How a Basketball Player Reminded Me Why I Love My Job

I love a good sports movie.  I like to see the underdog rise to the top and as the music begins to crescendo, we see the team shoot the winning basket, score the final touchdown, kick the goal to take the championship as fans rise in sheer joy at the remarkable story they have witnessed.  The best stories include struggle and determination.  A Mother, Coach or Father sacrificing to see the person they love and believe in make it to the top.  When Kevin Durant, star player with the Oklahoma City Thunder, delivered his acceptance speech when receiving the honor of NBA MVP, he described the challenges of his life and all that lead him to this day. The speech could be a script for a movie that I would pay money to see.

By the time he got to the 22nd minute of his speech, I was on my third tissue! The best message was yet to come...Kevin thanked his Mother and described one of his best memories as a child.  His Mother was a young single women raising two young boys.  She gave up her meals to make certain her children were fed. She worked to keep them off the street and instill a strong sense of family.  And, when they sat in the living room of their first apartment, empty because they had no furniture, that apartment made this young family feel as though they "made it".

I clipped this portion of the speech to share with you:

I want to thank Kevin Durant for reminding me what I love best about my work.  I love connecting people with home.  I was reminded power of this experience.  It is a old, tired saying and yet it means so much, Home is Where The Heart Is.  And on a day when I questioned the value of all that I have done and built in my career, Mr. Durant reminded me of my purpose.

Initially, I posted this on my Facebook wall thinking that others in our business may be having a difficult day like me, and would find their purpose renewed by reading his quote.  I was touched to see, in a matter of a few hours, 200 people clicking "like" as a personal affirmation that even an empty apartment can change someone's life and that we are honored to create exceptional communities for a living.  As the post was shared, 29 times and counting, it seems that everyone needed the sweet reminder that our work matters more than we will ever know.

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...

#1 Need for a Pet Park? Cleaning up #2!

As I'm working on my new property, Vargos on the Lake, I'm scouring the internet for things that will make the property stand out.  One of my projects on the site is the Vargos Pet Park.  This project is close to my heart because of my very own fur baby, Mrs. Harry Winston... In fact, pet parks are vital to apartment communities today, since they are among the top four amenities people check when doing a search for an apartment on an internet listing service such as apartmentguide.com.  It is important to have a great pet park - more than 63% of renters today have pets. 

I'll share more about the ways I'm making the Vargos Pet Park special in a later post, but I wanted to share some pet park amenities that I've found (many thanks to my Facebook friends!).

Warning: this post is picture heavy.  And funny enough, what started my search for fun pet park ideas was looking for a new and updated doggie bag/disposal station. So these will be pictures of places to put your puppy's... poo.  Except for this first one - here's a picture I love of me and my Winnie. 

So here's the standard disposal station - bag dispenser at the top, trash receptacle at the bottom.  This is easy and very practical, and something like this should be in place at your property's pet park. Since you won't be able to get your hands on any Vapoorizer, and poo power may not be heading to your city anytime soon, you'll still need these basics to handle the mess that comes with our furry friends. These are available at many property management sites, such as this one.

But if you'd like something a bit different, here's a fabulous one from MPS Direct (tell George Fletcher that Kate sent you!).  I love that this still has a bag dispenser, along with a couple other features, but it doesn't stand out as a standard disposal station.  It may blend better with the rest of your pet park features in that way.

Here's another one from MPS Direct.  I love that this matches a bench that could also be featured in your pet park.  It looks more like a standard trash can, so you would need a separate bag dispenser, but those are easy to find.

Yet another receptacle, this time from Dog-ON-It-Parks, depending on the look you're going for. 

Then there's the PowerLoo, which flushes away pet waste so your maintenance staff never has to worry about emptying the disposal stations...

Another option to give your maintenance staff a break from hauling away poo is DoodyCalls, a full-service residential and commercial pet-waste disposal company. With franchises across the nation, all you'd have to do is set up their service to keep your community clean!

We got the dirty bits out of the way, and my next pet park post will be much more fun - I promise!

Getting to know you...

Seen at the Hotel Derek in Houston… a creative (and easy!) way to connect and spark conversations with guests! Each member of the front desk staff at the hotel has their own card in a frame that they place on the counter in front of them when they begin their shift.  As guests approach the front desk, they are able to read the fun (location specific) “questionnaire” that the staff member filled out, personalizing the hotel experience for the guests who now know a bit more about the staff at the hotel that are there to take care of them.

