Shared post from rent.uloop.com

When it comes to bringing in more tenants and keeping your rooms full, the best method is to get your current tenants to recommend the place. However, encouraging residents to go out of their way to promote their place can be a bit tricky.

This is where resident referral rewards come in. Most will go for the obvious money draw, but there are definitely other ways that may fit in better with your current residents (and save you more money). Here are six different ways to reward your residents for referrals.

1. Cash

The most tried and true method to gaining more residents through resident referrals is to give a flat rate of cash. Depending on your demand and need for referrals, this amount of money can vary greatly. Some apartment complexes will offer anywhere from $50 to $300 just for one valid referral.

Giving an unconditional flat rate appeals to all your residents. Everyone can use a little extra cash. Apartment owners know that no advertising is as good as a solid recommendation from another trusted person which makes resident referrals all the more worthwhile. They’re necessary to keeping your resident economy running at its best.

2. Rent decrease

Another way to reward your residents for giving referrals isn’t to pay them outright, but just to let them pay you less. This is most easily done by allowing some decrease in rent, whether it be waiving a half month’s or entire month’s fee. If your resident is loyal and plans to stay for a while, it could mean simply lowering their monthly rent by a small amount so that it adds up in savings over time. Essentially, a rent decrease is a similar bargain as the cash offer, but just handled in a different way that could be easier and more cost effective.

3. Gift cards

Another way to promote resident referrals if you aren’t keen on just giving out cash is to reward your tenants with gift cards. Most towns and areas have similar stores that are useful no matter the situation. From Walmart to McDonald’s to Applebee’s, give your residents a choice of whichever gift card they feel they’ll get the most use out of.

Some people like getting gift cards instead of cash because they’ll either end up just saving the cash or spending it all immediately. If they’re given a gift card, they may be more apt to treat themselves modestly on a nice meal or some new shirts.

4. Cleaning services

Some people will do almost anything to avoid cleaning their apartment. When you have people like this, sometimes a cleaning service can be of the most value. It also works as a win-win for you as the landlord because you know the space is being kept up. You could offer them a free carpet cleaning, window washing, painting, landscaping if they have it or whatever else they seem to be needing.

Sometimes it is best to reward tenants with something immediately practical and useful rather than something that could be spent on something trivial.

5. Local benefits

If you’re looking to boost your resident referrals and help out your local economy, consider giving them benefits and gift cards to local places and shops. Residents may find appeal in a free gym membership or tickets to a community event. They may also find appeal in small gift cards to multiple local shops around town.

If you go to some of these businesses, they may even give you free gift certificates for your residents to help promote their own sales. This could be a good way to keep your own costs down by not having to pay out of pocket and to bolster the community around you.

6. Use a point system

Some apartment complexes already have resident reward point systems that include resident referrals. Tenants can rack up differing amounts of points based on paying rent in a timely manner, renewing their lease, helping out in local community events, amongst other things.

Resident referrals can easily be worked into this system likely as the highest value of points. When your residents reach their point goal, they can then be rewarded with any of the aforementioned gifts above. Reward systems encourage residents to keep up their good work continuously rather than doing one good thing and stopping. This could also help the reward seem greater and the tenant more accomplished if they’ve been working toward it for some time.

If you’ve followed any of these ideas, or even come up with your own, you’ll soon see the benefits of the resident referral. One good personal review and recommendation can win someone over dozens of other online reviews and websites. They are absolutely key in making sure your complex stays full and profitable. Their power can’t be overstated.

Protecting your business from hackers is a hot topic these days. Property management companies are particularly fearful of becoming the next Target, and rightfully so. With all the data residents need to provide on lease applications, property management databases are full of sensitive information like credit cards, Social Security numbers, previous address information, and date of birth. It’s a gold mine for identity thieves.

With so much buzz over data security, we recently hosted a webinar for property management professionals titled, “Safeguard your Business – Strategies to Improve Data Security and Protect Resident Information”. In case you missed it, here are some of the tips PayLease’s security experts discussed with the audience.

