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9 Ways to Improve Your Resident Experience

Resident experience is the sum total of interactions and experiences a resident has with their property manager and the rental property itself – from the initial lease signing to the eventual move-out and all the day-to-day living moments in between. It encompasses everything from the quality of services provided, like timely maintenance and communication, to the overall livability and enjoyment of the property. In essence, it's how a resident perceives their rental journey in its entirety. Excellent resident experience management is the mark of a top-tier property management company. It boosts resident retention, satisfaction, and outcomes. In this article, we delve into nine actionable ways to enhance the resident experience in your single-family rental properties, fostering stronger relationships and, ultimately, achieving greater success in property management. Read the full report! If you haven’t already heard, we recently published our first-ever State of Resident Experience Report, which explores resident experience management: the pivotal touchpoints between a resident and a property manager. The report draws fresh insights from the SFR property management industry and explores the three top factors impacting resident experience right now. 1. A Seamless Move-In Experience Ah, the move-in process – the start of a beautiful friendship between the resident and the property manager. It's a bit like a first date – you're setting impressions that could make or break the relationship. A seamless move-in experience is your chance to roll out the red carpet for your new residents, showing them they've made the right choice (and have definitely swiped right on the best property around). And guess what? A resident who's had a great move-in experience is a happier one. Happier residents stay longer, pay on time, take care of the property, and make positive recommendations. Resident experience examples: How to build a perfect resident move-in experience Here's how to ensure your move-in experience hits all the right notes. Clear Communication: Provide detailed information about the new home and move-in process, including key collection, utility setup, and property rules. Who's handling utilities? Where's the best pizza joint nearby? Share all the important details. Welcome Packet: Roll out the resident red carpet with a welcome packet. Not only does it have all the must-know info, but it also says, "Hey, we're glad you're here." Include essential information such as garbage collection days, rules, important contact numbers, and a neighborhood guide. Property Readiness: Nothing dampens spirits like a flickering light on the first day. Ensure the property is thoroughly cleaned, all appliances are working, and any previous damages are repaired before the move-in date. Efficient Paperwork: Let's face it, nobody loves paperwork. Make it painless with easy online forms and digital sign-offs. Personal Touch: A little welcome gift can go a long way. It's like saying, "Welcome home, neighbor. We're going to rock this thing." Second Nature’s Resident Benefits Package includes a Move-in Concierge to ensure the process is seamless and personal. 2. Responsive Communication In the symphony of successful property management, responsive communication is your melody. It's the backbone of a harmonious resident experience, and when done right, it can elevate your property management status from “forgettable” to “virtuoso.” The sooner you respond to your resident’s queries or concerns, the more they'll feel valued. And a valued resident is a happier resident. Remember, good communication isn’t just about speed—it’s about clarity too. It's like being a great tour guide in the bustling city of property management—clear, informative, and always ready to help. Ways to improve communication with your residents Let's explore some best practices: Multiple Channels: Embrace the digital age! Offer various communication channels like emails, text messages, phone calls, and even a resident portal. Variety is the spice of life, right? Be Proactive: Don’t wait for your residents to reach out with issues. Regularly check in and ask if they need anything. Set Expectations: Be clear about your communication protocols. Let your residents know when and how they can reach you and when they can expect a response. No one likes to be left on read! Listen Actively: When your residents speak, lend them your ears! Show understanding and work collaboratively towards solutions. It's a two-way street, after all. Be Respectful: Always communicate with respect and professionalism. Treat your residents the way you’d want to be treated – it’s the golden rule, even in property management! 3. Better Maintenance Services with Quick Response Times Think of maintenance services as the superheroes of the property management world. When done right, they swoop in to save the day, ensuring minor issues don't escalate into supervillain-sized problems. Quick response times? That's your superhero's super speed. The quicker the response, the happier your resident, and the safer the day. How to improve maintenance services and response times Here's how to get your property management cape (sorry) flapping in the wind: 24/7 Maintenance Line: Offer a dedicated line for maintenance requests. To belabor our superhero analogy, it’s like having a bat signal for your tenants – they know help is just a call away. Online Reporting: Make it easy for tenants to report issues. An online system can keep things organized and ensures no request gets lost in the shuffle. Prompt Follow-up: Act swiftly on maintenance requests. Even if you can't fix the issue immediately, acknowledging the request and providing a timeline can ease the resident's mind. Regular Inspections: Regular property inspections can help you catch potential issues before they become major headaches. It's all about that ounce of prevention! Trusted Vendors: Work with reliable and professional vendors who provide quality work in a timely manner. They're your sidekicks in maintaining property harmony. 4. Resident Surveys and Active Feedback Gathering Resident surveys and feedback gathering are your property's annual check-up, a key health indicator for your relationship with residents. These invaluable tools allow you to take the pulse of resident satisfaction, uncover hidden issues, and celebrate what's working well. When residents see their feedback being valued and acted upon, it creates a sense of involvement and community, enhancing their overall living experience and driving resident retention. Importantly, active feedback gathering shows your residents that their voices matter. It instills a sense of ownership and care that can often lead to better property care and longer tenancies. How to turn resident feedback into a better resident experience Here are some ways to champion feedback in your property management: Regular Surveys: Don't just wait for the annual survey. Keep the feedback coming in regularly, like a monthly check-in or a quick poll after a service call. It's like catching up over a virtual cup of coffee – relaxed and informative. Feedback Boxes: Consider setting up a digital feedback box where residents can drop their thoughts, ideas, or concerns anonymously. Think of it as your modern suggestion box. Act on Feedback: Here's the real deal – taking action. Show your residents that their feedback isn't just being heard, it's being actioned. 