My "Super Freakonomics" Book Report

I love the "freakquel" for Freakonomics titled Super Freakonomics. It is a super interesting read and please don't let my book report replace reading the book. My hope is that it will lead you to check it out of the library, stroll on down to Barnes and Noble or download it onto your Kindle.

People respond to incentives. During 2009 the apartment industry became the perfect case study for this fact. However, what we need to be concerned with is explained in this book. "People respond to incentives, although not necessarily in ways that are predictable or manifest. Therefore, one of the most powerful laws of the universe is the law of unintended consequences." When we understand this concept, we might start to see what is next for the concession driven markets.

The book explains numerous examples of unintended consequences of from a vast number of incentives. It will certainly change your way of thinking. I found myself empowered to make better decisions understanding the true cause and unintended effect that can often result.

Too often we feel that solutions do not exist unless they are right in front of our eyes. The authors take us through history to show this is not the case.

As sales and marketing experts, we must understand how people make decisions, change their mind and act on an opportunity. Super Freakonomics teaches us how an environment and or personal motivation could create a shift to a completely different intention by a human.

Don't pick up this book if you want to understand the economy and where it is going. The book says if you "understand the incentives that lead a schoolteacher or sumo wrestler to cheat, you can understand how the subprime-mortgage bubble came to pass."

2010 Marketing Trend: Simplicity Makes the Buying Decision Easier

A article in USA Today leading the money section on October 28 introduced us to the powerful marketing mantra for 2010, simple is better. The graphic which leads the article asks via multiple choice, how many ingredients are in a scoop of Haagen-Daz's Simple 5 coffee ice cream. The answer is five.

If 2009 effective marketing message was about buying stuff cheap then this new trend will most likely build on that foundation. For example, my co-speaker on the Apartment All Star Tour is Lisa Trosien. All year she has been reminding us to follow the trends of major brands such as Subway with the $5 footlong. Leave it to Lisa to even sing the jingle on stage. This is a perfect example of trying to sell twelve inches of sandwich pretty cheap and keeping things simple by not making the pricing complicated.

When you keep things simple, you create a tangible reason to buy a product or service. For starters, it is easier to understand. Next, it helps build confidence that nothing is hidden or unexpected. This is what you get, just 5 ingredients that you can pronounce. A strong message in a food industry that has mass production.

I was working with a client today trying to work on removing reasons why someone would not rent from us. One thing is that it is a complicated formula to figure out what you have to do and what you owe if you break your lease agreement. Sure, the formula seemed like a good idea at the time, after all, we don't want them breaking their leases. Yet now, in a economy where job growth is non existent, people want to know what the obligation will be if they get laid off. We decided to roll back to yesteryear where we asked for 60 days notice, one months rent cancel fee and payback their concession. Still some meaningful money, but much easier to understand.

What else should we simplify?

A Year Without Lease Renewals?

Can you imagine the ability to take lease renewals off your long list of things to do? That is my challenge for the apartment industry. My personal recession recovery plan and if we all jump on board we just might save the world of apartment leasing from total meltdown.

The theory: For the next 12 months, we will be writing leases that will more than likely be loaded up with a rent decrease and in many markets, an up front concession. If we allow that lease to expire in the next 12 - 24 months we might just find ourselves having to do it again. Seems like the perfect reason to avoid expirations for the next two years.

How do we do this? Sell a longer term lease of 15 - 24 months. The plan benefits the owner because we can decrease turn costs or more bleeding economic vacancy loss. And for the renter, they are locked into a rental rate for a longer term. For most of my 21 year career, this has not been a great idea because we will miss the opportunity to grow rent. However, very few years presented enough of a rent increase to make the turnover costs worth it. Owners push rents in increase the value of the asset.

If we face the facts, very few markets will see much rent growth in the next 12 - 20 months. If we can stabilize and stop the burn we have a shot at improving by the end of 2011. All together now, take a breath and say STABILIZE. Lock in residents for longer terms and avoid having to offer your market rent and concessions to renewals. Hopefully with less vacancy you will reduce the concessions, supply will decrease and we will start to see rent increase before the next presidential election.

My Winter Sales Strategy

I'm going to a fancy event in November. You know the kind, where you have more fun getting ready for the event than you actually have at the event. Being the fashionista that I personally express myself to be, I need the perfect dress. After all, we dress for women, not men, and women will notice what other women are wearing at an event like this.

In years past, I have started my search a few weeks prior to the party. This year money is tight, I started a few months early giving myself plenty of time to really dig hard for something on sale. As luck would have it, I found an amazing dress on my first shopping trip. I figured there may be something better to discover but I would go ahead and buy this one and continue shopping. If I found something better I would simply return the first one I bought.

Well, the event is approaching and I never took another shopping trip. I guess when I found something I liked, I stopped looking. I have better things to do with my time like shop for shoes!

My winter strategy is pretty simple, close traffic like they need it tomorrow. Too many Leasing Consultants get lazy and do not put their best foot forward when someone comes in the door or calls and they do not need the apartment for 3-6 months. I have even heard a sigh come out of their mouths and the customer can tell that this sales person only wants the quick sale. So if you are so good at that quick sale, do it. Why would you treat this customer any other way? They need a apartment and once you show them what they are looking for, you have the ability to stop their shopping efforts.

Now here is the punchline, remember that I started shopping for my dress early because I wanted time to shop the sales? Well, I paid full price. Maybe your customer will too when you truly sell them what they want.

Concessions Vs. Rent Decreases

There has been a healthy and timely discussion on www.multifamilyinsiders.com this week. It started with a comment I made at a seminar I presented in Columbus, Oh and spilled over into a blog on this great web site for apartment professionals. In the event that you are not a member of the insiders site (and you should be!) I thought I would copy the bog and comments onto kategood.com so that you can read the conversation and share your thoughts.

Posted on MultifamilyInsiders.com on 10/26/2009 by Kate Good
Hi Everyone! Just getting into this great discussion concerning the blog post by Sarita Thomas. Check out her blog and see a healthy discussion on the topic of rental concessions versus rental rate optimization (which will probably mean a decrease).

Allow me to update the statement I made in a program I presented for the Columbus Apartment Association about communities offering up to 4 months free....I found a Vegas property offering 5 months free! Out of control! Yes, many markets are currently concecession driven. This is a scary situation and a downward spiral.

Just last week, I was asked to consult with a community that was trying to respond to the difficult market. Once their October move outs have turned in their keys, they will see their occupancy drop into the low 80's and their economic occupancy sitting very uncomfortably at 79% going into the slower winter months.We discussed what to do. A concession would certainly attract traffic, lease apartments and keep the contracted rent amount higher than if we dropped the prices and removed concessions. This was an important position when we discussed the challenge we are seeing with renewals.

Offering concessions has always been very hard for me. I was raised in this industry that believed if you offer concessions, there is something wrong with your apartment community. However, I have never experienced the challenges that I am seeing today. So what is the answer?

I've had many of these conversations with owners in about 20 different markets this year. My advice, keep the contracted rental rate higher, offer a concession to attract and close traffic and....here is the kicker....require a longer term lease. Get these residents locked in for 14 - 20 months. We will not see rents increase in 2010 (okay there are a few good markets out there but they are not the majority) and concessions will start to decrease as the markets stabilize due to the slow down in new product. The trick is to stop the churn and stabilize. The result, you avoid offering concession on that apartment until 2011 and by then, the market may not require this free rent offer. Longer leases allow you to do this and removes fear that the renter may have concerning their rent increasing after a 6 - 12 month lease agreement. Bottom line, each market and every community is different and there are a lot of factors to consider including the long and short term goals of the ownership. This week alone, I will be leading 6 calls with management companies via my program "Kate On Demand" to walk through the various factors and design a strategy that best serves the property, customer and owners. The goal: Stabilize and get through 2010!
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...written by Danny Soule, October 26, 2009
Hey Kate. Great article. I work with CLASS, Inc and we are constantly getting asked the same question regarding concessions vs lowering rents. The other option for some owners is giving cash back incintives (if you have the pockets for it). As opposed to lowering your rents 50$ or giving a concession, the cash back is a great leasing incintive this time of year (pre-holidays) It Keep market rents up and reduces sticker shock upon renewal. I'd be interested to hear your thoughts on that option. What kills me about concessions is that leasing consultants tend to give them out over the phone. They sometimes never even bother to tell the prospect what the market rent was before the special, thus never selling the full value of the concession.

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...written by Kate Good, October 26, 2009
Thanks for the comment Danny. I have found the incentives do work in some markets. People just want to feel like they "got something." I agree that we have to think ahead about how lowering rent will effect our ability to renew. People are not going to stand for much of a market increase and it seems like a deep hole that will take years to crawl out of.

