Learn The Perfect Response When Someone Responds with "No"

I'm happy to share the next of my videos for CORT in their Sofa Secrets series, a video-based educational program for apartment industry professionals. This Sofa Secret is about using one word to help you close reluctant prospects...

Flat Rate Pricing Contributes to LOST Leases

Many communities tried "one price fits all" pricing methods during the recession in an effort to fill up fast.  While this may have resulted in a nice bump in occupancy, the leasing team was left with all the “less desirable” apartments to lease making their challenges even tougher. The long term problem is that now they have a community where people think that most pay the same amount in rent. The price was typically based on the lowest rent we could offer even though more than half the apartments had higher value. Price the apartment based on the attributes which make the apartment unique.

Why should a person rent the subject apartment over another? The answer to that question will help you see the individual opportunity for this apartment price. Once you move to this type of price structure it is easier to sell a new price on an apartment.  The reason is pretty simple, it limits that number of apartments that will meet the customer’s needs.  If you have 10 one bedrooms available and they are all $899 then the customer has 10 to choose from making the decision harder not to mention you will lose your sense of urgency. 

It makes more sense to qualify the customer based on price they can afford and them limit their choice based on this need.  Ideally, you want the customer to consider 2 apartments vs 10 apartments.

The Unexpected Email I Received From A Panhanlder Today

When I lived in Chicago I was never comfortable with people on the street asking me for money. I was worried that I was contributing to a bad habit that may have put them on the street or that their story was a fraud.  When I was walking the Country Club Plaza in Kansas City, I was told that a certain panhandler sitting near The Cheesecake Factory made over $70,000.  While I tried not to pass judgment, I never understood why someone who was that good at asking a stranger for money did not get up and get a job.  After all, successful sales people have to ask people they do not know for money all the time! There were times when I thought the "loose change seekers" were better at it than I was. 

 

I have also seen many panhandlers to demonstrate marketing savvy.  They know people will read their sign so they put something worth reading.  Personally, I respect the signs that make me laugh.  Here are some of my favorites:

 

 

 


Today, my view of a panhandler changed when one of them emailed me.  For the first time in many years I have a morning routine that includes driving the same route each morning.  At one high profile corner there have been two panhandlers who are friendly and creative with their signs.  One morning I whipped through the light and saw the sign out of the corner of my eye.  The gentleman was asking for money for his BMW fund.  I found this to be an example of the strength of the Houston economy and if I were not late for a meeting I would have made a u-turn and snapped a picture for my Facebook status update. 

Each day I drove this route I looked for him again.  Finally today, the stars aligned and I caught the light while he was standing there with the sign.  I figured it would not be nice to take a picture from the inside of my car and not give him money.  So, I broke a personal rule and quickly pulled out some dollar bills.  I handed them over and asked for a picture. 

For the next 30 or so seconds we had a conversation that started with "you get it don't you". In an instant my view of this man changed.  He explained that he is a writer and is trying to get noticed.  He asked me for a card because he carries on the panhandler tradition of asking strangers for something, in other words, he is a salesperson. At this point my Mother, Linda, is probably thinking she should have told me 1000 more times not to talk to strangers!  Well Mom, talking to strangers has pulled me along in life and I felt an instant connection with this one.  His name is Tom and he is looking for a job.

 

I am impressed with the email he sent me.  Well written, complementary, researched (made two references to blogs I have written) and effective. His talent is obvious. I hope he finds what he is looking for but I will miss him on the corner.

If you would like to read Tom's blogs, please visit: http://homelesspatriot.blogspot.com/ and http://rogersparkbench.blogspot.com/

How Can A Car Help You Lease Apartments?

Very simply put, creating a memorable experience will help you stand out in a crowded marketplace.