5. Resident Rewards Resident Rewards are a huge factor in resident retention and satisfaction. Rewards make residents feel appreciated and have proven to incentivize habits like on-time payments and better care for the property. Perks like this can significantly boost resident satisfaction, increase lease renewals, and even stimulate referrals. It's a win-win all around! For multifamily and apartment community managers, that might look like community-focused programs. For single-family property managers, we’ve got some other tips. Second Nature’s Resident Benefits Package includes a robust resident rewards program. How to improve the resident experience with resident rewards Here's how you can sprinkle some rewarding magic into your resident experience: On-Time Rent Rewards: Create a system that rewards residents for consistently paying their rent on time. It could be a small discount or a gift card to a local coffee shop. Longevity Rewards: Celebrate lease renewals or long-term residents. A gift, a discount, or even a personalized note can make your residents feel valued for their loyalty. Referral Rewards: Turn your residents into ambassadors! Offer a discount or a bonus for any referral they make that signs a lease. Surprise Rewards: Keep the excitement alive with occasional surprise rewards. It could be as simple as a movie ticket or a voucher for a free car wash. 6. Incentive Programs Incentive programs are the next level of resident engagement that professional PMs offer. They can positively influence resident behavior, promote a sense of belonging, and even enhance your property's appeal to prospective residents. When residents feel that their good habits (like timely rent payments) are being recognized or they're being offered valuable services (like credit reporting or identity protection), it builds loyalty and satisfaction. It's like saying, "We're in this together, and we've got your back!" How incentive programs can boost the resident experience Here's how to serve up a great menu of incentives for your residents: Credit Reporting: Offer a program that reports timely rent payments to credit bureaus. It's a win-win: they pay their rent on time, and they build their credit! Identity Protection: In a world where digital safety is paramount, offering identity protection services can be a powerful incentive. It's like providing an invisible, protective bubble around your residents. Rent Discount for Referrals: Encourage residents to become your ambassadors. Offer a rent discount or a gift for successful referrals. It's like having your very own fan club. Early Payment Incentives: Reward residents who pay their rent well before the due date. It could be a small discount or a token gift, but it makes them feel appreciated. Rewards for Green Habits: Encourage residents to adopt environmentally friendly habits, like recycling or energy conservation, and offer incentives for their green efforts. This can really help in SFR when you don’t have the same level of control as PMs managing an apartment building. 7. Support Tools Support services work behind the scenes, often unnoticed, but they play a crucial role in streamlining the resident experience. From filter delivery subscriptions to online payments, these services add a layer of convenience and assurance for your residents. Integrating support services into your property management strategy can not only elevate resident satisfaction but also reduce your workload. It's like having a friendly assistant who's always ready to lend a hand, both to you and your residents. How to create support services that add convenience to your resident experience Here are a few ways you can amplify your resident experience through support services: Filter Delivery Subscription: Offering a filter delivery service for your residents ensures their HVAC system is always protected. It reduces your maintenance issues and costs and ensures they have a safe living environment. Second Nature’s filter delivery reduces resident and PM costs by hundreds of dollars a year. Online Rent Payment: Providing an easy-to-use online portal to process and automate rent payments and lease renewals adds a layer of convenience for you and your residents. Maintenance Request Portal: An online system for maintenance requests helps keep track of issues and ensures timely response. It's like having a 24/7 maintenance desk at their fingertips. Digital Notifications: Use email or SMS notifications to keep residents updated about important things like maintenance schedules, community events, or changes in property rules. Proptech solutions can help with digital support. Resident Portal: A comprehensive resident portal where tenants can access services, find information, and connect with management can significantly enhance the overall resident experience. 8. Concierge Services Concierge services are the above-and-beyond offerings that can truly set your property apart from the rest. This personalized attention can transform the often stressful processes into a smooth and enjoyable experience. How concierge services help with resident experience Here are some other examples of concierge services: Move-in Concierge: Who doesn’t want a personal assistant during the often chaotic time of moving? A move-in concierge helps with utility setup and pricing comparisons and provides local area information. Learn more about Second Nature’s Move-in Concierge in our Resident Benefits Package. Cleaning Services: Offering access to trusted cleaning services, whether for regular use or during the move-out process, can be a huge convenience. Maintenance Scheduling: A service to help residents schedule routine maintenance can keep their homes running smoothly without them having to worry about coordination. 9. Insurance While, as a property manager, you carry insurance for the physical property, it's equally important for your residents to have renter's insurance. Your coverage protects your owners' real estate investment. Renter’s insurance protects residents’ personal belongings and covers them for liability, and it's a small investment for significant protection. Plus, in case of a mishap, it can help the recovery process go much more smoothly. Resident experience examples: How to leverage a renter’s insurance program Here's how you can integrate insurance into your resident experience: Educate Residents: Make sure your residents understand the importance of renter's insurance, what it covers, and what it doesn't. This is critical information that every renter should know. Insurance Requirements in Lease: Include a clause about renter's insurance in your lease agreement. This helps to set the expectation right from the start. Annual Reminders: Send out annual reminders for policy renewals. It's a small step, but it ensures continuous protection for your residents. Renter’s Insurance Program: While most property managers require insurance, less than half of renters maintain coverage. Second Nature has developed a renter’s insurance program that has 100% compliance and leaves residents – and you – with the coverage they need. How SecondNature Improves Resident Experience Resident experience – those pivotal touchpoints between a resident and a property manager – can significantly shape the success of a single-family rental home. At Second Nature, we’ve built our entire company on the idea that resident experience can change the game in property management. Our Resident Benefits Package wraps up each of these strategies into an all-in-one resource for property management companies. It saves money for you and your residents and delivers the best in convenience and resident experience. Learn more about the Resident Benefits Package or read our State of Resident Experience Report.

