
The multifamily industry’s most successful firms place a premium on the resident experience for the simple reason that happy renters are more likely to renew leases.
To retain residents, these companies are leveraging several tools, among them: brand loyalty and data. Much like how the Hiltons and Marriotts of the hotel world increase occupancy rates through enticing rewards programs, so too can multifamily firms with nationwide portfolios. And on the data front, exciting things are emerging, like the use of artificial intelligence (AI) to uncover key trends and patterns that can help refine strategies.
Here’s how multifamily firms are aiming high for low turnover.
Building Brand Loyalty
A resident tells you they’re ending their lease because they’re moving. You ask where. They tell you Dallas. You tell them you happen to have an apartment community there and you’d be happy to help them move.
“Really?” the resident asks, shocked.
“Happy to.”
The lease is transferred to the Dallas community. A moving truck is arranged.
Everyone wins.
Scott Berka doesn’t think that’s such a far-fetched scenario.
“Greystar is at a point where we have more than 3,000 properties, and, if we do a better job of connecting them and making it easier for people to stay within that network, we think that’s going to add a lot of value for renters because moving is painful,” says Berka, the senior managing director of brand and customer experience at Greystar, No. 1 on the 2024 NMHC Top 50 Owners.
Whether it’s feasible to physically move them from place to place isn’t something he’s crunched the numbers on, but, at the very least, Greystar can help smooth the transition by identifying a new unit and carrying the lease over. No application necessary.
This is just one example of how the multifamily industry is enhancing the resident experience. Competition is stiff, and renters are choosy. The multifamily industry is responding with sweeter incentives.
"As a management company, the major product we offer is a lease, but there are a lot more benefits that we should be giving to our residents,” Berka says. “That could be services like grocery shopping or cleaning, and also loyalty programs."
Taking a cue from the hotel industry, some multifamily companies are exploring marketing strategies such as rewards points for paying rent on time or, as Berka mentioned, loyalty programs for staying within a brand’s network, among other perks.
"Developing a strong, recognizable brand can foster a sense of trust and loyalty among residents,” Berka says. “We aim to create a brand that residents immediately recognize and associate with positive experiences.”
Data-Driven Direction
Loyalty incentives are fun and flashy—who doesn’t like rewards points?—but there’s also what Mike Gomes calls “the boring stuff” to consider, i.e., what living on these properties looks and feels like.
AI is helping determine that. Among other things, AI can scan emails from residents to management to identify common themes.
"We've used AI capabilities to really understand intent analysis around why residents contact us,” says Gomes, the chief experience officer at Cortland, No. 8 among the 2024 NHMC Top 50 Owners. “This approach has helped us identify peak moments and eliminate friction points throughout the resident experience.”
Other data points come from survey platforms, focus groups, and online reviews, among other sources, all of which provide a holistic view of life in a Cortland community. With this information, Gomes says the company can be more proactive and less reactive to better serve residents, or what he calls “service discovery.”
"Most services are delivered as service recovery—waiting for a problem to arise before addressing it,” Gomes says. “Service discovery involves recognizing potential issues early on through interconnected data and addressing them proactively, improving overall resident satisfaction.”
The residents’ digital experience is also important. That’s why multifamily firms are investing in seamless, intuitive customer platforms that help streamline operations, from applications to lease renewals.
"We built a singular platform that follows the resident across their entire journey—prospect, applicant, new move-in, existing resident, renewal, former resident,” Gomes says. “We've embedded within that all communications—text, email, phone—allowing us to serve the customer faster and more personalized.”
Faster response times matter.
Cortland has found that residents who receive responses within 24 hours are nearly 30% more likely to renew.