With that said here are a few things to do BEFORE you drop a concession into your offer:
1. The phones are still ringing at the properties. I recently listened to 25 recorded leasing calls using Call Source. The results were pathetic. The consultant gave the price right away followed by the special offer. Hello! What ever happened to SELLING the VALUE BEFORE giving the price? And yes, I feel like i should yell that! Here is a new goal for all phone calls, defer the price question by asking a question such as "how soon are you looking to move in?" Now take control, ask questions and sell the apartments based on what you just heard the prospect say they needed. A good leasing consultant can defer the price for 3 min. That is a lot of selling time!

2. Do you have a tool to get the customer back for the second visit? Since the guest is usually visits a property two times before making a decision, I suggest having a tool to get them back.

3. Stop selling luxury. No one is buying it these days.

4. Individually price your apartments. Blanket, one price structures cause you to leave too much money on the table.

I'll think of more and post again.....anyone have anything to ad?

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...written by Karen Long, October 27, 2009
I'm so glad to see this topic discussed. I too got my multi-family wings in markets where a concession next door warranted a "yes, I've heard they have problems" response. I like the solution of recouping and locking the renter in with a longer lease. I think that should work! Get us through 2010 as best possible, give the prospective resident a "good deal" they expect, and keep our rental rates as strong as possible in a very tough market.

+0
...written by Marci Brand, October 27, 2009
I spend alot of time working with properties in tough markets and I too, have found that one of the biggest issue is what we are doing with the traffic when we get it. I hate to offer concessions and I really cringe when I see and hear Leasing Professionals relying on concessions to sell their apartments. It is very important to remember that a concession should be the icing on the cake and incentive to rent, not the sole reason. Times are tough, and everyone is looking to save money, but most of our renters are still interested in the BEST product they can get for the rent. When we focus on specials to the point that they are our sole sales point, we run the risk of driving the market and the perceived value of the property down. We also fall into bad habits which are hard to break when the market turns around (and it will). At one community we offered a 'menu of options' for the prospective renter. They could choose between accent walls or similar upgrade in the apartment, a rental incentive or a flat screen tv. This gave the renter a feeling that he was in control and it also separated the property from the competition. The amazing thing was, we gave away more flat screen tvs than free rent (and it cost less!)

-1
...written by SARITA THOMAS, October 28, 2009
Hi Kate, Thanks for the information. There is a love-hate relationship with concessions, I know. However, I think we take it to the extreme. How do we know when we are actually making the bottom line with so many concessions given out? I agree with you. Make the lease terms longer so that we can re-coup some of the lost rent and preserve vacancies in 2010. Thank you!

How hard is it to say "I was wrong?"

I am a huge cheerleader for companies that innovate. The problem is with weak execution. Do not innovate until you truly understand your customer. So many companies today are trying to find ways to create "other income" to keep their doors open. I understand that paying the light bill is harder to do today and I caution executives to think about their customers before making decisions.

Let's look at the Web Van debacle. I loved this company. For me, a business traveler who loves a home cooked meal, I could arrange to have my selected groceries delivered with in an hour or two of arriving home from a trip. The last thing I wanted to do was to give a hour of the few I have to be at home to the chore of gorcery shopping. With Web Van, I could let my computer mouse do the shopping while sitting in a hotel room!

Web Van was one of the darlings of the techonology boom and quickly became a dot bomb. Many people wondered why and it was explained that the economics of having a warehouse and delivery trucks made the prices too expensive. It was suggested that they charge a delivery fee of $10. Web Van's CEO said that Web Van would never charge a delivery fee when it was one of the actions that might have saved the company.

As a loyal customer, I would have happily payed the $10 fee just to continue to have the service. Web Van made the mistake of not really understanding their customer and that what we benefited from the service was convenience and that was worth $10. And so today, Web Van is out of business, shareholders lost a fortune and I do not have my groceries delivered to my door. They were so wrong, the lights were out before they ever had a chance to admit it. Bottom line, know your customer or lose your business.

Another case study is USAirways who started charging for drinks and pillows. This is a company that keeps getting it wrong because they never seem to think about their customers. The funny thing about this mistake is that USAir actually thought they were wasting liquid because when they started charging for drinks, people drank less. In a matter of months, USAirways figured out that we were still drinking liquids, we just were not buying them on the plane and they still have the weight on the plane and trash to remove. The backlash and poor publicity cost this airline that already had a bad reputation due to the fact that their employees are either indifferent or downright rude because they simply do not like their jobs. This was a serious mistake that did not help the airline in any way. Complimentary drinks are now being served once again. Can we bring back the video equipment for the long flights?

When I think about these two examples I can only say that the mistakes could have been avoided had they known their customers needs and wants. And, if you do mistake your real customer, have the guts to say you are wrong and adjust.

Seminar Wrap Up by Chrissy Wills at CAA

Kate Good Presented "Beating the Benchmark" at the CAA
Written by Chrissy Wills
Wednesday, 23 September 2009 15:30

The Columbus Apartment Association (CAA) hosted Kate Good, national speaker, who presented "Beating the Benchmark" on September 23rd at the Fawcett Center. Forty CAA members were in attendance to hear Kate explain how to market during this economy.
Kate recently presented at the National Apartment Association annual convention in June at Mandalay Bay in Las Vegas. She is a nationally recognized apartment marketing expert known for her amazing creativity, energy and motivational ability. Kate has been working in apartments her entire life, and has brought invaluable insight to developers, marketing directors and associations across the country.

To start the Beating the Benchmark session, Kate gave some interesting facts about today's apartment industry. Approximately 70% of communities nationwide are offering concessions, everything from one month to four months free. According to her research, current consumer buying habits include: an average of two visits to make a decision, apartment residents are looking for extra spaces, in traditional relationships the female is the primary decision maker in choosing a home, the first visit to a community is virtual and apartment residents will take 60 - 90 days to make a decision.

The CAA members enjoyed Kate's humor and case studies about McDonald's trying to become Starbucks and Starbucks trying to be like McDonalds. She shared these ideas to get attendees to think about what their unique selling features are and to showcase those in ads and leasing presentations. Also, she recommended stepping up ads with language for today; she likes terms such as comfortable, generous for the money, durable, built to last, and great buy.
To close Kate shared easy marketing ideas and effective closing techniques. Some of Kate's favorite marketing ideas included handwritten notes, placing the bootleg signs inside the community to remind current residents about the community's benefits and creating a special of the day. CAA members really liked the seminar and could easily take away fresh ideas from it.

Kristi Fickert with Village Green Management traveled from Cincinnati to hear Kate speak and really gained a lot from the presentation, "I think everyone in the room took at least ten new ideas home with them."

The CAA would like to thank our members for attending Beating the Benchmark and look forward to seeing them at the next seminar.

Marketing in a Down Economy from the Lowes For Pro's Web site

The recession is bad news for just about every sector of business, and property leasing is no exception. But before you rush to slash your marketing budget as a cost-saving move, consider that good marketing may be the key to keeping your business afloat. Your tenants are out there, and with careful marketing you can find them. Rather than dream about high rents and low vacancies, focus on a plan to survive the recession. That means offering great value and making sure people are hearing about what you have to offer-in other words, keep marketing. ''If you need traffic, you shouldn't cut your marketing budget, '' says Kate Good, professional speaker, marketing solutions expert and partner on the Apartment All-Stars tour. Instead of keeping your current marketing program, look at changing it up and marketing more intelligently.

Good suggests starting with the tenants already in your properties. ''The least expensive strategy is to market internally and close the back door. '' So while it's critical to study your market and know which promotions are luring tenants, it also makes sense to devote some of those perks-a couple of months free rent or a new flat-screen TV-to your existing clientele. It seems counterintuitive to give discounts to the people who are currently underwriting your revenue stream, but if you increase your retention rate you'll be solving your vacancy problem without the turnover costs associated with moving in a new tenant.

When it comes to reaching out to prospective tenants, be selective. Figure out who is already drawn to your properties and find more of them. Good uses this example: If you notice that your community appeals to active seniors, invite the local bridge club to meet for free in your clubhouse. That way, more people in the target market will see your property, and word will spread. ''Don't try to be all things to all people, '' says Good. ''Identify the kind of people who like your community, find out where they are, and figure out how to attract them. You're saving money by reaching out to a smaller audience, but it's the right audience. ''

Even with changes to your marketing strategy, don't do away with all of your traditional marketing. ''Print drives traffic to the Internet, so make sure you keep those ads out there, '' says Good. And you have to do it year-round. ''Renters pick up the apartment guide in February or March even though they might be renting in June or July. If you pull your ad in February because you're not getting any traffic, you've lost an opportunity for residual traffic later. I don't pull back on advertising until I'm full, and most people aren't full right now. '' Next, consider changing your pricing model. Instead of charging the same rent for every two-bedroom unit, for example, charge more for the unit at the end of the hall with more windows, or the unit with new carpet. There are two advantages to this strategy. First, you can make more on your premium units. Second, if the least expensive units sell first, then your best units will be available for display during the peak of leasing season. ''If you're charging a flat rate, your best units get cherry picked, '' says Good. ''You want to have that more desirable unit-with the higher price tag-available when you have higher traffic. ''

Slashing your marketing budget isn't the right response to the recession-changing the way you approach marketing is.