"It took 9,000 hours over a period of seven months for eight craftsmen from two families to shape a work of art that comprises roughly 2,227,000 individual parts weighing a combined 200 pounds, with each one glued together one by one. The completed sculpture, on view on the first floor of the new BBVA Compass Plaza on Post Oak Boulevard, speaks volumes of the cultural flavor of Houston and the values cherished by the city's stakeholders — and the principles of the underwriters. Vochol, the title of the piece, is a 1990 Volkswagen Beetle swathed in a mosaic of vibrant glass beads that collectively, from afar, appears to be a painted vehicle of sorts — what one would see sashaying down Houston's iconic Art Car Parade. But this art car's Mexican provenance — Mexico was home to the last manufacturing plant of this popular VW model that was assembled from 1938 through 2003 — pays tribute to an artisanal craft that at its core serves as a spiritual channel." -Culture Map





Give your sales team this type of conversation and it can open 20 doors to building rapport and connecting through a solid visual memory of what makes your property unique. While this car is a huge display, a memory point does not always need to be as bold.  It simply means that you have something notable and you take the time to share that with your prospect.  At the end of the day, when they are reviewing all their choices, what will they remember you for? I doubt it is 4 white walls and beige carpet.  Everyone has that. Try a wall mural with all the sports teams in your area like a community in Jacksonville put in their indoor basketball court.  A community in Tampa has a NYC Taxi in their courtyard. And, one smart community in North Carolina has a "stuffed person" named Gladys sitting on the couch in the model.  All are unique and stand out in the mind of the consumer.

Don't Tell Them What You Know Unitl You Find Out What They Need

Sometimes words come out of my mouth and I think “that is the perfect way to say that.” At other times I know that I need to put a little more explanation behind what I am saying. This title of this blog is not self explanatory, at least not when it comes to leasing more apartments. So many times I hear a Leasing Professional jumping right in at the start of a leasing presentation and “data dumping” on a future resident instead of taking the time to find out what the customer needs in a new apartment home. We are so eager to tell the customer about the apartment but at this point the consultant might as well be saying “blah, blah, blah.”

The customer is really not going to remember much of what the comsultant is saying because it does not mean anything to them. To make the things Leasing Professionals say more meaningful they should start by asking what the customer is looking for. Questions such as “what is important to you in your new home?” and “are there any special features you are looking for in your new home?” will draw out information about your customer that you will make it so much easier to make what you are saying about the apartment much more memorable. Now, when you discuss the apartment and it’s attributes you can say something like “Our living rooms have a 14 foot wall which should be big enough for your oversized couch and end tables.” Wait to tell them what you know until you can link it to what they need.

Apartment Community Art Wall

This apartment community clubhouse features an art wall.  What makes this very special is that all the art has been created by their residents.  I think this would be a great talking point on a leasing tour. Great idea! - Kate

Old Leads Are Cold Leads and My Olympic Experience

This is one of the hottest summers on record. I live in Phoenix, just ask me what 113 degrees feels like. Yuck! All over the country, our leasing teams are feeling the heat and it can be truly exhausting. By mid-July we are wearing down from this long hot summer yet we need to keep our leasing productivity HOT! The quickest way to get there is to touch something COLD, your Internet leads.

80% of potential sales are lost due to lack of follow-up. This is one of biggest mistakes people make in marketing. Do you want to know how you could increase web conversions and sales by as much as 400%? The secret lies in what you do after you generate a qualified lead. The steps you take next to build a relationship and help your prospect get what they want make all the difference. Most people are so focused on getting qualified leads that they neglect to put their web site marketing and Internet Listing Service follow-up systems in place to convert leads to sales. It’s so important that I’ll say it again;

…with better follow-up, you could increase web sales by 400%.

In just a few days the World’s attention will be on London for the start of the 2012 Summer Olympic Games. This is always an exciting time for me as I reminisce about the 1996 games in Atlanta. I tried out to be a placard bearer in the opening and closing ceremonies and got picked! The day of the opening ceremonies it was 111 degrees on the tarp that covered Turner Field. Our energy was draining but continued to be refueled by the excitement of meeting our teams and seeing Mohamed Ali light the torch.

