Judging by mgt's indifference towards retaining the existing tenants, a quick refresher course on economics, assuming they went to school at all. This applies to almost all industries:

1. It is always cheaper to retain existing customers. Acquiring new tenants generates CPGA, which lowers the EBITDA margin and IRR.
(for mgt, please refer to your finance book for definition). Most importantly it lowers the churn rate.

2. All business executives will tell you the same. The opportunity cost is too high to forgo a customer in exchanging for a new one, assuming all other things are equal)

3. Giving a current resident an incentive that is offered to a prospective tenant saves money...because you don't need to pay for extra expenses (marketing and SG&A) while losing revenue (from an unoccupied apt).

4. Negotiation is part of the "lease renewal process". When you buy a car, do you pay MSRP or do you ask for a discount' This is no brainer. It's insulting to exiting residents to say "prior discount is not meant to use for any new lease". So much for customer respect and service, which Avalon prides itself for.

Don't get me wrong, it's a decent place, but at a steep price. If Avalon is charging a premium, at least provide its tenants with respect they are entitled to. Don't send out customer surveys if you don't intend to act upon them.

If Avalon is trying to differentiate itself by the quality of its service, I don?t know about other communities, faxon Park gets an F.

I intend to call the general office and voice my opinion. I hope upper mgt has a better vision for its business.

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