AboutDoug Chasick, The CallSource Apartment Doctor Expertise I can assist property management professionals ONLY (I DO NOT ANSWER QUESTIONS FROM RESIDENTS/TENANTS) with anything related to the management, marketing, leasing and general operations of multifamily properties with at least 100 units. PLEASE NOTE: I am NOT an attorney and CANNOT offer any assistance to residents by answering questions about your business relationship with your landlord - I CANNOT ANSWER QUESTIONS ABOUT YOUR LEASE.
Please visit me at www.CampusCallSource.com
Experience 34 years experience in managing, leasing, marketing and acquiring all types of investment real estate, with a focus on multifamily properties. I have managed portfolios in excess of 28,000 units
Organizations National Apartment Association, The Institute of Real Estate Management, National Association of Home Builders, Apartment Association of Greater Orlando.
Publications Co-author of the book, "How To Excel in Leasing", Journal of Property Management, UNITS Magazine, Sales & Marketing Magic, www.NOINews.com, Managing Apartment Letter, Professional Apartment Management, Fair Housing Coach.
Question I hope you can help us...We have searched such sites as the NAA, Grace Hill, etc. It is easy to find what the national closing ratio is for new leases. What we are looking for is what the national average for renewing leases is? For instance, when planning a budget, you base your turn cost on how many leases you have expiring in one month and how many of those leases you expect to move out and how many you expect to renew. What is the national renewal percentage on conventionally financed properties? Thank you for your assistance.
Answer Under normal conditions, depending upon your market and type/age/condition of community, and annual average lease renewal rate of 40% - 60% is considered normal. Most companies budget 50% annual turnover. Again, this is under normal conditions, on a market rate/conventional community. A tax credit, student or other specialty community will need to be budgeted according to your market.
Since these are not normal conditions in most markets, I would look at how your community compares to your comps, what kind of concessions/specials they are offering, minimum length of lease being offered and the general satisfaction level of your residents. While these are always important factors to consider, they are especially important now because many people are shopping for deals and are more likely to move for a better deal.
