Location
McLean, Va.

Units managed
18,000+

Portfolio
Developed, owned and managed.

Product
Renew

Challenge | Finding an Efficient Way to Optimize the Renewal Process

While the multifamily industry at large often recycles age-old renewal processes, KETTLER has never fallen into that bucket. The Virginia-based operator has always been astutely aware of the vast business benefits of keeping residents in the building.

KETTLER had direct experience with the multitude of challenges renewals can present, however, and sought ways to improve what often was an intensely manual process for onsite teams. But it wasn’t an easy fix, because while the industry had developed technologies to help create efficiencies for many other onsite functionalities, a platform wasn’t yet available to assist with all facets of the renewal process.

The emphasis was there on our end, but there weren’t a lot of solutions. For the bigger technology providers that we worked with, it was a niche space, and they really hadn’t created anything that encompassed the entire process.

Cindy Fisher

President of KETTLER

With renewals representing such a vital performance metric, KETTLER was eager to optimize the process for a variety of reasons. In addition to easing the load on onsite associates, KETTLER knew procuring quicker decisions from residents could assist in forecasting upcoming occupancy trends and better pricing control. The company also wanted to glean deeper insights into the reasons vacating residents were leaving, which in some cases could present opportunities to refer them to sister communities.  

Solution | Adopting the Innovative Renew Platform

While nothing had yet come to market that exclusively focused on renewals, KETTLER Senior Vice President and Chief Marketing Officer Daryl Smith went on the lookout for a solution. He eventually connected with team members from Renew, a soon-to-be-launched innovative platform that specialized in optimizing the renewal and retention moment. Among other functions, Renew automates and optimizes the entire resident renewal process to drive NOI.

As Renew fine-tuned its platform, Smith and KETTLER agreed to offer operator-based insights and work collaboratively with Renew as its software was readied for the market.

As such, KETTLER first piloted a sizable number of properties from its conventional portfolio in the latter half of 2022 and since has expanded the rollout in two phases. The remainder of the conventional portfolio will be onboarded at the end of 2023. The impact was near-immediate in a multitude of ways.

To start with, the reduction of workloads on busy community teams has proven invaluable. KETTLER associates also quickly understood they finally had a tool solely dedicated to renewals and their various nuances.

“Renew is focused specifically on renewals and retention.” Fisher said. “It's a complex and critical moment for our business and for our residents. Other platforms are trying to do too many things and are only an inch deep on this topic.”

Results | Quicker Renewal Decisions, Reduced Vacancy Loss and Less Taxed Teams

At the properties using Renew, KETTLER is receiving more timely responses on the renewal decisions of residents—and subsequently has fewer pending renewals by the end of each month. Industry averages report 15% of residents respond within 14 days of receiving a renewal offer. Since implementing Renew, that percentage has climbed to 45% at KETTLER properties that utilize the platform.

This allows us to be more proactive in anticipating occupancy trends and adjusting rents to support a healthy balance. It helps us to achieve our financial goals for ourselves and our clients.

Kimberly Ramsey

Senior Vice President, Community Operations at KETTLER

Additionally, Renew helps KETTLER significantly reduce vacancy loss. On average in the industry, residents provide notice to vacate 51 days before move-out. With Renew, KETTLER properties receive notice an average of 68 days before move-out, and that extra time has enabled the company to fill vacated homes an average of five days quicker.

KETTLER also discovered that 53% of departing residents at properties utilizing Renew are exploring other communities within the portfolio. While not all of them move on to another KETTLER community, it’s encouraging that more than half are at least considering the option.

“We’re getting better insights as to why people are choosing to move,” Ramsey said, noting the residents like to remain with a brand whenever possible. “We can determine whether there is anything within those responses that’s controllable for us.”

Those reasons might include the need for more space, a job relocation, a pending maintenance issue, the desire to buy a new home, rent increases or several other possible factors. With visibility into those reasons, KETTLER can often retain residents within the portfolio, which in turn reduces the cost-per-lease quotient since the company doesn’t have to deploy resources to attract new renters. Renew also offers KETTLER the ability to provide leads to other operators for a fee if a sister community doesn’t fit the needs of a departing renter.

As KETTLER continues to roll out Renew across its conventional portfolio, the datasets provided by the platform are an invaluable tool when KETTLER discusses the solution’s potential impact with asset owners.

The automation also helps KETTLER organically boost renewal rates, as associates are free to spend more time focusing on the customer experience.