In Donald Davidoff’s webinar a few weeks ago, he discussed how aggressive a community should be with their renewal rates. (Seriously, check out that video—that one strategy will pay for the webinar several times over). What he said had some pretty dramatic ramifications to how we see the renewal process over all, and possibly avoiding having our residents start shopping the competition.
In general, we are used to prospects coming into our communities in the middle of their buying cycle—they are actively shopping communities to find their new home. But with our existing residents, there is a possibility they never actually start shopping around. If there is no rent increase, for example, they may just renew their lease without much of a second thought, where the decision is to simply continue as is. However, once we start increasing rents further and further, then they have a decision to make on whether they want to look elsewhere. That, right there, is the first decision they make—do they want to actually shop around. It’s a simple decision, but it has far reaching complications for your sales process!