Calendar icon July 18, 2023

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How To Ensure A Smooth Resident Benefits Package Rollout

Rollout is a high stress time for any new program, but it doesn't have to be. One of the leading concerns for property managers any time they seek to roll out a new program is resident pushback. In the property manager/resident relationship, there’s a narrative that’s persisted for too long that the two parties are at odds with each other and playing some sort of zero sum game. Oftentimes, this is internalized by residents who have been exposed to said narrative or have had a bad experience themselves, and the natural inclination is to push back on any advances from their management team. Related: State of Resident Experience Study Having to battle this is one of the main concerns property managers have when it comes to introducing a resident benefits package. This includes Kyle Hendricks, Vice President of Hendricks Property Management in San Antonio, Texas. “It was ours. For a couple years, we were like ‘I don’t know if that's going to work, you know?’ But it’s the same with a lot of programs that we’ve rolled out. Our fears are never really founded. The pushback is usually pretty minimal if at all, and it was the same here.” ‍Read more about why pushback on RBP is minimal ‍So how did Hendricks Property Management deliver such a seamless rollout? Well, it’s pretty simple actually. It’s all in the communication. Hendricks was quick to note that open communication and transparency are big keys to minimizing pushback and easing the path to successful rollout. The actual logistical rollout of an RBP is handled by Second Nature, so there’s very little for the property management company to actually physically do, making acceptance and adoption by residents and investors their primary concern. Hendricks Property Management nailed this part with clear and concise communication. Second Nature's resident facing flyer “The flier that Second Nature provided was a pretty clear point of communication. It says on there that you’re being enrolled in this program and the charge is this much. It’s just simple like ‘welcome to Hendricks Property Management, we give you a resident benefits package, here are the things you get with the resident benefits package.’ Because of course the question is ‘what am I paying for? You’re saying this is a benefit package, what are the benefits?’ So that just clearly outlined what they were, and did everyone love it? Not necessarily, but the amount of pushback was definitely minimal." Beyond the reality that most residents simply don’t object to a resident benefits package, clear and open communication is part of a great resident experience anyway and will certainly ease any fears you have about rollout, as well as any fears residents or investors might have. It's another part of delivering a triple win. “Be ultra transparent and get it done in the beginning, just saying, we're not hiding anything. This is what you're being enrolled in. This is what it is. I think that helped the adoption rate a little bit. And if people did call in with questions, we were happy to answer them and talk to them about it. So ultimately, it was fine. But I don't think we did anything special. I think just making sure we had that transparency up front was crucial.” ‍A resident benefits package creates a triple win. Everyone benefits. The purpose of clear and open communication is to establish those benefits within the perception held by the resident and owner parties. They may not know much about this, they may have never heard of a resident benefits package, so you have the opportunity and responsibility to show them the value it creates for them and how you are committed to ensuring it remains a mutually beneficial undertaking. Hendricks touched on how team buy-in has affected Hendricks Property Management’s ability to do this. “For me and anything that we adopt, we believe that if it's not something I can stand behind and competently tell a tenant or owner ‘this is good,’ then I'm probably not going to do it. I was easily able to do that with this program. So get your team on board. If they can't confidently tell a tenant or an owner, this is what it is, this is why, and this is how it benefits you and your tenant, then you're going to run into trouble because they can tell if it's kind of lackadaisical, if it's just this thing that the owner of the company wants to do. We try not to go ‘well it is what it is, so just deal with it.’ We try to explain in a positive way what the benefits are. So kind of getting that script together, you don't have to be like a robot or anything like that, but just have the main talking points available to your staff about what the benefits are.” At the end of the day, ensuring a great rollout of your RBP with minimal friction isn't too hard. It's just about positioning the services as the mutually beneficial programs they are and always being up front and willing to communicate. From there, the sky is the limit with resident experience.

Calendar icon March 21, 2023

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Why You Should Focus On Resident Experience

What's the best way to stand out from other Property Management Companies? How can you stay relevant and keep residents and owners happy? Andrew Smallwood from Second Nature explains why focusing on the resident experience can make all the difference. Related: State of Resident Experience Study For more on the topic of wow-ing your residents and building resident retention, check out some of our other articles and podcasts: Top Resident Retention Ideas from Real Property Managers How to Screen Tenants: Tips for Property Managers Types of Resident Problems and How to Handle Them How to Streamline Property Maintenance for a Business Win How to Ensure a Smooth Rollout of Your Resident Benefits Package Here's more from Andrew on how to approach resident experience, and the best perspectives he gather along the way. ‍ TRANSCRIPT Andrew Smallwood: Hey everybody, Andrew Smallwood back again with Stevie Wonder for a quick video. And in today's video we're going to talk a little bit about how property managers have been resonating with this concept of focusing on experience. And I want to share with you a concept that I need to credit to Joe Pine. And you know what Joe Pine says: Hey, if you go back hundreds of years, materials were valuable. People were trading wood for metal, for gold, etc. And what happened is those materials became commoditized. And so in order to create value, those materials got turned into products. The metal turned into nails, right? The wood turned into a wall, etc., or a skateboard or what have you. And so materials turned into products and suddenly the dollar amount here that was very low and commoditized went here and the dollar amount became more. But at a certain point, products even have become more competitive and commoditized. And what you've seen more recently, the last few decades, is a move to services, the services that are built around those products. So it's not just, here's a nail, but here's also a person to help you hang everything in your home and have it designed the way that you want. Instead of just here's a skateboard, here's also a teacher to help teach you how to use it. And even now, we've seen commoditization of service industries, entire industries, being commoditized. And a lot of people are noticing and saying that's what's been happening in property management. And so where does that lead us next? It's really, here's where we are now: experiences. The customization of materials leads to products, the customization of products leads to services, the customization of services leads to experiences. Whereas commoditization moves things down this way, and the value goes down here -- the value goes up as you move up this way. And so experience is really the name of the game today, and that's why we have RBP is because we believe the experience, the number one resident experience is where property managers are going to win. The people who create the best experiences for owners, the best experiences for residents, the best experiences for their team, create what we call a triple win. And an RBP is just a great example of a triple win. It's why we've had the podcast, it's why we've had so much of this content. This is just part of the mental framework of what we believe is important and part of the way that we see the world. Would love your commentary if you've read The Experience Economy by Joseph Pine. Would love to hear your thoughts. If you haven't, would love to hear your thoughts. And we hope this helps you in some small way or some big way. With that, take care.