I ushered the great country of Azerbaijan into the games proudly holding their county’s sign alongside the flag bearer. I call them a great country and it has nothing to do with their politics which I know very little about. What I know is about the athletes that represented their country in 1996. It was their first year competing as an independant country after breaking off from the “Unified Team” also known as Mother Russia. Azerbaijan’s uniforms were mismatched and used. Russia looked smashing in their red suits and hats. (Did you think I would get through this blog without a little fashion commentary?!?) It was clear they had little resources and training opportunities but they had a lot of ambition and a plan to win. At closing ceremonies we gathered again for a celebration in the stadium. It was truly exciting to see these inspiring athletes wearing medals they had won. They were singing and dancing with athletes from all over the world. As for me, I was just proud to be a part of the biggest moment in their life and wear a silver medal won by a hot wrestler named Namik!

Imagine you were training for the upcoming summer Olympics. You’re a runner and want to win gold this year. You get a new pair of shoes to help you in your medal quest. Then you map your workout plan. With your coach at your side you identify which exercises to do and when to do them. Each day until the coming Olympics you eagerly show up at the weight room and the track. What happens? Each week your strength and speed improve and you become a stronger competitor increasing your chances of winning a gold medal.

Now imagine a competitor who wants to win but after signing up for the team, didn’t show up for practice. Who do you think is going to win? The person who follows up on their commitment with a series of planned activities or the one who neglects these? Web site marketing is like training for the Olympics but with a whole lot more gold medals available! Start with a lead, regular follow up and you can win many more customers.

You could continue marketing the same way and get the same results, or you could discover the lead generation and follow-up activities that can increase your sales by 400% or more. Just as in training for the Olympics, what you do and when is critical. Use these 7 follow up ideas you to increase your sales.

1. Act Immediately
Old leads are cold leads. Use automated email responses or voice messages to instantly acknowledge a prospect’s interest and give them the information they requested. If you plan to call them, let them know when you’ll call. If you’ve offered something free to entice them to respond, deliver it instantly.

2. Use Curiosity to Motivate
The most powerful motivator in marketing is human curiosity. Tempt your prospects with something they want and pique their interest to prompt them to visit your community or to call you to get the details. I feel it is important to have a contact from that asks questions that give you the clues you need to understand their hot buttons. When you use these hot buttons in your response, you will capture their attention.

3. Create A Sense of Urgency
People are prone to procrastinate, just ask me, I started writing this blog in June! We put off doing things even when we want and need something. Give them a reason to act immediately, such as a limited time offer.

4. Educate Your Prospects
Customers may not have an immediate perception of their need for what you provide. What makes you unique compared to the competition? This product differential must be front and center in your marketing. Use each contact to help them define a problem or concern and demonstrate that your product or service is the solution.

5. Build a Relationship
The stronger your relationship with your prospects, the more likely they’ll be to turn to you when they are ready to make a purchase. Do most men or women propose on their first dates? Of course not! And if they do it is my personal experience you should RUN! It takes time and repeated contact to establish the basis for a long lasting, mutually beneficial relationship.

6. Give Special Attention to Prospects that Demonstrate An Interest
Let’s say you sent out a special $100 discount email offer to your prospect list. Typically, 10-16% of your prospects will open the email, and a much smaller percentage will act on it immediately. Go back with an even stronger call to action to the people that opened your initial email. You’ll find that approximately 50% will open it and you’ll sell a lot more of your product and services.

7. Use Automated Systems to Follow-up
Set up your email auto responders to do your follow-up for you. Use each email contact to educate and motivate your prospects and tell them about your limited time offer. Remember that prospects are more likely to buy after six contacts, so use a series of six emails spread out over two weeks. However, this does not excuse the need for human contact. Reach out!

