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Tuesday, November 30, 2010

Making Concessions


By Christopher Hosford, Contributing Editor, MultiHousing News

Economists are now proclaiming that the recession may be over, just as rental occupancies and rates in some markets are beginning to rise cautiously. Better days may be just around the corner for the apartment industry. And yet, concessions and incentives remain the order of the day. Be it one or two months of free rent or heavy-duty giveaways such as flat-screen TVs or cruises, concessions and incentives are baked into the leasing equation. They’re the unavoidable fact of leasing in an up, down or sideways market, the albatross that seem to be hung around the necks of leasing agents everywhere.

“What’s interesting to me is, renters understand the lingo now so much more than they ever [did],” says Lesa LaRocca, president of Tempe, Ariz.-based Trilliam Residential Communities. “Now, they shoot right to the bottom line with, ‘What’s your net rent?’”

LaRocca says it’s still common to see banners outside apartment communities with such come-ons as, “Three months free rent, $99 move-in.”

“That’s the lowest I ever saw, a $99 move-in, until I later saw a $29 move-in,” she says. “It was actually funny. I mean, how much lower can you go?”

LaRocca says the syndrome is partly fed by pricing transparency; with the Internet, every community’s rates and advertised concessions are available for all to see, and with the economic downturn, all renters are cost-conscious. But with the slight upturn in the economy, and better community performances in certain areas, LaRocca is seeing a shift in how the game is played.

“Once you get down to a manageable inventory, you’re able to play it a little differently,” she says. “Now, instead of making blanket concessions across the board, you might apply one free month to just one floor plan with only a couple of apartments to rent, and reserve two months free rent for the rest of the floor plans.”

Nevertheless, LaRocca notes, the blanket approach remains common, in particular in those areas still suffering. In some sectors, such as Arizona, whose renter base has been decimated by harsh immigration laws, some communities aren’t even requiring security deposits.

A double whammy

Even in healthier geographic areas, the double whammy of concessions and incentives continue to play a vital role. The trick may be in knowing how to package them.

“The best thing to do is look at the goals of the community’s owner, the current market and competitive conditions, and see what you can do,” says Kate Good, a marketing solutions strategist and professional speaker for the apartment community. Good indicates that for communities that are truly suffering—with, say, 70 percent occupancy—straight concessions could prove ruinous.

Instead, she suggests, communities might consider an intriguing variation. “For one community, I just did a coupon book worth about $1,000 or one month’s rent,” Good says. “The individual coupons were worth $30, and the tenant could decide how many coupons to use per month.”

Good says the coupon idea addressed residents’ sense of fear. “Some people want that first month free, and that’s great; they can cash in all the coupons at once,” she says. “But we give them the flexibility. Being in control eliminates fear. The coupon book gives them control.”

Good says once the program became popular, her client started to pull back its value a little, to $600. “People still like it,” she adds.

Sale or sail?

Besides rent concessions, other incentives remain popular in encouraging new leases and increasing resident retention. One of the more popular is free cruises.

“The perception [is that] cruises are much more expensive than they really are,” says Doug Dinnsen, account executive at AIM Cruises. He notes that five day/four night sailings are typically “valued” at $1,798—what many might call the “suggested retail price.” But because of volume pricing and the inevitable vacancies that occur on any ship, apartment communities can purchase cruise certificates from vendors such as AIM for as little as $140.

Dinnsen says his packages offer an 18-month window for the resident to take advantage of a free cruise, so the renter doesn’t have to book his vacation right away.

“It’s not magic, but it is a compelling offer, and at least it’s helpful, depending on the marketplace,” Dinnsen adds.

Another company offering cruise packages to the apartment industry is Cruise4Two. Shawn Sarnecki, the company’s director of marketing, says that with the right demographic, and at the right time, the free cruise offer can be effective.

“I just had a struggling student housing property in Alabama run ads offering free cruises for the first 50 prospects that toured the property,” Sarnecki says. “After the 50 cruises were given away, they then offered the same promotion if the prospect signed a lease. As a result of the incentive, they leased 166 beds in February.”

Sarnecki doesn’t advise his apartment community customers to eliminate concessions in favor of cruises, but rather to offer both in tandem.

But are these evil twins absolutely necessary to the leasing process? If concessions and incentives must be part of the plan, which they usually are, here are some issues to keep in mind:

■ Amortized concessions. Communities should consider whether or not to amortize concessions over 12 months, which—instead of providing the one or two months of free rent up-front as intended—essentially reduces each month’s rent by the total concession, divided by 12. The upside may be an incentive for the resident to stay for the entire lease, rather than jumping ship after the short concession period. There are also downsides.

