Calendar icon July 18, 2023

Why is Resident Experience Important?

Have you heard? We just published our first-ever State of Resident Experience Report!

The report draws fresh insights from the SFR property management industry and explores the three top factors impacting resident experience right now. Download the report to see the results! 

In the meantime, today we’re getting started with a related topic: Why is resident experience so important?

Resident Experience is the cumulative effect of all interactions and engagements between a resident and a property management company throughout their leasing lifecycle. It encompasses every touchpoint, from the initial viewing and leasing process all the way to maintenance services, communication, amenities, and lease renewal. 

In many ways, the resident experience is the heart of professional property management, encapsulating the quality of living provided beyond just a physical living space. 

In this article, we will: 

  • Explore the paramount importance of resident experience to property management
  • Outline how it can directly impact factors like retention rates, profitability, and reputation
  • Share insights from leaders in the single-family rental property management industry

Buckle up as we delve into the power of stellar resident experience – and how it’s becoming a strategic imperative in the current real estate landscape.

Here are 8 ways resident experience management can make a difference for residents, investors, and property management companies.

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1. Improves Retention Rates 

Retention rates, or the ability to keep residents renewing their leases year after year, are a key metric of success for any property management operation. High retention rates mean stable revenue and reduced costs associated with vacancies, marketing for new residents, and turnover maintenance. 

But what fuels high retention rates? The answer is an exceptional resident experience. When residents feel heard and valued, they’re a lot more likely to renew their leases. This positive resident engagement is just as important in single-family rentals as it is in multifamily apartment communities, where it often gets more attention.

In essence, the resident experience is your tool to turn the transient nature of renting into a long-term relationship. It's not just about providing a day-to-day place to live; it's about designing a product and service that residents will pay for and stay for.

A truly positive resident experience can convert short-term leases into long-term homes, making it a strategic focus for effective property management.

“I think ten years ago, property managers were only concerned with collecting rent and keeping tenants from doing damage to properties. It was a much more adversarial relationship than it is today. Today, the best PMs know that resident experience is vital to minimizing vacancy and creating a resident that strives to be a higher quality tenant.” - Jonathan Cook, Business Development Manager, Revolution Rental Management

2. Reduces Vacancy Costs

One of the most substantial costs that property managers (and their investor clients) face is the cost of vacancy. Each day a property remains unoccupied equates to lost revenue. Not to mention the additional expenses associated with marketing the property, move-out costs, screening new residents, prepping the move-in process, and preparing the unit for occupancy again. When you add it all up, the costs can be quite significant.

This is basically the flip side of the coin of “resident retention.” Good resident experience → Resident retention → Reduced vacancy costs. A positive resident experience can act as a powerful retention tool, encouraging residents to renew their leases and reducing the churn that leads to vacancies.

“We’ve really started to notice that the better experience we can make with the tenants, the more they want to come to us as opposed to our competitors. It's all about experience. We’ve held onto this idea that we want to provide the experience that residents gravitate to.” - Chenoa Stark, Property Manager at American Leasing and Management 

After all, happy residents can become your advocates. They are likely to spread the word about their experience, drawing in potential new residents. By delivering an exceptional resident experience, you're offering them just that, making your property stand out in a crowded market.

3. Increases Profitability 

“Property Managers who are on the cutting edge realize that by focusing on the resident experience, they will earn better returns on investment for their company and their investor clients.” - Gregg Cohen, Co-Founder of JWB Real Estate Companies.

A compelling resident experience is a secret weapon for driving profitability in property management. It's like a strategic chess move that not only strengthens your relationship with residents but also contributes to your bottom line in several key ways.

  • Reduced Acquisition Costs: We’ve already discussed how, by keeping your current residents happy and renewing, acquisition and move-in costs are drastically reduced.
  • Increased Ancillary Revenue Opportunities: A positive resident experience can open the door to various ancillary income opportunities with strategic pricing. Services like an RBP can boost your profitability while simultaneously improving the resident experience.
  • Word-of-Mouth Marketing: Satisfied residents are your best brand ambassadors. They can spread positive word-of-mouth about your property, attracting new prospects and reducing marketing expenses.
  • Operational Efficiency: Elements that enhance the resident experience, such as digital communication portals or automated maintenance requests, also lead to operational efficiencies. These improvements can streamline and automate processes, saving time and reducing costs.

In essence, a robust resident experience strategy is not just about resident satisfaction; it's a profitability powerhouse. It allows property managers to attract and retain residents more cost-effectively, uncover new revenue opportunities, and operate more efficiently, all of which positively impact the bottom line.

4. Boosts Reputation

In the age of online reviews and social media, reputation is everything, especially in the property management industry. A strong, positive reputation can be one of your most valuable assets, attracting potential residents and providing a competitive edge in the market. 

The cornerstone of a great reputation? You know the answer already: An exceptional resident experience. 