Oh my, where does the time go?

I am shocked that two months have passed since my last blog entry. I'm putting some thought into what has been going on to keep me so busy. First, and most important for my out of control love for shoes, I can say I am having the best year of my professional career. 15 months ago I was thrown into some much needed bed rest while my two broken feet healed. But what really healed for me was my focus and direction. I knew that it was time to really study the rapid decline of our market conditions and start to research and test solutions that I could share with my audiences and clients in 2009. It did not take long to discover that the old song we used to sing...do it with me now..."if you keep on doing what you've always done, your gonna keep on getting what you've always got." That is not true in 2009. If I did the things in my marketing plan that worked 2 years ago, they will not yield the same results today.

And so I set on a journey to find the new path for leasing and marketing. It all comes back to the overly discussed topic on cable news shows, consumer confidence is down. Really down. So down it has fallen and cannot get up! No infomercial, life alert, or shot of Red Bull is going to fix this anytime soon. And so, we adjust. The car companies were some of the first industries to discover this with the "assurance plans". Our industry responded with the "no fear lease agreement". These addendum's are helpful in removing fear and allowing the customer to make a decision.

I was speaking in South Carolina this year when a manager complained that this a practice used by her competition and it was killing her occupancy. I asked if there is anything in her lease agreement that would allow someone to cancel the contract. She replied yes, two months notice and a cancel fee. Hey people, this is what marketing is all about! That manager can offer a no fear lease agreement because she already has one. She is just not selling it. Slap together a flyer, create a logo and get this great news to your customer. Now you have a great tool to remove fear of making the wrong decision.

This is a lesson in my personal life too. We all have the necessary tools for success. Recognize what tools you need to call on to get what you want. You may need to tweak it a bit, but know you can change, adjust and thrive. I think this is why I am having not only the best year of my life professionally, but an amazing, fantastic, and exciting personal life too! Thanks friends, partners and family. You helped bring me back to life. And what a great life it is!

There is a Marketing Tool I Leave Home Without

Today I was packing my purse to head out for lunch with a new contact who discovered my Web site while doing a Google search for a apartment consultant and wanted to chat about my services. I stopped in my tracks when I reached for a stack of business cards only to realize the box was empty. I tried to remember when I last printed them and discovered it was more than two years ago.

While driving to lunch, I was chatting with a good friend laughing about the fact that I have not had a business card in years. And then it dawned on me, I really have not needed one. In the age of Google, Linked and Facebook, people just know how to get my contact information and a business cards purpose has diminished.

I wonder what is next.

The Digital Comment Card Takes a Stand

Join me as I take a stroll to “back in the day.” I am 21 years old standing in front of my closet looking at my navy blue uniform suit, trying to find something to add to the outfit to disrupt the image of a flight attendant. I try on a few blouses and different shoes and settle for a starched white blouse, a string of pearls and put my hair up so that I would look a little older. This is a funny image to me because now that I am “older” I wear my hair down to look younger! Why did I care so much about how I looked this particular day? Well, it is the day of our quarterly recognition rally called “The IMD Meeting.” This stands for “I made a difference.” The Vice Presidents would hand out awards for excellent shopping report scores, properties beating budget and certain individuals who stood out by doing something above and beyond the call of the job description. Everyone wanted to look their best for this meeting including me as I was hoping for a promotion to a position in the training department.

This meeting is a special one for me, I’ve been mystery shopped twice during the quarter and receive an excellent score on both reports earning me a certificate, some applause and $200 in my pocket. The big surprise came when I won the IMD award because the home office had received an overwhelming number of comment cards talking about various acts of service I’ve offered my important residents. Once again I stand up in my freshly pressed suit and proudly accepted my award. This was an amazing recognition and I tear up when I call my parents to share the exciting news.

I worked for a company that not only cared about the feedback our residents had to share with us, but also created a number of measurable opportunities to solicit this feedback. I’ve been thinking a lot about this while consulting with clients this summer. The hot topic in the marketing world is social media and everyone is trying to figure out what it is all about and if it is worth the effort. Much to my surprise, each client I have worked with this summer has been worried about the negative feedback that a resident may write on our Facebook wall, tweet about on Twitter or direct a scathing video for distribution on You Tube. While I understand the concern, I simply explain that these social media channels are the comment cards of 2009 and beyond. It is the new way for our residents to provide positive and constructive feedback so that we can reward our team members and improve the customers experience. This conversation derived from social media will be mentioned in award and recognition rally’s all over our industry.

This week, apartment pro’s and residents has been observing an interesting lawsuit filed by Horizon Realty versus a resident who posted a tweet to her mere 22 followers concerning mold in her apartment. Horizon felt the statement was unfair and grounds for libel. News of this lawsuit has been filling my twitter screen, discussed in other blogs, mentioned on the walls of Facebook and the topic of conversation in every corner of our country. What I think is interesting is that instead of using the tweet as a form of feedback from the modern day comment card, Horizon would like to argue that a resident cannot tell their friends and followers that they are upset with management. In a world where word of mouse is more powerful than word of mouth, Horizon’s lawsuit has sent the suspicion to thousands of people that they would rather sue a resident than to solve their problems. Now, in all fairness, the inside story may be quite different and Horizon has a good point to make, but the reality is that many will never hear that point as the thought that suing a resident who only has 22 followers and made a comment about mold makes them a landlord who does not care. Let’s remember, perception is everything and in this case Horizon has spread this perception to thousands of people through their law suit.

I am certain my consulting clients will want to use this scenario as a reason to avoid social media. Yet, I still stand firm, use this digital comment card to receive the feedback and show your residents you care. If a customer posts something on the wall, use this as an opportunity to publicly respond that you are glad this has been brought to your attention and want to make the residents home as comfortable as possible. I can promise you that if you abstain from social media, your residents will not. So, be a part of this conversation and see this as a channel to stay in communication with your residents. I admire Mark Juleen from JC Hart who reminded me at the Real Page Users Conference that we can use social media to show we care and when did it no longer become our job to show our residents we care? Good point Mark! See you at the IMD meeting.

Recently Published in Landlord Times: 6 Questions With Kate Good

1) What's your background? How did you come to be an apartment marketing guru?

I was a servi-bar attendant who lost her job and found that I was qualified to be a leasing consultant! I was so fortunate to have my first position in the industry with Trammell Crow Residential. We were building apartment communities on every corner and did not have a marketing department. We were a do it yourself kind of property. I was highly compensated to lease apartments and therefore very motivated to create my own traffic. Surrounding myself with great people the whole way allowed me to learn from every opportunity. I made leasing and marketing my area of expertise.

It did not take long to see who the stand out marketing people are in our industry. I study everything that Jamie Gorski and Jennifer Nevitt create. Each are so accomplished and very different in their approach. In addition, I keep a close eye on the brands that serve our residents. They spend millions of dollars on marketing experts and I get to observe their work for free.

Today, I feel something like a scientist because I am willing to test ideas and see the results. This is how I know what works.

2) What has changed the most since you started your multifamily housing career?

a. Our knowledge. We used to make gut based decisions. Now we have access to data and information and we can make wiser choices for our budgets, apartment design and positioning.

b. How residents use their apartments. No one eats dinner in the dining room and American also hang on to a lot of stuff. We need things like home docking stations and places to hang a flat screen. This consumer need repositions apartment spaces to meet their lifestyle.

c. The Internet changed everything in the sales and marketing world. In some respects it makes things so much easier to market and rent because we are able to communicate more information in a well positioned way to our current and future residents. In other ways it created non geographical competitors and made marketing more challenging.

3) What has stayed the same?

Salaries. Ok, just kidding. But I don't think they have grown enough to account for a 5% increase every year over the past 21 years!

On a serious note, the basics just seem to never change and are still important. A mentor of mine, Anne Sadovsky says "we are going to keep on teaching the basics until people start doing them." I could not agree more. The basic way we lease and market to our customers still has the same theme of attaching their needs to the attributes of our community and then asking for the lease.

I find great joy and comfort in the fact that many of the same people I worked with early in my career are still in the business. I recently reconnected with my very first boss Glenn Rand. Our paths have crossed a few times and I am so excited that he knew me when I was a Leasing Consultant and is proud of my work today. I learned so much from him. It really is important to never burn a bridge. Our business cards may have changed but the people are still the same great leaders that I enjoy doing business with.

4) How has the use of technology changed the business?

Access and response. Today we have greater access and quicker responses. What used to take six hours is now done in six seconds. I don't think anyone misses ledger cards! However this has also created more work for us. Our capacity for gathering information is amazing to me. The knowledge I gather by spending 8 minutes on Twitter is exciting. I am glad to see this technology revolution unfold and capitalize on the opportunities. I expect another technology revolution will change our lives in the near future.

5) You work with apartment marketers all over the country and you've pretty much seen it all. Does anything blow your mind anymore? Have you seen anything amazing during your recent travels?

