Multifamily Employee Turnover Rates and How to Fight Them

As a property manager, you know that running a multifamily property can be a challenging and rewarding experience. But with the high demand for skilled employees in this field, turnover rates can be a significant issue that affects the success of your business.

In this blog post, we’ll explore the average multifamily employee turnover rates and provide actionable tips on improving employee retention in your organization. Additionally, we’ll discuss how to track employee retention and satisfaction to help you create a positive work environment that supports long-term employee engagement and job satisfaction.

Average Multifamily Employee Turnover Rates

As of 2022, the average multifamily property manager turnover rate is about 33% per year. This is 11% above the national turnover rate. Yikes! This means that nearly one-third of all employees in the multifamily industry leave their jobs every year, which often leads to significant financial and operational challenges. You’ll spend more on recruitment and training, productivity will decrease, and tenants will become less satisfied with the constant changes.

Causes of High Turnover

So what causes this high turnover rate? One factor is the stressful nature of the job. In many instances, property managers get burnt out from dealing with upset tenants and frequent maintenance issues. They think that if they go somewhere else, their problems might go away.

Employees may also leave if their pay and benefits are not competitive or do not reflect the skills, experience, or value they contribute to the company. Maybe they’ve gone too long without a raise, and their workload has only gotten heavier.

A lack of career advancement can cause frustration, too. Without a clear path for growth, they may start withdrawing, putting in less effort, and seeking opportunities elsewhere.

Similarly, an absence of work-life balance can be a deal breaker for many property managers. Long hours, on-call responsibilities, and other demands on their time can make it difficult to find time for themselves.

The Great Resignation also took a toll on the multifamily industry. During the pandemic, many positions in different sectors became remote. This led to property managers switching positions to something that better suited their lifestyle or resigning from the industry altogether.

How to Improve Employee Retention

Let’s get real – to keep a property management team together, you need a work environment that energizes your employees and boosts job satisfaction. Here are some tips for inspiring your multifamily property management staff to stick around:

Make the Environment Fun

Sure, property management comes with its fair share of paperwork and tenant issues, but that doesn’t mean the workplace should feel bleak. Inject some fun and humor into the office atmosphere to keep your employees engaged and motivated. Host monthly team events, happy hours, and contests to show them you care.

Cultivate a Sense of Purpose

We all want to feel like our work matters, right? Well, your employees are no exception. Help them understand the impact they have on people’s lives. Share success stories of happy tenants they’ve helped or reviews from residents praising their excellent service. You can even shout them out on your company social accounts or select an employee of the month! A sense of purpose will ignite their passion and remind them why they chose this noble profession in the first place.

Encourage Growth and Development

Investing in your employees’ professional growth is a win-win situation. By providing opportunities for them to expand their skill set and climb the career ladder, you create a culture of growth and loyalty. Encourage attendance at industry conferences, offer relevant training programs, and establish mentorship programs where seasoned property managers share their wisdom. In turn, the skills they learn will help your business grow.

Communicate Effectively

Open communication is the key to any successful relationship, and the employee-employer dynamic is no exception. Create an environment where employees feel comfortable expressing their ideas, concerns, and suggestions. Consider scheduling regular one-on-one meetings to actively listen to their feedback and how things are going in their position. Implementing changes based on their input makes them feel valued and improves the property’s operations.

Pay Them What They Deserve

Let’s be honest: money talks. While salary is not the sole motivator, fair compensation is essential for retaining top talent, especially in today’s economy. Conduct market research to ensure your property management employees receive competitive pay and benefits. Consider performance-based bonuses or incentives to keep their enthusiasm high.

Recognize and Celebrate Success

Everybody loves a little praise. Acknowledging your employees’ accomplishments is a surefire way to boost morale and job satisfaction. Implement an employee recognition program that rewards exceptional performance, such as a “Manager of the Month” award or a shout-out on social media. Celebrate their wins, big or small, and watch their loyalty skyrocket.

Make Their Lives Easier

As we discussed, being a property manager can sometimes be a headache-inducing job. Why not simplify your employees’ lives by incorporating property management software into your processes? There are standard operational platforms like Yardi and Appfolio, but there are also new, innovative programs like Snappt that can make a big difference in your systems.

Snappt is a fraud detection software that catches fake documents submitted by tenants in their rental applications. These tenants are desperate to get into your building and as a result, alter their bank statements to make it look like they are rolling in the dough when the reality is far from it.

So how does this kind of software make their lives easier? Well, software like Snappt’s prevents high-risk tenants from getting into your property. As a result, they deal with fewer lease violations, disturbances, and evictions. Sounds like a win for the whole team!

How to Track Employee Satisfaction

Now that you know how to retain and celebrate your employees, it’s time to make sure we can track their satisfaction levels. Here are some key steps to help you successfully monitor how happy your employees are:

• Conduct regular employee surveys to gauge employee satisfaction, identify areas for improvement, and measure employee engagement.
• Use performance metrics to track employee productivity, attendance, and other key performance indicators.
• Conduct exit interviews with departing employees to understand why they are leaving, identify trends and patterns in turnover, and develop strategies for improvement.

One of the best things you can do is listen and take action. Too many managers become offended when an employee expresses concerns or shares negative feedback. Instead, take their feedback and see how improvements can be made and what new opportunities are available.

To Sum Up…

We get it – high employee turnover rates can be a significant challenge for multifamily property managers. But by focusing on improving employee retention, promoting a positive work culture, and tracking employee satisfaction and retention, you can create a supportive work environment that fosters engagement, productivity, and long-term success.