A Cheap and Effective Way to Decrease Turnover
“Do you like delicious BBQ?”
That’s how my letter started out to residents when I introduced the Resident VIP Program.
In that letter I notified residents that they would now enjoy an exclusive discount at Dickey’s BBQ. All they had to do was show our Resident Card upon checkout.
The resident card cost me $15 to print 250 – super cheap. The discount was created by reaching out to the fine folks at Dickey’s BBQ and asking them if they’d like me to help them get more business. Hmm, yes please!
While it was just implemented two weeks ago, the anecdotal feedback is glowingly positive from both residents and Dickey’s BBQ. So much so that I extended the program to a locally owned flower shop because I noticed a lot of our residents have flowers on their patios.
As a real estate investor I’m constantly looking for ways to decrease turnover and increase NOI. Sure, this program probably isn’t something that will be a primary reason for a resident staying but it does add good-vibe points and will be a contributing factor when it’s lease-renewal time.
Here’s a step-by-step plan for how to do your own program:
- Find one small biz in the area and ask if they’d like you to help increase their sales
- Negotiate an exclusive discount for your residents
- Print biz cards with first/last name and signature fields for resident to fill in (I use VistaPrint)
- Pass out note to residents announcing the program
- Then build on that with other local businesses
- Be sure to not get competing businesses in the program or that might ruffle some feathers
- Send out monthly newsletter and remind residents of exclusive discounts and announce new discounts
This is a little bit of work up front for a lasting, long-term reward.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.