Low turnover drives high occupancy – and revenues
February 22, 2012
One of the best ways to maximize revenues for investors in multi-family properties is to manage resident turnover. Most anyone in business has heard the old adage that it is a lot less expensive to retain a “customer” than to acquire one. I’ve seen it estimated – and illustrated – that the cost incurred when a resident decides not to renew a lease is as much as $2,000 – $4,000.
Focusing first on retaining residents – through excellent employee training, responsiveness to maintenance issues, a focus on resident feedback, and etc. – helps MRG achieve and maintain outstanding retention rates. National turnover rates in 2010 were 54%. The Southeast Region, of which Memphis is a part, averaged 55%. The MRG turnover rate for 2010 was 42.7% and was 41% in 2011.