Archive for the ‘Tenant Acquisition’ Category

Signage Offers Expanded Appeal and Targeted Positioning

Saturday, November 21st, 2009

As operators we often fall into the trap of believing we have taken all the steps we can to expand our market presence.  However, we forget the power of our buying base.  As owners a property may be the home to hundreds or thousands of residents.

We can leverage our resident base to gain the attention and marketing support of many potential marketing sources.  For example, many businesses will welcome our  flyers, banner signs, temporary signs for marketing our property because  of the resident base.

Have you considered approaching  private business owners to place signs, banners, and flyers on their premises as a way to increase your presence?

Signage is not Only Effective; its Often Inexpensive

Friday, November 20th, 2009

We often are able to place signs for $200 – $400 per quarter on main roads with very high traffic.  The cost of the signs are less than $1,000 and the traffic can be 3 to 5 new visits per day.

The next major issue is what to place on the sign.  We normally add:

  • Property name
  • Address
  • Phone number
  • Website
  • bedrooms
  • Sometimes more if it fits well.

Blake Ratcliff

The Apartment Guy

Site Inspections

Friday, October 30th, 2009

Inspections and visits should be taken seriously with discrete and specific information sought.  A good inspection can accomplish much to improve performance at a property.  When a regional manager visits a property, some key  items to see to are:

  • Inspect ready units and verify that they are fully ready for new residents.  Check outlets, heating, air conditioning, cleanliness, operability of appliances, faucets, toilets, windows, and so on.
  • Inspect vacant units to see condition and to assure that no one decides these units are their personal inventory.
  • Reviewing the referral program, retention programs, and partnership programs.  Find out what the property team has been doing for marketing since the last visit and what they will be doing after this visit.
  • Tour all the buildings, common areas, and amenities.  Check operability, cosmetic condition, and for anything unusual.
  • Review files and records.
  • Check the condition of the office and the appearance of the team on site.

A review like this will improve property performance, send a clear message about your interest, and speak volumes about the need for quality.

Great article by Tara Smiley – A new spin on child-proofing your sales techniques

Friday, October 9th, 2009

I admit it… I shamelessly took my children (4 year old twin girls) to shop one of my property’s competition this weekend.  I told them we were pretending to get a new house and that they needed to be mini-inspectors like their mom and check to see if the apartments were “good”.  In my kids’ minds, things are either “awesome”, “fine” or “crappy”  – just to pre-warn you.

Comp #1 featured a comparable rental price and quare footage, but horribly worn berber carpet that according to my oldest, looked like the “crappy sidewalk” by their favorite park.  This comment went unchallenged by the leasing agent.

Comp #2 featured a higher rent, less square footage, but big money amenities  on the property and in the unit itself.  The leasing agent completely neglected my kids on this tour, refused to ask their names and even told them “Now don’t touch anything, girls.”  My kids’ reaction “I don’t like her face.”

Comp #3 was beautiful.  Aggressively priced, good floorplan, great property and an excellent customer service standard.  Completely catered to the girls.  Right until we walked into the apt. that this leasing agent said “You guys are going to love it.  Plenty of room for Nada and Frankie {my girls’ stuffed panda and dalmation} to play!”  Nobody could get past the smell of mildew, damp, and obvious hidden water damage.  My youngest said the apartment smelled like poo.  At which point the leasing agent completely lost his cool and said “Sweetie, why don’t you just let me talk to your mommy.”

At this point you may be wondering why I blatantly used my children to evoke reactions in this shopping trip. The answer?  I seem to get the most candid and transparent reactions.  Yes, I used my children to see if the properties were “child proof” in their ability to cater to ALL their prospects, not just the ones with an active credit score.  And I would (and probably will) do it again.

And what did we learn?  Parents pay attention.  No different than speaking to just one member of the couple that walks thru the door.  Or refusing to acknowledge a pet that someone brings with them to the appointment.  If you want to sell, then sell to every aspect of your prospect.  You sell to their needs, wants, potential concerns, etc., so sell to their lifestyles, families, friends and whoever else joins them in their shopping.  If you don’t, you may just get the thumb’s down from two four year olds, whose final pronouncement was “Mumma, those places were crappy crap!”  Couldn’t have said it better.  Now if only they could type this blog themselves.

The original blog article can be found on the Multifamily Insiders Blog.

More good hints to improve Craigslist ads

Friday, October 9th, 2009

From a comment on the earlier post I highlighted:

-Put the phone number in multiple places so it is always visible (even when scrolling)
-Show pictures of the interior of your unit
-Make contacting the property as easy as possible with links and email addresses
-Remember, post links that go to the property, not the ‘main’ website (many people do not want to perform another search after searching craigslist)

Value, Value, Value

Tuesday, October 6th, 2009

U.S. consumer debt fell another $10 billion last month.  Current predictions are the average savings rate for  the coming decade will exceed 9%.  Retailers believe spending has shifted long term to necessities and away from luxuries.

So, the question becomes how can we as owners squeeze more into less.  I see a few areas we intend to act upon including:

  • Bunking options with safes for valuables in properties with space for more tenants,
  • Storage options for folks downsizing from homes,
  • Fixed income rent plans with utilities built in  (reimbursed by the tenant is our plan), and
  • By the bedroom leases and roommate management.

Managing in this environment is challenging, but with some imagination, these type changes may offer higher occupancy and higher margins even as pressure on price is increasing.

For folks looking at new units, I believe smaller floor plans are likely to regain  a great deal of luster as total cost of living including rent and utilities become more important.

What Do You Know About Your Tenants?

