ROI of Journey Management for Multifamily Properties

In the competitive multifamily market, understanding your residents’ complete lifecycle—from initial apartment search through renewal decisions—directly impacts your property’s financial performance. Journey Management provides systematic tracking and optimization of every touchpoint residents experience, creating measurable improvements in occupancy, retention, and revenue.

Key Industry Metrics:

• Apartment turnover costs average $3,872 per unit according to Zego’s 2023 report
• 54% of renters renewed their leases in the year-ending October 2024, according to RealPage Market Analytics
• The average resident retention rate in 2024 is 60%, per Zego’s Resident Experience Management Report

The True Cost of Turnover

Turnover costs include money spent on advertising and marketing, repairs, concessions and the cost of lost rent. Multiple sources confirm these costs:

• Companies faced almost $4,000 per property vacated in 2023, with the lost rental income being the biggest cost driver (Statista/Zego)
• The National Apartment Association estimates turnover costs are at least $1,000 per unit and can easily rise to over $3,000
• Turnover costs can quickly add up and may total anywhere from $1,000 to $5,000 (Fitness On Demand)

Current Retention Landscape

National Retention Trends:

• The average retention rate was 56 percent in 2023, down from 57 percent in the previous year (Statista)
• A rate above 60% is generally considered good, while rates closer to 70% or higher are ideal (MRI Software)
• 59% of residents said they plan to renew their lease in the next year, and 75% of property managers forecasted retention will improve (NAA/Zego 2024)

Journey Management ROI Framework Applied to Multifamily

Based on the TheyDo research framework, here’s how journey management impacts apartment communities:

1. Single Property Team Impact (From TheyDo Document)

• 33% time saved for UX employees (applicable to leasing agents)
• 24.9% increase in ROMI (return on marketing investment)
• 38% less time spent per employee

Multifamily Application: A 4-person leasing team earning $50,000 each could save $66,000 annually through efficiency gains.

2. Cross-Functional Property Impact (From TheyDo Document)

• 21.2% reduction in Customer Service teams’ costs
• Sales Cycle shortened by 16.8%
• 3x faster alignment between teams

Multifamily Application: Reducing the average vacancy period by just five days saves $200–$250 per unit in lost rent. Faster lease-up cycles directly impact NOI.

3. Portfolio-Wide Impact (From TheyDo Document)

• 15.3% increase in Cross-sell and up-sell (renewals/upgrades)
• 17.9% Increased Customer Referrals

ROI Calculation Example for a 250-Unit Property

Using actual industry data and TheyDo framework metrics:

Turnover Cost Reduction:

• Current retention: 56% (industry average)
• With 15.3% improvement: 64.6% retention
• Units saved from turnover: 21 units
• Savings: 21 units × $3,872 turnover cost = $81,312/year

Operational Efficiency (TheyDo Framework):

• 4-person team × 33% time saved × $50,000 = $66,000/year

Faster Lease-Up (TheyDo Framework):

• 16.8% reduction in vacancy
• 110 annual turns × 30 days average × 16.8% × $50/day = $27,720/year

Total Annual ROI: ~$175,032 for a 250-unit property

Key Journey Stages for Multifamily

1. Discovery Phase – How prospects find your property
2. Consideration Phase – Virtual tours, reviews, comparisons
3. Engagement Phase – Tours, applications, lease signing
4. Move-In Experience – First 30 days critical for retention
5. Resident Lifecycle – Maintenance, community building
6. Renewal Decision – A resident is 8 percent more likely to renew if they made one friendship or connection within their community

Proven Retention Strategies

Cost pressures have risen, and the leveling of pandemic-era rent increases has forced a shift in how owners are operating. Creating new efficiencies will become the differentiator

Technology & Operations:

• Companies with lower retention rates are twice as likely to have delinquency rates over 10%
• Self-service options for maintenance requests and payments
• Digital journey tracking and automated follow-ups

Community Building:

• Increasing a resident’s friendships within their apartment community nearly doubles their likelihood to renew
• Resident events and advisory boards
• Proactive communication and issue resolution

Market Context

Operational costs for apartments grew by 8.6% year-over-year in Q2 2023, while operating expenses have risen 28% in the last 12 months, making retention even more critical.

24% of multifamily operators do not have formal retention goals within the company, representing a significant opportunity for improvement through journey management.

Implementation Steps

1. Baseline Assessment – Map current resident journey and calculate current retention costs
2. Set Retention Goals – Target 60-70% retention based on property class
3. Identify Pain Points – Survey residents and analyze turnover reasons
4. Prioritize Improvements – Focus on highest-impact touchpoints
5. Measure & Iterate – Track journey metrics monthly

The combination of rising operational costs, competitive markets, and 22% reduction in tenant turnover through strategic investments in amenities makes journey management essential for maximizing multifamily NOI.