pushback. In the property manager/resident relationship, there’s a narrative that’s persisted for too long that the two parties are at odds with each other and playing some sort of zero sum game. Oftentimes, this is internalized by residents who have been exposed to said narrative or have had a bad experience themselves, and the natural inclination is to push back on any advances from their management team. Related: State of Resident Experience Study Having to battle this is one of the main concerns property managers have when it comes to introducing a resident benefits package. This includes Kyle Hendricks, Vice President of Hendricks Property Management in San Antonio, Texas. “It was ours. For a couple years, we were like ‘I don’t know if that's going to work, you know?’ But it’s the same with a lot of programs that we’ve rolled out. Our fears are never really founded. The pushback is usually pretty minimal if at all, and it was the same here.” ‍Read more about why pushback on RBP is minimal ‍So how did Hendricks Property Management deliver such a seamless rollout? Well, it’s pretty simple actually. It’s all in the communication. Hendricks was quick to note that open communication and transparency are big keys to minimizing pushback and easing the path to successful rollout. The actual logistical rollout of an RBP is handled by Second Nature, so there’s very little for the property management company to actually physically do, making acceptance and adoption by residents and investors their primary concern. Hendricks Property Management nailed this part with clear and concise communication. Second Nature's resident facing flyer “The flier that Second Nature provided was a pretty clear point of communication. It says on there that you’re being enrolled in this mandatory program and the charge is this much. It’s just simple like ‘welcome to Hendricks Property Management, we give you a resident benefits package, here are the things you get with the resident benefits package.’ Because of course the question is ‘what am I paying for? You’re saying this is a benefit package, what are the benefits?’ So that just clearly outlined what they were, and did everyone love it? Not necessarily, but the amount of pushback was definitely minimal." Beyond the reality that most residents simply don’t object to a resident benefits package, clear and open communication is part of a great resident experience anyway and will certainly ease any fears you have about rollout, as well as any fears residents or investors might have. It's another part of delivering a triple win. “Be ultra transparent and get it done in the beginning, just saying, we're not hiding anything. This is what you're being enrolled in. This is what it is. I think that helped the adoption rate a little bit. And if people did call in with questions, we were happy to answer them and talk to them about it. So ultimately, it was fine. But I don't think we did anything special. I think just making sure we had that transparency up front was crucial.” ‍A resident benefits package creates a triple win. Everyone benefits. The purpose of clear and open communication is to establish those benefits within the perception held by the resident and owner parties. They may not know much about this, they may have never heard of a resident benefits package, so you have the opportunity and responsibility to show them the value it creates for them and how you are committed to ensuring it remains a mutually beneficial undertaking. Hendricks touched on how team buy-in has affected Hendricks Property Management’s ability to do this. “For me and anything that we adopt, we believe that if it's not something I can stand behind and competently tell a tenant or owner ‘this is good,’ then I'm probably not going to do it. I was easily able to do that with this program. So get your team on board. If they can't confidently tell a tenant or an owner, this is what it is, this is why, and this is how it benefits you and your tenant, then you're going to run into trouble because they can tell if it's kind of lackadaisical, if it's just this thing that the owner of the company wants to do. We try not to go ‘well it is what it is, so just deal with it.’ We try to explain in a positive way what the benefits are. So kind of getting that script together, you don't have to be like a robot or anything like that, but just have the main talking points available to your staff about what the benefits are.” At the end of the day, ensuring a great rollout of your RBP with minimal friction isn't too hard. It's just about positioning the services as the mutually beneficial programs they are and always being up front and willing to communicate. From there, the sky is the limit with resident experience.

Calendar icon March 21, 2023

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Why You Should Focus On Resident Experience