Calendar icon March 21, 2023

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The Pod System Defined by Phil Vera

The Pod System helps Auben Realty provide an excellent resident experience at scale. ‍ Auben Realty CEO Phil Vera joined us on The Triple Win Podcast to discuss a number of topics in the property management industry, including the innovative Pod System. The Pod System is a management technique Auben instituted in recent years that’s helped them to focus on long-term benefits of a great resident experience while building meaningful relationships with investors to create a triple win where all parties benefit. This triple win is also the concept behind Second Nature's Resident Benefits Package. Related: State of Resident Experience Study What is the Pod System? As Vera explains, most property management companies employ traditional property managers who serve as a jack of all trades for the properties they are tasked with managing. This is portfolio-based management. They handle everything from leasing, to maintenance requests, to communication with the investor and the resident for their portfolio of properties. The end of the spectrum opposite a portfolio-based company structure is a departmental structure, where employees handle a specific piece of the management channel for many different properties. Neither is necessarily a wrong way to do things, and both work well for certain companies, but Auben was convinced there had to be a better way. Enter the Pod System. The Pod System is innovative because it has hybridized portfolio with departmental, creating teams of people to manage a portfolio of properties, with each person serving in a specific role. This structure allows Auben to provide excellent and reliable communication as part of its resident and investor experience while not sacrificing the advantages of an effectively scaled property management company. How does it create a Triple Win? Within each team, Auben employs an Investor Account Manager. These roles are designed to foster a great working relationship with investors and create open and accessible communication channels. “They are the investor’s main point of contact,” said Vera. “They build a relationship with the investor, provide updates, communication flow, all those things. If an investor has a question, they pick up the phone and they call their investor account manager and they have a direct line.” This is a differentiating experience for Auben, as most PM companies don’t offer a direct line of contact for investors. Auben employs a resident experience manager as well, which Vera touches on, noting the value it’s created for Auben. “We kind of went outside of the norm and we created the resident experience manager. So traditional property management, we’re focused on the investor. That’s our client. The resident pays rent. If you don’t pay rent, we’ll find someone else who can. We wanted to kind of think outside the box there and say ‘okay, the resident is important in investing because if we can decrease vacancy and reduce turnover and keep the residents happy, they’ll stay in our properties for long periods of time and ultimately increase the investor’s return as well.’” The innovative company structure used by Auben is a perfect example of creating a Triple Win. Auben has built itself around the importance of the resident and investor experience, and the satisfaction those parties receive as a result directly benefit Auben in the long-term. Experience is the key term there, as that's what property management companies need to start delivering to stay ahead of the curve in an evolving industry. Being part of the first wave of companies to transition their offerings from service to experience creates an opportunity to grow and thrive that isn't otherwise available in the SFR space, and that's the reasoning behind Auben's innovative pod system. Have you thought about implementing a Pod System in your PMC? Do you think it could work for you, too?

Calendar icon March 21, 2023

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What is the Triple Win in Property Management

What is The Triple Win?

In this video, Andrew Smallwood walks you through the process of the triple win. Property management strategies have historically been focused on a zero sum game: getting the most out of your clients for the least amount of work. But in the end, that strategy doesn't generate more value for anyone. The Triple Win is about a completely different business mindset. It's all about finding a way to elevate the SFR rental experience for everyone - Residents, Owners, and Property Managers. We aim to help build property management products and services that add value for all three. In this video, Andrew talks about how to build programs that deliver wins. That's why we call our podcast the Triple Win Podcast. In it, we talk with property management and real estate experts around the country and outline the best innovations in the SFR property management space. Programs like an filter delivery service, move-in concierge, credit reporting, and more. All of these can be wrapped into a Resident Benefits Package (RBP). These programs help solve for what residents want, and what they'll pay for and stay for. It also helps build the kind of behavior the property managers and investors need. Andrew introduces these concepts in the video below. To learn more, get in touch with our Triple Win Leadership Council, or join the Triple Win Leadership Exchange. ‍ ‍ TRANSCRIPT: Andrew Smallwood: Hey everybody, Andrew Smallwood coming back again. Listen, I wanted to record one more short video because the last one got such great feedback, and I had an idea that I've been talking about to a number of folks and they say has really been resonating with them. Again, I'm just going to move over here for a little visual help. People have been talking about, "Hey, this triple win concept in your podcast and everything like that, what's really going on here?" There's three parties that professional property managers are thinking about anytime they're making a decision or structuring their business. And that's residents, owners, and then you and your team. Here is often what property managers feel stuck with: They make a decision that benefits their owners, maybe in a meaningful way, right? But there's a little bit of a trade-off as far as how it impacts a resident, and then here's their team cut in the middle between these two expectations, right? It feels like everything's kind of going every direction. What we want with a triple win is something more like this, right? You've got your residents, owner, you and your team, and everybody benefits. So you've got this powerful, aligned transformative effect in the business. Everybody going the same direction, everybody impacted in a positive way. When you think about this, it's like, "Hey, when you structure a new fee or a new program or what have you, it's really keeping in mind, 'How do we do this in such a way that it elevates the experience for everyone, and that that story is all lined up, the incentives are all lined up.'" Listen, I'm not telling you this is the only way to do things. Some of you may be saying like, "Of course, it's obvious this would be the way you would do things." But for some property managers, it isn't. For some property managers, there are questions like, "Well, hey, I make so much on maintenance. Do I really want to prevent maintenance?" That's really just a question of how do you want to align your value. Meaning if, yes, you make money from reactive maintenance, maybe there's a benefit here that you can say, "Hey, I'm monetizing all that reactive maintenance." But for property owners, we know that's no good and for residents, that's no good as well. So while it may be a win here, it's a single win and it's a double L, right? Preventive maintenance means a win for the resident, it means a win for the owner, and it means prevented work for your team and you can monetize your preventive maintenance. So it's still a win for your bottom line as well. That's really the takeaway: This lens that we're talking about seeing the world through. Once you put this lens on, it's like you can never see anything the same way again. Just like glasses change your view of the world, or a microscope or a telescope give you a different view of something that you're looking at, so does the triple win lens. Hope this video is helpful. Would love your feedback. Shoot me a comment, email, wherever you're seeing this. Would love to hear your stories of triple wins or how you structured things or what you implemented in order to create a triple win and transform your property management business. With that, until next time, keep rocking. See you.