“The result with this amortized concession is net rent, ” says LaRocca. “When you take the entire amount and divide it by 12, the discount is taken every single month, and when you do this, the renter is so used to paying the lower rate that he’ll resist going back to market rates.”

One way to avoid this is when renewal time rolls around, indicate to the renter that the unit will return to market rates, but offer another month free, to help ensure the renewal and get the community out of the cyclical amortization situation.

■ Incentive choices. When offering, or blending in with concessions, some form of incentive, consider what form it might take. While the free cruise is popular, other options may be more attractive, such as upgrading countertops, or giving away flat-screen TVs, iPods and iPads.

“We had this fun scratch-off game where the renter could win a cruise, TV or Flip video camera, along with discounted rent,” notes Good. She adds that, because of sweepstakes rules, the offers could not be linked to an actual “purchase” (that is, a signed lease).

“Yes, there was a little bit of risk,” Good says. “But there was only one case—we gave away a Wii video game system—where the person didn’t rent. All the other items were used as closing tools.”

■ Leasing vs. Retention. An incentive often is most effective when renewal time comes along. The reason: When a renter is moving in, his main concern is about a change in his life, whether it’s a new job, marriage or school term. Taking a vacation isn’t top-of-mind at that time.

“But for resident retention, the renter is now stabilized and more likely to take that cruise right away,” says Dinnsen. Year-round displays about such a renewal incentive, posted in community rooms and leasing offices, can get people thinking long-term about renewing, he adds.

■ Staff training. Perhaps the biggest, albeit hidden, aspect of the concession/incentive game is making sure the leasing staff knows what it’s doing.

“Leasing professionals in our industry often are transient, and they’ve been educated to lease using concessions,” notes Tami Siewruk, head of consultancy at Multifamilypro. “Those people need to be retrained to offer concessions only under the right circumstances. That can be a difficult process.”

Monday, November 8, 2010

Here Comes the Bride: A Fantastic Leasing and Marketing Opportunity Happens in January


Just about every city in America has an event where there are hundreds of people in our target demographic: People who are moving in the next year. I'm often shocked that I am the only apartment community participating in this outstanding leasing opportunity. This is why I am almost reluctant to share this idea with my followers! However, I am so overwhelmed with the amazing audiences I have that I want to share this idea so that you too can jump in and lease more apartments in 2011.

The event I am referring to is The Bridal Expo. Everyone registered at this show is getting married and that usually means moving in the near future. (Unless they are already taking a test drive like I did!) The goal is to get people to come to your booth, so I suggest setting up the candy buffet since so many brides want this Martha Stewart type creation at their wedding. They will come by your booth just to show their Mom and Maid of Honor this clever and modern wedding feature. A nice touch is to have a tablecloth custom printed with your logo on it. Since Bridal Expos are often a sea of white, don't be afraid to be bold with one of your marketing colors and a white logo. The backdrop of your booth should have enlarged photos of your community, logo and grand prize.

Grand prizes and low cost prospecting gifts are essential for any tradeshow. One community I marketed had leasing scratch off cards printed. The brides simply scratch off the silver bar to see what they won and we made every card a winner. We gave away luggage, a diamond heart pendant, dinner certificates, free rent, and application fees. I am also a fan of having brides register to win a grand prize by filling out a registration card. Here is my little secret for a grand prize that gains a lot of attention.....brides love shoes! Seriously, at the last show I attended we gave away amazing silver Jimmy Choo strappy sandals that go with so many wedding styles today and replace the typical white satin shoe. I got a sample pair from the department store and then when the winner was announced, they could get a gift card or a certificate to go in and get their size. Yes, you could just do a gift card, but giving away the actual shoes create a huge buzz on the tradeshow floor. You will also want to have flyers and maybe a little special, such as no application fee since they are getting married.

When it comes down to it, your company's exhibition success is directly related to how well your exhibit team interacts with the tradeshow attendees. Here are some tips to share with your staff:

· Treat everyone entering your exhibit as a potential new customer: politely and with a smile.

· Be standing (or stand up) when a potential customer enters your booth. Sitting can make you appear disinterested and unengaged.

· Don't eat while you're in your booth. It doesn't look professional and can be a big turn-off to prospective customers.

· Focus on potential customers, not on chatting with friends and other exhibitors.

· If the booth is jam packed, do your best to handle more than one customer. Having literature ready to hand out can keep customers in your booth.

· If the booth has just a few people in it, stand near the aisles to draw more people in.