What's the best way to stand out from other Property Management Companies? How can you stay relevant and keep residents and owners happy? Andrew Smallwood from Second Nature explains why focusing on the resident experience can make all the difference. Related: State of Resident Experience Study For more on the topic of wow-ing your residents and building resident retention, check out some of our other articles and podcasts: Top Resident Retention Ideas from Real Property Managers The Best Property Manager Screening Tips for Superstar Residents Types of Resident Problems and How to Handle Them How to Streamline Property Maintenance for a Business Win How to Ensure a Smooth Rollout of Your Resident Benefits Package Here's more from Andrew on how to approach resident experience, and the best perspectives he gather along the way. ‍ TRANSCRIPT Andrew Smallwood: Hey everybody, Andrew Smallwood back again with Stevie Wonder for a quick video. And in today's video we're going to talk a little bit about how property managers have been resonating with this concept of focusing on experience. And I want to share with you a concept that I need to credit to Joe Pine. And you know what Joe Pine says: Hey, if you go back hundreds of years, materials were valuable. People were trading wood for metal, for gold, etc. And what happened is those materials became commoditized. And so in order to create value, those materials got turned into products. The metal turned into nails, right? The wood turned into a wall, etc., or a skateboard or what have you. And so materials turned into products and suddenly the dollar amount here that was very low and commoditized went here and the dollar amount became more. But at a certain point, products even have become more competitive and commoditized. And what you've seen more recently, the last few decades, is a move to services, the services that are built around those products. So it's not just, here's a nail, but here's also a person to help you hang everything in your home and have it designed the way that you want. Instead of just here's a skateboard, here's also a teacher to help teach you how to use it. And even now, we've seen commoditization of service industries, entire industries, being commoditized. And a lot of people are noticing and saying that's what's been happening in property management. And so where does that lead us next? It's really, here's where we are now: experiences. The customization of materials leads to products, the customization of products leads to services, the customization of services leads to experiences. Whereas commoditization moves things down this way, and the value goes down here -- the value goes up as you move up this way. And so experience is really the name of the game today, and that's why we have RBP is because we believe the experience, the number one resident experience is where property managers are going to win. The people who create the best experiences for owners, the best experiences for residents, the best experiences for their team, create what we call a triple win. And an RBP is just a great example of a triple win. It's why we've had the podcast, it's why we've had so much of this content. This is just part of the mental framework of what we believe is important and part of the way that we see the world. Would love your commentary if you've read The Experience Economy by Joseph Pine. Would love to hear your thoughts. If you haven't, would love to hear your thoughts. And we hope this helps you in some small way or some big way. With that, take care.

Calendar icon March 21, 2023

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What is the Triple Win in Property Management

What is The Triple Win?

In this video, Andrew Smallwood walks you through the process of the triple win. Property management strategies have historically been focused on a zero sum game: getting the most out of your clients for the least amount of work. But in the end, that strategy doesn't generate more value for anyone. The Triple Win is about a completely different business mindset. It's all about finding a way to elevate the SFR rental experience for everyone - Residents, Owners, and Property Managers. We aim to help build property management products and services that add value for all three. In this video, Andrew talks about how to build programs that deliver wins. That's why we call our podcast the Triple Win Podcast. In it, we talk with property management and real estate experts around the country and outline the best innovations in the SFR property management space. Programs like an filter delivery service, move-in concierge, credit reporting, and more. All of these can be wrapped into a Resident Benefits Package (RBP). These programs help solve for what residents want, and what they'll pay for and stay for. It also helps build the kind of behavior the property managers and investors need. Andrew introduces these concepts in the video below. To learn more, get in touch with our Triple Win Leadership Council, or join the Triple Win Leadership Exchange. ‍ ‍ TRANSCRIPT: Andrew Smallwood: Hey everybody, Andrew Smallwood coming back again. Listen, I wanted to record one more short video because the last one got such great feedback, and I had an idea that I've been talking about to a number of folks and they say has really been resonating with them. Again, I'm just going to move over here for a little visual help. People have been talking about, "Hey, this triple win concept in your podcast and everything like that, what's really going on here?" There's three parties that professional property managers are thinking about anytime they're making a decision or structuring their business. And that's residents, owners, and then you and your team. Here is often what property managers feel stuck with: They make a decision that benefits their owners, maybe in a meaningful way, right? But there's a little bit of a trade-off as far as how it impacts a resident, and then here's their team cut in the middle between these two expectations, right? It feels like everything's kind of going every direction. What we want with a triple win is something more like this, right? You've got your residents, owner, you and your team, and everybody benefits. So you've got this powerful, aligned transformative effect in the business. Everybody going the same direction, everybody impacted in a positive way. When you think about this, it's like, "Hey, when you structure a new fee or a new program or what have you, it's really keeping in mind, 'How do we do this in such a way that it elevates the experience for everyone, and that that story is all lined up, the incentives are all lined up.'" Listen, I'm not telling you this is the only way to do things. Some of you may be saying like, "Of course, it's obvious this would be the way you would do things." But for some property managers, it isn't. For some property managers, there are questions like, "Well, hey, I make so much on maintenance. Do I really want to prevent maintenance?" That's really just a question of how do you want to align your value. Meaning if, yes, you make money from reactive maintenance, maybe there's a benefit here that you can say, "Hey, I'm monetizing all that reactive maintenance." But for property owners, we know that's no good and for residents, that's no good as well. So while it may be a win here, it's a single win and it's a double L, right? Preventive maintenance means a win for the resident, it means a win for the owner, and it means prevented work for your team and you can monetize your preventive maintenance. So it's still a win for your bottom line as well. That's really the takeaway: This lens that we're talking about seeing the world through. Once you put this lens on, it's like you can never see anything the same way again. Just like glasses change your view of the world, or a microscope or a telescope give you a different view of something that you're looking at, so does the triple win lens. Hope this video is helpful. Would love your feedback. Shoot me a comment, email, wherever you're seeing this. Would love to hear your stories of triple wins or how you structured things or what you implemented in order to create a triple win and transform your property management business. With that, until next time, keep rocking. See you.