Calendar icon February 16, 2023

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Property Management FAQs About Resident Retention

Resident retention is one of the best ways for property management companies to drive greater success for their business and their clients. Residents who stay longer ensure consistent revenue, often take better care of the property, and help make planning more predictable. But resident retention can be a moving target. In a recent Buildium survey, 36% of single-family rental residents said they were on the fence about renewing their lease in the coming year. We’ve talked a lot here about resident retention and ideas for building long-term success with residents. Today, we want to do something a little different. We decided to ask a property management expert about her experiences with building resident retention, and we’re sharing our Q&A with her here. ‍ Key Learning Objectives: Recent trends and data on resident retention How retention strategies can save money Best ideas for setting up a resident retention program: What works and doesn’t work How to calculate resident retention rates ‍ Meet the Expert: Melissa Gillispie, Director of Leasing & Property Management at JWB Real Estate Capital Melissa started her career with JWB in 2013 and is currently the Director of Property Management. She is the licensed real estate broker for JWB and plays an integral role that has led JWB to manage over 4,900 single-family homes in Jacksonville FL, being the largest local rental management company in Northeast FL. Under her purview, JWB has delivered over 26 million dollars in cash flow to its current clients through exceptional management services. Melissa also sits on the Board for NARPM Northeast FL as the Membership Co-Chair. She won the 2022 NARPM Rocky Maxwell award for dedicated service and contribution to NARPM. She is married to her husband of 14 years and has three sons aged 11, 9, and 6. When she is not working, she can be found at the football and soccer fields cheering her sons on! Why should property managers pay attention to resident retention rates? Can you share some recent data or trends about resident retention? Melissa: Resident retention is a direct reflection of your customer experience. If people enjoy working with you, they'll stay. If they don't, they won't. We use resident retention as a key benchmark for measuring our customer service. In our market, we renew 72% of our leases annually. A standard PM benchmark historically is that about a 70% renewal rate for residents is a huge success. Some factors currently impacting retention include the housing market, higher interest rates, and tax/insurance cost increases. These factors make buying harder, which drives more rental retention. On the flip side, due to rising costs for investor clients, rent rates are climbing to keep up with those costs – which can be a big objection to overcome with residents. Swallowing the pill of a $150-$200 increase in rent can be tough for a resident on a fixed income. That makes their experience with us even more important. If they don't enjoy the experience, they most certainly won't agree to that level of rent increase. Related: How to write a rent increase letter. How can resident retention strategies save property managers money? Melissa: Residents who stay longer-term tend to make on-time payments more often, take better care of the home, and reduce vacancy costs/leasing burdens. These benefits lead to better rent collection and increased management fee collection, happier clients with lower turn costs, and a lower market-to-move-in or days-on-market metric for leasing because their inventory continues to be reasonable and controlled. What are some of the best ideas to set up a resident retention program? Melissa: Reach out early and often! We start reaching out to residents six months before their lease expires. Make the reason for that initial touch point just to "check in" – because it’s about relationships! People like to feel valued. Get creative with incentives for long-term leases! We offer all kinds of crazy resident incentives. We even bought a resident their very own bounce house when the client's homeowners insurance made the resident remove their large trampoline. Identify the real roadblock or concern, and do everything in your power to listen and solve it. Listen to any real complaints. If there are maintenance issues, solve them. If there are communication concerns, address them. Residents want to know that when they voice a real concern, you hear them and work hard to partner with them to fix it! What are some ideas for PMs who are struggling with resident retention? What have you seen work well? What doesn’t work? Melissa: The best advice I can give is this: Communication and expectations are KEY. Start to work for the renewal on Day 1 of the original lease term, and consider how you can increase your communications. Be transparent. Be open to feedback. See retention as a bottom-line revenue driver. See retention as a benchmark for how residents are experiencing your company. Set a budget for creative incentives, and then encourage your team to USE THAT MONEY UP! The more "dopamine hits" you can give for those feel-good connection moments, the better! I think creativity is understated in property management. We focus so much on difficult interactions. How can we increase the positive ones? Who doesn't love to feel celebrated, seen, valued, appreciated, and considered? Do you recommend using property management software or tools to help improve resident retention? What are some of the best options? Melissa: Automation is key as you scale your business. We manage around 5,000 doors, and without the ability to send email and text blasts, etc., we'd struggle to achieve the high touchpoint mentality we have. I think the larger your business, the more important these tools become. You can only grow at the pace at which your business can efficiently scale without having to continually add more staff. Text Magic is a low-cost solution for texting, call fire is a great option for mass-dialing and automated phone messaging. Any PM software has great reporting capability to build out mail merge lists. It doesn't have to be expensive to make it happen! How do you calculate resident retention rates? What’s a good average retention rate, and what factors impact retention? We look at leases ending as an opportunity, and our resident retention is how many of those leases ending in a calendar year we convert to extend their lease term. Executed / Opportunities = Renewal Rate. A good average retention rate is anything 70% or better. That number has been our benchmark for success for 17 years of business. Factors that impact retention include how much owners are involved in setting rent rates, the housing market, the rental market, demand, experience, etc. We haven’t seen retention rates vary significantly by location, such as states vs. cities vs. rural areas. Improve Resident Retention Rate with Second Nature RBP Time and again, we’ve heard that one of the most important factors to resident retention is resident experience. It’s such a natural connection it almost goes without saying. As Melissa said, “If people enjoy working with you, they'll stay. If they don't, they won't.” In recent years, one of the more effective innovations in resident experience is the Resident Benefits Package (RBP). Second Nature’s RBP was designed to create an easy win for SFR property managers. We developed each feature as a direct response to a pain point in resident experience and property management – but that often fell out of the scope of property management companies’ bandwidth or expertise. To learn more about driving resident retention with a custom RBP, get in touch with us!