Want to earn gold with your business? Like Olympic athletes you need more than goals. You need a follow up strategy and system. Put these in place and you can capture the 80% of potential sales you’re missing.

The Hangover: Rental Edition

Although all indicators exist for a healthy year of rent increases, it does not make our job as Leasing Consultants and Property Managers any easier. Simply put, our Residents are not prepared for increased rent when they are still nursing their recession hangover. For most Americans, the recession was a tough time filled with learning how to live with less, reprioritizing needs vs. wants and living in fear of the unknown. We became a nation of bargain hunters eagerly checking our Groupon email first thing in the morning and exploring options for a “staycation”. A few good job reports and a strong uptick in the stock market is not enough to erase memories or change our bargain hunting instincts.

People still want a deal and they are expecting you to give it to them. Here are a few strategies to help you meet the goals of your owners and your residents.

1. Flat rate pricing is a dead end street. Many communities tried this during the recession to fill up fast and now have a community where people think that most pay the same amount in rent. The price was typically based on the lowest rent we could offer even though more than half the apartments had higher value. Price the apartment based on the attributes which make the apartment unique. Why should a person rent the subject apartment over another? The answer to that question will help you see the individual opportunity for this apartment price. Once you move to this type of price structure it is easier to sell a new price on an apartment.

2. Give residents options and you give them control. The customer now has a decision to make rather than just accept what you are asking of them. Psychologically this will help you get to yes. The options could be the length of lease or apartment upgrade. Now the customer has control of the decision through choice.

3. Monthly market surveys are worthless. Study your market on a daily basis. When you do so, you will notice incremental changes in the market by companies who are truly committed to managing for a high yield. Tracking these changes will help you understand what is available in the market and how the market is accepting the inventory. You now have data you need to price accordingly.

4. Prepare your team for this question "Why are rents going up?". Have a response that everyone understands and is comfortable delivering. Educate your team as to why rents are increasing and prepare them for this conversation with residents. Remember, every member of your team should understand this strategy and what to say to a resident. Your service team spends more time with residents compared to us. Do they know why rents are increasing and how to discuss this with customers?

5. Apartment All Star, Michael Benton, reminds us that competitors don't steal happy residents. Great point! Above everything, a good customer service program should be part of your rent increase strategy.

6. Moving is the worst day of your life. At least we think so! You will always have the advantage of knowing that no one really wants to move. It’s just not fun and there are a million better things to do on a Saturday. Coming to an agreement means that the customer will not have to move. This makes everyone happy.

7. A waitlist is motivating. Start one and get every prospect on it.

8. Be a Revenue Rockstar. 2012 is the time to turn up the volume and make it happen.

Can You Overcome Any Objection?

I sincerely hope you are not dealing with this functionality failure at your apartment community! This would be a very difficult challenge to overcome. A true leasing pro knows that dealing with you customers objections is an essential step to close the sale. After all, who is going to take the time to discuss their concerns if they are not interested in the apartment?

Many people get discouraged when they hear an objection and do not attempt to overcome the customers concerns with solutions. They simply give up and report back to their manager that the apartment did not work for the prospect. Is there really a perfect fit when it comes to an apartment. I'm certain it is probably rare. Dig in and talk about some ideas that you have help your customer see things differently.

The next obstacle is the "excuse" objection. My favorite excuse for not leasing is the ever popular "I don't think my husband will like it". Are you kidding me? Women are the keepers of the home. It's how we were programmed since the beginning of time. If a lady likes the apartment she will tell her man that he will love it too. Now is the time to find out what is really holding the customer back from leasing the apartment.

Do you want your Future Residents to read your follow up emails? Try these tips!

I found myself reading my email today and the whole point was to delete things that did not need my attention. I think many of us do this no matter what what day of the week it is, but for this Monday, I was rapidly tapping the delete button. I started thinking about what it takes to get people to read email and found myself doing a search for some expert help. Here are some tips from Jill Konrath who wants to make sure all of your emails elicit a response.

