Posts Tagged ‘Property Management’

Supply and Demand, Lease Your Apartment Today!

Written by Apartment Management Magazine on . Posted in Blog

Our apartments are vacant now!  We need move ins now!  Leases signed now!  Commitments now!

First consider, is the leasing team able to challenge the move in date? Ask the question of “When do you plan to move?” “Are your plans flexible?”

imageThis is similar to hotel and airline reservations. Plan to travel on Thursday, but the deal is better if reservations are booked to fly on Wednesday. Or apply a retail application, the best selection is available by shopping early. Waiting for sales, will offer lower prices, but the selection of sizes and color options becomes limited.

If an applicant has a “MUST HAVE” list, the ability to meet the “demands” is lessened as the supply of vacant apartments decreases with other leases. Use this criteria to create a sense of urgency. Popularity of apartments on the top floor, ground floor walk outs, or end units will limit their availability.

How effective is the staff in creating a sense of urgency? “I can see how excited you are about this apartment, waiting might mean this apartment won’t be available, is your move in date flexible?”

imageDepending on the volume of vacant apartments, there may be a variety of possible closing tools. Every day that passes between the visit date, and the pre-lease or move in date allows the opportunity for an individual to choose another location. Getting a lease signed closes that door, it may involve a few days of free rent, but in return is the commitment of a year lease.

If the property has a large volume of vacants, it may be difficult to embrace the sense of urgency. Using a hot list, where the leasing staff only “sees” the units available to be leased that week, not an entire inventory of vacant apartment homes, can limit the information to prevent leasing units not ready or future availability. On the hot list, the supply will reflect two or three apartments of each unit type. This information allows the leasing staff to be absolutely focused on a limited supply, “This is the only apartment available with a ground floor walk out.”

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Without challenging the anticipated move in date, the prospect walks out the door to continue their search for a home.

  • The move in special ends Friday
  • The limited supply of the apartment that meets expectations
  • Desired building or location on the property

Use these criteria to narrow down the supply of apartments, the economics of supply and demand can assist in creating a sense of urgency to close a lease commitment.


Lori_Hammond 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.

 

Survey Reveals the Best Incentives for Retaining Tenants

Written by Apartment Management Magazine on . Posted in Blog

According to property management reviewers Software Advice, apartment managers are in an advantageous position today–more people are choosing to rent instead of buy, and multifamily construction has grown by roughly 300 percent since 2010, giving renters many more living options should they choose to move at the end of a lease. So, what can property managers do to make their apartments more appealing to residents and gain an edge over the competition?

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

Property Management and Leasing: Proactive vs. Reactive Efforts

Written by Apartment Management Magazine on . Posted in Blog

Proactive vs. Reactive Efforts

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Resident service has two sides. Reactive service is delivered “after the fact,” typically when a resident has a special service request or complaint, or is simply unhappy or dissatisfied. It’s a concept that we are, unfortunately, all intimately familiar with. On the other hand, proactive service begins even before the future resident walks in the door. It’s composed of all the steps we take to ensure that we’re fully prepared to do “whatever it takes” to fulfill the needs and wants of our residents both prior to leasing and after move-in.  This is quality apartment management and leasing and  includes what I like to call “setting the stage.”

“Setting the stage” is one of the best examples of proactive service in action, and it involves making the leasing experience as comfortable as possible for the future resident. This is where the details matter. Reduce the time it takes to fill out the application (after all, banks approve $20,000-30,000 loans based on a name, address, place of employment, social security number, and telephone number. Why can’t we?).  Don’t just stop there… pare down processing time whenever and wherever you can without sacrificing the value of the leasing experience, and prove to your future residents that you value their time as much as they do. Polish the appearance of both your leasing center and staff so that the environment is pleasant and visually appealing, and creates the all-important positive first impression that your residents will carry throughout their relationship with you and your community. The entire leasing experience should begin wit h the message, “We’ve been waiting for you!” and last well beyond “Welcome to your new home!”

Proactive service and retention does wonders for a community’s bottom line. The more special details you incorporate into this proactive approach, the better! Consider such niceties as thanking residents for coming in, even when they have a complaint, or thanking them for simply paying their rent on time.

Value-Added Service

For the longest time,especially when I was first getting started in the apartment industry, “value-added”seemed to be everyone’s favorite buzzword. Every one of my supervisors told me that it was the kind of service we were supposed to be providing to our residents, but no one ever stopped to explain to me what it meant. Frankly, I’m not certain they fully understood themselves. In hindsight, I think the term entered our industry at a bit of a disadvantage.