Calendar icon February 16, 2023

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What is the Triple Win Leadership Council? | RBP by Second Nature

Building an aligned future where every home is professionally managed. ‍ Disclaimer: Everything you see here is a living draft of the TWLC vision. This outline should be seen as a starting point, and we want to invite you to co-create what this really becomes. The initial TWLC commitment is for Phase 1 only. You can decide what your involvement looks like after July's In-Person Design Summit. ‍ WHO IS ON THE TRIPLE WIN LEADERSHIP COUNCIL? Trusted Property Managers. Key opinion leaders, entrepreneurs, and exceptional operators in the industry. Forward-thinking Leaders. Passionate about thinking differently, creatively, and pushing industry norms in innovative ways. Philosophically Aligned. Believers in the Triple Win approach, making property management better for residents, investors, and teams. WHAT ARE THE PURPOSE AND VISION? The Triple Win Leadership Council (TWLC) empowers property management professionals to build a future where every home is professionally managed, to the benefit of residents, investors, and teams. The TWLC will act as pioneers and stewards, so that the gap between outcomes and experiences professionals create is further distanced from those accidental landlords can create on their own. This makes professional management more attractive to more people and forces a choice instead of a comparison. Three guiding questions: - How do we build an experience so good, residents never want to leave? - How do we build an experience so good, investors never want to sell? - How do we build an experience so good, talent wants to grow in this industry? HOW WILL THE TWLC INFLUENCE CHANGE? The TWLC will set the "P.A.C.E." for positive, sustainable industry change through: - Shaping innovative Products - Spotlighting success with the Triple Win Property Management Awards - Co-creating conversation-inspiring Content - Transformational, connective Events CALENDAR & COMMITMENTS Phase 1: Formation DECEMBER 14, 2022: 60-MINUTE VIRTUAL KICK-OFF CALL FEBRUARY, 2023: 2-HR QUARTERLY STRATEGY SESSION MAY, 2023: 2-HR QUARTERLY STRATEGY SESSION JULY, 2023: IN-PERSON DESIGN SUMMIT (LOCATION TBD) Phase 2: Develop AUGUST, 2023: We will define this together. Phase 3: Scale To apply for TWLC Membership, click here. Apply Today If you would like further information or to ask questions directly, please contact: Laura MacMinn, Triple Win Event Coordinator, Second Nature Email: lmacminn@secondnature.com

Calendar icon November 17, 2022

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Property Management and The Experience Economy

What is an experience economy and why is it relevant to single family rental property management? There are 3 questions driving the future of value creation in professional property management. How do we create an experience so good, residents never want to leave? How do we create an experience so good, investors never want to sell? How do we create an experience so good, talent wants to be in this business forever? The word experience is key. Whoever creates the best experiences will create the most economic value as the service side of property management becomes commoditized. In Joe Pine’s book, The Experience Economy, he reveals a critical insight that transcends real estate to other industries. It’s about the staging of value creation through the lens of commoditization and customization. In today’s highly competitive world, companies often focus solely on process improvement, optimization, cost-cutting, and driving efficiencies. While these are critical to remain competitive and improve margins, they are the playbook of a game that ends with operating a low-margin commoditized business. Some business leaders even talk about their industries being commoditized as a badge of honor. Interestingly enough, that thinking is self-fulfilling; by not focusing on creating higher-value offerings, they are riding the train to commoditization.History contains many examples of innovations so groundbreaking they captivated people and led the way for economic prosperity. Artificial light, telecommunications, automobiles, to name a few. While these were all once higher-margin innovative offerings and the most attractive businesses to be in, they have grown to be stale and competitive industries, forced to compete on price, leading to lower profits and company value relative to size. For example, Ford and GM, once praised as innovators in manufacturing goods, are now in a sea of competition and worth a mere 0.4x revenue at the time of this writing. The Experience Economy dives into these macroeconomic trends and shows the change over time in their Progression of Economic Value chart. The macroeconomic trends demonstrate how we have gone from extracting commodities to making goods to delivering services to, finally, staging experiences as the current primary driver of economic growth. One of the many great examples included in the book is the staging around birthday party: A birthday party at home that consisted of a cake and celebration requires the commodities, flour, sugar, butter etc.. to make at a cost of <$0.10. Then companies began offering “cake mix” which was more convenient that cost $1.00, followed by bakeries making the whole cake as a service for $15, and now, people outsource the whole birthday party to a venue like Dave & Busters or a party planner. There’s a party, invitations, custom napkins, entertainment, and yes, a cake is part of it. So someone can be in the pennies for cake materials business, the quarters for cake mix product business, dollars for a fully-made cake, or thousands of dollars for a full birthday or wedding or celebration event experience. That’s the commoditization to customization journey. Many property managers have correctly said, “We’re in the service business.” However, looking at where the most economic value will be created, today’s industry leaders have already started the shift to “We’re in the experience business.” They’re seeing different opportunities, which lead them to different choices that yield different results, and they find themselves in differentiated businesses. Professional property management is fast approaching a “hotelification” phase, where premium amenities and hospitality-grade service are creating a rental experience so good that more people choose the rental experience for longer periods of time. Hotel staff are called upon to enhance the experience of a proposal, an anniversary, a birthday celebration. And the great ones answer and emotionally connect. They are “moment-makers'' who create enduring loyalty, allowing them to drive more economic value. Consider how many of life’s meaningful and memorable moments are created at home. But how many people can name the owner of the apartment they lived in as easily as the hotel that elevated that special moment? So what are property management leaders doing today, and talking about doing tomorrow to create the #1 resident experience? The occupied experience is being defined by the “Resident Benefits Package”. From conference events like IMN, to NARPM, to PM XChange and PM Grow, it is hard to find an agenda that doesn’t include it. It’s a hot topic. Property managers and service providers have figured out how to turn persistent problems into a suite of proactive solutions that residents will pay for. Some of these services have been amenitized, like 24/7 maintenance coordination, vetted vendor networks, home-buying assistance, multiple payment options, and more that have become standard practice in professional firms. But there’s also a list of emergent ancillary services that are making their way from initial adoption to the definitive standard in the professional management experience. Move-in Concierge - Getting utilities and home services set up is a hassle for residents. Instead of 4 phone calls to get water, energy, internet, and TV services set up after researching who services the address, now residents can make one phone call and speak to a concierge who has looked up the discounts and promotions available and can confidently guide them through the process. In the future, this service likely expands to moving itself, deals on furniture with offers to assemble it, coordinated home cleaning, and landscaping. Air Filter Delivery - HVAC has been the #1 maintenance line item in SFR in most markets, second to plumbing in more temperate markets. And it has been a persistent problem of getting residents to change their filters on time. A 2020 HVAC Data Study that looked at over 7,900 SFRs in 4 markets, over an 18 month period, showed a 38% reduction when comparing a scheduled filter delivery program over the status quo of leaving a stack at move-in or hoping the resident remembers to go to the store. Every 2-3 months, residents are getting a box on their doorstep, where convenience makes it easier to do the right thing than to forget or ignore the responsibility entirely. Credit Building - every month that residents are paying rent on time, they get the benefit of that activity contributing to their credit file. A Goldman Sachs study showed a 42 point average increase in credit scores over 4 months. The credit bureaus also allow for up to 24 months at the same address to be back-reported which can provide a meaningful boost. Property managers are able to incentivize on-time rent payment and help residents build their credit over the course of their lease. Rewards - Residents are used to getting points and rewards for their loyalty with hotels, airlines, their credit cards… why not on their largest monthly expense? And while a rewards platform offers residents a unique benefit and savings on both everyday and luxury items, it is an incentive platform for the property manager. Rewards points allocated for on time payments, timely renewals, and ticky-tack maintenance like flipping a circuit breaker or resetting a GFI outlet mean more of the resident behaviors property managers want. Leveraging it for concessions and leasing incentives also means savings over cash offers, or higher perceived value at the same cash expense. Washer/Dryer Rental - Some properties may have these appliances installed or the residents come with their own, but we’ve seen the impact on prospective applicants choosing homes due the convenience of having the washer/dryer available. Smart Home - From thermostats to keyless entry to water leak detectors and more, there is hardware and technology alike growing more popular each year. Not only are they appreciated by residents, but they provide critical operational efficiencies to the management team. In addition to these, there are many more innovations that are going to dramatically improve the experience of renting and raise the bar on what’s expected. The companies that architect the best experiences will be the market leaders and capture the most upside in this future economic environment. We constantly are asking ourselves, what might the professional property management industry look like in 2030? The shift from transactional services to transformational experiences is one of the surest bets on the table. The big winners will be the players who embrace the new discipline of experience design. We believe the future belongs to the professionals, the trusted, the innovative… the people dedicated to changing the way people live forever.