Hire Trustworthy Employees

Responsible and honest employees are crucial to data security. Job hunters are on their best behavior during interviews so it is important to run background checks and call each candidate’s professional references. Prospective employees should have multiple rounds of interviews within your organization, preferably with multiple people within the company.

Train Employees

The people you hire are your first line of defense in protecting resident data. Train employees how to properly handle sensitive resident information like Social Security numbers, credit card information, etc. Limit the number of employees who have access to this data. Furthermore, employees also need to know computer usage policies and email best practices, so make sure that they are not exposing your computers to unnecessary risk.

Invest in Physical Security

Your office doesn’t need to be Ft. Knox, but exercising some simple precautions can go a long way. Keep files locked. Shred any documents containing sensitive data. Either purchase a shredder for the office or hire a 3rd party to destroy these documents. Install security cameras and a key card access system for rooms where sensitive information could be accessed. But before you install cameras, be sure you check the privacy laws in your area. Some state laws require that employees be informed of security cameras.

Digital Security

Strong passwords are the most important aspect of digital security. Passwords should be at least 8 characters and contain an uppercase letter, a lower case letter and a special character. Never write down passwords and make sure you have multiple passwords for various systems.

Install a reputable antivirus software on all employee computers and make sure it runs daily. Research and choose a solution that is effective and fast, so it can run frequently on the computers without getting in the way. It should be easy to deploy and centrally manage.

Your organization should also have an email and internet policy within its employee manual. Also be sure to inform employees of the latest malware to prevent your systems from being infected with viruses.

For more tips on safeguarding resident information, view our recorded webinar, Safeguard your Business – Strategies to Improve Data Security and Protect Resident Information.

PayLease | Company Website | PayLease is a leading payments provider for the property management industry, specifically serving the Residential, Homeowner Association and Commercial markets. We provide property managers the ability to collect rent, dues and lease payments electronically, resulting in less administrative work and improved cash flow and funding time.

by Vera Dordick

Every property manager knows that spending time and effort to retain residents is more cost effective than working to attract new ones: Each resident turnover is estimated to cost a property around $3,000. While much has been written about strategies for enticing residents to renew, little is said about the different challenges involved in working with residents from other cultures.

California has more foreign-born residents than any other state, putting its property managers in a unique position: Odds are quite good that they will be working with renters from other cultures. New York, Texas and Florida are the other states with high immigrant populations. According to the Public Policy Institute of California:

• One out of four immigrants to the United States resides in California. (That’s more people than the entire population of Michigan!)
• Of this population, more than half are Hispanic and 37 percent are Asian.
• Asia has surpassed Latin America as the major source of immigrants to California.

Across the board, retention experts have identified good communication as a critical factor in keeping residents. The big challenge with multicultural renters comes when your communications style is not necessarily the same as theirs. Culturally based behaviors and styles affect communication and can impact every step of the property rental and management process, from leasing to maintenance.

Culture is a loaded word that means different things to different people.  It is based on your family history, your religion, your reality and your perceptions. For example, if you have never tried an ethnic cuisine, its ingredients, flavors and textures may seem strange.  Similarly, if you don’t understand why people from a different culture behave the way they do, their actions may also seem strange, unfamiliar, or even wrong.

They aren’t “wrong.” They’re just different. This is the key concept that will be most helpful in working with people from other countries.  In a world of cultures, there is no right or wrong culture, no one culture that is “better” than another. Approaching education in cultural sensitivity with an open mind, devoid of stereotypes can help you achieve the “cultural mind shift” that your perception may not be their reality.  This will help you work efficiently and effectively with any multicultural renter.

All residents of a community want to be valued and understood, and feel comfortable living in a community. By understanding the reasons that drive their behaviors – the “why” – you will be better prepared to handle various communication styles and achieve your goals without offending. Some countries have a fluid time culture that does not place significant value on punctuality. Others do not have a history of fixed-term or fixed-price leases. Cultural differences can also impact gender relations and issues of hierarchy on both sides of your business dealings, particularly during the initial leasing process. By taking into account these differences from your very fist meeting, you will set the stage for an open and welcoming atmosphere.