Consider doing the same type of thing at your property  - either having leasing consultants display these on their desks, including this in newsletters to your residents (especially for non-leasing agent employees), or, even easier, placing this on the apartment community website to introduce the staff who will be caring for new residents' apartment homes.  You may also be able to use this idea as a resident spotlight/getting to know your neighbor feature (being sure that you keep residents’ privacy in mind).

How Important is Your Pool? Other Amenities Take Over!

When I was 19 years old, and my title was Leasing Consultant, I wondered why the people who built the property I was charged with leasing up did not load it with amenities.  This was "back in the day" when racquetball was still popular and I wanted a court!  About five years later, as my career hit the fast track, I found myself on the Board of Trustees for the National Association of Home Builders.  I had a front row seat to the work of the best research body in our industry.  One of the many facts I learned was that only 17% of our residents actually use the pool. I started to see amenities in a whole new light.

So, why do we even build a pool?  This is when my leasing and marketing hat appears and I know that it is one of the highlights of the leasing tour.  The pool is one of those checklist items that create the feeling of a lifestyle that most people desire: "On my days off, I'm going to lounge on a chair poolside, sipping a cold drink, reading my Kindle, wearing the same bathing suit I wore in college (it's a dream so we can dream that it is still looks hot on us!), meeting fabulous people!". We know this lifestyle offering helps to lease apartments, but is it your best tool for selling renewals?

If you ask people why they stay at an apartment community year after year, you will hear key points such as; I like my apartment, it is a fun place to live, my life is easy here, this is a great location, my dog loves the pet park, I have made friends here.  Rarely do we hear "I can't move away from that pool!". People stay because of the real lifestyle they create for themselves, not their perception of the life they will have when they are looking at your pool on the leasing tour. 

No matter what the age of your community, there are a number of amenities which you have, or can add, that will create that day to day life that your residents will enjoy.  Here are a few of my favorites and some new ones to consider.

1. Valet Trash Removal - Residents report that at first they do not like the fee's associated with trash removal but then they see how nice it is to no longer have to hold your breath when walking to the stinky dumpster and risking goo on your hands from lifting the lid.  One apartment resident tweeted this picture of her dumpster and called it scary and creepy. Valet trash removal is something you miss when you buy a home!

 

2. Pet Parks - We know that 63% of apartment residents have four legged family members in their home. Pet Playland, Parks and Potty areas are some of the most commented on amenities in social media.  Not only are they great for exercising a dog but they have become a social area for neighbors to meet.  One resident reports that she rushes home to get to the pet park at 7:15pm because of a hot guy, and his Jack Russell Terrier, who are always there at this time.  Here are a few things to make your pet park fun, memorable and luxurious.



Keep pets healthy and cool.  Provide outdoor pets with plenty of fresh water and shade. We love this watering hole that bubbles fresh water for pets.

Another option is to create a fun play area. Take a hint from landscapers and create artful dog play courses using plants and hardscaping to create obstacles to weave through, balance beams to walk on or tunnels to roam through. The one shown here is also people size, but you can always create one that’s just dog size. It can be your pet’s hiding spot. Even dogs sometimes need to get away from it all.

When building the ultimate Fort Whoof, add some agility pieces for the pooch who has been lounging in the residents bed all day while their Momma or Daddy was hard at work.



 Create fun seating for pet parents to gather and stay a while.

3. Add on to existing amenity areas such as your business center or resident clubhouse.  We find that many people come down to this common area to utilize the Wi-Fi and socialize.  We see people reading and working on their iPads and laptops.  Try creating a reading nook for the little residents too.  This special space is inviting and encourages quiet activity.

4. It's time to revive the sandbox! Remember the hours you spent as a kid hanging in the backyard building a city made out of toys and sand? Apartment kids need these outdoor experiences too.  Create a large sandbox and watch the creativity roll for the hands of a 4 year old.  This is another space where you will want to build in seating for the parents.  My landscapers tell me to have the area sprayed for ants on a regular basis and close off the sandbox for 8 hours following. 

5. Take book sharing to another level. Little Free Library is a nonprofit that seeks to place small, accessible book exchange boxes in neighborhoods around the world. Place one of these fun book exchange boxes next to your mailbox kiosk and create the place for community sharing. Little Free Library locations may purchase a charter for $35 that puts their library in the organization’s database and affords them discounts and information about keeping, maintaining and promoting their libraries.

