We’ve all heard the adage, “Happy wife, happy life.” Or “Happy employees make happy customers.” Well, of course the same thing is true in the property management space: happy employees create happy residents. And the contrapositive is also true: unhappy employees do not and cannot create happy residents. In this blog post we talk about why.
As the real estate industry becomes increasingly competitive, employee retention has become a vital factor for property management companies. However, many companies overlook the fact that employee retention is closely linked to resident retention. Let’s explore the connection between the two and provide some tips on how property management companies can improve both.
Employee retention is the ability of your property management company to retain its employees over time. High employee retention rates are desirable for many reasons, the most important of which is high employee engagement levels. Other reasons include reduced recruitment costs, increased productivity, and improved company culture.
In the real estate industry, employee turnover can be particularly costly. Property management companies invest significant time and resources into training employees and building relationships with tenants. When employees leave, this can lead to a loss of knowledge, decreased productivity, and a negative impact on the tenant experience as things slip between the cracks
Resident retention refers to a property management company’s ability to retain its residents over time. A high resident retention rate is desirable for many reasons, including reduced vacancy rates, reduced turnover costs, increased revenue, and improved reputation.
However, resident retention can be challenging in a competitive market. Tenants have a wide range of options when it comes to choosing a place to live, especially as supply of newly constructed units is coming online. Property management companies will need to work harder and harder to ensure that their tenants are happy and satisfied in an increasingly competitive market.
Connecting the Dots
So, how are employee retention and resident retention connected? The answer is simple: happy employees lead to happy tenants. When employees are happy, they are more likely to go above and beyond for their tenants, providing excellent customer service and building strong relationships. This, in turn, leads to higher tenant satisfaction and retention rates.
On the other hand, when employees are unhappy, they are more likely to provide poor customer service and be less engaged with tenants. This can lead to increased tenant turnover and decreased revenue for the property management company.
So, what can property management companies do to improve both employee retention and resident retention? Here are a few tips:
- Invest in training and development: Providing employees with the tools and knowledge they need to succeed can help them feel valued and engaged in their work.
- Create a positive company culture: A positive work environment can help employees feel happy and motivated to do their best work.
- Listen to employee feedback: Listening to employee feedback can help identify areas for improvement and show employees that their opinions are valued.
- Prioritize tenant satisfaction: When tenant satisfaction is a top priority, employees will be motivated to go above and beyond to ensure that tenants are happy and satisfied.
For Further Review:
- “The Relationship between Employee Satisfaction and Tenant Satisfaction in Commercial Real Estate” by Donald R. Lund and Sarah J. Swedburg. This study found a strong correlation between employee satisfaction and tenant satisfaction in commercial real estate, suggesting that improving employee satisfaction can lead to improved tenant experiences.
- “The Impact of Employee Happiness on Customer Satisfaction and Loyalty: An Exploratory Study in the Hospitality Industry” by Michael H. Shih and Shu-Chuan Chu. This study found that employee happiness has a significant impact on customer satisfaction and loyalty in the hospitality industry, suggesting that the same may be true in the real estate industry.
- “The Impact of Employee Satisfaction on Customer Satisfaction and Loyalty in the Banking Industry” by Mohammad Naseri and Mohammad Javad Taghipourian. This study found a strong correlation between employee satisfaction and customer satisfaction and loyalty in the banking industry, suggesting that the same may be true in the real estate industry.
- “The Relationship between Employee Job Satisfaction and Turnover Intention in the Hospitality Industry” by Su-Hyun Berg and Jin-Hee Cho. This study found that employee job satisfaction is a significant predictor of turnover intention in the hospitality industry, suggesting that improving employee satisfaction can lead to reduced turnover.
- “The Impact of Employee Satisfaction on Customer Satisfaction: Evidence from the Healthcare Industry” by Taeseon Yoon and Hyeong Seok Lim. This study found a positive relationship between employee satisfaction and customer satisfaction in the healthcare industry, suggesting that the same may be true in the real estate industry.