Service Check List

Way back when our idea of resident service was collecting rent checks and dispatching “maintenance men”,  it would have been a stretch for us to grasp the concept of value-added resident services as much more than providing the bare minimum of courtesy that’s expected of us today. As the concept of customer service evolved, and our residents’ expectations began to grow with each instance of great service that they encountered in their day-to-day lives, we finally began to get the hint and expanded our own service offerings accordingly. As a result, I believe we came to think of providing value-added service as a means of “keeping up with the Jones’s”– the Jones’s being not only our competition, but every other retailer and service provider who was out there serving our residents well and raising their expectations in the process.

Here’s the reality check.Value-added service doesn’t mean simply living up to our residents’ expectations–it means going the extra mile. One of my favorite examples is the”Baker’s Dozen.” You pay for twelve cookies and receive thirteen. If you really want to compete, you throw in a couple more. It’s important to know that value-added doesn’t just mean giving something away for free. Where added value can be clearly demonstrated, the customer is most often willing to pay a bit extra for it. If you offer custom upgrade options to your apartment homes at a fair price; you’ve seen this principle proven time and time again; ditto for that special location with the super view and higher rental rate.

Another of my favorite examples of value-added resident service is the trend toward policies that clearly state: “Resident satisfaction is more important than company policy.” Not only does this empower employees to solve problems on the spot (one of the key factors to great internal retention), but it also helps to guarantee all of the nice things that happy residents bring, like renewed leases and referrals. Conversely, residents who are either overtly told or treated as though company policy stands between what they want and what your team can provide are not likely to stick around for long, if at all. Referrals? Don’t hold your breath.

It’s important to realize that a service needn’t be new in order to be value-added. Take a close look at each of the services you currently offer. A new twist here and an enhancement there can make a world of difference in how your residents perceive the level of service they receive.

Let me close this post by with sharing my feelings towards residents when I was on-site.

PropertyManager_2  I had a built-in feeling or reaction towards every single contact I had with a resident. Most of those contacts were not pleasant because I was always dealing with distressed communities. No matter how busy I was, and I was normally very, very busy. I stopped and gave the resident I was in contact with 110% of my attention, put a smile on my face and focused on making that person feel like the most important person in the world. Each contact was followed up with a hand written note (very impressive today in the electronic world) thanking them for bringing what ever new challenge I was presented with to my attention. These notes were delivered at the end of my day as I walked the community. I always felt that walking the community at the end of the day was another resident retention technique. Letting the residents see me walking the community showed that I had a personal interest in the community. The residents would never see me driving around in the available golf cart unless I was with a future resident or service technician. Managers, give it a try you will be amazed with the results of this simple and cost free way to endear the residents of your community.

Actions:

What other ways can you be proactive in the service you provide to your residents? What can you do for them before it needs doing, so they will want to continue living in your community? Write down ideas, add them to your plan, and then try to implement one or more of these fresh ideas every month. Your community’s bottom line will be rewarded with the results.

Take 10 minutes and walk the community at the end of every day. Give it a try for one month and you will be amazed at what you see, learn and the difference it makes with your residents. PLUS imagine the health benefits you will receive!

How to Tell That Your Lease is Working

Written by Apartment Management Magazine on . Posted in Blog

Lease_RenewalMany of us think of a lease agreement as the ultimate weapon, wielded only when there’s a legal dispute.  The rest of the time it sits dormant in a file drawer.

But a lease needs to do more than that.

Fortunately, few of us will have to put our lease to the ultimate test. Yet all of us need it as a day-to-day guide to managing the rental property. Tenants need it, too, as a daily reminder of what is expected of them.

If you are having problems with your tenants, than your lease may not be working.

That’s why it’s important to be finicky about how your lease agreement reads. The more specific the lease is to your rental property, the more credibility it has with your tenants.

Using generic lease forms that set out the rent requirements and barely more than that leaves everyone in the dark. That can generate conflicts.

Likewise, a lease with too much legal mumbo jumbo is like having no lease at all. If the tenant can’t understand it, they are more likely to ignore it.

View the lease less as a legal document, and more as a road map for the relationship with the tenant. It will be a more effective tool if you hold your tenants to the rules, but also meet your own responsibilities, like quick response to a repair request or noise complaint.

Be prepared to enforce any policy stated in the lease. Don’t use tough language if you don’t plan to enforce it — like threatening to evict a tenant for getting a pet, then turning away when it happens. Otherwise, the tenant will soon call your bluff, and problems will spiral.

Similarly, don’t accuse tenants of breaking the lease when they do something that’s not in there.

Stay in your tenant’s mind during the term of the lease. Something as simple as a rent receipt or email can remind tenants they are under a lease agreement.

Make sure your lease agreement is something you can live with — and it will be much easier for your tenants to live with it, too.


logo_aaoa American Apartment Owners Association | Company Website 

Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing. 

2014 Predictions for Apartment Managers and Real Estate Professionals

Written by Apartment Management Magazine on . Posted in Blog

Appfolio_2014PredictionsIf the end of the year numbers from the National Association of Home Builders (NAHB) are any indication of what we can expect in 2014 — managers and property owners in the multifamily housing market have plenty to smile about.