· Ask qualifying questions such as: "Have you thought about where you and your husband will live once you are married?" This more clearly identifies potential clients. Invite those "leads" to fill out an information sheet, which will expand your database. Give an incentive to fill this out. Your team will be at their interactive best if they are allowed a few breaks throughout the day. This will help them to relax, catch their breath, and be ready to maintain their stellar selling expertise.

Most Bridal Expos offer a spreadsheet with all the brides contact information and their wedding date. This is gold mine of rental opportunities. To keep in touch with the brides, send cards, notes and email helpful checklists as their day approaches. One community that exhibited at the expo in January of 2010 can credit 26 leases to registered brides.

Here comes the bride! But is she coming to your apartment community?

Tuesday, September 21, 2010

Kool New Words from the New Mobile World Order


I had the pleasure of presenting at the Multifamily Brainstorming Sessions with my friend and sister in all things marketing, Casey VanZandt. As Vice President of Marketing for Campus Advantage, Casey is in touch with the new lingo so that she can understand the trends of her target market. During our session, we shared the following definitions:

Vaguebooking
An intentionally vague Facebook status update that prompts friends to ask what's going on, or is possibly a cry for help.

No Stalk
Phrase used before one inadvertently says something that sounds stalkerish on Facebook.

That’s Crazy
It's the perfect response when you haven't been listening at all.

Text hole
Someone who texts on their cell phone in really inappropriate places, like movie theaters, concerts, plays, etc.

YouTube loop
When you go to watch a quick 30 second video on YouTube and regain consciousness hours later having jumped from interesting video to interesting video.

Textalizer
A breathalyzer attached to your computer and/or cell phone whose sole purpose is to prevent you from sending messages.

Phantom Vibration Syndrome
You answer your vibrating phone only to find out it was never vibrating.

Please note, many of these words will not clear your spell check!

Monday, September 20, 2010

Hello Albuquerque! The Apartment All Stars Event is in Your City On Wednesday, September 29th. Register NOW!!

Pay to post a comment? This practice could cost your company $11,000


My interest in the subject of paying for posts has piqued. Geno Church, keynote speaker at the Multifamily Brainstorming Sessions this year, commented on the practice of paying bloggers and fans to post good things about a product or service. He warned that this is a violation of FTC rules. For many people, this is the first time they have heard about such law.

There is a $11,000 fine per post in place and is to be enforced by the FTC. We understand this applies to companies paying people to make a post no matter what the subject matter. You can still employ this practice but each post must provide a disclosure saying they were paid to do so. Here is an explanation of the fines the FTC can impose:

FTC to Bloggers: Disclose Freebies or Face $11,000 Fine
By Frederic Lardinois / October 5, 2009 10:41 AM

According to new guidelines from the Federal Trade Commission (FTC), bloggers who fail to disclose that they have received freebies when they write about a product can now be fined up to $11,000 per post. The new FTC Guide Concerning the Use of Endorsements and Testimonials in Advertising argues that any post of a blogger who receives "cash or in-kind payment to review a product" should be considered an endorsement. Because these posts are now officially considered endorsements, bloggers who receive freebies must now disclose this fact on their site.
Freebies and the Independent Blogger

While the FTC will obviously have a hard time enforcing these regulations, there can be no doubt that marketers regularly approach independent bloggers (and especially mommy bloggers) with freebies. When bloggers accept these exchanges, they may not always disclose them in the posts that result. So, while bloggers who are involved in these schemes often tend to say that they would have reviewed the product anyway or that their reviews are often critical, there can be little doubt that payments and freebies influence these stories.

These new rules and rather large fines should bring some bloggers and marketers into line, though others will surely continue to push the ethical boundaries. And blogging Payola is unlikely to go away completely because of these new rules.
This marks the first time the FTC has updated endorsement and testimonial rules since 1980. The new rules also take on celebrity endorsements. If celebrities endorse a product and make false or unsubstantiated claims, or don't disclose 'material connections' between themselves and the advertisers in ads and outside the context of the ads (talk shows, social media, etc.), these celebrities can be held liable under the FTC Act. Judging from this, it would seem that celebrities who tweet about a product they endorse are now risking large fines.

Thursday, July 29, 2010

Metro DC Remains a Top-Tier Apartment Market Performer

by Greg Willett

The greater Washington, DC area was one of the few spots across the country where the apartment market made it through the 2008-2009 time period without taking much of a hit. Revenue loss, taking into account shifts in both occupancy and effective rents, was limited to about 1 percent in the nation's capital, compared to an average decline of nearly 8 percent for the U.S. as a whole. Given that performance during the downturn, it's no surprise that DC is among the metros leading the charge now that momentum has returned for the country's overall apartment sector.