1. Eliminate Delete-Inducing Words

Get rid of all verbiage that activates the delete response. Here are some serious offenders: exciting, state-of-the-art, solution, partner, leading edge, passion, unique and one-stop shopping.

2. Keep Your Message Simple

Your email needs to be less than 90 words. Use 2-sentence paragraphs so it can be scanned. Stick with common black fonts (no colors) and never include more than one link or attachment.

3. Align With Their Objectives

Research your prospect's specific needs, likes and other hot buttons which will help you connect. Relevance is essential.

4. Focus on Immediate Priorities

Identify key events that may be impacting your prospect's priorities and tie your message into that. An example might be if they are relocating from out of state, there are a lot of things that will need attention vs a move across town.

5. Be an Invaluable Resource

In your e-mails, focus on the ideas, insights and information you can share that will be of value to your prospect in reaching their goals.

6. Craft Enticing Subject Lines

Your subject line determines if your message gets read. Avoid sales hype and focus on business issues such as: "Quick question re: are you ready to move" or "Welcome home to Green Oaks Villas."

7. Launch a Campaign

Do eight to 12 touches (via e-mail and phone) over a four-to-six week time period, with each contact building off the previous one. Provide links to resources. Spotlight the value of visiting today and making a decision.

What Lionel Richie Knows About Marketing

The year was 1984 and the last thing I was thinking about an article I would be writing decades later for my marketing career. My head was full of ideas for my Sadie Hawkins Dance outfit and my date for the night. I popped in my favorite cassette tape called "Can't Slow Down" and started singing along with Lionel Richie. "Hello" became his most popular song of all time as it hit number one on 6 music charts. Executives at Motown Records hum this song because it helped lead the way for this album to be the best selling in the history of the company.

Can you hear it in your head? Sing along as we talk a little marketing.

When he was young, Richie watched beautiful women walk past but was too shy to talk to them. He thought to himself, "Hello, is it me you're looking for." Years later he started to write a song using the phrase but got stuck and gave up. But his record producer liked the line and urged him to finish it. Richie left this off his first solo album, but his wife Brenda liked it and insisted he include it on Can't Slow Down. And so the famous line was born that became my marketing mantra:

Hello, is it me you're looking for?
'Cause I wonder where you are
And I wonder what you do

Great marketing starts with knowing who you want to attract to your product. Who will think this is the perfect home? Who is looking for this location and amenities? After knowing who you are looking for, you have to go find them. Today, that task is not as hard as it was years ago. When I started in the busines, over 20 years ago (SHIT!), my manager would have us all meet on Wednesday morning to design a catchy tag line for the column ad in the weekend paper. Our favortie was "NOW pLEASING". Catchy? NOT! It was such a shot in the dark! We made gut decisions and ran with tag lines that sounded good to us. We had no idea until Monday if they were effective.

When I look back I wonder how we ever leased a property to capacity. What were we thinking? Well, I guess you do what you know is best until we know better. And that is the point of this blog. Friends, you know better if you would just read your reports. Every marketing source you are investing your meger marketing dollars will tell you information that is very helpful to your decision making process. You cannot do all the marketing you want but you can do some of the marketing you want. It is so important that you are putting your money where your future renters are. Read your reports. Listen to your vendors. Ask them pointed questions. Survey prospects and residents.

Today, in a meeting with my Apartment Guide rep, he actually advised me to pull out of print because my online presence was pulling qualified traffic. I could back up his data with my own. And, I don't care how big the gift basket is that the advertising source gives me on my birthday, if that ad is not pulling, I am not going to spend my owners money.