Calendar icon February 16, 2023

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Property Management FAQs about Resident Retention

Resident retention is one of the best ways for property management companies to drive greater success for their business and their clients. Residents who stay longer ensure consistent revenue, often take better care of the property, and help make planning more predictable. But resident retention can be a moving target. In a recent Buildium survey, 36% of single-family rental residents said they were on the fence about renewing their lease in the coming year. We’ve talked a lot here about resident retention and ideas for building long-term success with residents. Today, we want to do something a little different. We decided to ask a property management expert about her experiences with building resident retention, and we’re sharing our Q&A with her here. ‍ Key Learning Objectives: Recent trends and data on resident retention How retention strategies can save money Best ideas for setting up a resident retention program: What works and doesn’t work How to calculate resident retention rates ‍ Meet the Expert: Melissa Gillispie, Director of Leasing & Property Management at JWB Real Estate Capital Melissa started her career with JWB in 2013 and is currently the Director of Property Management. She is the licensed real estate broker for JWB and plays an integral role that has led JWB to manage over 4,900 single-family homes in Jacksonville FL, being the largest local rental management company in Northeast FL. Under her purview, JWB has delivered over 26 million dollars in cash flow to its current clients through exceptional management services. Melissa also sits on the Board for NARPM Northeast FL as the Membership Co-Chair. She won the 2022 NARPM Rocky Maxwell award for dedicated service and contribution to NARPM. She is married to her husband of 14 years and has three sons aged 11, 9, and 6. When she is not working, she can be found at the football and soccer fields cheering her sons on! Why should property managers pay attention to resident retention rates? Can you share some recent data or trends about resident retention? Melissa: Resident retention is a direct reflection of your customer experience. If people enjoy working with you, they'll stay. If they don't, they won't. We use resident retention as a key benchmark for measuring our customer service. In our market, we renew 72% of our leases annually. A standard PM benchmark historically is that about a 70% renewal rate for residents is a huge success. Some factors currently impacting retention include the housing market, higher interest rates, and tax/insurance cost increases. These factors make buying harder, which drives more rental retention. On the flip side, due to rising costs for investor clients, rent rates are climbing to keep up with those costs – which can be a big objection to overcome with residents. Swallowing the pill of a $150-$200 increase in rent can be tough for a resident on a fixed income. That makes their experience with us even more important. If they don't enjoy the experience, they most certainly won't agree to that level of rent increase. How can resident retention strategies save property managers money? Melissa: Residents who stay longer-term tend to make on-time payments more often, take better care of the home, and reduce vacancy costs/leasing burdens. These benefits lead to better rent collection and increased management fee collection, happier clients with lower turn costs, and a lower market-to-move-in or days-on-market metric for leasing because their inventory continues to be reasonable and controlled. What are some of the best ideas to set up a resident retention program? Melissa: Reach out early and often! We start reaching out to residents six months before their lease expires. Make the reason for that initial touch point just to "check in" – because it’s about relationships! People like to feel valued. Get creative with incentives for long-term leases! We offer all kinds of crazy resident incentives. We even bought a resident their very own bounce house when the client's homeowners insurance made the resident remove their large trampoline. Identify the real roadblock or concern, and do everything in your power to listen and solve it. Listen to any real complaints. If there are maintenance issues, solve them. If there are communication concerns, address them. Residents want to know that when they voice a real concern, you hear them and work hard to partner with them to fix it! What are some ideas for PMs who are struggling with resident retention? What have you seen work well? What doesn’t work? Melissa: The best advice I can give is this: Communication and expectations are KEY. Start to work for the renewal on Day 1 of the original lease term, and consider how you can increase your communications. Be transparent. Be open to feedback. See retention as a bottom-line revenue driver. See retention as a benchmark for how residents are experiencing your company. Set a budget for creative incentives, and then encourage your team to USE THAT MONEY UP! The more "dopamine hits" you can give for those feel-good connection moments, the better! I think creativity is understated in property management. We focus so much on difficult interactions. How can we increase the positive ones? Who doesn't love to feel celebrated, seen, valued, appreciated, and considered? Do you recommend using property management software or tools to help improve resident retention? What are some of the best options? Melissa: Automation is key as you scale your business. We manage around 5,000 doors, and without the ability to send email and text blasts, etc., we'd struggle to achieve the high touchpoint mentality we have. I think the larger your business, the more important these tools become. You can only grow at the pace at which your business can efficiently scale without having to continually add more staff. Text Magic is a low-cost solution for texting, call fire is a great option for mass-dialing and automated phone messaging. Any PM software has great reporting capability to build out mail merge lists. It doesn't have to be expensive to make it happen! How do you calculate resident retention rates? What’s a good average retention rate, and what factors impact retention? We look at leases ending as an opportunity, and our resident retention is how many of those leases ending in a calendar year we convert to extend their lease term. Executed / Opportunities = Renewal Rate. A good average retention rate is anything 70% or better. That number has been our benchmark for success for 17 years of business. Factors that impact retention include how much owners are involved in setting rent rates, the housing market, the rental market, demand, experience, etc. We haven’t seen retention rates vary significantly by location, such as states vs. cities vs. rural areas. Improve Resident Retention Rate with Second Nature RBP Time and again, we’ve heard that one of the most important factors to resident retention is resident experience. It’s such a natural connection it almost goes without saying. As Melissa said, “If people enjoy working with you, they'll stay. If they don't, they won't.” In recent years, one of the more effective innovations in resident experience is the Resident Benefits Package (RBP). Second Nature’s RBP was designed to create an easy win for SFR property managers. We developed each feature as a direct response to a pain point in resident experience and property management – but that often fell out of the scope of property management companies’ bandwidth or expertise. To learn more about driving resident retention with a custom RBP, get in touch with us!