What really stands out looking at apartment market results in the Washington, DC area as of mid-2010 is the return of considerable pricing power. Measuring change on a same-store basis, effective rents jumped 3.1 percent during 2nd quarter, taking growth during the first half of the year to 3.9 percent. Prices are up meaningfully across every neighborhood in the region, with especially strong lifts registering in both the North and South Arlington County submarkets, plus the city of Alexandria.

Greater DC's apartment occupancy rate as of June stood at 95.3 percent, up 1.2 percentage points so far this year. That climb reflects that the market posted demand for more than 9,000 units during 2010's initial half, compared to completions totaling a little more than 3,500 units.

An important factor to consider when evaluating the outlook for the Washington, DC apartment market is that this is one of the few spots across the country where new development deals still pencil out on a fairly broad basis. Thus, some new starts continue. Ongoing construction at 2010's mid-point totaled about 5,200 units. DC soon should rank as the nation's most active building market, since recent leaders Dallas/Fort Worth and Houston are poised to drop down the list.

That flow of additional product in Washington, DC, while certainly not notably aggressive in the big picture, does point to a somewhat competitive leasing environment at the top of the market. Thus, while occupancy and rent growth should prove quite healthy, greater Washington might not realize the total revenue increases that are on the way in locales like San Jose, Denver, Austin and Raleigh — spots that have been beaten down but now are well positioned for pronounced recoveries.

Snap and Go Marketing

For Rent Magazine Introduces Snap and Go

NORFOLK, Va.—(July 19, 2010) — For Rent Media Solutions announces the launch of Snap and Go, the Microsoft® Tag mobile scanning feature available to front cover advertisers at no additional cost. Prospective renters can use this tag to scan a bar code on For Rent Magazine through the camera on their mobile phone, which brings them to their area's apartment listings on the ForRent.com mobile site. The "Snap and Go" tag is a mobile media first in the multi-housing industry.

"The 'Snap and Go' tag is another option we provide to our advertisers that conveniently brings property listings to potential renters and helps generate more awareness for property managers and their communities," said Brock MacLean, senior vice president of national sales and development, For Rent Media Solutions. "Through 'Snap and Go' and other features like unique URLs, text messaging short codes and social media icons, which are included on each For Rent Magazine ad, we are truly making our print offering interactive. These interactive features create a seamless way for renters to use our print publication to access information online or through their mobile device."

How Do You Use It?
This how to video demonstrates how to download and use Snap and Go: www.youtube.com/watch?v=Qq639IFsfkA&feature=youtube_gdata

Since the January 2009 introduction of Microsoft® Tag, more than one billion tags have been created for businesses worldwide. According to the Microsoft® Tag site, more than 20 million magazines featuring the tag were in the hands of U.S. consumers during the month of April.

Download the Microsoft® Tag Reader app: itunes.apple.com/us/app/tag-reader/id298856272?mt=8

Wednesday, July 28, 2010

Long Days = Lot's of Leases

It always confuses me as to why we have leasing office hours while our residents are at work. They typically leave for work before 9am. Yet we don't arrive at work until 9am. And our hard working residents don't come home until after 6pm and many leasing offices close at 5:30. When do we think we are going to lease all those apartments?

It's no wonder Saturdays are so busy. Shopping for an apartment is not really how people want to spend their day off but we really don't give them a choice with our office hours limited to their work hours.

During the long days of summer, out smart your competition by staying open later. When I worked for a busy property in South Florida, my personal work schedule was 11am to 8pm. Do you think this had anything to do with why I was the Leasing Consultant with the highest closing ratio at the property? Of course it did. I was there when people wanted to lease.

Tuesday, July 27, 2010

Apartment Rentals Surge in U.S. on Foreclosures, Jobs

July 27 (Bloomberg) -- U.S. apartment landlords are seeing a surge in rentals as mounting foreclosures reduce homeownership and an improving job market for young adults encourages them to find their own places to live.

The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half, according to MPF Research. That’s almost double the units added in all of 2009 and the most since the firm began tracking the data in 1992. The vacancy rate declined to 6.6 percent last month from 8.2 percent in December.

“Demand is pretty stunningly strong in the first half,” Greg Willett, a vice president at the Carrollton, Texas-based apartment-industry research firm, said in an interview.

Investors are betting the expanding ranks of renters will lead to earnings increases next year of about 5 percent to 10 percent or more for apartment real estate investment trusts such as Equity Residential and AvalonBay Communities Inc. UBS AG this month raised its rating on AvalonBay, Essex Property Trust Inc. and Post Properties Inc. to “neutral” from “sell.”

