#70 - How To Have Difficult Renewal Conversations
Renewal conversations are never easy, but this year major rent increases pose an extra challenge to onsite professionals. According to the latest reports in June 2022, rent growth is accelerating and is up 15.3% year-over-year from 2021.
It’s easy to feel apprehensive about these conversations, but avoid walking into those conversations with a negative disposition. In this podcast, we want to give you the tips and tools you need to get behind these increases to lead to more positive renewal conversations.
It's important to remember that any upset or frustrated residents are not a reflection of your worth.
You can only focus on what you can control, which leads to our 5 tips for having difficult renewal conversations…
1. CRUNCH THE NUMBERS
Take a moment to crunch the number on what it costs to move in your area. You might be surprised to see how your rent increase doesn’t look so bad compared to moving. Join our free membership today and download our Move-in Cost Worksheet to get you started- click here!
Get your “COST OF MOVING” Worksheet
Use this fillable PDF worksheet to show your residents what the TRUE COST of moving really is. You can even fill it out with your resident for more impact.
We’ve also allowed for space to remind them of your awesome location or amenities, things they can no longer live without!
Get this worksheet plus our other favorite resources in our FREE MEMBERSHIP.
Join our free membership today and download our Move-in Cost Worksheet - click here!
2. KNOW YOUR ASSETS
Don't forget about all the amazing things you bring to the table from your amenities, apartment features, location, and special things you know that specific resident enjoys about your community. Take note of any major improvements that have been made. It’s amenity and location marketing but aimed at your existing residents- sell your community to them again!
3. INVITE THEM TO CHAT IN-PERSON WITH PLENTY OF ADVANCE NOTICE
Don't just post a rent increase letter to their door. It’s impersonal and sets the wrong tone. If you know there is a hefty increase headed their way, give them plenty of time to digest the information. Invite them to discuss the renewal information in person.
Check out some of our favorite renewal ideas:
ICE CREAM RENEWAL PARTY
Invite your residents to discuss their renewal details over a scoop of their favorite ice cream. This keeps the conversation cool (see what we did there?!) and casual while still covering the essential details.
DON’T FLOAT AWAY
Remind residents that paradise is right outside their door at your community by pairing your renewal letter with a drink float, their favorite drink, and this summery design.
SWEET PAIRINGS
Pair your renewal letter with a small bag of candy to let residents know how sweet their renewal can be. Let them enjoy some candy as they review all the details.
Love all of the designs you see? Become a member and customize these renewal reminders and 100s of other templates for apartment marketing and retention for free in Canva.
4. SWEETEN THE DEAL
Dinner On You like Pizza or Grubhub Gift Card
Gift Basket of Local Favorites
Cleaning Service or Carpet Cleaning
In-Unit Upgrade like Accent Wall, Smart Feature, etc.
Although you can't always control rent increases, you can control any added-value perks offered with a renewal.
5. BE EMPATHETIC
Remember, if they are upset it's not about you - it's about the situation. Being empathetic will always get you farther so here is something you can say:
I understand where you are coming from, and I always want you to make the best decision for yourself. I took a moment to crunch the numbers for you so you can get an idea of your options. Plus, we would love to offer you _______ if you renew just to sweeten the deal. Please take the time you need to review all of your options and I’m here to answer any questions.