I am seeing a lot of desperate marketing and this does not make an apartment community desirable. People are still leasing apartments during this slump. Instead of decreasing value we need to increase the value proposition by adding services and access through affinity programs. People love coupons these days. Why not build a great alliance with area businesses by giving them access to your residents through a community membership program? This would be a huge win for all parties and completely fits the mind of today's consumer.

Can you believe some properties still do not have Web sites? Amazing!

6) With the overall economy in the tank and the housing bubble evaporated, the apartment market has become pretty volatile and can be very different market to market. From a marketing standpoint, give us a brief state of the industry.

The game has changed and so should our marketing message. The industry should now focus on building value and retaining our customers. Calling an apartment "luxurious" won't sell in a savings minded economy. The focus is once again on the management companies to tighten up operations and expenses and also maintain value for our investors. I think the apartment rental market will recover quicker than other real estate sectors. New construction came to a screeching halt and that will eventually push demand as new supply stands still. This means the next two years have to be about maintaining and remembering that what we have always done won't get us what we have always accomplished. It is a time of retooling and doing it better than anyone else. A company's ability to learn and appropriately change faster and smarter than anyone else will be their key to success and survival.

7) With the troubled economy in mind, what words of advice would you give to someone who's just getting into the business? What about an apartment leasing veteran who's looking to recharge in this competitive environment?

For our newcomers, welcome. I have made a lifelong career in this business and you can too. Like you, I entered during a challenging economy and it made me smart and solid. You will learn faster than your peers did because of this timing. There are a lot of paths to be followed in this business but along the way simply be a standout in your current position and the business will always reward you.

To my fellow veterans, I offer you a challenge; get involved and be an educated voice in the industry. Start your own blog and/or resource Web site. You will be amazed at how much you know and how others will grow from your knowledge. A great place to start is www.MultifamilyInsiders.com. There are so many veteran's blogging on that site. When I post a blog on this site and www.KateGood.com my heart really starts to race when I get feedback that people are reading this and asking for me. Personally, this has renewed my spirit to grow again and expand my knowledge base.
This is a big year for me, I am celebrating my 21st year in the industry and I started at the age of 18. Do the math and you will see the second reason why this is a milestone year. I am amazed at my longevity. I used to be the youngest person in the room who could not have a sip of wine at a company meeting when I was 19 or rent a car when I started business travel at the age of 22. Now, I am a veteran? It seemed to all pass by so quickly and I was never bored because I followed my precious father's mantra to "never stop learning."

Kate Good has been leasing apartments her entire adult life. 12 years ago, she decided to start her own business as a professional speaker and marketing solutions expert. She consistently receives the highest marks possible for her content, presentation style and audience involvement. Never one to fall short of exceeding expectations, Kate insisted on answering 7 questions for this 6 question interview. Visit www.KateGood.com for her content rich blog and free leasing and marketing ideas.

The Landlord Times: Your source for multifamily and apartment news and landlord, property management, property maintenance & real estate investing tips.

Shame on me!

Hello to all my blog followers. Shame on me for neglecting you for so many weeks. All I can say is that it has been wild and crazy in the world of KateGood.com. I have been busy traveling to meet with clients. I have also been busy writing and presenting new material for my presentations at NAA and I very excited to share some good stuff with you.

Please tune in over the next few weeks as I get it all typed up and ready to share. I hope you are as inspired as I have been. There are so many good opportunities for marketers today and I have had a front row seat to some amazing education.

Social Networking: How to Get Business

Social Networking: How to Get Business
Join us for a Webinar on June 17

It's hard to ignore social networking and the marketing opportunities they present. Your competition is jumping into this new world of marketing, what are you doing? This Webinar is for those who are taking their first steps into Blogging, Linkedin, Twitter, Facebook and Plaxo and for those who have already engaged but are hoping to find more ways to capitalize on the effort. Learn how to turn social networking into gold by developing databases, staying on contact and creating effortless channels of communication with current and prospective customers.

Title: Social Networking: How to Get Business

Date: Wednesday, June 17, 2009

Time: 2:00 PM - 3:00 PM EDT
CEU: One (1) CEU credit for CCHPs
Cost: Members $50, Non-Members $75


After registering you will receive a confirmation email containing information about joining the Webinar.

System Requirements
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Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh®-based attendees
Required: Mac OS® X 10.4 (Tiger®) or newer

Space is limited.
Reserve your Webinar seat now at:
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Marketing in a Down Economy

By: Steve Hendershot
Issue Date: April 2009

The recession is bad news for just about every sector of American business, and property leasing is no exception. But before you rush to slash your marketing budget as a cost-saving move, consider that good marketing may be the key to keeping your business afloat. Your tenants are out there, and with careful marketing you can find them.

Rather than dream about high rents and low vacancies, focus on a plan to survive the recession. That means offering great value and making sure people are hearing about what you have to offer—in other words, keep marketing.

“If you need traffic, you shouldn’t cut your marketing budget,” says Kate Good, professional speaker, marketing solutions expert and partner on the Apartment All-Stars tour. Instead of keeping your current marketing program, look at changing it up and marketing more intelligently. Good suggests starting with the tenants already in your properties. “The least expensive strategy is to market internally and close the back door.”

So while it’s critical to study your market and know which promotions are luring tenants, it also makes sense to devote some of those perks—a couple of months free rent or a new flat-screen TV—to your existing clientele. It seems counterintuitive to give discounts to the people who are currently underwriting your revenue stream, but if you increase your retention rate you’ll be solving your vacancy problem without the turnover costs associated with moving in a new tenant.

When it comes to reaching out to prospective tenants, be selective. Figure out who is already drawn to your properties and find more of them. Good uses this example: If you notice that your community appeals to active seniors, invite the local bridge club to meet for free in your clubhouse. That way, more people in the target market will see your property, and word will spread.

“Don’t try to be all things to all people,” says Good. “Identify the kind of people who like your community, find out where they are, and figure out how to attract them. You’re saving money by reaching out to a smaller audience, but it’s the right audience.”

Even with changes to your marketing strategy, don’t do away with all of your traditional marketing.
“Print drives traffic to the Internet, so make sure you keep those ads out there,” says Good. And you have to, do it year-round. “Renters pick up the apartment guide in February or March even though they might be renting in June or July. If you pull your ad in February because you’re not getting any traffic, you’ve lost an opportunity for residual traffic later. I don’t pull back on advertising until I’m full, and most people aren’t full right now.”

Next, consider changing your pricing model. Instead of charging the same rent for every two-bedroom unit, for example, charge more for the unit at the end of the hall with more windows, or the unit with new carpet.

There are two advantages to this strategy. First, you can make more on your premium units. Second, if the least expensive units sell first, then your best units will be available for display during the peak of leasing season.

“If you’re charging a flat rate, your best units get cherry picked,” says Good. “You want to have that more desirable unit—with the higher price tag—available when you have higher traffic.”

Slashing your marketing budget isn’t the right response to the recession—changing the way you approach marketing is.

What Madonna Taught Me

My Marketing Mentor: Madonna

In my consulting practice, the economic crisis of 2009 has brought about the need to change, retool and reinvent everything we do in the leasing and marketing of multifamily rental assets. What worked as little as two years ago will simply not cut the mustard today. In fact, it won’t even be close to the results those efforts created 24 months ago. My experience has taught me that this is the time to be at the top of my game so that I can rise to this challenge.

Like everyone else, I need someone I can learn from. This is why I have chosen Madonna as my marketing mentor. For me, Madonna came on to the music scene while I was in my first few years of high school. Even though we wore uniforms, we would try to put a lace band in our hair that would match our lace socks. Every girl running around Fisher Catholic High School wore not less than 6 – 10 black rubber bracelets on her arm and risk detention for a uniform violation infraction. I have to admit, I was influenced by Madonna.

As the years rolled on, Madonna sprinted into a provocative direction and defined herself with her extremely open sexuality. She stared in her movie called “Truth or Dare.” She shifted that X rated image and was nominated for her performance in musical movie Evita. Then in yet another grand process to change her ever evolving image, today, she is writing children’s books. Do you remember the last book she wrote prior to her children’s books? It was sold with a paper cover at the bookstore because of its cover! How does a woman go from pop artist to sexual icon to movie star to author of children’s books? She does it by constantly reinventing herself. She can retool her image to fit her business needs. This is a person who is a marketing genius. She has a unique ability to change her image and position in the spotlight year after year.

If we take a lesson from the marketing manual lived by Madonna. Any apartment community, no matter when it was built, can survived and thrive as Madonna has. I am excited to be working on some projects which are being rehabbed. The “before and after” photos of the apartments are astonishing. To follow suit the marketing needs to be rejuvenated often with a new name, logo and market position. However, you don’t have to redevelop your buildings to conduct a marketing rehab. And, there is no better time than now to reintroduce your apartment community to the market with a fresh look. This is what it takes to get the attention of today’s consumer.