Calendar icon October 25, 2022

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A CEO's Thoughts on the Evolution of the Property Management Industry

Keeping one eye down the road is critical in a changing industry. ‍ Matt Whitaker, CEO of Evernest, was kind enough to join us on The Triple Win podcast and share some interesting insights about the future of the property management industry. Whitaker has been a CEO since 2008 and has no shortage of experience managing a major player in the industry. His company is rapidly approaching 5,000 doors managed and now exists in 13 markets including Birmingham, Detroit, Nashville, and Atlanta. One of the topics of discussion between Whitaker and host Andrew Smallwood was the increasing polarization within the PM industry. Now, polarization as a word typically has a negative connotation to it, but it’s not necessarily a bad thing for the professional property manager in this case. ‍ Boutique vs. Scaled “I see the property management industry breaking into two worlds. I do believe there is still a place for the boutique manager in the future,” said Whitaker, who noted that some people may disagree with this assessment. But the personal relationships, nimbleness, and communication offered by a small-scale handful-of-doors property manager is hard for a large company to replicate. Not everything can be scaled efficiently and the value created by the smaller business’ ability to do those things well will continue to create opportunities for boutique property managers to thrive. “On the opposite end of that spectrum, I think there are going to be platform businesses that provide value to investors in other ways. So the boutique manager is the partner and the platform business, let’s call it, is going to provide an ecosystem of everything from property management, perhaps brokerage, perhaps maintenance, all these other verticals that are driving value for their clients.” Whitaker continued, “What I would be afraid of is getting caught somewhere in the middle, where you’ve got a big enough company that you don’t know all your clients, but you don’t have a big enough company that you can drive scale and give your clients and customers the benefit of that scale." Scale is certainly where Evernest is headed if it’s not already there, and Whitaker’s prediction is based largely on how companies like his and companies on the opposite side of the size spectrum create value for clients in two very different ways. This is the concept of differentiation, which is not achieved by the companies “in the middle.” Those companies are simply not going to be able to offer anything in the market that somebody else isn’t doing better. The spectrum Whitaker discusses can be warped to some degree, and some companies are attempting to do that by scaling aspects of the business, like personal relationships, that have not traditionally been scalable (see Auben Realty’s Pod System). But a general understanding of how a good property management company creates value for its investors and clients would lead you to the conclusion that, barring a major disruption, Whitaker’s polarization prediction is probably going to be right. “Begin with The End in Mind,” as Stephen Covey once said, is a concept that always applies in business, but is especially relevant now in the property management industry. Having a defined vision for your company can help you set meaningful goals and stick to them. Knowing what space in the industry you want to be occupying in five years can protect you from “getting caught somewhere in the middle.”

Calendar icon September 9, 2022

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Why You Should Host Quarterly Zoom Calls with Your Investors

