Second Quarter 2024 Benchmark Results for Mystery Shops and Resident Surveys 

Executive Summary

Welcome to the second installment of our 2024 Benchmark letter series. Multifamily real estate continues to have a largely positive outlook for the rest of 2024, even as interest rates remain high. Nationwide, asking rents are expected to grow 2% this year, with vacancies remaining at 5.6%, according to data from Moody’s CRE. Despite a modest vacancy rate, the significant costs of resident turnover must be mitigated. In this letter, we discuss ways to create positive first impressions and build on those throughout the resident journey, leading to increased lease renewals.

As part of Grace Hill, the Ellis and Edge2Learn teams remain focused on product and service integrations, including presenting quarterly benchmarking across the full suite of Ellis and Grace Hill products. This quarter’s article focuses on Ellis Shops and Surveys data for the Second Quarter of 2024.

Overall Results

Mystery Shops

We benchmark apartment mystery shop performance against the ten key benchmark questions and the customer experience for telephone and onsite presentations. Companies can qualify for platinum, gold, silver, or bronze levels based on their overall quarterly benchmark scores.

For 2023, the average Ellis Traditional Multifamily Industry Benchmark score across Ellis’ entire database of eligible shops was 82%. Performance for First Quarter 2024 improved to 84%, but Second Quarter 2024 dropped slightly to 83%. In 2023, the average Ellis Customer Experience Benchmark was 3.7, remaining steady at 3.7 for First Quarter 2024 and Second Quarter 2024.

Ellis Benchmark Top Performing Mystery Shops by Company – Second Quarter 2024

We wish to congratulate the companies below for their Ellis Shopping Benchmark performance for Second Quarter 2024.

*Companies are listed in alphabetical order

Tier 1 (70 or more completed shops)	Tier 2 (30 – 69 completed shops)
	Ellis Traditional Benchmark Platinum Level Achievers – IMT Residential
Ellis Customer Experience Benchmark Gold Level Achievers** – American Landmark – Greystar Management Services – Kairoi Residential	Ellis Customer Experience Benchmark Gold Level Achievers ** – FCA Management/Bonaventure Property Management – IMT Residential – Redwood Residential – Richman Property Services, Inc.

Resident Surveys

The Ellis Loyalty Benchmark identifies and recognizes the customer experience performance of companies subscribed to the Ellis Resident Surveys Program. It evaluates performance on five key touchpoints of the prospect and resident journey. The percentage of surveys onsite teams respond to and the average number of days it took for them to respond are also measured because these two factors impact the customer relationship and overall loyalty. Utilizing customer loyalty as a metric allows customer-centric companies to forecast three specific customer behaviors: likelihood to convert/renew, willingness to pay more, and likelihood to recommend.

The overall average Ellis Loyalty Benchmark score in 2023 was 80%. Second Quarter 2024 shows marginal improvement to 82%. In 2023, the onsite response rate averaged 82%, falling to 80% in First Quarter 2024 and declining significantly to 74% during Second Quarter 2024. The average response time in 2023 was 5.7 days, improving 5.1 days in First Quarter 2024 and again to 5.2 days in Second Quarter 2024. While onsite teams are responding quicker to surveys, they are responding to fewer. Given the competitive environment, it is imperative that onsite teams respond to all surveys, even positive ones, to better engage with residents.

The customer loyalty score is based on a scale of 0%-100% (see chart below):

Ellis Benchmark Top Performing Resident Surveys by Company – Second Quarter 2024

We wish to congratulate the companies below for their Ellis Surveys Benchmark performance for Second Quarter 2024.