I think Denny’s should receive an award for their effort to get America back to their dining rooms. The Tuesday following Superbowl Sunday, Denny’s offered a free Grand Slam breakfast to everyone who visited. Including the Superbowl ad to launch the campaign, Denny’s spent six million dollars on ads, food and staffing. 200,000 American’s waited in line for up to two hours for a free breakfast valued at $5.99. Not only did Denny’s receive over 100 million dollars in free advertising due to the fact that every media outlet covered the event, they also got old customers and future customers acquainted with the value they offer on a plate.

I drive past apartment communities in every city I visit and many have invested in a rejuvenation effort in years. Their signs have not changed, the landscaping is overgrown, and their exterior colors are out of date. When I open the apartment rental magazines I still see ads with the same old photos and tired words that have not been freshened since the 90’s. If Madonna was your marketing director, she would jump on this need to refresh, renew and reposition. The styles we use for new logo’s has changed. For just $180, the online designers at www.CrowdSpring.com will send you a minimum of 25 entries for new logo options. This small investment is a great start to kicking your image into the current day.

Good News For Apartments

Hi Friends! Thought we could all use a little good news these days. Since CNN is covering the comment Miss California made instead of job growth in Texas and other meaningful states, I feel it is my duty to report. The numbers are not record setting but they are a positive step.

Let's keep in mind that jobs drive the apartment market. In addition, it has been my experience that when San Antonio starts to recover or experiences any trend the country will soon see the same trends. -Kate

Best Cities for Jobs
by Joel Kotkin, Forbes.com

Over the past five years, Michael Shires, associate professor in public policy at Pepperdine University, and I have been compiling a list of the best places to do business. The list, based on job growth in regions across the U.S. over the long, middle and short term, has changed over the years -- but the employment landscape has never looked like this.

In past iterations, we saw many fast-growing economies -- some adding jobs at annual rates of 3% to 5%. Meanwhile, some grew more slowly, and others actually lost jobs. This year, however, you can barely find a fast-growing economy anywhere in this vast, diverse country. In 2008, 2% growth made a city a veritable boom town, and anything approaching 1% growth is, oddly, better than merely respectable.

So this year perhaps we should call the rankings not the "best" places for jobs, but the "least worst." But the least worst economies in America today largely mirror those that topped the list last year, even if these regions have recently experienced less growth than in prior years. Our No.1-ranked big city, Austin, for example, enjoyed growth of 1% in 2008 -- less than a third of its average since 2003.

The study is based on job growth in 333 regions -- called Metropolitan Statistical Areas by the Bureau of Labor Statistics, which provided the data -- across the U.S. Our analysis looked not only at job growth in the last year but also at how employment figures have changed since 1996. This is because we are wary of overemphasizing recent data and strive to give a more complete picture of the potential a region has for job-seekers. (For the complete methodology, click here.)

The Big Winner: Texas

The top of the complete ranking -- which, for ease, we have broken down into the two smaller lists, of the best big and small cities for jobs -- is dominated by one state: Texas. The Lone Star State may have lost a powerful advocate in Washington, but it's home to a remarkable eight of the top 20 cities on our list -- including No. 1-ranked Odessa, a small city in the state's northwestern region. Further, the top five large metropolitan areas for job growth -- Austin, Houston, San Antonio, Ft. Worth and Dallas -- are all in Texas' "urban triangle."

The reasons for the state's relative success are varied. A healthy energy industry is certainly one cause. Many Texas high-fliers, including Odessa, Longview, Dallas and Houston, are home to energy companies that employ hordes of people -- and usually at fairly high salaries for both blue- and white-collar workers. In some places, these spurts represent a huge reversal from the late 1990s. Take Odessa's remarkable 5.5% job growth in 2008, which followed a period of growth well under 1% from 1998 to 2002.

Of course, not all the nation's energy jobs are located in Texas, even if the state does play host to most of our major oil companies. The surge in energy prices in 2007 also boosted the performance of several other top-ranked locales such as Grand Junction, Colo., Houma-Bayou Cane-Thibodoux, La., Tulsa, Okla., Lafayette, La., and Bismarck, N.D.

Looking at the energy sector's hotbeds, however, doesn't tell the whole story. Another major factor behind a city's job offerings is how severely it experienced the housing crisis. There's a "zone of sanity" across the middle of the country, including the region around Kansas City, Mo., that largely avoided the real estate bubble and the subsequent foreclosure crisis.

College Towns as Emerging Hubs

Still other factors correlating with job growth -- as evidenced by Shires' and my current and past studies -- are lower costs and taxes. For example, the area around Kennewick, Wash., is far less expensive than coastal communities in that same state, and residents and businesses there also enjoy cheap hydroelectric power. Compared with high-tech centers in California and the Northeast, such as San Jose and Boston, places like Austin offer both tax and housing-cost bargains, as do Fargo, N.D. and Durham-Chapel Hill, N.C.

College towns also did well on our list, particularly those in states that are both less expensive and outside the Great Lakes. Although universities -- and their endowments -- are feeling the recession's pinch, they continue to attract students. In fact, colleges saw a bumper crop of applicants this year, as members of the huge millennial generation, encompassing those born after 1983, reach that stage of life. More recently, college towns have emerged as incubators for new companies and as attractive places for retirees.

Specifically, the college town winners include not only well-known places like Austin and Chapel Hill, but also less-hyped places like Athens, Ga., home of the University of Georgia; College Station, Texas, where 48,000-student Texas A&M University is located; Morgantown, W.Va., site of the University of West Virginia; and Fargo, the hub of North Dakota State University.

Democratic states are glaringly absent from the top of the list. You don't get to a traditionally blue state -- in a departure from past years, Obama won North Carolina -- until you get to Olympia, Wash., and Seattle, which ranked No. 6 among the large cities.

But political changes afoot could affect the trajectory of many of our fast-growing communities -- and not always in positive ways. It's possible that the Obama administration's new energy policies, which may discourage domestic fossil fuel production, could put a considerable damper on the still-robust parts of Texas and elsewhere where coal, oil and natural gas industries are still cornerstones of economic success.

Economic and Power Shifts

By contrast, the wind- and solar-power industries seem to be, as of now, relatively small job generators, and with energy prices low, endeavors in these areas are sustainable only with massive subsidies from Washington. But still, if these sectors grow in size and profitability, other locales that have not typically been seen as energy hubs over the past few decades may benefit -- notably parts of California, although Texas and the Great Plains also seem positioned to profit from these developments.

Another critical concern for some communities is the potential for major cutbacks on big-ticket defense spending. This would be of particular interest to communities in places like Texas, Oklahoma and Georgia where new aircraft are currently assembled. Over the years, blue states like California have seen their defense industry shrivel as the once-potent Texas Congressional delegation and the two Bushes tilted toward Lone Star State contractors.

These days it's big-city mayors and big blue-state governors who are looking for financial support from Obama. Northeast boosters are convinced more money on mass transit, inter-city rail lines and scientific research will rev up their economies. Boston -- No. 16 on the list of large cities and a leading medical and scientific research center -- could be a beneficiary of the new federal spending.

The most obvious winner from the recent power shift should be Washington, D.C. The Obama-led stimulus, including the massive Treasury bailout, has transformed the town from merely the political capital into the de facto center of regular capital as well. Watch for D.C. and its environs to move up our list over the next year or two. Already the area boasts one of the few strong apartment markets among the big metropolitan areas in the country, which will only improve as job-seekers flock to the new Rome.

More Promising Places

Yet Washington is an anomaly, because most of the places that stand to benefit from this unforgiving economy are ones that are affordable and therefore friendly to business, reinforcing a key trend of the last decade. It also helps regions to have ties to core industries like energy and agriculture, a sector that has remained relatively strong and will strengthen again when global demand for food increases.

Some areas have attracted new residents readily and continue to do so, albeit at a somewhat slower pace. Over time this migration could be good news for a handful of metropolitan areas like Salt Lake City, which ranks seventh among the big cities for job growth, and Raleigh-Cary, N.C., which was No. 1 among large cities last year and No. 8 this year. Over the last few years, these places have consistently appeared at the top of our rankings and are emerging as preferred sites for cutting-edge technology and manufacturing firms.

Below these winners are a cluster of other promising places that have already managed to withstand the current downturn in decent shape and seem certain to rebound along with the overall economy. These include the largely suburban area around Kansas City, Kan., perennial high-flyer Coeur d'Alene, Idaho, and Greeley, Colo. -- in part due to their ability to attract workers and businesses from bigger metropolitan centers nearby -- as well as Huntsville, Ala., which has a strong concentration of workers in the government and high-tech sectors.

In the end, most of the cities at the top of the lists -- whether they are small, medium or large -- have shown they have what it takes to survive in tough times. Less-stressed local governments will be able to construct needed infrastructure and attract new investors so that job growth can rise to the levels of past years. If better days are in the offing, these areas seem best positioned to be the next drivers of the economic expansion this nation sorely needs.