NAHB reported building permit issuance jumped more than 15% in October. There was so not-so-nice news though.  While the West and Southern regions experienced healthy increases, 15.4% and 9.4% respectively, the Midwest reported a steep drop of 9.6%.

Resident Demographics

It looks like 2014 is going to be the year for filet mignon and top ramen. There are some indications that luxury and high-end apartment home communities, along with economy units for students and recent grads, can expect better occupancy rates than mid-priced properties.

On one end there is a  high number of recent college graduates saddled with high student debt loans. On the other end, baby boomers with extra cash and empty-nest syndrome are trading the large family home for a smaller dwelling.

Sustainability and Digital Trends

Back in 2011, Multifamily Executive Magazine reported more than 60% of participants in a residential survey conducted by Strata Research said that environmental elements were high on the list of things they considered when choosing a place to rent. That trend is expected to continue into 2014. Evidence shows that more people expect low-energy appliances and windows with lower U-values and better thermal performance.

There is still some disparity between what consumers want and how much they are willing to pay for environmentally friendly features in apartments. The gap is beginning to narrow as residents learn more about how saving money and saving the planet can work together.

Residents in 2014 will be looking for electric car fueling centers, built-in iPad docking stations and community access to wi-fi and Cat-5.

Visuals and Aesthetics

Glass Magazine reports that commercial customers are demanding windows that not only provide superior thermal performance, but also have less visual obstruction and uninterrupted sight-lines. Look for more vinyl and less metal based windows in newer apartment homes and retrofit buildings. Fenestration trends include addressing the demand for aesthetics, sustainability and performance in one package.

Residents want more green space — with connectivity. Property owners will hear more requests for community gardens, rooftop retreats and common areas to socialize with other residents and online friends.

This new year will bring many exciting opportunities for property managers to connect better with current residents and make changes to lure new renters to their property with eco-friendly features and digital everything. Bottom line. Expect 2014 to be an exciting year with last years emerging trends gaining more traction and stability, and new technology opening doors to create better relationships between real estate professionals and people searching for a new place to call home.


appfolio Appfolio | Company Website | LinkedIn Connect |

AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Show And Tell, Making An Apartment Tour Memorable

Written by Apartment Management Magazine on . Posted in Blog

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Many apartment communities do not have the budget or the decorating pizzazz to stage a furnished model.

A hodge podge of abandoned furniture will not improve the marketing presence of the apartment, (with evergrowing concerns about bedbugs…this could create a whole new range of problems.)

The lack of a model often sets a negative tone, when a prospect asks to see an apartment.  The first experience the prospect has is negative..”we don’t have a model.”

“I can show you a vacant apartment”..Just the language has an unappealing tone….vacant..vacated….consider including the term “vacant” with words that don’t belong in a marketing conversation.  ”Lets take a look at our two bedroom.?”  Or instead of jumping in, with a “we don’t have a model, but I could show you a vacant”…could we respond with an offer to show an unfurnished model home?

A cost effective alternative to the undertaking of furnishing four or five rooms with accessories from Pottery Barn or Pier One. A mini-model can fit any budget.

imageMini models can be structured with budgets ranging from $25 to $100.  The presence of kitchen, bath, closet or laundry accessories can soften the impact of an unfurnished apartment home.  Mugs, hot chocolate, and a basket of star shaped marshmellows offers a focal point in the apartment, a unique objectt for a prospect to remember. A sink full of yellow rubber ducks or a themed shower curtain are quick easy options.

If its apartment touring day, a propsective resident will tour a half dozen apartment homes, double that for weekends.  Mini model accessories can be the item that helps an apartment stand out in a prospects memory.

The mini model accessories can become the move in gift for the new resident. This small addition to the featured apartment gives both the leasing staff and the prospect a focus point. The prospect leaves the property remembering the apartment with the spaghetti basket or the frog shower curtain.

Randomly placing “Resident Delights” can add a fun element to tours creates spontaneity. Opening a freezer to find a sign with treats, “What would you do for a Klondike bar?” Taking the time for a quick snack allows more conversation with the prospect.

Keeping leasing tours fresh with a variety of quick mini models adds some excitement for the leasing team. A property doesn’t have to support an extensive marketing budget to make an impression with available apartment homes.


Lori_Hammond 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.

Solving The Occupancy Equation, Affecting Vacancy With Leasing Prospects And Closing Ratios

Written by Apartment Management Magazine on . Posted in Blog

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.

imageFacing 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.

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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 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.

End-of-Year Lease Check-Up

Written by Apartment Management Magazine on . Posted in Blog

Lease_RenewalAs the year comes to a close and a new one is set to begin, it’s a good idea to make sure your tenant leases are in order.

