(openPR) - Phoenix, AZ March 2, 2006 - Do you find yourself burning through maintenance and marketing money without gaining ground in cash flow? Are you moving in new residents as fast as they move out? Well, don't feel lonely because many landlords are finding themselves cashless with highly occupied properties.
Many landlords fail to recognize the cost associated with unit turnover costs such as marketing, maintenance, vacancy and concessions.
According to the author, Craig Haskell, a leading multi-family authority and CEO of LandlordSupport.com, "Landlords get stuck in a spinning door. They find themselves churning through units while burning through cash."
Thomas Christensen, an independent contributing writer and researcher for LandlordSupport.com, conducted a survey of over 40 large apartment properties analyzing the real costs associated with unit turnover.
Using an average monthly rent of $645, he found the total unit turnover cost was approximately $2,700.
Look at these two examples. If a landlord turns over 10 units a month, then it will distress their cash flow by $27,000. If a landlord turns over 20 units a month, then it will distress their cash flow by $54,000. No small change.
As you can see, an apartment rental property with high turnover can cause long term cash problems even with a highly occupied property. The secret is to improve resident retention.
Here are some tips to improve resident retention:
1. Resident retention begins before residents move-in.
2. Create a lifestyle on your property.
3. Build a sense of community.
4. Improve customer service.
When marketing a rental property, you're selling a lifestyle not just an apartment unit. Residents that buy into a lifestyle will remain living at a property three times longer than residents buying a pit stop."
Keep building and improving your property's lifestyle and watch your resident retention and cash flow quickly improve.
About the author:
Craig Haskell analyzes apartment investment and management issues and publishes his results in a free weekly electronic newsletter entitled, "Tip of the Week." For more information visit www.landlordsupport.com
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