Tenant lifetime value is of extreme importance in the property industry. Not only do you want to retain your tenants and keep them renewing their leases, but you want to make sure that you make a return on your investment too.
So, how can you do this by means of communication? Here, we’ll give you a quick crash course on how the simple act of communicating can increase tenant lifetime value tenfold, and in turn increase your brand value.
The Importance Of Tenant Lifetime Value
Tenant lifetime value is important because it enables you to quantify the value of a tenant for the amount of time they lease your property. It shows how much profit you could make of one tenant.
When you have a high tenant turnover rate, there are obvious negative effects like more advertising costs. Then, you may also need to incur renovation costs to make the property more appealing. You may build up a bad reputation and therefore a bad brand. Saving this reputation also costs money.
So, the tenant lifetime value is really important. The more tenants you are able to keep and ensure a profitable income from, the more stable your income is, and the better your brand looks.
Keeping your tenants happy and satisfied with your services will always lead to better tenant lifetime value. When tenants have a good experience, they stay. This is where communication and property management comes in.
Make Your Tenants Feel Valued, Heard & Informed
The key to improving tenant lifetime value is to make your tenants feel valued, listened to, and considered.
This is an easy step with hugely positive impacts. When property managers take tenant feedback into account, tenants are far more likely to feel satisfied in their space and will therefore stay in it. And, the longer they stay in the space, the better the lifetime value will be.
Tenants must be able to give feedback and log queries and complaints. But, it’s not just about listening to your tenants. It’s also about informing them of the goings-on of the property. This is why there needs to be an effective channel of communication.
Tips For Good Communication
There are many different ways to increase communication between tenants and property managers. Here are some tips to enforce good communication:
- Make regular property announcements. Do this on a consistent basis. Don’t leave anything out! The more tenants feel informed and considered, the better retention will be.
- Promote regular feedback and discussion. Allow tenants to communicate their own queries, complaints, concerns, and compliments. Discussion allows for transparency and a feeling of community.
- Encourage tenant engagement. When tenants are encouraged to engage and get involved in the goings-on of the property, they will feel more comfortable and satisfied with the space.
- Implement a digital communication channel This can be used to execute the first three tips. Having a single channel of communication is an easy and efficient way to promote seamless communication between tenants and property managers.
Final Thoughts
If you’re looking to increase tenant lifetime value, increasing communication is a good place to start.
The simple act of making people feel valued and listened to can go a long way in keeping them happy and ultimately promoting a good brand image!
If your organisation is looking for a tool to involve all tenants in property management for better decision-making on workplace and property strategies, have a look at our 30-day free trial:
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.