 

6. In 1991 I moved into Steward's Glen Apartments in Willowbrook, IL and was blown away by the huge sand volleyball society the residents had created.  One person propped speakers from their apartment to blast tunes (of course I dated and later married him!), another rolled in a keg and everyone came down with their sun chairs for a good time. The residents supplied the ball and fun so all the apartment community needed to install was the sand court.  I know for certain there were plenty of resident referrals due to the fact that everyone wanted to live at this property and have a great summer.  Check out this fun volleyball court which will keep the ball from wondering off and does not require inside the court.  It's like a bounce house for volleyball! Could this be the new volleyball court?  Buy one for your region and it can travel from property to property.  Pretty soon, each property will want their own.



7.  Urban vegetable gardens are making a comeback.  We saw a lot of them in the early '90's and then the trend seemed to drop off.  Today, there are lotteries to determine which residents will get the coveted gardening space. 

What new amenities are you offering your residents?  Email me at kate@kategood.com and with your permission I will share them in a blog post (and give you all the credit!).

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

Community Upgrades to Get The Most Bang for Your Buck!

By Cathy Macaione
Cathy Macaione Consulting Services CM@Cathymac.net

With more apartments coming on line, it’s time to plan your interior selections upgrades. We all know that renters want to live in apartments that have a modern, updated look. Upgrading your vacant units so they have what renters want will help decrease vacancy loss. If you’re not sure what’s in demand in your area, tour new home communities, read decorating magazines and watch Home Improvement Shows to get ideas. Following are some quick tips to help you implement what you learn without breaking the bank.

• Have a well thought out plan to make sure your selections will last. Quality doesn’t always mean super expensive. Make a list of your “must-have” upgrades and devote ample room in your budget to those quality items. You can make cut backs on the “nice to have” items.

• Upgrade in phases. There’s no need to do everything at once. You can update the flooring, cabinets, counters, and lighting in each apartment as it becomes available for rent. This will enable you to spread out the cost of the investment.

• Offer packages. Offer renters two upgrade packages—one with total renovations and one with partial upgrades. For example, if you’ve already changed the cabinets, and the countertops are in good condition but the color is outdated, select a paint color that will change look and feel of the kitchen so the countertops don’t look dated. Then offer the apartment as partially upgraded.

• Invest in flooring. Carpeting gets ruined very easily. Make your flooring last longer by installing a laminate floor. A good selection could be a distressed wood look. It’s in style and will hide wear and tear.

• Think green. Install dual flush toilet conversion kits. They’re inexpensive at around $40 each. It is also easy and low-cost to install low-flow shower and faucet aerators. Additionally, installing fluorescent light bulbs will show a noticeable reduction in utility bills. Look for incentives and rebates to help trim costs even more.

• Granite for less. Yes, you can offer granite-like countertops. My favorite sources for countertop makeovers are Giani Granite ( http://www.gianigranite.com/ ) and Appliance Art, supplier of Instant Granite ( http://www.applianceart.com/ ). Check them out.

Upgrades and renovations don’t have to drain your bank account or be a source of anxiety. Carefully planned upgrades can be both simple and profitable. So start your upgrade plan today to make your apartment offerings more desirable. Before you know it, you’ll have a fully leased community.

For more information on this topic, attend Cathy's Webinar in the Apartment All Stars/Multifamily Insiders/NAAEI series called Webinar Wednesday's. Earn CEC credits when you attend.

http://www.multifamilyinsiders.com/shop-multifamily/product/32-upgrade-your-interior-design-selectionswithout-breaking-your-budget

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.

Essential Upgrade for 2012

Your residents want to charge and power their USB devices. Provide these new outlets and add another new amenity to your apartments no matter what the age of your community might be.

First Impression Failure at Quiznos

While searching for a lunch spot in Atlanta today, I stumbled upon a Quiznos. I was disappointed to see that "management" has reserved position A in the parking lot for themselves! While shooting this pic, two cars pulled into the spot and rolled on out with a puzzled look on their faces. This one sign says so much about how this restaurant feels about their customers. Let's call it, management before customers.

Each week I visit apartment communities all over the country. Sure, most of them have "future resident parking" signs in front of their leasing center. The trouble is, the team does not respect these spaces and they choose to park in the VIP spot. Don't you think we should make our residents feel like VIP's?

Before I jump off this point, I want to discuss your beloved golf cart. While I love this little gem as much as the next leasing consultant, it should not be parked in a future resident spot. A better plan is to put it at the end of the amenity cooridor. This placement encourages the leasing team to walk through the amenities at the start and end of the tour. The amenities add value to the apartment the customer is leasing. Set your leasing tour up for success. Nough Said!

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!

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.

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!