The Costs Of Poor Tenant Experience

COVID-19 has without doubt challenged many businesses in ways that they couldn't predict. These challenges have become a gateway to new and innovative ways of using digitalisation to enhance customer satisfaction, business operations and communications, to name a few.

One industry benefiting from this shift is property management. It has never been more important for property owners and managers to ensure seamless tenant engagement leading to a great tenant experience. But in order to cover this topic as a whole we need to first talk about the costs of poor tenant management.

Let's first understand what good tenant communication is. Good tenant communication is an open conversation regarding any issues that come up in the rental spaces. Tenant participation in resolving problems is incredibly valuable, as they are the ones who are using the space the most and can let property managers know when something is wrong or in need of fixing.

The Coronavirus pandemic has brought about a new set of limitations on these processes. Property owners and managers need to adopt innovative methods to deal with these. Luckily technology may be the answer. 

The Cost Of Serving Unhappy Tenants

Retaining tenants is the core of maintaining a profitable rental business. Keeping tenants happy means that they are more likely to renew their leases instead of looking for other options.

On the other hand, if the service doesn't meet tenants' expectations, it may contribute to a bad brand reputation for the property and its owner.

Property owners who are more engaged will also have a better idea of any issues relating to the property portfolio without having to rely on tenant reports. So, they can resolve problems quickly before tenants notice them or they become more costly.

The Cost of Replacing A Lost Tenant

Any time that a space is vacant means that there is money lost. However, there are more costs involved in losing a tenant.

This includes costs involved in:

• marketing the space to new tenants
• commission to brokers for new leases
• renovating the space for new tenants

All of these factors add up and cost substantially more than maintaining an excellent tenant experience through great tenant communication.

The Indirect Costs Of A Bad Reputation

Branding is an integral part of any business. The perception that people have of any business determines whether they choose to support it or not.

If a property is known for its bad service, it will lose tenants and struggle to find more. This will likely result in reduced rental prices, potential increases in maintenance costs and the added cost of having to find new tenants more often.

How to Improve Tenant Experience

Improving tenant experience and communications is in reality quite simple. It can be done by implementing digital solutions for auditing and incident reporting, which property managers can use to better monitor the condition of the rental spaces, and engage with tenants about any questions and observations they have in relation to the building and the space they are renting.  

As a result, the communication will be more transparent, and the tenants will be able to follow the observations they have reported to see what is being done to them. 

Final Thoughts

Transparent and well-managed communications are the key to maintaining the relationship with tenants. By implementing digital tools for property audits, incident reporting and tenant communications the property owner will be on top of the tenants' experiences. Mitigate risks, catch issues before the tenants do and enjoy the benefits of strong tenant engagement.

We are building the world's first operational involvement platform. Our mission is to make the process of finding, sharing, fixing and learning from issues and observations as easy as thinking about them and as rewarding as being remembered for them.‍

By doing this, we are making work more meaningful for all parties involved.

More information at falcony.io.