Loyalty

What does the question, “What’s in it for me?” do to the concept of Loyalty? In order to complete a business transaction, do you deal only with people you know, who have earned a place of trust in your heart, or is the opposite a more true statement?

Our Residents agree to live at our properties for a certain length of time and pay a certain amount of money for doing so. They may ask for “favors” which may or may not be granted based on our corporate policies. But ultimately, when it comes time to ask for the renewal, do our Residents accept quid-pro-quo concept only – meaning, we provide good service and take care of their need for a safe and habitable living arrangement and in exchange they will pay the rent on time – or are we guilty of that?

Perhaps our goal should be more of developing a loyal following rather than a rote following. I think I prefer to have Residents who willingly choose to live in our communities, who feel happy there and who want to refer their friends and family and colleagues than those who think and actually ask, “If I renew, will you lower my rent?” or “What are you going to give me if I renew?”

Intellectually, I understand that it is nice to offer someone a gift of sorts at renewal time, but if that is the only reason someone renews, is that a good thing?

Residents Are Real Chatty Cathys

This is the kind of situation that must drive Residents crazy and I understand completely because it kind of drives me crazy, too. My daughter moved back into an apartment community where she had lived with a roommate for a short time. She liked the community a lot, not just because they pay for the gas utility and she is always cold, she lives in a cold weather climate and well, you get the picture but also because she feels safe there. She has a couple of co-workers who also live in the same community. One of those took a six month lease and it is up for renewal.

Those of us in Property Management should not kid ourselves. Residents talk. They do talk about how much their rents are and we are only deluding ourselves to think they don’t compare their rent amounts.

She found out that her co-worker’s new rent amount is going DOWN if he renews for another six months. “WTH(eck)?” she asked me. I kind of shrugged my shoulders.

“It’s the time of year,” I guessed. But honestly, it should not be less; at the least, it should remain the same, wouldn’t you think? And this is a big company in Indiana. They are known to NEVER run specials or lower rents even when they have a huge number of vacant units.

So, I’ll offer a word of caution. Offering a lower rental price at renewal may be your strategy; however, it offends those Residents who did not take that short term lease. It offends those who chose to stick it out a year trusting that you will make their year worry-free and thinking they were locking in a great rent rate for an entire year. How is it fair to lower someone’s rental rate when the person took a shorter term lease and was NOT even charged a premium for that convenience? Explain that to me so I can explain it to my daughter, please.