Make yourself look good by doing and asking the following:
1. Are you attracting qualified traffic? (I'd rather have 20 qualified people a week and 62 I am not sure about.)
2. Who currently rents are your community? Can they handle the rent increase we have planned for them in the next three years? Do I need to attract a client who can afford more? (Plan ahead.)
3. What source IS my best source for my qualified traffic?
4. Of my skips and evictions, what sources attracted them?
5. Do you know what your residents like to do in their freee time?
6. Do you know how to reach your residents and potential qualified traffic?
7. Do you still love singing along to Lionel Richie?
8. Are you using data to make decisions and not your gut?

Asking the questions in the lyrics of "Hello" helped Lionel reach the greatest success in his professional career. You have that opportunity too. Ask the right questions, listen to the answers and make the best decisions.

Creating Demand When What You Offer Is Not Enough

No pool?

Wish you had a workout room?

Kitchens with old appliances?

In my career there is one thing I love more than leasing apartments and that is to
get on stage and talk about great leasing techniques. But to be a believable
speaker, I have to do what I speak about with my audiences. This is why I
love to pick up the model keys and leasing kit whenever I am visiting one of
my consulting clients. Leasing is always a challenge for me because I am
rarely working on a property that has it all and is leading the market. Why
would that owner need me?!? My consulting projects are typically turning
around a leasing and marketing situation to improve economic occupancy.

My job would be easy if each apartment had granite countertops and a rocking
amenity plan to add to the value of the apartment community. Most times, I
am working on properties where there is a gap between what the customer
wants and what we offer. This is when an emotional connection can win the
leasing game. Here are 10 things you can do to create that connection:

1. Before you ever show an apartment, make certain you ask questions to find
out what is important to this customer. Using this key information on the
leasing tour will help your customer see that this apartment meets their
needs.

2. I don't have to tell you to use the customer's name, you learned that
years ago in leasing class. But, here is a thought to take that idea one step
further: Create a connection by putting their name on the water bottle you
present to the customer. (Another reason to set an appointment and know when
the customer is visiting!) Their name on the water bottle not only says "we
are expecting you" but also says we want you to be our next new resident. A
clever leasing team at Woodbury Park in Minnesota shared this idea with me. They found
bottled water at Walmart which are perfect for writing the customer's name
with your trusty Sharpie Marker (see example).

3. Remove any hassle that exists in the leasing process. Make it easy to
lease an apartment with you. This is an indication of your ability to manage
their home and provide great service. Services like real time availability
and on-line leasing with Vaultware could be the winning factor when your
community can't compete with the property with 6 swimming pools and valet
trash removal!

4. Speaking of valet trash removal, have you considered this? My friend,
Scott Stamilio who represents Valet Waste, informed me that this is an
excellent service to add because the resident sees tremendous value in
having their trash bags removed from their door step 5 days a week. They
even take care of recycling too. Adding this service can justify your
competitive rents even when you don't stack up with interior and exterior
amenities. You may not be able to build an outdoor kitchen like the new
property down the street, but you can certainly add this service and every
resident will enjoy not having to walk to a stinky dumpster.

5. Show the customer everything. One thing we heard over and over again
when Apple Founder, Steve Jobs, passed away was that he had a gift for
imagining what we did not know we needed. Many times you may offer
something that the customer did not consider for their list of apartment
needs and wants. However by demonstrating all features and amenities, you
may just strike a chord and the customer's interest peaks.

6. Slow down. Don't be in a hurry to rush through your model. This is
your number one sales tool. Invite the customer to take a seat on the couch
and continue your conversation with them. Making themselves at home could
be what they need to see this as their new home. Here is a tip from the
awesome leasing teams at Pacific Living Properties in Sacramento, CA, if you
open the refrigerator in their model apartment you will see festive
streamers, drinks and delicious snacks.

7. Invite the customer to pull out their trusty smart phone and shoot a
video of the apartment so they remember it.

8. Take what you have and make it a little better. Customers notice when
things are broken so fix them. Fix everything. The goal of your apartment
community is to have zero defects. The customer may be able to live without
a tennis court but they are not interested in living where the gates don't
work. Just ask anyone who works for Avalon Bay Communities and they will
tell you their motto is "neat, clean and working".