Joel Kotkin is a presidential fellow in urban futures at Chapman University. He is executive editor of newgeography.com and writes the weekly New Geographer column for Forbes.

Twitter Traffic Explodes...And Not Being Driven by the Usual Suspects!

Take note of a great article! - Kate

By Sarah Radwanick

Twitter seems to be just about everywhere these days, infiltrating pop culture and challenging traditional communication channels as people answer the simple Twitter question, “What are you doing?” Many people have hopped on the Twitter bandwagon - from businesses to celebrities to professional sports players to President Obama.
Over the past several months, we at comScore have watched how quickly traffic to Twitter has exploded. Worldwide visitors to Twitter approached 10 million in February, up an impressive 700+% vs. year ago. The past two months alone have seen worldwide visitors climb more than 5 million visitors. U.S. traffic growth has been just as dramatic, with Twitter reaching 4 million visitors in February, up more than 1,000% from a year ago.

Reuters reporter Alexei Oreskovic recently authored an interesting blog post about the demographics of Twitter users. What he discovered was that 18-24 year olds, the traditional social media early adopters, are actually 12 percent less likely than average to visit Twitter (Index of 88). It is the 25-54 year old crowd that is actually driving this trend. More specifically, 45-54 year olds are 36 percent more likely than average to visit Twitter, making them the highest indexing age group, followed by 25-34 year olds, who are 30 percent more likely.

The skew towards older visitors, although perhaps initially surprising for a social media site, actually makes more sense than you might think at first. With so many businesses using Twitter, along with the first generations of Internet users “growing up” and comfortable with technology, this is a sign that the traditional early adopter model might need to be revisited. Not only teenagers and college students can be counted among the “technologically inclined,” which means that trends are much more prone to take off in older age segments than they used to. And with those age 25 and older representing a much bigger segment of the population than the under 25 crowd, it might help explain why Twitter has expanded its reach so broadly so quickly over the past few months.

Keep an eye out for the March U.S. Twitter data, which should be available later this week. An early peek at the data suggests it’s going to be another HUGE month for the increasingly popular site. Follow comScore on Twitter and be the first to find out how the site did! You can also follow comScore chairman and co-founder Gian Fulgoni on Twitter to hear his thoughts and insights on the digital media industry at large.

Marketing 101: Desperate is Not Desirable

Wendy Muse with Tarragon Residential sent me a photo of a hilarious banner which reads “As Long As You are Breathing, We Will Rent You An Apartment.” Can you believe it? Whenever I show this banner in my seminars and keynote speeches, the crowd roars with laughter. Many simply think it is funny and some recognize the desperation in this marketing attempt and are laughing because they know it just won’t work.

Desperate is not sexy. Desperate is not professional. Desperate is a last ditched effort to effect change. I have made a hobby out of observing human behavior. Recently I was on vacation in Hawaii where my dear friend Janet married her middle school sweetheart. There was a group of single women vacationing together and they all seemed to be looking for a vacationship. One by one, each of the women met someone to flirt with and pulled away from the group. The women who was left was wearing the most provocative outfit that left little to the imagination. She just had the look of desperation. She may have been the coolest chick in the group but she looked like she would settle for anything. Not sexy if you get the picture. The first gal to meet someone was elegant and carried herself with amazing poise and confidence. Men found her irresistible. People are attracted to confidence, not desperation. This is true with people and product marketing.

While I support honest marketing, desperation will never work. Another banner in Dallas, TX reads “Save Kathy’s Job, Lease at Gentry’s Walk.” Kathy seems to be standing on the corner begging and it seems she would accept any applicant. Don’t lower marketing message to say our flood gates are open and it is a leasing free for all! The type of resident you really want will never fall for it. Instead you will get people who are possibly not qualified to live there because of a poor credit record. However, that risky resident knows you need them and they will take a shot thinking you will over look their past eviction because you want to increase occupancy.

I know it is tough out there. I am not just a professional speaker, I also have a healthy consulting practice that puts me in the seat of the leasing and marketing role every day. I know we are no longer order takers and advertisers. Today we have to be seasoned sales pros and marketing strategists. Desperate marketing seems to be popping up all over but it is more than likely an attempt by someone who has run out of ideas.

I'm interested to hear about the desperate marketing in your town. Even better, I love to see examples of this marketing. We have a lot of fun showing these photos in my programs but it also serves as a good example of what not to do. So, send me pictures of desperate marketing in your town. My email address is Kate@KateGood.com . The best photos will be rewarded with a special gift from me!

The Three Things Rule

I was once asked by my very first property manager, Glenn Rand, to make a list of “100 great reasons to live at The Hamptons.” I will admit it now, when I got to around #54 I started to repeat. Honestly, was anyone even going to read all 100 reasons? I had better things to do with my time like eat some frozen Otis Spunkmyer cookie dough! There are many great things about your apartment community. We have all been trained to successfully demonstrate all the features and benefits. But the truth is, the customer only remembers what is important to their own personal needs. A wise leasing consultant knows that when people’s needs are met, the buying decision is made. Isn’t that what we want? Yes, people to make their buying decision while standing in our model or vacant apartment. Then we slide in the application conveniently located in the kitchen drawer or our leasing kit.

Getting to the buying decision is not so hard when you take the time to discover what the potential resident’s needs and wants are. To do this we have to ask open ended questions that get the customer talking about themselves. In their answers, listen for what might be a deal breaker and what will be a deal maker. I have found that most people have three things they need and want. If you meet these three things you are a sale maker.

Once you have heard what the customer is looking for, successfully demonstrate the apartment by using their needs and wants and link them to the features and benefits of your apartment community. By doing this you are personalizing your tour to custom deliver the information this individual customer needs to make a decision.
So what happens if they don’t lease right away? Use those three things that were most important to the customer and talk about them in your follow up notes, phone messages and emails. If you become really good at drawing out their three things and linking them to your apartments, you show the customer that apartments are not one size fits all and this apartment was made for your customer.

Quick! Get out of your OWN way!

Sometimes we can be our own worst enemy. We reason our way out of things. We tell ourselves we can’t do something. We hold back from something we want because of fear. We have denied things we want saying to ourselves that we don’t deserve them. The list can go on and on and tomorrow we will add more self sabotaging behavior. I know because I often do this myself and I see this happening the in the lives of people closest to me.

Today, I want to encourage you to think about this and look at your actions and see if you are getting in your own way of having what you really want. When you actually see yourself doing this, it starts to feel a little silly and maybe you will reconsider.

I recognize that I have a tendency to want things to be perfect and set myself up for failure with such high expectations. People will disappoint me, I won’t be able to control everything in my life and there will be many times that I have to understand that while it may not be exactly the way I want it I really like what I experience.

The very best thing for us can often be standing right in front of us. It was always there, we just failed to recognize it really is what we want and what is best for us. Hold back no longer. Remove fear, insecurity, limitations and rules. Grab what you want and hold on. You deserve it. It is in your path for a reason so take it without expecting something more and take joy in what the universe has given to you. These are often the best opportunities. Fill each day with life and heart. There is no pleasure in the world comparable to the delight of being happy with what you have and knowing it is good enough for you.

When see self sabotaging behavior and thoughts, you have an opportunity to make a positive change for yourself. A good life is not lived by chance, but by choice. Choose to take bold steps in the direction of your dreams and don’t let anything or anyone hold you back. Don’t worry about what people will say! I have come to the realization that people don’t talk about me or think about me half as much as I think they are. They have lives too! The people closest to you want to see you succeed, not conform. They want you to be happy and will support your choices. Be not afraid to be the person you want to be. Ask yourself “if the life I’m living is the life that wants to live in me?”

Taking chances can be exhilarating. Step forward even if the opportunity is not perfect and make it what you want it to be. Nothing great in life was ever achieved without hard work. I admire the relationship of President and Mrs. Obama. Each one has been quoted to say that it does not come naturally and they make a concerted effort, everyday, to serve each other. They are not always perfect but they are better than most because each one try’s without reservation.

Geena Davis once said “If you risk nothing, then you risk everything.” Be brave and don’t let fear of rejection or failure be a reason why you never try. You must be fearful about what you are doing or it may not be the right thing for you. Fear is not bad when you are seeking something you love and want. Playing it safe will never deliver what gives you amazing joy and satisfaction. In fact without fear we might become complacent and lazy.

People always tell me that they could not do what I do as a professional speaker because they are afraid to be on stage. Guess what? Me too! Each time I turn on the microphone I have fear yet I also have the time of my life. I know this is truly where I am meant to be. How can fear and self satisfaction and joy all come from one experience? I often wonder if this is really the key to a well fulfilled life. I have learned that when I do not have fear, I am not ready to turn on the microphone. Turn that fear into positive energy to ignite the behavior necessary to succeed in any relationship, job, competition or opportunity.

When you look fear in the face and overcome it amazing things can happen for you. The most exciting experiences of your life will be your most recent memory that you will come to respect as the best that life has to offer you.

