Do you remember when adding renters’ names to a mass email or text message was the go-to way to add a personal touch? Personalization in rental property management has come a long way since then. These days, personalization goes beyond surface-level tactics; it extends into the tenant experience, from the amenities you offer to the customer support you provide.
The best part? Personalization can have game-changing effects on your business. 86% of people say personalization impacts their buying decisions. Also, customizing experiences can increase your return on investment by 5X to 8X. 🚀
But to get the most out of this trend, you’ve got to know where to invest and what to expect. In this article, we’ll explore some opportunities and roadblocks to look out for. We’ll also unveil how personalization can look in different areas of rental property management to inspire your execution.
The perks and pits of personalization in rental experiences
Personalizing experiences and services for your tenants can pay huge dividends. But such actions can also come with flaws and pitfalls you’ve got to prepare for. Let’s zoom in on a few.
The perks of personalization in rental property management 👍
- Boost tenant satisfaction: Making each tenant feel valued and seen is essential to keeping them happy. Personalization can help you do just that. Tailoring renters’ experiences sets a positive tone for their tenancies and enhances satisfaction throughout
- Increased retention rates: Did you know 76% of consumers are more likely to buy from brands that personalize, and 78% are more likely to make repeat purchases at businesses that personalize? In short, showing renters you value them pays. Tenants are more likely to stay engaged and renew leases. 📈
- Build a positive reputation: Customer service experiences spread quickly through online reviews or word-of-mouth. Personalization lets your company leave a good impression on renters and gain social proof. Over time, this perk helps your company a solid brand that drives growth
- Deeper pockets: Personalization can boost revenue by up to 40%, so it’s a great way to get more cash in the bank. It can drive larger profits by increasing on-time payments and renewals. A retained tenant is worth $900 more on top of rent payments💲
- Resolve issues more efficiently: Problems are part and parcel of doing business, but how you manage them counts. Personalization allows you to fix problems fuss-free. For instance, leveraging automation and allowing tenants to report maintenance problems through their preferred channel will equip your team to address them promptly and satisfactorily
The pits of personalization in rental property management 👎
- Respecting privacy and data protection laws: In the US, the regulations on personalization aren’t clear-cut, so it’s challenging to know what’s allowed. For instance, there’s no US equivalent to the EU’s GDPR. Some states have enforced data protection laws, like the California Consumer Privacy Act, but you’ll need to do some research to find out your responsibilities
- Balancing consumers’ desire for personalization and privacy: 36% of consumers want brands to do more to offer personalized experiences. But here’s the catch. 17% won’t share personal data and 52% are concerned about companies knowing too much about them. Also, nine out of ten people say businesses should be more upfront about how they handle the personal data they collect. So, it’s tough to know what counts as going too far in personalization in tenants’ eyes and how to manage it. ⚖️
- Maintaining equal treatment: Avoiding favoritism or residents perceiving your personalization efforts as such can be difficult. You’ll need to implement general and personalized services and amenities. You’d also have to communicate why everyone gets services based on preferences and offer the option to switch.
- Securing enough resources can be challenging: Sometimes, staff don’t have the necessary resources to execute personalization successfully. So, they fail before they’ve even had the chance to fight for success. For example, 42% lack the needed insights, and 31% don’t have the right tech. 41% move too slowly due to internal hierarchies impacting agile decision-making. Additionally, 64% of marketers say getting enough budget for personalization initiatives is a roadblock to success. 🔨
- Getting staff buy-in can be tough: Property managers and leasing agents often have busy schedules. So, adding another task to their plates, like switching from manual to technology to execute personalization plans, may receive some pushback if the benefits aren’t obvious
How to execute personalization like a pro in rental property management
You’ve probably seen examples of personalization in your daily life through things like marketing and comms campaigns. But how can you apply this trend to rental property management tasks? Let’s explore some areas to customize your tenant experience for the biggest gains.
Conduct surveys strategically 📝
Did you know over 80% of top-performing property managers get feedback from renters? So, before you start any personalization initiatives, ask your tenants for some pointers. Get to know their interests and use this information as your northern star. Check in at regular intervals to stay informed of current tenant sentiments and tweak your approach.
While collecting information, it’s important not to pry. Frame survey questions to gather insights without being intrusive. For instance, you can use open questions and text boxes and ask about lifestyle preferences indirectly, allowing tenants to decide what information they want to share.
Top tip💡: Be transparent about how you use the data you collect. 76% of people say they want companies to be more upfront about how brands use their personal information. Also, 40% say they would be open to sharing their data if they knew who was using it and why.
Tailor onboarding to tenant preferences
Creating a smooth move-in process from start to finish is essential for tenant satisfaction and retention. Using personalization is a great way to do it. Here are a few ways:
Tweak lease lengths to fit each tenant 📜
Cookie-cutter annual leases won’t be the right fit for every tenant, even if you add a break clause. Some may want longer leases to save money and time. Others may need shorter leases due to demands in their personal lives, like work or education. So, discuss future plans and expectations with potential tenants. Then, come to a compromise on lease lengths that will work for your company and them before signing on the dotted line.
