by Andrei Girenkov
In the competitive multifamily market, services and amenities serve as critical differentiators for retaining residents and attracting prospects. While these components can generate significant revenue, failing to meet expectations or communicate their true value to the living experience can have a detrimental effect. Residents can start to view these benefits as burdens, dampening their experience and making retention, reputation management and lead generation more challenging.
The Rise of Convenience-Oriented Multifamily
Multifamily has historically been viewed as a stepping stone to homeownership but that is no longer the perception among younger generations. At a time in their lives when people previously began to buy a home, renters are opting for a lifestyle that doesn’t demand the same commitment a house does. For many, even if they wanted to buy, challenges and barriers have spurred them to abandon a system that was once considered the “American Dream.” Even older generations that are downsizing often no longer view ownership as worth it, and we are seeing that senior rental housing is one of the fastest growing segments of multifamily rentals.
With the increasing view that their apartments are homes and not simply a stop on the way to homeownership, services and lifestyle amenities are more important than ever. Renters are no longer simply looking for things that help them get by, they now want these perks to complement their daily lives.
Because of this shift in attitudes toward rental housing, providing reliable services and amenities is vital for resident satisfaction, which also affects reputation management and lead generation. Also, while absorption of new units is expected to go well in the coming years, an uncertain economic landscape could mean that competition could remain high.
Services and Amenities Are Integrations, Not Additions
To achieve a healthy level of resident satisfaction and retention, owners and operators need to view their services and amenities in the same light that residents do. They cannot view these offerings as extras but instead need to see them as an essential part of the community and part of their brand. Services and amenities can’t be what a property offers, it has to be who they are. When viewed this way, it becomes easier to show the value they add to the residents.
Explaining the value of services and amenities is essential— all of this costs money and owners and operators have to charge additional fees to help cover those operational costs. When residents have a clear understanding of what it brings to their lives, they typically accept the additional cost. Millennials and Gen Z have repeatedly expressed a willingness to pay for convenience. If they don’t see the value, though, then they will view those as “junk” fees or rent increases and this leads to increased dissatisfaction. In addition, a wrong perception can lead to a decrease in the quality of services and amenities. When residents see these as an integral part of the community, their experiences change from transactional to transformative.
Taking the Holistic Approach
Communities should focus on the overall living experience benefits, integrating services and amenities into their core values and positioning themselves as lifestyle solutions. There are several steps teams can take to boost services and amenities and subsequently resident satisfaction:
Improve Value Communication – Teams can effectively communicate the value of these components by creating compelling stories about the benefits, bolstered by resident testimonials. In addition, marketing teams need to focus on value as much as features.
Personalize Service Offerings – This is achieved by offering tiered packages that allow for access within varying budgets. Communities can also provide customizable bundles and service trial periods. At the very least, communities should offer services for all residents with expanded services for higher tiers. It’s important not to create a “haves vs. have-nots” environment that will only breed resentment and lead to dissatisfaction.
Foster Community – Services and amenities can be boosted through the use of shared community events, the encouragement of social interaction and leveraging tech to help residents connect and communicate with each other.
Emphasize Convenience – Highlight the affordability and convenience of onsite services and amenities vs. similar offsite offerings. Having one team oversee the services and amenities can also build trust.
Innovative and Transparent Pricing – Make sure the pricing and costs are transparent to increase the visibility of value. The addition of a loyalty program for usage or renewal can also improve the positive view of these services. Teams can also explore seasonal promotions to foster more interest.
Analytics and Feedback – Teams will need to know how well a service is performing or how much actual use there is, which can be achieved via analytics that track usage. Additionally, using surveys and other feedback measures provides insights into the views residents have on what their community offers.
Communities can create a more positive view of services and amenities by embracing the resident point of view and focusing on the value, benefits and convenience they bring as much as the features. However, this is not the only key to maintaining resident satisfaction. Services need to be available to all and be a part of the community, not an addition.