Twenty years from now you will be more disappointed by the things you did not do. So jump on your ship and throw off the bowlines. Sail away from the safe harbor. Catch the wind in your sails and don’t accept life as merely having what you can live with. Grab a hold of the things you can’t live without and embrace them. Enjoy the adventure and send me a postcard.

Deliver a Little Sugar

I know many of my rants, and very few of my raves, are about a travel experience. As a professional speaker and a marketing solutions consultant, I have to get on an airplane to meet my customers and audience. Let’s be real here, it is how I make a living. And so, I have weekly contact with a few airlines, hotels and rental car companies.

To quote from the safety demonstration which I have heard thousands of times, “the flight attendant is primarily on board for our safety.” I understand that the FAA has rules and regulations designed to keep passengers safe. What the FAA seems to not have is the ability to determine how those rules are delivered. Today for example, a USAirways flight attendant told me I could not keep my laptop in a seat back pocket. She barked the order at me and said it with such shame that my two seat mates even commented about her rudeness. I get it. A laptop could fly out of the seatback and hurt me or another passenger “in the unlikely event of a water landing.”

The FAA mandates that the flight attendant be on the lookout for all misplaced laptops prior to zooming down the runway. The FAA does not say to deliver those words with a little sugar and I think this is why people start to feel a little air rage from time to time. It would be better to say something like this: “excuse me miss, I know you want to get a little work done on the flight but the FAA requires laptops to be under the seat in front of you for takeoff and landing, would you mind moving it until we have reached 10,000 feet?” Sugar makes everything sweeter and more likeable.

Other people really want to like you and respect what you say. A good strategy to earn respect is to not only learn what to say but to develop the instinct to deliver those words in a kind and empathetic manor. In the south, people like sugar in their tea. In the north, people like sugar in their coffee. And, in California no one seems to touch sugar. But no matter where I go, everyone likes when sugar coats things we don’t want to hear.

Lease Like A Doctor

I’m always on the lookout for great sales and marketing ideas and tools. I never thought I would find it while sitting in a doctor’s office last week. The visit went like this…determine my name and why I am there, wait in the waiting room to be called into an exam room. Ok, that is not the part we need to learn from, it took 27 minutes to see the doctor! What happened next is what we need to learn. The doctor entered the exam room, shook my hand, asked me questions, asked other questions that were built on my responses, diagnosed my problem and prescribed me a remedy. Let’s review; exam, diagnosis, prescription. It seems like leasing should work this way too. Examine what your customer’s particular needs and wants are, diagnose which of your apartment options will meet their needs and then prescribe an available apartment.

The sad reality is that many leasing consultants don’t follow this method. When a customer walks in the door they ask if they want a one, two or three bedroom and based on the response shove a floor plan in their face and start to describe it. This was done without examining the customers’ needs. If a doctor prescribed a drug without an exam then they would be accused of committing malpractice! I believe shoving a floor plan into someone’s face without following the process of examine and diagnosis is committing leasing malpractice.

Leasing apartments works so much better (and easier for that matter) when we take the time to ask questions of our perspective renter and determine their needs and wants. Then we take them to a model home and use their needs and wants to demonstrate why the apartment is perfect for them. Based on their response we have diagnosed what will and won’t work for them. Now it is time to look at our available homes for their time frame and make a selection for the guest to approve. Even if you only have a few options for your customer, take time to discover needs as they turn into your closing tool.

Better "Connections" For Your Residents

I have to admit it, I am obsessed with increasing my connections on Linkedin.com. I love that social networking site for professionals. I have connected with some colleagues I have not talked to since my days at Trammell Crow and Gables. This is a great networking tool. Look me up and let’s connect!

I was consulting at an apartment community and we dreamed up an idea that if we created a networking group for our apartment community and the use our database of resident emails, we could create a powerful network for our neighborhood behind our controlled access gates! We sent out an invitation to 280 residents and we had over 75 respond in the first week. The Linkedin invitation is now part of our move in process and helps to introduce our new resident to some of their neighbors. I have even heard feedback that our residents have been using the network to flip business to neighbors who might be in a related field and have a product or service they need. Super idea in this challenging business climate. Smart retention tool and it is free!

“We have less money, but we’re no less impatient.”

The title of this blog is a quote from Mike Snider, a writer at USA Today. He was referring to the service that has kept NetFlix’s profits positive; their ability to provide near instant delivery of films streamed to subscribers’ TV sets via Xbox 360 game systems, some Bluray Disc players, Net-enabled TV sets and set top boxes. A smart move for a company who service has always relied on the use of a physical mailbox. NetFlix is quickly updating their business model to incorporate the preferred method of receiving something you buy. We now want it instantly. Even things sent priority overnight from Federal Express might take too long for many of us. Makes me wonder what FedEx might do to work within this trend.

So many of us are trying to find the balance between what the market will allow us to charge for our apartments and our operating costs. Many companies are looking for the best things to re-engineer during these challenging times. My suggestion to you is to think about what is still very important to your residents…time. Many people would give anything to have more time in their day. Only 16% of your residents actually use the pool but 100% of your residents benefit from good service. They see value in things that make their lives easier such as organizing help during holidays, personal items such as dry cleaning delivered to their home, babysitting at night so they can run errands, walking packages to their home and a commuter breakfast one morning when they are rushing off to work.

We are in a “want it now, need it now” type of society. This is because the world caters to the “Age of the Never Satisfied Customer.” Be memorable and personal with services so that you create meaning in residents’ lives by respecting their time. This could mean returning an email to a resident quickly or completing a service request within 2 hours of their call rather than the standard 24 hours. Everything is possible when you give your team the tools and the time to give instant service to a rent paying customer. You are the creator of value.

This One Is Personal

In the past two days I have been contacted by people I never thought I would ever hear from again. How did they find me? Through the outreaching arms of Facebook. The first person is Anne Marie. She and I were best buddies after meeting for the first time when we were six. By the time we were moving on to the scary big building where our middle school was located Anne Marie and her family were forced to move to California. I was devastated. She was my very best friend in a class of just 14 children. Moving on to a class of 54 without her terrified me. We talked on the phone once or twice and wrote a few letters. And then, she disappeared until this weekend when I read a message she sent me through Facebook. She was not sure if she found the right person, I guess I might look a little different! I got a lump in my throat just thinking about my childhood friend. A few years ago she tried to find me by sending a letter to my parents address. It came at a very busy time and I failed to respond and I regret that. Facebook has given me another chance to connect with her!

The second person to find me is another person from school but she was a few years behind me. My memories of her have faded but I do remember her name, Hallie. Another Facebook connection! Hallie wrote me a lovely note saying that she always looked up to me, was sorry to hear about the passing of my Father and complimented my Mother who seems to have flowed from the fountain of youth. What a nice note! It made me think about school and that fact that someone looked up to me and thought I was "popular." This shocked me as I was never really happy in high school. Other kids put stinky trash in my locker, spread rumors about me that were not true and the hardest of all, planned a party the very same night my parents allowed me to have a birthday party. No one came to my party.

Hallie did not ever see my sadness or hurt. Instead she saw a upper classmen that was just trying to get through it all and hope that one day everything would be different.

What do Hallie and Anne Marie have in common? When Anne Marie left our little town, I had to learn to make new friends. When High School got tough, I had to employ those same skills once again. Today, I am happy and feel I have found success. My friends are amazing and my path in life is exciting. Why? Because since sixth grade I have been following the same strategy. It has helped me develop lifelong relationships, succeed in sports, earn opportunities that I dreamed about and crawl my way to the top of my field. Here is my personal strategy:

1. Mindset: Whatever is in my mind tends to become my reality. It is so important, especially in today's economy, to check in with myself on a daily basis. If my thoughts drive my actions then I must clear out the negative, self sabotaging things running through my head and replace them with visions of what I want for myself. I have chosen to break away from negative people in my life as I don't want to be brought down by a negative contagion.

2. Persistence: It would be easy to walk away from something that is just simply too hard, but then I might end up regretting the missed opportunity. The very best things in life are not easy. Our children, our spouses, our work. But when we work hard to make these opportunities successful, we do it because we are persistent in our focus and desire to make our life what we want it to be. I find that the more persistent I am the greater the reward.

3. Personal Development: I can never stop learning. Today, things are moving and changing quicker than a animal rushing across the street to avoid a speeding car. I used to think of my brain as a sponge that was trying to soak everything up. Now I need that sponge to be the "Bounty Quicker Picker Upper." Our ability to learn and react to changing times quicker than our competition is a powerful means of survival.

4. Passion: I find the things I am best at are the things I am passionate about. I dig in because I care. The same action works with people. When I have a passion for someone, I work hard to make that relationship successful. I never give up and I give them my best. I don't let my failures defeat me. Instead I use them as educational opportunities and try not to fail in the same way again.