Simple oversights or non-compliance can lead to headaches, lawsuits, and if you’re not careful, thousands of dollars of losses.

Here are a few items you need to review:

1. Security Deposit Terms
Security deposits are perhaps the biggest bone of contention for both landlords and tenants.

One of biggest issues that often comes up is the actual amount of the deposit. Make sure that you are not overcharging tenants for their security deposit, or you could end up in hot water.Each state has very specific laws that regulate security deposits. It is worth a quick check to make sure your state has not changed their laws over the last year, and double check that you are compliant with any limitations written into the law.

Another hot button is when the security deposit needs to be returned. Make sure your policy is in line with state law.

If you allow pets, be sure to clearly stipulate whether a separate pet deposit is required, what the deposit covers, and when it will be returned upon acceptable surrender of the unit.

Be careful to check that your security deposit is clearly delineated from other fees that you may be charging, especially the non-refundable fees.

2. Who is Actually Living in Your Unit?
It is extremely common for tenants to flow in and out of a unit, without the landlord’s knowledge. One tenant moves on, and another one takes their place…but nobody notifies you.

In order for you to be able to enforce the provisions of your lease, every adult tenant in the unit needs to be listed on the lease.

So, it probably can’t hurt to send a friendly end-of-year notice to your tenants, confirming who is supposed to be living in the unit, based upon the names on the lease.

If you suddenly learn that the tenants have changed, you should run a tenant check on the new tenants and amend your lease to reflect the changes (assuming the results of the tenant background check are acceptable).

3. The Potential for Crime
Make sure your lease is compliant with the laws of your state in regard to criminal behavior.

Many cities and states are enacting ordinances that make landlords responsible for tenant crimes and other actions. It is not uncommon for these laws to require landlords to take legal action against a tenant in order to avoid hefty fines on the landlord.

In light of this reality, it is especially important to confirm that the tenants who signed the lease originally (those who passed a criminal background check) are still the same tenants that occupy the unit.

If not (and if they have unacceptable criminal backgrounds), you could find yourself in a heap of trouble if they commit a crime in your unit.


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About the American Apartment Owners Association

American Apartment Owners Association offers discounts on products and services for all your property management needs. Find out more at www.joinaaoa.org.

The Future is Here: Property Management Goes Mobile

Written by Apartment Management Magazine on . Posted in Blog

By: Jason Randall | VP Product Management AppFolio

It wasn’t long ago when “mobile devices” and “property management” wouldn’t have been used in the same sentence. But as tablets and smartphones have grown both in power and capability, they’ve transformed the field of property management.

If a renter is searching for their next rental home, they’ll likely open up their smartphone, tablet or laptop and start investigating properties. Renters have the power to search by neighborhood, read online reviews, look into crime reports and view 3D previews of available units – all on their mobile devices.

LosAngeles_CrimeWatch

Los Angeles Area Map Search with Crime Filer

Once they find a potential home, they can use their mobile devices to fill out applications, scan drivers’ licenses and send it off to the property management company – all without ever setting foot on the property. And after they’re moved in, they’re just as likely to use a mobile device to make rent payments, enter maintenance requests and communicate with property managers.

Property managers have also benefited greatly from the convenience and flexibility that mobile devices offer. Mobile apps and management portals let property managers screen prospective residents and access client accounts without even visiting their offices, resulting in expedited background checks and quick resolution to billing questions. And since long-distance residents can now apply for rentals remotely, property managers have a larger pool of potential renters. Property managers can use mobile payment apps for both accepting and processing payments, freeing them up to pursue other business.

If you’re new to mobile apps, all of this might sound like behavior that’s limited to just a few tech-friendly firms and residents. But mobile apps have really gone mainstream. At AppFolio, we’ve seen firsthand the increase in mobile usage and demand with the thousands of companies who use our Web-based property management software every day. We’re tracking the rapid growth of mobile across our customer base as well as with their residents and have gathered some interesting statistics:

  • The number of residents who submitted rental applications from a mobile device rose by 22.37 percent in 2013
  • Residents using online “Resident Portals” from a mobile device to submit maintenance requests or payments rose from 22.61 to 27.88 percent in one year
  • Residents paying their rent from a mobile device rose from 16.96% in 2012 to about 25% in 2013 – a whopping increase of 45.34 percent
  • Property owners are going mobile too, with a 29 percent increase in visits from mobile devices to owner portals to receive monthly statements

At this point, there’s no doubt that smartphones and tablets are becoming embedded in every facet of property management. As the world goes increasingly digital, modern residents will expect – and even prioritize – mobile convenience when choosing between properties. Luckily, it’s a convenience that benefits property owners and managers too.


jrandallJason Randall is the VP Product Management with AppFolio, providers of Web-based property management software . He is responsible for setting the product and market entry strategy for all AppFolio products.