The change signifies a “less bearish” view on apartments, while acknowledging that “headwinds will remain,” according to the July 7 report by New York-based analysts Dustin Pizzo, Ross T. Nussbaum and Derek Bower.

“The apartment REITs have priced in the most growth within the broader REIT group and as such are most vulnerable if the economy slows and job growth does not begin to come through in a meaningful way,” they wrote.

The Bloomberg REIT Apartment Index has gained 28 percent this year, double the 14 percent advance in the broader Bloomberg REIT Index. The Standard & Poor’s Supercomposite Homebuilding Index has fallen 3.1 percent.

Job Growth

The economy’s recovery from the worst recession since the 1930s has revived hiring enough to stimulate demand for apartments. The growth hasn’t been enough to prevent more home foreclosures, which lift rental demand, or to lead to a sustained rebound in homebuying.

New jobs are the biggest driver of apartment occupancy. Employers began hiring again in January, adding an average of 147,000 jobs a month through June, according to the Labor Department. Employment for people 20 to 29 years old -- a key group for landlords -- rose in May and June on a year-over-year basis for the first time since the end of 2007.

While payroll growth has been modest compared with pre- recession levels, it may be enough to have persuaded some families sharing housing with relatives to get their own places, according to Mark Zandi, chief economist of Moody’s Analytics Inc. in West Chester, Pennsylvania.

Bunking With Brother

“Given how hard it is for families to live together for very long, they moved out as soon as they got a job or even thought they could find one,” he said in an e-mail.

Mike Odenthal moved to the New York area in January from San Diego in search of a communications job, sleeping on his younger brother’s couch in the Heights neighborhood of Jersey City, New Jersey. He moved out four months later after the condominium went up for sale, eager to live on his own and not wanting the sight of his possessions in the living room to discourage potential buyers.

“I was tired of depending on my family for housing,” said Odenthal, 27, who also stayed with his parents in Jersey City. “I can’t imagine doing that forever, and all retiring to Florida together.”

Odenthal found a roommate and moved July 1 to Manhattan’s Upper East Side, paying $700 a month for his share of the rent. The next morning he got an offer to work at a New York public relations firm.

Foreclosures Persist

Finances for homeowners didn’t improve fast enough to prevent more than 1.65 million foreclosure filings in the first half, an increase of 8 percent from the same period in 2009, RealtyTrac Inc., a data company in Irvine, California, said July 15. A record 269,962 U.S. homes were seized from delinquent owners in the second quarter as lenders set a pace to claim more than 1 million properties by the end of 2010.

The U.S. homeownership rate fell to 66.9 percent in the second quarter, the lowest since 1999, the U.S. Census Bureau said today. The rate peaked at 69.2 percent in the fourth quarter of 2004.

“As homeownership continues to decline, people need to live somewhere,” said Henry Cisneros, who was President Bill Clinton’s housing secretary from 1993 to 1997 and is executive chairman of CityView, a real estate investment firm in Los Angeles that focuses on urban projects including apartments.

Sales Decline

The rate of new-home sales last month was the second-lowest on record, behind May, following the expiration of a government tax credit for homebuyers, the Commerce Department reported yesterday. Sales of previously owned homes fell 5.1 percent in June, the National Association of Realtors said last week.

“The rental market will be robust for the next few years,” Cisneros said.

Effective rents, or what tenants pay after concessions or breaks from landlords, increased 1.4 percent in the biggest markets in the first half, according to MPF Research. Rents may rise 4 percent to 6 percent in both 2011 and 2012, compared with a gain of about 2 percent this year, Willett said.

AvalonBay, which took a nine-month hiatus from construction in 2009, said in April it had seven communities under development and would increase rents for tenants renewing in the second quarter. It raised its forecast last month for second- quarter and 2010 earnings based on “improved operating trends.”

The Arlington, Virginia-based company’s funds from operations, a widely used measure of earnings, will rise 8 percent in 2011, according to the medial estimate of 20 analysts surveyed by Bloomberg.

Equity Residential

Equity Residential, based in Chicago, has pushed rents up by “high single digits” in all of its markets since January, Chief Executive Officer David Neithercut said in a June 11 interview. Funds from operations in 2011 also will rise 8 percent, according to a survey of 22 analysts.

Landlords won’t be able to raise rents too aggressively because unemployment remains high at 9.5 percent and declines in home prices have made it no more expensive to buy than rent in about half of larger markets around the nation, Willett said.