When residents have positive interactions with your property management team, they're more likely to share their experiences. These shared experiences, whether through word-of-mouth or online reviews, contribute significantly to your company's reputation. 

Positive reviews can attract new residents looking for a new home, reducing the time and cost of filling vacancies. They also provide a form of social proof, assuring prospective residents that they're making a good choice by choosing your property. 

Furthermore, a stellar reputation can strengthen relationships with investors, vendors, and other stakeholders. It can lead to new business opportunities and partnerships, further boosting profitability. 

In essence, cultivating a superior resident experience is like planting the seeds of a robust, positive reputation. As you nurture these experiences, your reputation can grow, reaping benefits in terms of resident attraction and retention, stakeholder relationships, and overall business growth.

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5. Simplifies Rent Collection

Rent collection is a critical component of property management, and any strategy that can streamline and improve the efficiency of rent collection is worth its weight in gold. That's where a stellar living experience comes into play.

Satisfied residents are generally more cooperative and timely in fulfilling their financial obligations, including paying rent. Positive relationships between residents and property managers foster a sense of mutual respect and understanding, which can go a long way in ensuring smooth rent collection.

The resident experience also extends to tools and incentives for on-time rent payments. For instance, an easy-to-use online portal for rent payment can lead to faster, more reliable rent payments. 

One of the best ways to ensure on-time payments is by providing incentives in a Resident Benefits Package (RBP). An RBP can provide credit reporting for on-time payments, resident rewards for early payments, and more. 

A great resident experience doesn't just make residents happier; it makes the fundamental aspect of rent collection easier and more efficient. It's a testament to the idea that good relationships make good business sense.

6. Reduces Maintenance Issues

Maintenance is a significant part of property management, and it can be a substantial cost center. However, by offering a superior resident experience, you can reduce the frequency and severity of these issues. 

Residents who feel taken care of are more likely to reciprocate those feelings towards the property. 

A positive resident experience can also foster better communication between residents and management. Residents are more likely to report minor maintenance issues promptly before they escalate into major, costly repairs. For instance, a leaky faucet reported and repaired promptly will cost much less than ignoring it until extensive water damage occurs. 

Again, one of the best ways to boost resident satisfaction and reduce maintenance costs is to provide a Resident Benefits Package. At Second Nature, our RBP provides things like scheduled filter delivery to ensure air filters are changed on time and reduce HVAC costs

The mantra is simple – take care of your residents, and they'll take care of your property.

7. Creates Satisfied Investors

Property owners are investors who seek returns on their investments and the preservation of their properties' value. A vital element to achieving this is through offering an exceptional resident experience.

When residents are satisfied, they tend to stay longer, pay rent on time, and take better care of the property. This leads to consistent income, reduced expenses, and fewer maintenance issues — all key elements for maintaining a property's value and ensuring strong returns. 

And remember: properties known for their superior resident experience tend to attract quality residents faster, reducing costly vacancy periods. They're also more resilient against market fluctuations, preserving investors' returns.

Property investors value professional property management that focuses on resident experience because it signifies competent handling of their investment. It displays a forward-thinking approach that aligns with today's renter expectations. It leads to a virtuous cycle of high-quality tenancies, stable returns, and preserved property value – a “triple win” for residents, PMCs, and investors. 

“When you're giving that great experience to your residents, you're also giving that great experience to your owners. They have less lost vacancy, they have more care and more respect given to their property, and that's going to protect their assets. That shift in the industry is already happening, and those that are able to make that pivot quickly are going to be able to level themselves up and really get ahead of the curve.” - Kelli Segretto, Property Management Inc.

8. Builds Competitive Advantage 

“As the operator of a business, how can I get from something transactional to something transformative – so that people are getting something from me that they aren’t getting from most other businesses.” - Jordan Muela, CEO of LeadSimple

In today's competitive property management landscape, offering an exceptional resident experience is not just a perk, it's a differentiator. It's what sets a property management company apart in a crowded market and makes it a preferred choice for residents.

A positive resident experience leads to higher resident retention, reducing vacancy rates and the costs associated with acquiring new residents. It allows property managers to maintain steady rental income, creating a solid financial foundation that competitors might struggle to match.

In a nutshell, a commitment to providing an exceptional resident experience can provide a significant competitive advantage for all the reasons listed above – positioning a property management company as a leader in the field.

How Second Nature Helps Optimize Resident Experience 

Second Nature built a product based on the idea that creating a world-class resident experience could make a difference in profitability and value for residents, property managers, and property owners. 

We designed a fully managed all-in-one Resident Benefits Package that does just that.

The RBP provides benefits, incentives, and concierge services that residents want to pay for and stay for. It drives up value for everyone involved and delivers a unique and elevated experience.