Helpful tactics

Accommodating cultural differences does not have to consume a great deal of time or money as long as you are prepared. Before showing units to any potential renters, it’s a good idea (and prudent legal practice) to ask if renters have any special needs or requirements. By asking everyone, you will not stumble into issues of stereotyping or run afoul of the Fair Housing Act.

Additional challenges may arise after renters join your community. Cultural differences can create concerns over safety and maintenance, which in turn can affect your entire property.

• Some residents may not wear shoes in the home and pile them outside, creating a fire and safety hazard.
• Renters from some cultures may remove closet doors and burn incense or candles inside.
• Cooking smells can be distinctive and pervasive.
• Maintenance in some areas of the unit may become a concern, such as grease build-up in the kitchen or water damage in the bathrooms.
• Appliances may be damaged because of unintentional misuse.

In all of these cases, cultural differences are the root cause of the challenge.  Depending upon the culture of the renter, there are various ways that issues can be addressed to solve the problem without offending the client. Often, problems can be avoided by providing renters a list of leasing etiquette points that must be followed.  Essentially, it’s a list of do’s and don’ts, which can be useful for any renter.

Reminding renters that maintenance is available 24 hours a day, 7 days a week can be critical.  In some countries, maintenance service – particularly without an extra charge – does not exist. Familiarizing residents with the availability of the service can save a bundle on repair costs when the situation is one that requires immediate attention.

Sometimes, communicating with non-native English speakers can be challenging. Be mindful of the language you use in speaking with multicultural renters. Speak slowly and avoid compound words and idioms, which can be difficult for them to understand. Don’t be afraid to say you are having trouble understanding and ask someone to repeat themselves.

Interacting with multicultural residents can be an exciting and personally rewarding experience. Their traditions, stories and perspectives can enrich the lives of the entire community.  Moreover, from a business perspective, they cannot be ignored. Most all ethnic communities have an informal network that newcomers use to find sources of goods and services.  It could be damaging to a property if it were to develop a reputation as being unwelcoming to foreign-born renters.

Progressively minded property management companies will seize the opportunity to attract and retain this sizeable market segment.  Educating and training staff members to effectively communicate with multicultural renters will have an immediate and tangible effect on a rental community’s bottom line.

Vera Dordick | Company Website  |  LinkedIn Connect Tangible Development helps companies thrive in a world of flux through cultural awareness training and improved global communication skills. It offers customized consulting with special industry expertise in property management, hospitality, higher education, science and technology, health care and financial services.

Pasadena, CA – March 25, 2014

We hope to see everyone back in Pasadena in 2015!

www.IncomePropertyExpo.com

How often are residents thanked for the choice to live at a property?

Most choices for housing involve long term commitments, buying a house or a condo, mortgage etc. Individuals who rent can make a change in an instant, granted breaking a lease has financial consequences, but an unsatisfied resident has the ability to mmake a change right now.

Taking the time to acknowledge the length of time a resident has lived at a property, thanking them for their continued loyalty, asking if any service or assistance is needed, can reinforce that commitment.

Over the top efforts demonstrating customer service secure publicity and industry comparisons, but simple acts of appreciation, offered with sincerity hold more value than crazy promotions.

Generally speaking, the staff at a property doesn’t have much contact with a resident after the move in..lease renewal, late rent notices and requests for maintenance. Taking the time to insure every contact ends on a positive note will build a stronger relationship with a resident.

Offering the comment, “Thank you for choosing our property for your home,” can go a long way in building this relationship.

Staff at property often has anecdotal stories about demanding residents, or individuals that inflict substantial damage discovered at the time of move out. For most locations, the 80/20 rule typifies our residents, 20% of the residents use 80% of the staff resources. The remaining 80%, the individuals who pay their rent on time, renew without negotiating, take great care of their apartment home, and generally abide by the community policy and procedures; are largely ignored for their compliance.

Offering appreciation when the opportunity presents itself, or creating resident appreciation events can build a customer service atmosphere at a property.

Just as many receipts or monthly statements, include the phrase, we appreciate your business, how could this be incorporated into daily business practice?

