The past few fiscal years have been an owner’s dream - the ability to account for costs no matter the breadth, with renters willing to pay whatever was necessary to stay or move. We haven’t had to worry about renewal rates or stress about what an extended vacancy would do to our NOI.
But let’s face it, whether it’s tomorrow or a month from now, we’re already seeing a huge shift in our economy toward the impending recession. What does this mean for the future of cost in residential real estate?
Why is strategizing for the unexpected so important during a recession?
The worst part about an economic downturn is not being able to plan ahead. In the case of real estate, this means not being able to accurately determine if residents will respond to particular rent increases or if your vacancies will be filled in a timely manner. The more forethought owners/management companies can have to understand and control their renewal rates, the better they can react.
Recessions are the cause of mass unemployment rates, and a significant decrease in disposable income. People look to decrease cost wherever they can, if even temporarily, to offset the impact. More times than not, this is why residents will choose to move to a cheaper home or location.
What can we do to maintain our renewal rates?
Think about why you would buy an organic product over other produce at the grocery store. The cost is worth the slight price difference because of the quality of the product. When people choose to spend their income in certain places rather than others, it often comes down to a question of value.
So how do you provide the best value for the residents you already have? You need to gather insights from them. What they like, what they dislike, what they vocalize if they have the opportunity to and what they don’t. That fundamental line of communication is the key to increasing the value of your rent during this upcoming period of uncertainty.
How can ResiDesk increase the value of your rent?
ResiDesk centralizes and facilitates your front-line customer service. Through SMS, we conduct hundreds of real-time conversations with your residents every day. Alongside directing critical maintenance orders or responding to frequently asked questions, ResiDesk inquires and pulls important feedback from residents on how they feel about their communities. These insights are pivotal to enacting the changes necessary to improve the community experience.
We take time off of your site team’s plates to focus on handling the issues that need immediate attention and focus on engaging your communities with premium hospitality-level customer service. ResiDesk is the difference in service caliber that will keep your residents coming back.
The effects of our 4-week trials are felt immediately, and have delivered massive results for some of the top management companies across the country. Get in touch today to let us show you what we can do for you!