*Companies are listed in alphabetical order

Ellis Best in Class Achievers Tier 1 (1,600 or more units)	Ellis Best in Class Achievers Tier 2 (1,599 or fewer units)
– Asset Living – Avanti Residential – Cathcart Property Management – Cloud Ten Residential – Fore Property Company – Friedman Realty Group – Guardian Management, LLC – Manco Abbott – Olympus Property – Pinnacle (PRMC) – Quarterra – Russo Property Management – Simpson Property Group – Sparrow Partners – Steadfast Management – Willow Bridge – Woodmont Properties – Zaremba Management Company	– Evolve Management Group, LLC – GDC Properties, Inc. – Ghertner & Company – Longboat Enterprises – O’Brien Realty Group – Samuels & Associates – Southern Land Company – StarPoint Properties, LLC – Sunrise Management & Consulting – TM Realty Services

Question/Touchpoint Results: How Did We Do?

Mystery Shops

The charts below reflect the average score of Ellis’ entire database for each of the ten key benchmark questions for telephone/onsite shops for Second Quarter 2024, as well as the customer experience for telephone/onsite shops by category for this quarter.

Resident Surveys

The chart below reflects the average scores across all Ellis Resident Survey companies for each survey touch point for Second Quarter 2024, as well as the combined overall loyalty score and average accountability performance results.

CREATING AND SUSTAINING A POSITIVE IMPRESSION WITH CUSTOMERS

Will Rogers famously opined, “You never get a second chance to make a first impression.”  Did you know it can take as little as a tenth of a second to form a first impression? While in most cases we have longer than this, our time and path to positive first impressions are limited.

First impressions often become lasting impressions, which is why this concept is so critical to success. It is possible but certainly challenging to reverse that first feeling. Unconscious biases, such as stereotypes and prejudices, can influence not only the way others perceive you but also the way you perceive others. In the effort to make a positive first impression, we have to be aware of and set aside our personal biases. Every visitor should feel welcome and valued.  

Other biases, such as The Halo Effect and Confirmation Bias, will likely continue molding the relationship into a greater degree of positivity — or negativity — over time.

• The Halo Effect: A positive first impression can create what is referred to as the halo effect, where people’s positive perception of you spreads to other aspects of your professional abilities. They immediately trust you can and will do anything they need.
• Confirmation Bias: Once a first impression is formed, people tend to seek confirmation that supports their initial perception, whether that initial impression is positive or negative.

Creating an Initial Positive First Impression With Rental Prospects

A customer’s first impression of your company might form when they visit your website or social media channel before they call or tour your property. Online shoppers search for the best deal, the ideal location, and, in general, a look and feel that creates a “sense of home” for them. Armed with their phone and the internet, your prospects often arrive for their tour knowing pricing, amenities, availability, and current specials. They are won or lost based on the experience you provide.

Tips for creating positive first impressions during a conversation with a customer:

• Use an upbeat and courteous tone throughout the interaction, especially when answering calls and greeting customers. Always offer a warm smile — a smile can be seen and heard!
• Avoid interrupting the customer when they are speaking or letting anything distract you from the conversation. Making eye contact lets them know you are giving them your attention.
• Listen actively and respond appropriately, including asking clarifying questions to show interest. Be conscious of your body language and gestures (avoid crossing your arms, furrowing eyebrows, etc. — you can practice using a mirror!).
• Do not rush the conversation. Control the speed of your delivery if you tend to talk at a faster rate. It’s okay to pause briefly. Once the conversation is naturally concluding, extend an invitation to continue it later, whether it be a follow-up call, an in-person tour, or assistance with the application.

In the acclaimed book “How To Win Friends And Influence People,” “ Dale Carnegie asserts many of these same principles, perhaps most notably that “a person’s name is to them the sweetest and most important sound in any language.”

Transitioning From Prospect to Resident

Studies have shown that the move-in process significantly impacts resident retention rates. Since there is limited time to build trust and connection with residents between lease signing and asking them to renew for another year, the move-in day experience becomes much more important. Property managers and leasing professionals play a vital role in ensuring a smooth move-in process for new residents.