Include this phrase:
-on rent receipts
-service request notification
-train staff to acknowledge resident tenancy during conversations, and communicaitons, such as lease renewals.

Residents often believe they are nothing more than an apartment number, or an account on a ledger. Insuring residents the staff is aware of the individual choice and ongoing commitment will have an influence on renewal decisions, or building the attitude where a resident wants to encourage friends and family to consider your property when looking for an apartment home.

Lori Hammond | Company Website | LinkedIn Connect | Lori has 30+ years’ experience in the Property Management Industry, working with both market rate and affordable housing.  Lori has been privileged to work with some tremendous industry leaders during employment tenures with Oxford Management, NHP Management, AIMCO, Alliance Residential, Boston Capital, The Sterling Group, P.K. Housing and currently Management Resources Development.

Retaining residents is far less costly than finding new ones, so we set out to learn which incentives are most effective in convincing existing residents to renew a lease, and when the best time is to offer these perks. To do this, we surveyed approximately 4,600 former and current renters. Here, we highlight the biggest takeaways.

The Most Convincing Incentives for Retaining Tenants | IndustryView from Software Advice

Leasing apartments is a skill for property management professionals. To forecast the results, there are two measurable factors: the number of leasing opportunities who make appointments or arrive at the property; and the number (percent) that commit to lease.

Explaining the financial impact of vacant apartments and the recovery period will assist in creating a sense of urgency for the staff to secure leases and move ins.

With average rents of $600, every day an apartment remains vacant, the property loses $20. This doesn’t seem to be an amount of lost revenue to cause concern. The same twenty dollars increases to $140 each week. With ten vacant apartments, the loss is $200 each day, totaling $6000 per month. The property quickly has accumulated 3000 days of vacancy loss.

Facing this inventory of vacant apartments and several pending move outs; employing an occupancy matrix can forecast the timing to restore the desired occupancy. Part of this analysis includes the historical trend of prospective leasing visits received each week or month, and the number of sales/leases secured. A property supporting 20 leasing opportunities and securing 4 leases, has a closing ratio of 20%. With no changes or adjustments; to overcome ten vacant apartments would take more than 2 months, resulting in more than $10,000 of vacancy loss.

To increase move ins, the property needs more leases. This can be achieved by either increasing the number of leasing opportunities coming to visit the property or increasing the number of individuals who make the decision to lease.

Doubling the volume of visits to the property to 40 individuals will result in 8 leases. With this increased traffic, adding some closing tools; complimentary carport for a month, discounted security deposit, a structured follow up effort, the closing ratio could grow to 30%. This results in 12 leases. Occupancy can be back on track within thirty days instead of sixty, recovering a potential $6,000 into the revenue stream.

Without an adjustment to the number of visits or the leases secured, the number of vacant apartments lingers on resulting in a financial drain on the property. Setting goals for prospective leasing visits, securing commitments to lease and completing the move ins, will put the property on road to occupancy recovery.

Lori Hammond | Company Website | LinkedIn Connect | Lori has 30+ years’ experience in the Property Management Industry, working with both market rate and affordable housing.  Lori has been privileged to work with some tremendous industry leaders during employment tenures with Oxford Management, NHP Management, AIMCO, Alliance Residential, Boston Capital, The Sterling Group, P.K. Housing and currently Management Resources Development.

The best renters, those with high credit scores and low maintenance needs, are highly sought after in the new rental market. Renters report that they don’t mind paying a premium for a home where they feel safe and comfortable, but keeping those tenants will take more than amenities. Adding bells and whistles is just as much a dead end game as lowering the rent and no property owner will survive long without a strategy to attract and hold onto the best tenants.

Great tenants are getting harder to find and the competition is heating up to find them, even if they are not in the market for a new apartment currently. Big data and aggressive marketing techniques are the hallmarks of the emerging rental market. At the recent Apartment Rental Management conference in Miami, Kelly Maguire, an executive director at SAS, clearly laid out the future of the rental market, where owners “need to be more strategically oriented, consumer focused and be more technologically advanced.”