“A resident benefits package – you hear people call it the easy button. That’s because it is essentially all of these different services and all of these different, valuable add-ons for your residents that are done for you.” - Kelli Segretto, Property Management Inc.

Learn more about the Second Nature RBP, or dig into our 2023 State of Resident Experience Report.

Keep learning

Six Ways to Make Your Vacancy Stand Out on Zillow

Every property manager wants to minimize days on the market, and a great listing can be a critical component of accomplishing that goal. If you've spent any time looking at real estate listings, whether rentals or not, you've no doubt seen some well-done ones and ones that have five photos, three of which appear to have been taken for the TV show Hoarders. What makes a listing strong? If you're asking this question, you're off to a good start, and you're in the right place. Be thorough but concise Your listing should strike a balance between being thorough and concise, but it’s important to never leave out critical information that could lead to a negative experience down the road. First and foremost are any upfront fees, then things like pet rules, HOA considerations, and other relevancies that you don’t want a prospective resident to learn about later after they’re further into the process. Be concise about these so your property description doesn’t become too long, but be sure to include what a renter needs to know regarding costs in the application and move-in process. Take quality photos Photos are the golden goose when it comes to property listings. Quality, considerate photography will create stronger first impressions from potential renters. Fortunately, getting quality photos isn’t super difficult, it just takes some planning and forethought. You don’t need to stage your property. In fact, many property managers outright recommend against it. Photos of vacant, clean rooms are usually the way to go. They allow prospective renters to view their stuff and their layout in the photos, which can make them feel less like they’re looking at someone else’s home. Vacant rooms also tend to look bigger, and low angles with wide-angle lenses can add to this effect while showing the whole room. Cleanliness is next to godliness. Never post pictures with boxes, garbage around, open toilet seats in the bathroom, or anything that just doesn’t look inviting. Always open blinds and include window views from rooms when possible. You don’t need to hire professionals for these processes, but it can be worth investing in a quality camera to take nice photos. Again, this will be the first impression a renter has of your property. They’re not going to look twice if it looks small and uninviting. Don’t overdo the property description Be thoughtful of what goes into a property description and how you organize it. These things can get long, and if you’re a property manager, you’re keenly aware of the general public’s lack of interest in reading. A short, one-to-two-sentence description of the property will do for an opener, and you can follow that with bulleted lists of the property’s amenities. Lists are easily consumable and where the eyes of the reader will go first if they’ve decided to skim the description instead of reading through it. In addition to the features of the home, be sure to include nearby amenities in the listing. In single-family property management, schools and school districts tend to be important. Beyond that, nearby shopping areas, outdoor spaces and parks, and distance to highway access are things that property managers have found matter to prospective residents. Don’t list the property until it is move-in ready This is an easy one to check off, but making sure a home is fully ready for a resident before it gets listed is an advantageous process for property managers. You may be tempted to list it as fast as possible, but this has risks, and the theoretical shortening of time-to-revenue may end up backfiring if a great resident moves on because the home wasn't ready when they were. Renters aren’t always proactive. They tend to be looking for properties closer to their actual desired move date than maybe they should be. Listing a property before it’s move-in ready is a great way to create a negative experience if a quality resident seeks it out and it’s not ready when they want to move in. Include a floor plan Employing a third party to create floor plan drawings isn’t a super expensive or difficult undertaking, and it’s worth your while. A floor plan helps a renter understand how the house as a whole is set up, how they might use the space, and how their stuff fits in the home. There is inexpensive software that makes this process easy, or if you’re like most property managers and crunched for time, there are third parties available. This goes back to the idea of being thorough and clear in your listing. You don’t need 100 photos of the home, but you want to tell the whole story of the house as concisely as possible. A floor plan can help you do that. Think outside the box Ask yourself how you can make your listing unique. Checking all the boxes that make a quality listing is step one, but once you’re comfortable with that, you can ask yourself how to be a little bit different and stand out in the sea of property listings. While not a property manager, Trent Miller has developed a viral video series that blends content marketing with property listing strategies. He calls it the speed tour, and it is exactly what it sounds like. @trent_miller__ It's Time For Another SPEED TOUR‼️💨 Thank you guys for all the love and support!! More videos coming soon! Looking To Buy Or Sell Real Estate?? DM ME‼️🏡 ~Price Is Estimated Down Payment~ #realestate #homesforsale #RealEstate #HomeForSale #RealtorLife #DreamHome #Property #HouseHunting #NewListing #ForSale #HomeSweetHome #InvestmentProperty #OpenHouse #LuxuryLiving #HomeBuyer #HomeDecor #HouseGoals #BuyersMarket #SellingHomes #Homeownership #RealEstateAgent #speedtour ♬ original sound - trent_miller__ Garcia Property Management adds colorful overlays to the cover photos for their listings. They don't do this for every photo, so they're still following general best practices for their photo sets for each property, but also trying to stand out within the listings thanks to some color.

