measuring tenant satisfaction and retention
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Measuring Tenant Satisfaction and Retention. CFAA 2011 Rental Housing Conference June 17, 2011. About J.D. Power and Associates. Have been conducting research in Canada since 1991 offering several syndicated studies measuring overall satisfaction and quality - PowerPoint PPT PresentationTRANSCRIPT
© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. Power and Associates Proprietary and Confidential—For Internal Use Only
Measuring Tenant Satisfaction and Retention
CFAA
2011 Rental Housing Conference
June 17, 2011
2© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
About J.D. Power and Associates• Have been conducting research in Canada since
1991 offering several syndicated studies measuring overall satisfaction and quality
• We support hundreds of clients with a range of VOC solutions including:– Syndicated study benchmarking– Proprietary tracking studies– Mystery shopping– Customer handling process consulting and
training
• Our syndicated benchmarking studies have been a catalyst for improvement in a number of industries
3© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
Resident Satisfaction Study
• National study conducted among approx. 8,500 residents of participating asset managers
• Paper survey (with online option) – offered in English and French• Provides insight into various aspects of a resident’s experience
through satisfaction ratings, process metrics and verbatim comments
4© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
Why Measure Satisfaction in the Multi-Res Industry?
• Your customer’s expectations vary significantly!– By property, location, price-point, etc.– You can’t hope to meet or exceed customer expectations if you
don’t understand them first!
• The experience is on-going not transactional– PM staff are tasked with keeping residents happy at all times– This begins as soon as the lease agreement is signed (maybe
before…)
• Highly satisfied tenants offer the following:– A source of free advertising (through referrals and
recommendations)– Superior loyalty -> lower turnover / cost savings
5© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
Reasons for Not Renewing at Current Building
25
25
16
13
12
6
4
0% 20% 40% 60%
Unsatisfied with suite /building
Affordability
Unsatisfied with propertymanager
Buying home
Life change (e.g.marriage, child)
Employment change
Other
Tenant feedback can initiate actions to address these issues before they lead to turnover
Nearly One in Five will Choose Not to Renew their Lease…
Source: J.D. Power and Associates 2010 Canadian Resident Satisfaction StudySM
6© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
What’s Important to Residents?Suite quality matters most but the PM staff plays a critical role…
Key Drivers - Long-time Renters
Rental Price / Value9%
Property Management Staff
25%
Suite Quality38%
Building Quality18%
Building Amenities11%
Key Drivers - First-time Renters
Application/Move-in
15%
Building Amenities10%
Building Quality17%
Suite Quality34%
Property Management Staff
18%
Rental Price / Value6%
Source: J.D. Power and Associates 2010 Canadian Resident Satisfaction StudySM
7© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
Where can Managers Influence Change?
• Staff responsibilities cover all aspects of the building – suite, amenities, maintenance, tenant requests, etc.
• Some simple things to consider:– How is a resident greeted?– How is a resident contacted / how do they contact you?– What is the process for resolving tenant issues?– What is the approach to general maintenance and cleanliness?– How can issues be prevented?
• Keep in mind, resident satisfaction will be viewed in the context of all experiences i.e. not just other rental properties
8© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
PM Staff is where “the rubber hits the road” – opportunity!
Elite Properties vs. All OthersIndex Point Difference
122
108
144
45
137
134
118
-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150
Overall
Application / Move-in
Property Mgmt. Staff
Rental Price
Amenities
Building Quality
Suite Quality
Worse Better
Elite vs. All Other Properties
All Others90%
Elite10%
Segmenting PerformanceNot all buildings are in the same class…
Source: J.D. Power and Associates 2010 Canadian Resident Satisfaction StudySM
9© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
Elite 81% 15% 4%All Others 55 28 17
Frequency (%)
Impact of Request Response Time on Satisfaction
742677
571
500
600
700
800
900
1,000
Within 24 hrs 24 to 48 hrs More than 48 hrs
Ove
rall
Satis
fact
ion
Inde
xAre Staff Responding to Maintenance Requests in a Timely Manner?
Satisfaction declines significantly as time passes and no acknowledgement is given.
10© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
High Satisfaction Yields Greater Returns
Impact on Satisfaction on Loyalty / Advocacy
2630
40
54
0%
20%
40%
60%
80%
100%
Likelihood to Renew Lease Likelihood to Recommend Building
% D
efin
itely
Will
EliteAll Others
Source: J.D. Power and Associates 2010 Canadian Resident Satisfaction StudySM
Exceeding residents expectations will lead to significantly higher loyalty and advocacy for your building / brand.
11© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
The Voice of Your Residents
• “The building has a great look on the outside, but once inside it is NOT worth the money they ask for. The units are not updated to the standard of the market.”
• “The property managers are doing an exceptional job. They are courteous, respond quickly to requests and are available to help when needed”
• “I would recommend our management place courtesy calls every so often to see if we have any issues and to demonstrate better customer service.”
• “The swimming pool was open for almost 3 weeks before I found out about it. Please post a note in the elevator next year.”
• “Our on-site management staff are fabulous. They are part of the reason why this building feels like home.”
12© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
In Summary…
• Property managers are challenged with “keeping residents happy!”
• This task requires managers to pull it all together– General up-keep and maintenance of the building– Addressing tenant issues (functional as well as issues with other
tenants)– Provide a sense of comfort and community
• Process and consistency are key for property managers– Not all buildings are built the same but can they follow the same
procedures?
• Listen to your residents– Having insight into how residents feel and what they expect is only one
piece of the puzzle but is critical to prioritizing improvement actions
© 2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.
J.D. Power and Associates Proprietary and Confidential—For Internal Use Only
Thank You
Adrian ChungSenior Manager, Canada Real Estate
416.640.9454 | [email protected]