The new renter is older and ready to settle down a bit, according to 2012 statistics from National Multi Housing Council . For those under 30, just over half, 57 percent, are renters. That percentage increases with age. From 30-44, almost two thirds are renting at 63 percent.  Those numbers jump up to 78 percent for baby boomers aged 45-64 and the really surprising number is 84 percent of seniors are now in the rental market. We can expect those to stay high or increase as the population bubble ages. The new renters are older, wiser and accustomed to being treated with respect. Here are three suggestions for making the ideal tenants feel at home for the long haul.

1. Make it personal

The rental market has moved from one of price sensitivity to value sensitivity. Renters say they want reasonable rents, but they are more concerned about how they are treated. They could easily get lower rent or more amenities elsewhere, but most stay for  the way they are treated by the staff.

The wise owners will retain these renters by personalizing the interactions, with things like thank you notes, flowers in the apartment when new tenants move in or an online presence that covers relevant activities in the neighborhood. Remember that the new renter cares about local, mobile and social information.

2. Be an early responder

The world outside is unpredictable enough. The new renter finds uncertainty about issues in their home extremely stressful. Respond quickly when they contact you and clearly communicate a policy about call back times.

Remember that tenants will be focused on results instead of explanations. Even if you only want to assure tenants that the circumstances that led to the problem won’t be repeated, don’t. Explanations tend to sound like excuses to the renter. All they really want to know is when it will be fixed.

3. Start now

Consider your lease renewals as new sales rather than administrative burdens. Good tenants are those who plan ahead, and they may well be planning for a new apartment six months before the end of their lease. Ask how they like living there and what would make their lives easier to begin discussions about renewal.

Remember that how you ask matters as much as what you say. Alex Jackiw, managing director of residential client services at McKinley, pointed out that 67 percent of clients in a recent survey chose email as their preferred method of contact from leasing offices.

Today’s advanced databases for rental management are able to handle a great deal of information about tenant preferences and interactions. Use the tools at your command to learn who your best tenants are and what they need to feel at home.

Justin Alanis | Company Website | LinkedIn Connect | Justin Alanis is the Co-Founder and CEO of Rentlytics Inc.  Rentlytics is based in San Francisco, CA providing deep analytics for apartment property owners and managers. View and analyze property operational and financial metrics more effectively and identify issues.

Maintenance is often regarded as a necessary evil or odd stepchild to the whole rental experience.   Like in a restaurant, the busboy is not high on the totem pole, yet remove or neglect the bus service and the restaurant falls into chaos and diners are not happy.

The same can be said in the apartment industry.  Neglect maintenance and you will quickly find out how important maintenance is to your residents.  In 2012, SatisFacts Research published an e-book that revealed the highest-ranking factor for an apartment resident’s renewal decision was “Quality of maintenance service provided”.  Maintenance ranked higher than perks, parties and even the desire for more parking.

Keeping in mind that maintenance is such a great concern for lease renewing residents, successful property management teams look at maintenance providers as a valuable asset to be used in resident retention programs.  Consider the cost of routine maintenance against the massive cost of a rental make-ready in the event that a resident does not re-new their lease.

List or identify the ten top routine maintenance requests in the past year.  Determine if the item could have been quickly resolved by asking a few key questions such as:  “Is the pilot lit?”, “Have you pushed the reset button under the garbage disposal?”, “Have you reset the GFCI button on the electrical outlet?  Team up with your maintenance team or provider for a much more extensive list of simple questions that may resolve an issue while your resident is on the phone.  Asking the right questions will also save on your maintenance costs.  Sending out a plumber to reset a button is very expensive use of a resources and a potential time waster for your resident.

An often-overlooked aspect of maintenance is the follow up call to ensure the work was satisfactory and the work solved the resident’s issues.   This a good time to practice your customer service tools and ask the resident if there is anything else they need.

Use the maintenance team as a secret weapon in the war   against vacancies. Make sure the residents know who the maintenance team members are; introduce them, mention their long professional service to the community.  Emphasize their maintenance proficiency and ability to perform service requests in a timely manner.