Calendar icon February 16, 2023

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Property Management and The Experience Economy

What is an experience economy and why is it relevant to single family rental property management? There are 3 questions driving the future of value creation in professional property management. How do we create an experience so good, residents never want to leave? How do we create an experience so good, investors never want to sell? How do we create an experience so good, talent wants to be in this business forever? The word experience is key. Whoever creates the best experiences will create the most economic value as the service side of property management becomes commoditized. In Joe Pine’s book, The Experience Economy, he reveals a critical insight that transcends real estate to other industries. It’s about the staging of value creation through the lens of commoditization and customization. In today’s highly competitive world, companies often focus solely on process improvement, optimization, cost-cutting, and driving efficiencies. While these are critical to remain competitive and improve margins, they are the playbook of a game that ends with operating a low-margin commoditized business. Some business leaders even talk about their industries being commoditized as a badge of honor. Interestingly enough, that thinking is self-fulfilling; by not focusing on creating higher-value offerings, they are riding the train to commoditization.History contains many examples of innovations so groundbreaking they captivated people and led the way for economic prosperity. Artificial light, telecommunications, automobiles, to name a few. While these were all once higher-margin innovative offerings and the most attractive businesses to be in, they have grown to be stale and competitive industries, forced to compete on price, leading to lower profits and company value relative to size. For example, Ford and GM, once praised as innovators in manufacturing goods, are now in a sea of competition and worth a mere 0.4x revenue at the time of this writing. The Experience Economy dives into these macroeconomic trends and shows the change over time in their Progression of Economic Value chart. The macroeconomic trends demonstrate how we have gone from extracting commodities to making goods to delivering services to, finally, staging experiences as the current primary driver of economic growth. One of the many great examples included in the book is the staging around birthday party: A birthday party at home that consisted of a cake and celebration requires the commodities, flour, sugar, butter etc.. to make at a cost of <$0.10. Then companies began offering “cake mix” which was more convenient that cost $1.00, followed by bakeries making the whole cake as a service for $15, and now, people outsource the whole birthday party to a venue like Dave & Busters or a party planner. There’s a party, invitations, custom napkins, entertainment, and yes, a cake is part of it. So someone can be in the pennies for cake materials business, the quarters for cake mix product business, dollars for a fully-made cake, or thousands of dollars for a full birthday or wedding or celebration event experience. That’s the commoditization to customization journey. Many property managers have correctly said, “We’re in the service business.” However, looking at where the most economic value will be created, today’s industry leaders have already started the shift to “We’re in the experience business.” They’re seeing different opportunities, which lead them to different choices that yield different results, and they find themselves in differentiated businesses. Professional property management is fast approaching a “hotelification” phase, where premium amenities and hospitality-grade service are creating a rental experience so good that more people choose the rental experience for longer periods of time. Hotel staff are called upon to enhance the experience of a proposal, an anniversary, a birthday celebration. And the great ones answer and emotionally connect. They are “moment-makers'' who create enduring loyalty, allowing them to drive more economic value. Consider how many of life’s meaningful and memorable moments are created at home. But how many people can name the owner of the apartment they lived in as easily as the hotel that elevated that special moment? So what are property management leaders doing today, and talking about doing tomorrow to create