Saturday, October 3rd, 2009

As the economic downturn has continued to worsen, I’ve watched  deliquencies grow worse at several properties,  I believe we are seeing more crime on our properties, and I am sure I could  find other effects if I looked closer.  All of this has caused me to consider our  tenant screening process.  The fact is a background check and credit check provide little information.

In the future, our company will be looking for subtle ways to strengthen and broaden our tenant screening process. The results of that effort will focus not only on tenant selection, but also on tenant retention.  Consider that if using this information you can change your base as little as 5% per year that the results will become compellingly positive over a few years time.

Our focus is going to be on learning more about lifestyles, education, interests, and social choices.  From these, we will focus on tenant retention and tenant incentives.  We believe these are excellent way to develop tighter communities where the incentive to rent will overcome the desire to own as residents become more focused on cash producing asset acquisition than homeownership.

Apartment Leasing is Improved with Good Salesmanship

Monday, September 28th, 2009

The Apartment Marketing Blog has a very interesting and actionable post on salesmanship ideas that can improve close rates.  We all benefit from attending to ideas like these and others such as:

  • Dress codes,
  • Name tags,
  • Fresh cookies in the office and
  • Many others

Good luck and good leasing.

Sometimes life comes at you hard as I’ve been reminded this weekend!

Sunday, September 27th, 2009

Here is an off the subject piece you may enjoy.  I took a hard fall this morning reminding me just how painful events can last for what is a moment or only a short time with our businesses.

I took a fall this weekend.. read about my  fall down the stairs here.

I am sure this is a character building experience somehow, but this morning mainly my back side aches and screams as a reminder.

Setting up Your Leasing Office for Success

Thursday, September 24th, 2009

Today I would like to evaluate the use of 7 techniques that will set up an enjoyable work environment for your staff and greatly impact your leasing success. These 7 techniques are meant to help you give prospective tenant that great first impression that means so much in $$$.

  1. Curb Appeal – When a prospective resident drives by your property, they have to say WOW! Some of the most economic ways of making that happen are: Keeping the property clean, frequent upkeep of the landscape, and every 1-3 years (depending on need) power-washing the exterior of your apartment and leasing office. Not only will this attract prospective residents, it will help with resident retention, and will make it more enjoyable place of work for your staff.
  2. Lighting – The type of light and the placement of light fixtures is important both inside your leasing office and throughout your property.
    1. First, lets address the issue of lighting outside. It is important that your property have lighting throughout for various reasons, but the two most important ones are safety and careful lighting of your apartment’s curb side sign (if you dont have one, you should) will add aesthetic value to your apartment at night.
    2. Lighting fixture should be placed higher than eye level, because low lamp like fixtures can shine direct light into people’s eyes. There are several types of light, but the best and most calming light is natural light (because of this, sky lights are great). The human body natural physiological response to light is general awareness and the general psychological response is happiness. The physiological excitation elicits a psychological response of happiness. The best way to explain this is: What is a nice day? Sunny and warm or dark and gloomy? When it is a nice day outside, people tend to be more active and typically enjoy themselves more.
  3. Color – Colors are a second important component of the environment. Dark colors and red (fire-like) colors are the worst choice. You will want to have light pastel colors that promote calm and secure feelings. Careful color selections can make prospective residents feel happy right when they walk in your door, and will keep your staff happier for a longer period of time. Read more about the psychological response to colors.
  4. Smell – This should be fairly self explanatory, but I have been in dozens of apartment offices that are musty! If your office does not smell good there is a big problem. The physiological response to bad musty smells is to leave the area! When you smell something old, musty, bad, etc, the sensory nerves in your brain trigger a “get out of here” or “dont eat this” response. So please, find a happy, soothing fragrance, it will do wonders for your prospective resident’s first impression, not to mention your staff will enjoy it as well.
  5. Sound – Soothing sounds such as running water have evolutionarily become a source of happy thoughts for humans. When I was an undergraduate, I participated in a study (as in I was a test subject) where we were asked to sit in a waiting room for 30 minutes before we were asked random questions about our week and our day. There were two test groups. One was placed in a “waiting” room with sounds, such as flowing water (like from a fountain) and light music. The second test group sat in the same empty “waiting” room without the soothing sounds. Six-hundred students and faculty participated in this study (300 in each scenario). As you may have guessed, people waiting in the room with soothing sounds, answered the questions positively 80% of the time, while people sitting in the room without the sound, answered questions positively only 48% of the time. SO, hopefully if you follow this logic, your staff and prospective tenants will respond positively 80% of the time.
  6. Comfortable Seating – Ok, this is a big deal especially when you want to have a prospective resident fill out an application or a lease. Sitting comfortably elicits a response from the parasympathetic system (or in other words, a calming effect). It is also smart to have snacks near by, because when the parasympathetic system is stimulated, a secondary response is slight hunger (so a bowl of different types of candy works quite well).
  7. A Mirror – This tip came from one of my neighbors. For over 25 years he has been a customer service consultant for several companies including Ford, and GMC. Having a full wall sized mirror behind your front desk at your leasing office will do many great things. First, it will make your office look much bigger than it actually is (this is great for properties with small leasing offices), this also positively affects your prospective resident’s first impression of the property because they wont feel as cramped in a small office as they usually would. Secondly, having a full wall sized mirror will help you deal with angry residents. Putting a large (full wall) mirror behind the customer service desk will drastically reduce angry resident outbursts. The reason it works: People do not like watching themselves be angry (just like you dont like to watch them get angry), it is a subconscious psychological reflex to seeing their angry selves staring back. Simple, but effective.

I hope you enjoyed it,

Sergio Navarrete

Apartment Marketing by Occupancy100.com