Customize welcome packages
Many property managers provide generic directories to their tenants. Step this up a notch by tailoring the information in your welcome packs to include relevant local amenities and services. Also, include specific benefits the resident will receive and useful information based on their specific needs and preferences. For example, if a family is moving in with children, you could highlight nearby schools and family-friendly activities.
Launch an interactive onboarding portal 👩💻
Believe the hype. Digital property management is where the party is at. It can help you create an unforgettable tenant experience that keeps renters engaged. So, provide an onboarding portal that shows tenants where they are in their move-in journey and what’s coming next. Also, allow tenants to set preferences. This move will ensure resources and communications always align with the tenant’s requirements.
Provide personalized orientation tours
Whether it was for a gym or school, you’ve probably been on a bog-standard facilities tour. Chances are it wasn’t fun or memorable. Go against the grain by offering individualized orientation tours. For example, if the tenant is health-conscious, the tour can highlight fitness amenities, local exercise classes, health food stores, and personal trainers. If a tenant is short on time, you could offer a pre-recorded or virtual reality orientation tour and a virtual assistant to answer basic questions. This approach helps tenants settle in and feel more connected to their new living environment.
Hand-pick tenant benefits 🤏🏻
Having amenities is great, but what’s even better is having benefit packages that cater to different tenant profiles. These perks should make the tenants’ stay more enjoyable and their lives better. Create a handful of packages according to the most common tenant profiles for cost-effectiveness. Then, diversify as you get more data on your tenant base and their expectations. For instance, if your tenant base is predominantly students, personalization could look like a study room and collaborating with local businesses to offer discounts and deals.
Offer smart technology in property and units
Another way to personalize your tenant experience is to implement solutions that give each renter more control over their unit. Think smart home devices like keyless entry systems, thermostat controls, smart lighting, and video-enabled security doorbells. 💻
Also, personalize communications and automate routine tasks to make life easier for tenants. For instance, you could send rent reminders for things like HOA fees, garbage pickups, and community updates via the tenant’s preferred communications channel. This approach simplifies tenants’ lives and shows tenants you care and are looking out for them.
Optimize maintenance operations 👷
Have you ever had to take a day off work to sit at home and wait for maintenance work? Large visitation windows add salt to the wound, especially when the contractor gets rescheduled at the last minute. Such scenarios aren’t just irritating; they’re disruptive to tenants and create a poor experience that can cost you renewals. On the flip side, proper maintenance doesn’t just make tenants smile. Residents happy with their property’s maintenance are three times more likely to renew leases. Here are some ways to customize maintenance processes:
- Work with contractors that allow scheduling flexibility and allow tenants to pick slots
- Let residents state comms, notification, and reporting preferences for different circumstances like emergencies and routine maintenance 📲
- Send personalized maintenance notifications to provide relevant information to tenants based on their specific needs. E.g., if a tenant has a pet, notifications can include reminders to secure the pet during a maintenance visit
- Pre-empt maintenance needs for each unit with predictive maintenance tools. Give renters plenty of notice 📊
- Prioritize urgent requests for tenants with specific needs, such as individuals with disabilities or health conditions
- Offer additional, tailored maintenance services based on individual tenant needs. For example, if a tenant works from home, you could provide specialized services such as ensuring a quiet area they can use during maintenance activities
Offer flexible payments to serve each tenant’s financial needs
Everyone’s financial situation is different, even when they live in the same building or community. So, it’s important to provide payment options that fit your tenants’ needs and preferences. Offering flexible payments through a digital solution like an app is a good idea. Take Flex, our rent payment app, for example. It allows users to split rent into two affordable portions.
Flex is also versatile, allowing you to cater to different housing types and tenant profiles. For instance, tenants in need of a financial break can split rent to make the cost more manageable. Wealthier tenants can also use Flex to stay liquid. Users can also build their credit scores, contributing to their financial health [Link to resident financial health blog post]. So, it’s no surprise Flex is one of the top 200 apps in the US App Store, with 83,000+ resident reviews and 4.6 app store ratings. 💥
Get personal to win big in rental property management
In today’s competitive market, staying top of mind, building connections, and driving revenue is key to getting ahead in rental property management. Customizing your approach to each tenant is an effective way to do it.
Personalizing your rental experience shows prospective and current tenants that you see them as individuals, not another name on your list. Also, being proactive in how you tailor tenancies ensures a smoother renting experience. Tenants aren’t the only ones that benefit from personalization. Your company can expect higher NOI, ROI, tenant satisfaction, and retention rates, to name a few perks. 💪
But personalization in rental property management isn’t just about greeting tenants by name or offering tailored amenities. It extends into the financial aspects of the tenant experience, too. So, as you find ways to customize tenants’ renting experiences, don’t forget about finances. Invest in tools and processes that cater to the tenants’ individual financial circumstances, including their rent payment preferences.
By implementing personalized touches, you can create a memorable tenant experience that exceeds expectations and keeps pipelines and pockets full. 💰
Flexible payments are putting rental property management businesses on the map. Book a demo to learn how Flex can get your company noticed.