Three veteran property managers who have implemented quarterly video calls with their clients. They speak to exactly how and why they operate these, and the specific value it creates for their companies. In late 2019, Real-Time Leasing CEO Deb Newell launched a new communication initiative aimed at building a better investor experience. The concept was simple but effective: a regularly cadenced zoom meeting with all their investors. “We invite all of our owners and we basically do a ‘state of the union’, a state of our company,” says Newell. “You pull back the curtain, you’re really showing them what’s going on behind the scenes and inviting them to have a little bit more information as to what the day to day may be.” Other PMs have since recognized the value of disclosing the innards of the business to investors, including Bryan Jenkins of AHI Properties and Karen Jordan of HBR Rentals, all of which appeared on a panel at PMLX with Newell to break down how they run these calls. What is the goal?‍ These investor zoom calls have one main goal, which is to keep the investor informed about and engaged in the processes of how their asset is being managed. When it was pioneered by Deb Newell, CEO of Real-Time Leasing and professional property management consultant, the intent was to provide such a thoroughly informative session that investors would leave feeling like they’re being kept in the loop and their questions and concerns were heard. This has proven more than successful for Newell and Real-Time Leasing, as well as other companies that have adopted the practice. It’s an obvious win for the investor, but the resulting relationship development with clients is also a big win for property managers. In the new age of property management, where lifetime value has supplanted immediate cash flow as the PM’s north star, making efforts to keep investors in the loop helps build a relationship that contributes to said lifetime value. Newell notes that a lot of investors think that the only time they hear from their management company is when there is a problem. That can really strain the client relationship, but it’s such an easy thing to fix and doing so will usually come as a surprise to the investor. Many probably aren’t expecting to be this informed. Their experience with old school PM companies would give them no reason to. “We’ve heard nothing but positive things about it. They were amazed that we did it in the first place,” said Newell. Bryan Jenkins of AHI Properties, part of the PURE Property Management family, has seen similar positive reviews after adopting the quarterly zoom call concept. “We've had nothing but positive feedback on the two that we've done this year. I've got clients that have properties in multiple states with multiple managers. And their comment is always no one else is doing this. And they're just blown away that it's proactive versus reactive.” How do you run them? Newell recommends doing these meetings quarterly and generally tries to provide investors a holistic view of the company’s status and the performance of the assets it manages. “The idea was to say ‘hey, we’re just going to tell you exactly what’s going on in the company, how well we’re doing, how well rent has been received, what our percentage of occupancy is, what our percentage of delinquency is, that way they felt more engaged.” Newell typically lays out an agenda that features a run through of all those things. “That usually lasts about 45 minutes, and we do open it up for questions. So we’ll have somebody monitoring chat . . . they can definitely ask questions during the chat, then at the end we open it up, let everybody unmute and ask questions.” Jenkins and AHI take a slightly different approach, electing to focus on the strategy for AHI’s decision-making and making sure their clients have a good understanding of why they’re doing what they’re doing. “We want to have our clients understand the why, why we’re doing certain things, why we’re deploying certain systems. They don’t need to understand the how, it’s the ‘why’ portion of it.” Jenkins hits on an important point, which is that it’s worth identifying what’s important to your clients and focusing exclusively on that. You could probably talk about what you’re doing as a company and why for hours, but whittling down to what’s most important to the clients can result in a more streamlined and efficient meeting that loses fewer people over the course of it. “We're explaining why we're doing things, how we're doing it for their benefit, and we focus on the triple win. We even talked about on our last call that we're looking for a win for the owner, the resident, and the manager and once we focus everything through that lens, it's easy. And we're also focused on the education of our owners and educating them on the way that we want them to think as investors.” Jenkins, Jordan, and Newell break their meetings up into segments, each with time allotted to different speakers within the company. Karen Jordan of HBR Rentals remarks that this helps clients put faces to names and build a more direct relationship with employees beyond just company execs. “I loved that they can put a face to a name because a lot of our owners have only met myself. So they haven't met the team. So to see the face of who's our maintenance coordinator, who's the Resident Experience Manager, to really get to know them, I think it really helps them,” said Jordan. Creating a Triple Win The extra communication with investors Newell, Jordan, and Jenkins are striving to create is another great example of how property managers are realigning their business toward lifetime value via triple wins. The benefit to the investor of being in the know and feeling like their questions are addressed is obvious. On your side as the PM, this is a great opportunity to forge a strong relationship with your clients, but it’s more than that too. Regular communication with clients also gives you an opportunity to teach. Investors may not understand everything you’re doing, why, or how your long-time priorities have shifted as a triple-win driven property manager. Jenkins focusing on “the why” provides powerful insights to investors on this exact question. As a property manager, you’re trying to provide value that investors can’t easily replicate themselves or with the assistance of technology. These quarterly calls are great opportunities to ensure your clients understand exactly what value it is you’re creating for them. When investors and property managers are on the same page about the future of property management, creating a great resident experience is even easier. That's a triple win.

Calendar icon May 19, 2022

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A Sales Person's Review of Giftology by John Ruhlin

When I was first introduced to the book Giftology by John Ruhlin during a Second Nature sales kick-off a few years back, I didn’t really know what to expect. Andrew Smallwood and Scott Stollwerk wanted the team to read the book so that we could gain a better understanding of the impact of being intentional with gifting. I didn’t realize then how much this book would change me. Giftology is all about strategic and intentional gifting - gifting with a purpose. This book aims to change the way we look at giving gifts. Too often gifting is seen as something habitual and unintentional. But Giftology really provokes you to think about how we can turn a gift into not just something we give….but to really make it into a lasting moment. The book talks about strategic business gifting as well and how we can stop giving gifts to clients and prospects that are meaningless, have our logo on them, and have very little thought or intentionality behind them. The goal with strategic business gifting is to turn a prospect into an active loyalist. Meaning, they love your business so much that they’ll be a huge advocate for the business and will naturally talk about it with others without prompting. When I think back to Andrew’s introduction, I see exactly how Giftology fits with the way we do business at Second Nature. We are all about making a positive and lasting impact. We always ask ourselves how can we be better? How can we up our game and standards, and truly stand out from other organizations? Giftology fits in with each one of our core values at Second Nature. Relentlessly Resourceful: How can we be better at gifting? Especially at trade shows. Can we have intentional swag versus the standard items people typically grab and then forget about right away? Drama Free Zone: Giving a gift shouldn’t be about us…it should be about the recipient. How will they feel receiving something so thoughtful? Bias Towards Action: How can we use strategic gifting to not only gain clients but active loyalists? Performance Mindset: Strategic gifting helps close business. Humility In All That We Do: It takes a lot to truly take ourselves out of the gifting picture and learn about the recipient so that the gift serves its intended purpose. Integrity First: We need to think about the gift and thoughtfully consider what our purpose is for sending it. Will the recipient feel valued? Shatter the Status Quo: Nothing goes further with a client than a super thoughtful gift John Ruhlin’s book has really made me think about the ways I select and give impactful gifts, and has helped me to understand the true power of making a gift into a lasting moment. Have you read Giftology yet? Or have you received a gift that’s made an impact on you? Let me know what you think in the comments below!

Calendar icon May 19, 2022

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