A successful resident services program can improve a property’s overall performance by directly affecting the following key indicators of a property’s success: the occupancy rate, rent collection rate, eviction rate, maintenance costs, turnover rate, net operating income and cash flow. There are a number of reasons to include a resident services program in an affordable housing development, such as:
Higher occupancy rates and fewer, costly unit-turnovers may result from higher resident satisfaction with the property due to the availability of services. Services also enhance the marketing of units to new residents.
Increased rent collection and, therefore, net organizational operating income may result from helping those residents in financial crises obtain emergency rental assistance, or from better money management resulting from financial literacy education, or as a result of helping residents obtain employment or higher paying employment.
Lower eviction rates also may result from similar assistance with rent, financial management and employment. Fewer evictions translate into reduced legal costs for property managers.
Reduced maintenance costs may result from reduced vandalism due to youth involvement in constructive after-school education, recreation and community activities.
Net Operating Income and Cash Flow
Any increase in revenues or decrease in expenses will have a positive impact on an organization’s net operating income and ability to meet its debt obligations. It will also strengthen a property’s cash flow. The increased cash flow can, in turn, be used to support resident services.
Rent Collection Rate
Residents satisfied with quality services are more likely to pay their rent on time. Employment and educational assistance help to increase residents’ income, making it easier to meet rent obligations. In addition, a property’s resident services program can help financially struggling residents to obtain rent assistance when needed, thus avoiding delinquency and keeping rent collection rates high. Such a program can also offer residents financial counseling and classes to help them gain the financial discipline they need to pay rent regularly and on time.
Occupancy Rate
Prospective tenants may view an effective resident services program as an additional amenity. This helps to give a property a competitive advantage in the local real estate market, attracting new residents and resulting in a strong waiting list. As a result, the amount of time that it takes to fill vacant units is reduced and the property’s occupancy rate is increased. A high occupancy rate, in turn, impacts the income stream of a property and supports underwriting assumptions of a 90- to 92-percent occupancy rate.
Turnover Rate
When a resident moves out of a unit, that unit must be prepared for a new resident. Turnover expenses can be minimized if the previous residents took appropriate care of the unit. And, as mentioned earlier, the more satisfied the residents are, the less likely they are to leave. In transitional housing, the delivery of appropriate resident services can directly impact the residents’ ability to move on to the next phase of the housing continuum.
Eviction Rate
Evictions are very expensive for property managers, in some cases costing a property tens of thousands of dollars each year. A built-in resident services program can help avoid these costs and lower a property’s eviction rate by supporting residents with rent payments and financial counseling. In addition, these programs can help provide information about evictions and lease violations and can foster communication between tenants and property managers.
Maintenance Costs
An effective resident services staff can help to reduce expenses for property maintenance by:
Educating residents about the proper use of shared equipment
Providing after-school care and activities for resident children, thereby minimizing the amount of vandalism or damage that these children might otherwise cause to the property
Engaging residents in better stewardship and oversight of the property
Comparing Outcomes
Understanding the effects on the property and the outcomes for residents of various resident services is essential to ensuring and supporting a successful, effective program. Resident services coordinators and property managers should work collectively to integrate—at least to some extent—data measures on property performance and resident services outcomes. Comparing these sets of data will provide a wealth of information on the effects of successful service programs on the property and indicate in what direction the trends are pointing. Moreover, the experience of this sharing will help staff from both programs develop stronger lines of communication and a better sense of teamwork, two very important components of a well-run property.
The following resources are available in The Impact on Property Management section of this manual:
1. The Role of Property Managers and Their Connection to Resident Services: The provision of resident services can support the long term goals of the property management team. This resource helps resident services providers and property managers discuss and define their roles and responsibilities.
3. Knowing the Rules and Risks: An Introduction to Fair Housing Requirements: Using a series of questions, this document will help property managers and other community staff members, including resident services personnel, understand Fair Housing regulations and the implications of not following these rules. As part of the housing package offered to residents, service programs fall under the umbrella of Fair Housing requirements, and therefore resident services coordinators need to understand the rules and ensure that programs, marketing and referrals are conducted without violating any stipulations.
4. Recommendations and Tips for Eviction Prevention: Resident services coordinators can play a vital role in ensuring positive relationships between managers and tenants. Indeed, by communicating regularly with both groups and establishing formal procedures, resident services coordinators are able to help prevent evictions, lease violations and other potential problems between tenants and managers. This document discusses steps that can be taken to prevent evictions.
5. Introduction to Microsoft® Excel-based Tool for Eviction Prevention Tracking: Enterprise has included a tool available in the online version of this manual that property managers and resident services coordinators can use to coordinate eviction intervention efforts. This document introduces the tool and describes its uses. Designed for access by multiple users, this tool can be used by property managers and resident services coordinators to coordinate eviction intervention efforts. In addition to offering a way to analyze intervention efforts, the tool provides a means to track the progress of referrals and other assistance measures. The Excel-based tool can be downloaded and customized. Download the tool. We also encourage you to provide feedback on the tool.
