Apartment property managers know the key to maximizing profits is resident retention. "What's the Financial Impact of Reducing Turnover?" gives an example of an apartment building with 100 units renting for $2,000 per month. In one year, the property experiences 50 percent turnover. The property loses $100,000 in revenue when 50 apartments go vacant for one month.
Furthermore, there are administrative and repair costs associated with turnover. This runs approximately $750 per apartment. The final tally for 50 percent turnover in one year is $137,000. Reduce turnover to 30 percent and the numbers drop from $100,000 to $60,000. Maintenance costs for turnover fall to $22,500. The total is $82,500 for a whopping savings of $55,000.
So how you can use apartment building technology to increase retention rates? Here are three ways that also build a sense of community and add to your list of amenities.
Residents come and go at different times, so they don't always get to meet their neighbors. One way to build community is to create one online that's open only to residents. You get bonus points if you add a TV or monitor in a public space like community meeting rooms or laundry rooms where residents can view the goings-on. Whenever a new resident moves in, invite them to join the online community. Encourage the community to welcome new residents to make them feel right at home.
Some residents may have side hustles where they drive for Uber or Lyft, deliver food or groceries, or offer pet walking services. Others may wish to use those services. You can encourage this by posting services in the online community, social sharing app, and other resources where residents get their information.
The NMHC and Kingsley Associates Renter Preferences Report is based on a survey with more than a quarter million responses from apartment renters. The report lists the top five community amenities, one of which is secure access.
In another survey of 1,000 multi-family renters, Schlage and Wakefield Research has found that 61 percent of Gen Y wants increased security. Apartment property managers can retain more renters with remote video surveillance for a fraction of the cost of security guards. The retention savings will more than cover the apartment building technology.
Stealth Monitoring’s customized security solutions combine video analytics with human intelligence to catch activity while it happens and help prevent damage or theft. Our trained security operators can activate on-site speaker warnings and contact police if they see anything suspicious. This increases the chances of catching the trespassers before they leave the property.
In this video, an individual uses a metal plate to access an apartment parking garage. Our security operator contacted the on-site guard. After being told it would be at least 20 minutes before he could look into it, our operator called the local police, who arrived minutes later.
Many of your residents want social interaction and security. Incorporating apartment building technology such as live video monitoring and an online community will meet those needs. At the same time, it will drive up the retention rate and cut turnover costs.
If you would like more information about live video monitoring and other multi-family residential security solutions that provide your residents with peace of mind, please contact us.