the #1 resident experience? The occupied experience is being defined by the “Resident Benefits Package”. From conference events like IMN, to NARPM, to PM XChange and PM Grow, it is hard to find an agenda that doesn’t include it. It’s a hot topic. Property managers and service providers have figured out how to turn persistent problems into a suite of proactive solutions that residents will pay for. Some of these services have been amenitized, like 24/7 maintenance coordination, vetted vendor networks, home-buying assistance, multiple payment options, and more that have become standard practice in professional firms. But there’s also a list of emergent ancillary services that are making their way from initial adoption to the definitive standard in the professional management experience. Move-in Concierge - Getting utilities and home services set up is a hassle for residents. Instead of 4 phone calls to get water, energy, internet, and TV services set up after researching who services the address, now residents can make one phone call and speak to a concierge who has looked up the discounts and promotions available and can confidently guide them through the process. In the future, this service likely expands to moving itself, deals on furniture with offers to assemble it, coordinated home cleaning, and landscaping. Air Filter Delivery - HVAC has been the #1 maintenance line item in SFR in most markets, second to plumbing in more temperate markets. And it has been a persistent problem of getting residents to change their filters on time. A 2020 HVAC Data Study that looked at over 7,900 SFRs in 4 markets, over an 18 month period, showed a 38% reduction when comparing a scheduled filter delivery program over the status quo of leaving a stack at move-in or hoping the resident remembers to go to the store. Every 2-3 months, residents are getting a box on their doorstep, where convenience makes it easier to do the right thing than to forget or ignore the responsibility entirely. Credit Building - every month that residents are paying rent on time, they get the benefit of that activity contributing to their credit file. A Goldman Sachs study showed a 42 point average increase in credit scores over 4 months. The credit bureaus also allow for up to 24 months at the same address to be back-reported which can provide a meaningful boost. Property managers are able to incentivize on-time rent payment and help residents build their credit over the course of their lease. Rewards - Residents are used to getting points and rewards for their loyalty with hotels, airlines, their credit cards… why not on their largest monthly expense? And while a rewards platform offers residents a unique benefit and savings on both everyday and luxury items, it is an incentive platform for the property manager. Rewards points allocated for on time payments, timely renewals, and ticky-tack maintenance like flipping a circuit breaker or resetting a GFI outlet mean more of the resident behaviors property managers want. Leveraging it for concessions and leasing incentives also means savings over cash offers, or higher perceived value at the same cash expense. Washer/Dryer Rental - Some properties may have these appliances installed or the residents come with their own, but we’ve seen the impact on prospective applicants choosing homes due the convenience of having the washer/dryer available. Smart Home - From thermostats to keyless entry to water leak detectors and more, there is hardware and technology alike growing more popular each year. Not only are they appreciated by residents, but they provide critical operational efficiencies to the management team. In addition to these, there are many more innovations that are going to dramatically improve the experience of renting and raise the bar on what’s expected. The companies that architect the best experiences will be the market leaders and capture the most upside in this future economic environment. We constantly are asking ourselves, what might the professional property management industry look like in 2030? The shift from transactional services to transformational experiences is one of the surest bets on the table. The big winners will be the players who embrace the new discipline of experience design. We believe the future belongs to the professionals, the trusted, the innovative… the people dedicated to changing the way people live forever.

Calendar icon October 25, 2022

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