Calendar icon August 23, 2024

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Three Property Management Companies that are Winning on Social Media

How would you say your social media marketing is performing? As a constantly changing medium beholden to trends that can peak and die in a heartbeat, it can be a tough area to win. Truthfully though, it's underused in the property management space. Content creation for social media doesn't have to be super intense, and it doesn't have to be super polished. It just has to have intent and understanding of who you're marketing to. If you're looking to develop a more robust social media program for your PMC, you're in the right place. Here we break down three companies with three distinct strategies, all of which are unique in the PM space. These companies are crushing it, and learning from their successes can help you develop a strategy that works for you. Home Ladder Home Ladder’s “Chaos and Disorder” video series is a hit and a great example of creativity that can sometimes be lacking in property management marketing. Co-founders Travis Bohling and Brandon Graham are among the most creative content marketers in the property management space. While they may be relatively new to the content side of things (Chaos and Disorder is less than a year old), they've hit the ground running with a unique video series that's both relevant and genuinely entertaining in addition to leaning hard into Facebook reels. Short video content has been trending up in social media marketing since the rise of TikTok, although it's not heavily used in the SFR property management space. Home Ladder has taken this on with sets of short, straight-to-the-point thought-leadership content. The Chaos and Disorder video series is really fun, though. Home Ladder is starting to spearhead a creative approach to content marketing that the industry could really use more of. The idea here is really to engage the inability of self-managers to be effective tenant screeners, and they've told this story with two destructive characters affably named Chaos and Disorder. A constant battle in professional property management is trying to keep ahead of the self-managing landlord as self-management tech expands their capacity. Home Ladder is keyed in on that messaging here as a play to position their professional services as more reliable and thorough, and they've done it in a way that's genuinely entertaining and relatable to anyone who has ever had a bad tenant, which is anyone who has ever managed a property. RL Property Management RL Property Management CEO Peter Lohmann is crushing it on Twitter. Executives being active in the content creation space can be a big win for companies, and RL Property Management’s Peter Lohmann is a prime example. While this is a popular LinkedIn approach, Lohmann is one of very few who has taken ownership of the property management discussion on Twitter. A tougher nut to crack than Facebook and LinkedIn, Lohmann has found success and amassed over 21,000 followers via a content strategy that seamlessly blends an authentic connection to the property management space with expertise Lohmann has acquired over years in the industry. The word relatability gets thrown around a lot when it comes to any kind of content-based marketing, but being relatable isn’t a goal so much as a strategy. The power of relatability is that it establishes trust, a challenging thing to create in many online spaces. If you can establish a familiarity with what affects the people you’re speaking to on a daily basis, that establishes a trust that helps build interest in what you have to say. Lohmann’s 21K follower count didn’t come purely from expository property management tips. There's a relatability to his content that helps create that trust, which adds value to his thought-leadership content. He’s naturally an authentic person and a master communicator, and while the expertise is valuable, that lies downstream of a personal connection to other industry professionals. Property management in a nutshell: Owners with 40 units: "call me if it burns down" Owners with 1 duplex: "why did you pay $45 to cut grass? My guy only charges $30 please call me asap" — Peter Lohmann (@pslohmann) March 11, 2024 When Lohmann does get into thought-leadership content, he's an open book, which also helps establish trust. Lohmann, like many leading property managers, believes that propelling the whole industry forward is more important than holding any kind of trade secrets. He does not shy away from granular details of his company, including sharing the what and why of his entire tech stack. Cheat code for starting & growing a property management business. This is a complete list of our software stack. This is how the magic happens & how we can calmly and effectively manage ~600 units. pic.twitter.com/aTHYAp9MwH — Peter Lohmann (@pslohmann) December 23, 2021 Grace Property Management Marc Cunningham is the YouTube king. Cunningham has been in property management for over 30 years, and his YouTube strategy is arguably the best in the game. The CEO of Grace Property Management is approaching 5,000 YouTube subscribers. Part of the value of Cunningham's channel is that you know exactly what you're going to get when you go there. His content is built with a very consistent format and length. He has over 100 videos, almost all of which are between five and ten minutes long, and address a very specific issue or question in single-family property management. Cunningham's approach is expert-forward, demonstrating that there is more than one way to win in social media and property management marketing. He provides a combination of content that addresses specific questions and issues in the PM space and offers windows into his own operations and the decisions he's made. His channel's most popular videos, often having thousands of views, cover management topics like how to explain a rent increase to a resident and why you should never charge a pet deposit as well as industry trends like average rent trends and predictions for the coming years. Because YouTube content is indexed by Google, Cunningham's strategy is built more around capturing search engine traffic than the above two strategies. It's self-sustaining to a degree now because of the size of Cunningham's following, but YouTube is an excellent way to capture search traffic, something Cunningham has leveraged well.

Calendar icon August 15, 2024

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