The property management and maintenance team are not separate teams.   As an example, the property management & maintenance departments are very much like offense and defense teams in a football game.  Both work as one team and both are critical to the success of a winning game.  One makes the points and the other defends the points.  One without the other spells disaster.  Communication is key to a winning strategy. Both teams need to know the end goal.  Treat both your management/leasing team and maintenance team as equals; they are two sides of the same coin.   Use both your leasing and maintenance departments as a two-prong approach to filling vacancies and controlling resident retention.  In other words; a happy resident will be a long term resident.

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Buffalo Maintenance, Inc. provides comprehensive maintenance and repair solutions for the rental housing industry.  Jerry L’Ecuyer  is a licensed contractor & real estate broker.  Frankie Alvarez is the Operations Director and has been involved with apartment maintenance & construction for over 18 years.

By: Rommel Anacan | www.RelationshipDifference.com

Some of my favorite things to read online are the things people say when they’re commenting on stories! I am always amazed at how ugly, mean-spirited and downright awful some people can be when they communicate behind a wall of anonymity provided by the computer.

Here are some comments I found on a few sites:

You are a FOOL–with a LOT of company.

3 crap articles in a row.  You’re on a roll Doyel.

Obviously Ravens fans can’t speel, no surprise.

Do you think any of these people would actually make those comments if they were standing in front of the people they directed them to? I don’t. (And BTW-I love that the comment about someone not being able to spell has the word “spell” spelled wrong.)

When I was the customer care manager of a property management company in Southern California, I discovered very quickly how making a phone call could be the best thing you do in resolving a complaint! I usually had a practice of communicating with people in the same way they first contacted me, unless they told me otherwise. So of course I loved it when people emailed me or wrote me a letter because I could respond back without having to actually talk to them! (Admit it, you feel the same way!)

But sometimes I’d notice that an issue that should have been resolved would keep going; or sometimes I’d see that my email back would trigger another email that seemed more angry and frustrated and the first, which of course, was not my goal!

Here is the funny thing…when I’d see these escalated emails or letters, I would then pick up the phone and reach out to the customer personally. In a majority of the cases the residents would typically be very nice and sometimes apologize for how they communicated to me in their writings.

It seems that the one-on-one connection was often enough to defuse a customer’s anger. Sure, I often had challenges that still needed to be resolved, but I found that residents were often more willing to work with me and see my point of view when I spoke with them personally, instead of relying on email or letters. I can’t count how many I’ve spoken with who thanked me for calling them and working with them, even when I wasn’t able to give them what they wanted!

Why You Should Consider Calling Instead of Writing

It’s Easier to Sound Like a Jerk Over Email

This one works both ways. I’ve seen many emails from associates to residents that made me cringe and fear for the job security of the associate who wrote them! As I talked about earlier, when you are safe and secure behind your desk, it’s easier for you to say something you shouldn’t say, or to say it in a way that you shouldn’t. It’s also easier for your upset resident to do the same thing.

When you are talking in person (or on the phone) there is a tendency for people to want to find some type of common ground, because not everyone is comfortable being combative or aggressive in person.

It’s Easier to be Misunderstood Over Email

There is no way around this one, letters and emails often read harsher than they are intended. This is why you’ve probably heard that you should never use email to correct or discipline or chasten someone. The other issue with written communication is that it can be looked at and stewed over again and again, further inflaming an already upset resident. If you must send an email read and re-read it from the customer’s point of view~and have someone else (who is generally level headed) to read it for you if you have any doubts!

Personally Connecting is Powerful

While technology allows us to communicate in every way possible, it also seems to isolate us from people as well. In today’s world where we text more than we call, where we Facebook more than we meet for coffee, there is something emotionally powerful when you pick up the phone and say,

“Hi Roger. This is Kimberly from the Quail Run office. I just got your email and I am so sorry about your experience and wanted to talk to you right away about it…”

Before you click on the “send” button, would you be better off picking up the phone instead?

Rommel Anacan is the president of The Relationship Difference; a corporate training, motivational speaking and consulting firm in Orange County, California. He is a multifamily industry veteran, having worked at all levels of the industry from onsite to corporate, where he developed a reputation for tackling common challenges in an uncommon way. For more information visit his website at www.RelationshipDifference.com