Buy Versus Rent

In Atlanta, the median home price has fallen 37 percent to $110,100 from the peak in the third quarter of 2006, according to the National Association of Realtors. Assuming a 10 percent down payment and a 30-year mortgage at 5 percent, the monthly principal and interest cost is $532. That compares with average monthly rents of $774 in the city, Willett said.

Riverstone Residential Group of Dallas, which manages 175,000 units in 30 markets around the country, reduced average concessions to about a half-month’s rent from about two months a year ago, CEO Walt Smith said. Vacancies have fallen below 5.9 percent in buildings that aren’t newly constructed, from 8.25 percent last year. Smith said he expects significant rent growth by 2012 as supply tightens with so few new units being built.

“Landlords are cautiously testing the strength of the submarket their property is in to see if the market will withstand small rent increases,” Smith said. “In most markets, they’ve been successful.”

--With assistance from Oshrat Carmiel in New York. Editors: Larry Edelman, Kara Wetzel

To contact the reporter on this story: Prashant Gopal in New York at Pgopal2@bloomberg.net

To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

No Matter Who Signs Your Paycheck, You Are Self Employed


While traveling this week I overheard a conversation where two people were discussing their disappointment that someone got promoted over one of the ladies in the conversation. They were clearly unhappy and found a number of reasons why their company had failed them. I overheard excuses such as the promoted person had an easier property to manage, the president wanted a man in the position and she had not received enough training. And so I started thinking.....

While we are employees and someone signs our paycheck, we are really in charge of our own career. If you want something, ask for it. If you are told you are not ready for the next step in your career, find out why and change it. There are few victims when it comes to business. However, there are a whole lot of lazy people.

On the day that I was promoted into the coveted position as Director of Training, I was told that I was probably too young for the job (ahhhh, to be 24 years old again) but that I had the skills and the talent. The president also expressed to me that the most important quality I had going for me was that I took charge of my career and planned out the steps I needed to get the job I wanted. He called that ambition. I agree. I was the youngest person out of a sea of 27 more tenured people than me that applied for that internal promotion. Ambition pays off!

What can you do today to prepare you for the next step in your career? Email me at kate@KateGood.com if I can ever help you with your career goals.

Tuesday, June 22, 2010

A Special Post for My Travel Buddy Named Doc

Rules of Airplane Etiquette

Getting to the airport early and going through the security strip tease is hassle enough. When you're on the plane, you want peace and, if you're lucky enough to win the baby lotto as the proud parents whisk their newborn several dozen rows behind you, quiet.

That said, here are rules for airplane etiquette once you've tightened your seatbelt, low and tight across your lap, and stashed your carry-on:

1. Mind Your Space
Just because you've had trouble saying no to Wendy's doesn't mean you have to remind the person next to you throughout the flight. Keep those flabby forearms in your space and those hubcab knees in front of you. Nobody wants body contact on a flight, unless it's your significant other or the cute girl you met in the bar sharing a dirty martini.

2. They Make Paperbacks, Don't They?
Never bring a broadsheet newspaper (Wall Street Journal, Boston Globe) to read on the plane. It's OK in the terminal, but violates the personal space rule (see No. 1). If you must read a newspaper, bring a tabloid (NY Post, Newsday). A magazine or book is even better. If you are reading your computer and are lucky enough to have wifi use caution when downloading pic and visiting certain web sites as the person sitting next to you will surely look over to your screen at the worst possible moment.

3. It's Not a Tea Party
Some people look forward to meeting strangers and befriending them on a plane. Others don't. Learn the difference. If your conversation seems one-way, take the hint. Some people would rather use three hours to plow through a novel or get some work done instead of exchanging shallow conversation.

I was once on a Virgin America flight and had a great time with the inflight seat to seat instant messaging. It was easy to ignore the not so cute guy in the back and pay special attention to 7F. You have to love new technology. It was like a nite club in the sky.

4. If You're a Bathroom Person, Take an Aisle Seat
You've downed six Diet Cokes and two cups of coffee and you've requested a window seat. Not a good idea. There's nothing more annoying than waking from a nap a half dozen times to let fountain-boy through. Especially on those tight United flights.

5. You're Not the Flight DJ
If you're going to listen to music on your MP3 player, keep the volume down. Not everyone enjoys 50 Cent and Nelly. The volume is louder than you think, especially if the headset is not snug to your ear.

6. Rubbernecking, Part 1
If you have an aisle seat, don't lean across your fellow passengers to look out the window. Conversely, if you're in the window seat on the right side of the plane and the pilot says there's an excellent view of Cape Canaveral on the left, don't try to catch a glimpse. This definitely violates Rule No. 1.

