The two biggest issues multifamily owners face are turnover and resident satisfaction. If a property is not at full occupancy, your bottom line takes a significant hit. How can you address both of these issues and create a community in your apartments that makes residents want to stay, even if the rents go up?
Pete Kelly is the CEO of Apartment Life, a faith-based nonprofit motivated by a commitment to building relationships and community. Apartment Life serves the multifamily industry, redefining the resident experience in order to increase retention, improve tenant satisfaction, and enhance the community’s online reputation.
Pete sits down with me to share his background in the nonprofit world, explaining the basics of Apartment Life as an organization. He discusses the research around loneliness and public health, customer engagement and brand loyalty, and the economic impact of the CARES Program. Pete offers the specifics of what the CARES and Workforce Housing teams do to engage residents and how the faith-based roots of the organization impact their mission. Listen in for Pete’s insight on building a community that is good for the human soul AND the bottom line.
Key Takeaways
Pete’s background in the nonprofit world
- 24 years with organization serving young people
- Two years as CEO of Apartment Life
The fundamentals of Apartment Life
- Relationships good for soul AND bottom line
- Friendships increase chances of staying
- Team hosts events, creates ‘sticky community’
The research around loneliness and public health
- 26% more likely to die if feel lonely
- As bad as smoking, obesity
The business research around connection and engagement
- Emotionally connected customer 52% more valuable
- Spend more money more often, loyal to brand
How friendships affect a resident’s willingness to stay
- Seven friends in complex = twice as likely to renew
- Neighbors themselves are amenity
The financial benefits of the CARES Program
- $138K annual value to owner
- 3 renewals/month
What the Apartment Life teams do
- Usually husband/wife team that lives on-site
- Events to connect residents
- Opportunities to care (e.g.: baby gift, ride to airport)
- Visit tenants 90 days before lease renewal
- Build positive online presence for community
The cost of the CARES Program for owners
- Provide 2BR/2BA unit for CARES Team
- Management fee of $650 to Apartment Life
- Budget for events ($2/door)
- Best for A/B Class properties, at least 250-units
The alternative Workforce Housing Program
- Class C properties in lower income communities
- Team lives off-site, paid hourly
- Manages requirements for LIHTC
The faith-based element of Apartment Life
- ‘Love thy neighbor’
- Recruit teams from local churches
- Follow Fair Housing Act guidelines
The mission of Apartment Life
- Dramatic impact on residents’ lives
Connect with Pete
Email [email protected]
Resources
‘Why Loneliness May Be the Next Big Public-Health Issue’ in Time
‘Loneliness and Social Isolation as Risk Factors for Mortality’ in Perspectives on Psychological Science
‘The New Science of Customer Emotions’ in Harvard Business Review
CARES Program Financial Impact Analysis
Low-Income Housing Tax Credit Guidelines
Financial Freedom Summit
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