5. Persuasion: Enthusiasm sways the wills of others into harmony with your own will. I find that when I get excited about something, others take an interest. As a professional speaker I have this opportunity each day I take the stage. I don't always feel what I am speaking about is earth shattering! But I know that my enthusiasm for the topic persuades others to listen and possibly do something different as a result of our time together.

Did you notice that 4 of the 5 items in my strategy start with the letter P? That is because when you Put the P's together, you can create something Pretty Powerful....an amazing life. For me, it is a well lived life in progress.

Free Conference Admission for Laid Off Executives

Check this out....I think this is a great gesture for our industry! - Kate

Free Admission to AIM Conference for 10 Laid Off Executives – CallSource Sponsors Executive Education Giveaway

Career counseling also available onsite to winners.

DENVER, CO – To meet the career training needs of the industry, ten recently laid-off multifamily executive-level professionals will win free admission to the 2009 Apartment Internet Marketing (AIM) Conference. Executives and managers who were formerly employed by a multifamily investment or management firm and recently laid off may now apply now at: http://aimconf.com/career. The application period for the “Career Transitions” giveaway closes on April 3, 2009.

The winners will be selected randomly to receive free admission to this year’s AIM Conference, regularly $595 per person. CallSource, a leading provider of call-tracking technologies and advisory services, is sponsoring the AIM Career Transitions giveaway. The 2009 AIM Conference will be held in Denver, CO from April 29 – May 1, 2009 at the Denver Marriott City Center.

Career counseling services will be available to the giveaway winners. Shirley Levey from Liberty Executive Search will be available to provide one-on-one executive career counseling to the winners.

To apply or to recommend someone to the giveaway, please visit http://aimconf.com/career.

The complete AIM 2009 Conference agenda is now available online. To register please visit: http://aimconf.com/register.

CONTACT:
Conor Lee
Producer, AIM Conference
Joshua Tree Internet Media, LLC
415.412.3761 cell
conor@jtimedia.com

Targeted Marketing Boosts Leasing

Multi Housing News called a few weeks ago for my comments on the current state of marketing. The article was published in the most recent copy of their magazine. I am pleased to see I am in good company with comments and expertise shared by Lori Snider of Creativity For Rent and Steve Lefkovitz with Joshua Tree Internet Media.

Enjoy the read: http://tinyurl.com/cnv5r8

Falling Stars - Can they shine again?

Twinkle, twinkle super star how I wish there were more people as good as you are!

No matter what your market conditions, the common concern among property management professionals is that you really never know what you are going to get when you hire someone. Sure there is some credible testing out there, but even super stars can become falling stars. Roll up your sleeves. This is the tough part of the job. You are not alone when it comes to the uncomfortable task of addressing performance problems.

Even in the very best organizations, almost every manager will have to deal with at least one problem employee - uncooperative, emotionally unstable, chronically late, "just getting by" performance, etc. I hope falling stars represent only a small percent of your team. Yet just one falling star on your team can mean a great deal of your attention and time. Who suffers? Well for starters, the super stars. They need your attention to nurture their motivation. You will also suffer because you are not spending time on pressing issues. Eventually you will not be satisfied with the job you are doing, that is if you too are a superstar.

Sometimes when a team member consistently under performs, the manager assumes that he or she has failed as a coach and superstars hate to fail. Try this thought on for size - a good coach helps employees get to where they need to be by creating an environment for which their true talents and skills can shine. But ultimately, it's each employee's responsibility to decide whether to be a super star, a middle star, or a falling star. Truth is, you can influence that decision but you can't control it.

Falling stars can have a detrimental impact on your entire team. If you allow them to "skate by," you reinforce their commonly held belief that "the less I do, the less I'll be asked to do." And, since your team's work does not decrease, your top performers will be challenged with more work in order to pick up the slack. Not a good strategy! Coaching the falling stars - helping them improve, or replacing them with more productive people - represents the area with the greatest opportunity for enhancing the overall performance of your work group. But, most managers are not comfortable addressing employee performance problems. That's easily understood.

Performance issues are stressful, and many of us don't have the training and experience we need to deal with them. As stated earlier, because you're a top performer, you've probably had little experience with this type of coaching. Nevertheless, there still will be problems staring you square in the face.

Allow me to address the challenges you may be facing with the newest generation to enter our workforce, Generation Y. These fresh young faces have a whole different outlook on their work. Generation Y is often viewed as idealistic, with a high level of social consciousness. They’re frequently anti-establishment and are concerned about stress on the job. They are generally outspoken and make up the largest pool of young people in the job market today and tomorrow with a staggering 78 million in this generation! For them, promises of monetary rewards and overtime pay may not interest them as much as time off to attend a party, concert or just hang out with their friends.

Keep these facts in mind when coaching your Gen Y employee. They love to learn and be part of your team but will feel like an outsider if they are not encouraged to speak up and often. For them, the job is a means to great balance in their lives. Having an advanced level of tolerance for this need will create a better relationship. This generation yearns to be past of a company that is focused on building it together and having a higher purpose. They respond best to participative management and will value flex time. They want to work but don’t want work to be their life. If you have established a positive work climate, you have a decision to make with each problem. You can close your eyes, live with the situation, and accept the negative impact of your falling stars' lower performance. Or, you can conduct a performance improvement session in which the employee will either commit to your standards - or choose to ignore the problem and face the logical consequences. Of course, opting for the performance improvement session is your best decision. Take that path, and the rest of the decisions will be the employee's. And if the person chooses not to change, let him or her quit and seek employment elsewhere. Or, follow your corporate guidelines for formal discipline and possible discharge. Your entire team will benefit from the change.

Dining Rooms are So 5 Years Ago

Have you ever noticed that our residents don’t eat dinner in the dining room any more? How do we know that? Because when they move out all the food stains are right in front of the couch and the dining room carpet still looks fresh. So what are they doing in their dining rooms? Among other possibilities, it now seems to me the location of their home office. It is where they put their computers, mail pile, packages to open, bills to sort and file and pictures to organize. So why do we still call it the dining room? It should now be referred to as flexible space.

This simple change in terms will allow your Leasing Professionals to head off an objection before they are ever voices because the flexible space can serve as a solution to some specials space the customer may need in their new apartment home. It is time the marketing teams get on board with this new customer behavior and make the floor plans in the brochures and ads offer flexible space instead of a dining room.

Authentic Communcation

Last week while presenting "Successful Selling in a Slump" with Lori Snider, we discussed the fear that exists in the American consumer today. There are great deals all around us but we are worried to spend money and so we let a 70% off shoe sale pass us by (that was even hard to type). These are the very same people who are walking into our leasing centers. I am seeing some crazy concessions out there (4 months free!) and yet people are still reluctant to lease.

Why is it that even when you are "giving it away" people are still hesitant to buy? I think this comes down to being authentic. It is very important to remove the fear that a future resident may be feeling. Now more than ever we want to believe what we see and hear but fear makes us think twice. It can be paralyzing in any type of relationship (I have some personal experience here!). When people stop being authentic, we sense this and get worried. Next thing we know our ability to trust diminishes.

The benefits of Authentic Communication are many. When used by sales people, it shines forth the authenticity, which is the backbone of building relationships with customers. When used in therapy, the subtle energies expressed reveal whether or not clients are speaking their truth. And in every interaction, what is said earns respect and radiates confidence.

A few things you can do to show that you are authentic and seek to remove fear in your customers:

1. People will not believe what you say, they will believe what you do. This is a rule I have in my dating life. Men will often say the right thing and do something completely the opposite. It is at that point that fear steps in and we not longer trust. Customers will walk away from a situation like this. For me personally, I think I will too.

2. Our bullshit meters are at an all time high! Yes, you were born with one and through your adult life you have been improving the reception of your meter. Our voices and vibration change when we say something that will register in the bullshit rector scale. I am a single women in her 30's, my meter is is tip top shape. Sure I may not let on to someone that my meter just spiked, but I know in my heart and head and I act accordingly. My advice, don't say things that you cannot back up. Keep it real at all times.

3. If you say you are going to call, do it without fail.

4. Let the other person know you have their best interest at heart. This is not hard to do when you put others needs in front of your needs.

5. I believe in full disclosure. It is always best to tell people things, even if it is not always what they want to hear. Many times we change our delivery because we incorrectly expect a negative outcome. For me, I react much better when I have complete information from the source rather than hearsay from an outsider.

6. Feel that what is being said comes from your “heart” — when it comes from the
heart, it feels sincere and reflects your total being. If it comes solely from the intellect, it could be cold and without compassion.

In summary, Authentic Communication means balance with our mind, intellect, and heart. It is intuitively driven, resonates authenticity, and provides opportunity for
wisdom to shine forth. Both speaker and listener can apply these skills, and in so doing, they can create their own personal human trinity. Once accomplished, the relationship becomes its own entity and thus forms a Relational Human Trinity. As each of us experiences speaking accurately, we find that it also applies to listening. Relationships based on Authentic Communication serve to build higher components of self-mastery.