7. Rubbernecking, Part 2
Don't read the magazine or book that the woman sitting next to you is reading. They notice and it's annoying, trust me. Worse yet, don't comment on the article or story. That violates Rule No. 3 in a big way.

8. It's Called Deodorant
It's a shame this even needs to be mentioned, but it does. Please, please remember to bathe or shower before your flight. These are tight quarters and the only air is recirculated cabin air. Even a 55-minute flight can be uncomfortable if you smell like you just ran a 10K wearing a leather jacket.

9. Kids are Kids
Children are excited on a plane, and it's not unusual for a youngster to cry, whine and show off the power of his lungs. But parents, please keep your kids' feet and hands off the back of the seat in front of them. It's annoying and migraine-inducing to have your seat kicked, punched and slapped for three hours while mommy and daddy think it's cute that junior is entertaining himself.

10. You'll Get Off the Plane, Promise
When the plane lands, you don't need to stand if you're more than five rows back. Most airlines don't even begin unloading for five minutes, then it takes at least 30 seconds for those first five rows to move. So if you're in Seat 37D, there's no reason for your backside to be in someone's face the minute the plane pulls up to the hangar. Also, just to review, the rows empty from front to back. If you're in Seat 37D and the woman in Seat 36D is a little slow pulling down her luggage, don't leapfrog past her. That's just rude.

Follow these 10 rules and you'll make flying a better experience for each of us. You're now free to move about the cabin (unless you're the guy violating Rule No. 4).

Friday, April 30, 2010

The Art of Negotiation: Emotions


The very best professionals are always looking for opportunities to learn. You must be one of them because you are reading my blog probably looking for some new ideas. Well, to you I say "dig in." There are a lot of amazing sources for information and my goal is to make sure http://www.KateGood.com serves your need to learn.

There is one topic that I have been studying this year to make myself better at what I do and that is the art of negotiation. I learned the power of emotions on the negotiation process. This means that we make decisions based on our emotions. Yes, there is still the logical side of our brain that is weighing in on this decision, but it is the emotional rush you feel that drives you to say yes.

When are the emotions of your customer most effective to the sales process? In the model or rent ready apartment. It is at this moment that the customer has been taking in all the features and benefits of your amenities on the way to the model. They are really excited and now you show them a beautiful model apartment that is the best home in the community. Whamo! They are really feeling their emotions at this moment. Now is the time to ask for the lease and close it!

Set yourself up for success by placing a stack of applications and pens in the model. Have your availability with you at all times. If you wait to do this when you get back to the leasing office you are missing the power of the emotional high.

Wednesday, April 28, 2010

Template Ads Can Still Be Fun




I love the part of my job when I am asked to consult with apartment communities on their ads and position in the market. I approach all my work with this question: Will it generate traffic and close leases? When you create marketing peices and then ask this question, you begin to see that saying things like everyone else will not create more traffic becuase you do not stand out in the market.

Let's take on this challenge in 2010 and think of better ways to say things. Don't just list things you offer, tell the customer why they should by it. Stop using the same tired words to describe your features that everyone else is using such. Step up to creative writing and step ahead of your competition.

I've included a graphic in this blog post because I want to commend Atlantic Palms in North Charleston for putting something fresh and fun in your Apartment Guide ad. Bravo my friends!!

Monday, April 19, 2010

Trend: Be Your Own Director of Training

Gone are the days of sitting in a classroom for 8 hours expecting a return on investment of time. Managers and business professionals do not have the time for multi day event based training. Selling is a process therefore sales training will alter to a more succinct process. Since learning is a day to day activity, it is imperative that a leasing pro step up to find and create their own learning opportunities. Empower team members to direct their own learning by attending webinars, reading blogs and attending public seminars to take ownership of their profession.

Friday, April 16, 2010

Trend: We Are Value Creators

We are in a knowledge economy. We must stop providing information to clients and provide value. The question is, what is valuable to your customer? This is a very individual and often subjective answer. For example, a washer and dryer may be valuable to a mother with two small children but would not rank at the top of a busy professional’s need list.

Another item of value may be the service that you provide. I can say with certainty that any customer who is looking to us after renting a private home in the shadow market will find our 24 maintenance guarantee to be a item of value.

Thursday, April 15, 2010

Trend: Getting Prepared

The last five years have provided significant tools and technology for sales professionals. Customers have access to as much information as their leasing professional. Know what your customer is reading.

How do you rate in the blogs and opinion sites?