9. You are better than any amenity your property owner could build. We like to
buy from people we like. Be likable by going out of your way to show this
customer they are important to us. Be friendly and personable.

10. Testimonials are the new marketing. You could have the best leasing
presentation created by years of experience but your customer reads
testimonials and can be seriously influenced. Make certain everyone on the
team understands that we are working hard to make sure our customers always
have something great to say about your community. Then when asked the testimonial
is always a good one.

You can compete with apartment communities that have more amenities and or
newer apartments. Put these 10 steps into action and you will mind the gap
and create customers.

8 Tips to Increase Rent for New and Renewed Leases

Originally Presented by Kate Good
8/25/2011

Our friends at Vaultware have been tracking rents and report that rents are increasing in each region of the country when compared to rates last year. It seems everyone is doing it! Are you raising rents? Don't let your apartment community get left behind and leave money on the table. Here are 8 tips to help you increase rents. (Click on this link for the Vaultware Rent Increase Study http://kategoodblog.blogspot.com/2011/09/vaultware-says-raise-rentseveryone-is.html)

1. Set yourself up for success. You can't pull a rent increase out of thin air because people are going to want to know why rent is increasing when it seems the country is still in an economic crisis. In this email you will see charts tracking rent increases across our country. The apartment industry is recovering faster than other sectors of the real estate industry. Be prepared for this conversation as there is certain to be pushback from the renter who, based on sluggish economy reports, is not expecting a rent increase. In fact, they may be looking for a concession!

2. Prepare your team for this question "Why are rents going up?". Have a response that everyone understands and is comfortable delivering. Educate your team as to why rents are increasing and prepare them for this conversation with residents. Remember, every member of your team should understand this strategy and what to say to a resident. Your service team spends more time with residents compared to us. Do they know why rents are increasing and how to discuss this with customers?

3. If you are nervous about raising rents, get over it. This is a business and although we love our customers and want to help them, we still have a fiduciary responsibility to make this apartment community profitable. Deliver your rent rates with confidence. I know there are customers you consider friends and you are aware of their personal plight. Pushing a rent increase may be difficult but you have to take your emotions out of this part of your job and meet the properties economic potenial.

4. Flat rate pricing makes it very difficult to increase rents. Get the highest rent you can by understanding what makes each individual apartment unique and valuable. Some are worth more than others to the renters and should be priced accordingly. In addition, when you have everyone paying the same price, everyone is going to expect the same deal upon renewal because let's face it, residents talk to their neighbors. This is a difficult pattern to break until you create price differential.

5. If you are hearing "no" find out why. Understand what the market is telling you. Make adjustments.

6. Monthly market studies are worthless. You have to study your market each week if not each day! This market intelligence will help you find your optimal rent rates. Check out Vaultware's market survey product and get instant alerts when your competition is adjusting rents. Now that will make you smarter!

7. Apartment All Star, Michael Benton, reminds us that competitors don't steal happy residents. Great point! Above everything, a good customer service program should be part of your rent increase strategy.

8. Invest in Yield Management software. Having a tool like this will help you maximize rents on a daily basis taking a lot of the work and emotion out of the process. YieldStar or Rainmaker will be on the job even when you need a day off! Look into this. This is a solid investment that pays for itself.

Vaultware Says Raise Rents...Everyone is doing it!

Just in time for my Webinar discussing the hottest topic in the industry today, Raising Rents, my friends at Vaultware shot over these charts to support my program. You don't have to own the apartments you are renting to get excited about this! Every region of our fine county is experiencing rent increases compared to last years rental rate. Yes, that includes Florida! I'm so excited I might hit the sale rack and celebrate with a new pair of shoes. Of course, I will still use a coupon for an additional 10% off.

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.

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.

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!

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.

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...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!)

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...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!

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!