Here are a few tips to make move-ins as successful and stress-free as possible:

• Conduct a comprehensive inspection of the apartment to identify and address any maintenance or repair issues before the resident arrives for move-in.
• Offer a move-in checklist when the lease is signed that outlines important tasks and information for residents, like key pickup and parking details, in one easy-to-access document.
• Assist in setting up utility services, including water, electricity, gas, internet, and cable.
• Provide every resident with a list of emergency contacts, including maintenance personnel, management, and local police and fire authorities, to quickly resolve any issues they may experience.
• Build a welcome package that includes neighborhood amenities and information about local services. This helps residents settle in much more quickly.
• Create a “WOW” moment with a welcome basket in the apartment, a ribbon door decoration, a small welcome party to introduce them to other residents, a gift card to a local store/restaurant, or something else along these lines.  
• Ask for feedback. If a resident is unhappy with the move-in process, it’s valuable to have that feedback right away. That allows onsite teams to smooth over any bad feelings to improve the relationship. Be sure to maintain consistent, open lines of communication with all new residents.

Continuing the Positive Experience Along the Resident Journey

We tend to prioritize attention and engagement during the leasing conversation. Once the lease is signed and the resident moves in, then what? We must continue acting in ways that demonstrate we are listening and sincerely interested in the resident’s experience with our community and team. Despite an evolving technical landscape, property management is still about people. Assessing satisfaction throughout the resident lifecycle is essential. Signing the lease is only the beginning of the resident experience. From move-in and maintenance requests to resident events and regular interactions with the onsite team, every resident touchpoint must be positive and help build loyalty that leads to renewals and referrals.

See these tips for improving the resident experience and building a positive impression:

• Refrain from entirely automating communications. A personal touch goes a long way. Conversations should be polite and professional.
• Survey residents throughout their lease — after move-in, following resolution of service tickets, before it’s time for lease renewal— so you have a holistic understanding of their experience.
• Address concerns immediately, thoroughly, and professionally. Teams should strive to be intentional and accommodating.
• Provide training for your teams in customer experience.
• Host regular resident events and share the news everywhere — social media, in-office signs, emails to each resident, etc. Make sure you’re using channels that appeal to all residents and ensure all feel invited and welcome.

With the increase in multifamily housing demand and rising rents, a higher standard of amenities has become expected rather than being the leading differentiators between competitors. Falling in third place behind specific location and changes in personal situation, the most important factor to renters is an exceptional resident experience. 

Even though we know and understand why first impressions are vital, sometimes we make mistakes, or things don’t go as well as we hoped. It is possible to change a negative first impression over time. If a leasing or move-in experience doesn’t go well, we can earn a renewal by consistently meeting or exceeding the customer’s expectations for the remainder of their lease.

Remember, you only have moments to make a first impression, which can impact the future of that relationship positively or negatively. Making a good first impression takes practice. Reviewing prospect and resident surveys, online reputation, and mystery shopping reports can help you see how you’re doing and provide insight on ways to strive for continual improvement. A positive experience not only contributes to resident satisfaction but also lays the foundation for referrals and a positive reputation for the property, leading to increased demand and higher occupancy rates. When we create a win for the customer, it translates to a win for us.

We thank you for your ongoing support, participation, and feedback, which help make this report an informative, fresh, and reliable resource. We hope you find Grace Hill to be not only the finest source for apartment mystery shopping and resident surveys but also a training resource for your organization. Find additional support and information on Ellis – A Grace Hill Company, Grace Hill, and Edge2Learn.

July 31, 2024

Prepared by Lisa Ford, Director Mystery Shopping Services

Ellis – A Grace Hill Company (EPMS)
4545 Fuller Drive | Suite 406
Irving, TX 75038
888.988.3767 telephone
[email protected] | [email protected]
www.epmsonline.com | www.gracehill.com

Footnotes: 1 See website for Mystery Shop Benchmark and Resident Surveys Benchmark eligibility, tier level, and recognition requirements for apartment mystery shops and resident surveys.