Has your sales team checked out your complete Internet presence, including web pages on the Internet Listing Services?

A prepared leasing professional has a greater chance of closing the lease because it shows the customer that they are important to this team member.

Wednesday, April 14, 2010

No Matter Who Signs Your Paycheck, You Are Self Employed


While traveling this week I overheard a conversation where two people were discussing their disappointment that someone got promoted over one of the ladies in the conversation. They were clearly unhappy and found a number of reasons why their company had failed them. I overheard excuses such as the promoted person had an easier property to manage, the president wanted a man in the position and she had not received enough training. And so I started thinking.....

While we are employees and someone signs our paycheck, we are really in charge of our own career. If you want something, ask for it. If you are told you are not ready for the next step in your career, find out why and change it. There are few victims when it comes to business. However, there are a whole lot of lazy people.

On the day that I was promoted into the coveted position as Director of Training, I was told that I was probably too young for the job (ahhhh, to be 24 years old again) but that I had the skills and the talent. The president also expressed to me that the most important quality I had going for me was that I took charge of my career and planned out the steps I needed to get the job I wanted. He called that ambition. I agree. I was the youngest person out of a sea of 27 more tenured people than me that applied for that internal promotion. Ambition pays off!

What can you do today to prepare you for the next step in your career? Email me at kate@KateGood.com if I can ever help you with your career goals.

Trend: Better Offers Are Not Aways Bigger Offers

Know what your customers want. Don't just offer the same special as the community down the street. When we do this, we are actually feeding the “bigger, better deal” mentality which challenges the customer to find a better deal. Take a different approach and create an offer so unique others cannot match it. For example, a community I am consulting with is using coupon books which give the customer complete control as to how they want to use their concession. Each coupon is worth $30 and the customer can use any number in their book at any time. This unique offer cannot be compared to an offer for one month free even though the dollar amount is the same. Strategy!

Tuesday, April 13, 2010

Trend: Customer Service as Part of the Sales Process

45% of every client interaction involves customer service. My research illustrates that customer service has decreased in many organizations possibly due to the fact that we may be operating with leaner staffs and they are simply stretched too far to give your customers the personal attention they crave. Since customer-to-customer influences have become vital to success, it is increasingly important that leasing professionals focus more on their most vital asset-the client.

Anything which would be considered a administrative function should take a back seat when a customer calls or visits. And yes, leasing is all about customer service. In fact, today’s successful consultant knows the secret closing more traffic today is find out what the customer is looking for and service their need to find a new home.

Monday, April 12, 2010

Trend: Greater Focus On Lead Conversion

The world of apartment leasing and marketing will never be what we knew as early as 4years ago. The items that made your marketing plan a sure fire success will not get you the same results today. The leasing consultant that ranked number one during your leasing contests may be struggling. Does this mean that we should throw our hands up and site a bucket load of excuses? Not if you want your job!

People are still renting apartments so why not rent one from you? If you want your unfair share of the available leases, and to keep your job, study these trends which I will be spotlighting in my upcoming blgs and make necessary adjustments, not excuses.

Let's start with Lead Generation.

The issue of lead generation has increased in the last two years. Technology has helped gather leads but the conversion factor has not increased. Simply put, leads must be converted and there will be increased attention to convert and close more leases. Your marketing and leasing strategy should include a solid system to follow up every phone call and email lead. Work that customer until they lease. We are using more advertising sources than ever before, make sure you are counting all the traffic they are delivering and take a closer look at your teams ability to convert that lead to a lease.

Monday, February 15, 2010

6 Common Unintended Consequences in Leasing for 2010

1. Overdoing the “friendly” part of sales can frequently backfire on us. Residents don’t trust disingenuous people. Customers realize you don’t care about them that much.

2. Asking prospects intensive qualifying questions can put them on the defensive. No one likes being backed into a corner.

3. In order not to push customers, we frequently don’t introduce everything to our customer. This guarantees they will be looking at your competitors to find it.

4. Pushing for a close is so 1950’s. Again, no one likes being backed into a corner. When this happens, customers bring out the heavy artillery loaded with plenty of objection bullets.

5. Don’t most of us already know that talking poorly about the competition always cheapens us and ironically gives more credibility to our competitors?

6. Selling to a non-decision-maker (e.g. recommender, information gatherer) makes us feel good because it’s easy and we feel we’re making real progress. Nothing could be further from the truth. We’re in fact wasting our time and alienating the real decision makers because: a) They don’t think we’re smart enough to figure out who the real decision makers are, and b) They think we perceive them as unimportant.