Service is key to retaining tenants, but service means different things to different people. “Property managers often equate service with spending money, but that doesn’t have to be the case,” says Ishea Shepherd, executive vice president of the AMC Delancey Group in Philadelphia.
“By focusing on three core tenets, you can provide service that builds trust, regardless of your sector and keep owners, investors and tenants happy without throwing your budget out the window,” said Shepherd, who spoke to property managers during an Institute of Real Estate Management-hosted webinar.
Service Outperforms Amenities
Retaining tenants is a priority as empty units mean lost income. In response, managers often look to
add amenities, new technologies or make capital improvements, which can be costly budget items.
“While these things provide value, they can’t compensate for unreliable core service and poor communication,” says Shepherd, who encourages managers to embrace three Cs of service: consistency, clarity and closure to deliver service without increasing the budget and create lasting satisfaction. “Adhere to these service elements, and you’ll see how it builds confidence in your operations from clients, tenants and other stakeholders.”
Consistency
“Everyone on your team is in a position to build trust, or to break it,” says Shepherd. “Tenants don’t understand your organizational structure; they see everyone as one team.”
A consistent, dependable process, regardless of which team members are involved, is essential to building trust and satisfaction. While you may train your office staff on service procedures, your maintenance team may interact with tenants far more often. Educate everyone who touches the service experience, including leasing specialists, building managers, maintenance and even preferred vendors, on your expectations for what consistent service looks like.
“Maintenance restores an asset, service restores confidence.”
Clarity
Clarity means the customer always knows four things:
- Who owns their problem
- Who their point of contact is
- What to expect
- What constraints exist
“People can handle a ‘no’ when they don’t get what they want, if it comes with a ‘but’ to clarify why, what else might be done and when to expect an update,” Shepherd says.
Maintenance issues are a prime opportunity to build (or break) confidence in your services. Yet, your maintenance team may see their job as fixing things, not relationships. Shepherd recommends helping everyone understand their role in the firm’s value proposition. “People want to know their impact,” she says. “Help them see the impact of clear communication related to work performed.”
Closure
With different teams managing different functions, it’s easy to miss the important third “C,” closure. Closure means confirming the outcome, which goes beyond checking that work was completed or information received—whatever the promised action. It’s also important to confirm that trust has been restored, especially if there was a problem. For long-term problems, document what you committed to do, and if things change, follow up again to explain why.
Service Recovery Loop
When confidence in your service has been damaged, use these low-cost touchpoints to boost satisfaction.
- Quickly acknowledge the impact (validate feelings, don’t assume liability)
- Clarify who owns the issue or situation and set expectations
- Update on the likely cadence of the resolution (under-promise and over-deliver)
- Resolve or (if you can’t deliver what they want) explain alternatives
- Close with all parties and rebuild confidence (explain actions taken to avoid a repeat situation)
Learn From Problems and Remove Friction
Good leadership will help these processes stick and build muscle memory so best practices become second nature. Shepherd recommends reviewing service problems to identify friction points (service delays, repeat problems, vendor issues) and explore resolutions.
“Service that retains tenants does not necessarily mean a bigger budget, but it does mean clear expectations, timely updates and real closure so that everyone can feel heard and seen,” she says.
