I'm Adding to the Success Formula

To be successful at work, here's how you must spend your time:
1% Inspiration
9% Perspiration
90% Justification

If you are reading my blog you are probably looking for some ideas or information to solve a challenge you are having. You can find exactly that all over the Internet and I am glad you stopped by my blog. I would like to give you a little advice as to what to do with the information you are gathering today, work it HARD!

In my consulting practice I constantly hear the excuse "the owner will never go for that". It seems the idea just dies there. This is very sad because you are closest to the problem and you just found a solution. I am certain the owner wants to hear this but it is important that you justify what you think and why. This means you need a lot of supporting data and possibly a mock up of what it will look like. Owners live for ROI data. That simply means, "if I make this investment, how will business improve?".

In late 2012 I jumped into the seat of an apartment developer and owner. ROI has become an all too important topic in my office. You see it is not about saving all the money we can, it is about smart spending and knowing that everything we do has a reasonable payback or it is not worth the money. Think and communicate like an owner and you will find your ideas supported.

Scroll Down to Find Out Why I Need to Apologize to My Mother

Good Insight From marketing Expert Kate Good
By Leah Etling, Blogger for YARDI on Oct 23, 2012


Kate Good’s energy and enthusiasm are infectious. Whether she’s talking about apartment branding, leasing strategy, or cute shoes, the veteran multifamily motivator captures her audience with humor, charm and solid market-tested knowledge.

As an independent consultant and a member of the Apartment All Stars, a team of multifamily experts that delivers industry insight and inspiration on a national tour and via webinars, Good is in demand for her 23 years of expertise. She gave us a few minutes of her valuable time recently to chat about multifamily trends. And stay tuned for a big announcement involving the All Stars’ next big thing in the coming weeks, she hinted during our interview.

Good began her career as a leasing professional with Trammell Crow, and started her consultancy in 1997. Today, she speaks to over 18,000 apartment industry professionals annually at conferences, seminars, trainings, retreats, awards and other industry events, sharing the lessons that she’s learned while assisting her clients. Good works with all varieties of properties, from distressed assets with lagging vacancy rates to new construction (one of her favorite project types).

She is passionate about working with apartment industry clients to help them stay motivated, be better at their jobs, lease up their properties, retain residents and raise rents.

“She is without a doubt the most entertaining speaker I’ve ever seen in the industry and certainly one of the most informative,” said Will Johnson, publisher of Professional Publishing, Inc. Rave reviews from her speaking engagements are common, with audiences say they walk away energized, excited, and ready to work.

Despite having months of travel on her calendar each year for speaking engagements and consultant gigs, Good’s outlook is perpetually upbeat and optimistic, and her audiences feed off that energy.

“My audience is sophisticated. I’m constantly out there looking at what everyone’s doing, looking at the best of the best, searching for ideas from other industries, so that every time someone comes to hear me speak they get new material that is researched, that I believe in, that I have tested through my own marketing,” she said.

“I want everyone to know that I am doing this stuff – I am a speaker and a consultant. I’m actively marketing. I took on some of the hardest properties during the recession, and I’m still taking on the hard stuff. I’m challenged just like everybody else is. When I get up and talk, I’m talking about real life scenarios. I don’t talk about things that I think might be good. I talk about things that I know work.”

She shared one of her secrets to staying focused and energetic with such a crazy schedule: Monster Zero energy drinks. It’s part of her contract that they are waiting in her hotel room on ice. (Note to Kate: You’ll probably be getting a call to endorse the Monster Zero beverage line any day now.)

Here are a few of the invaluable industry insights we learned from our chat with Kate Good:

What’s changed in the industry since she started: the data that can help you make better business decisions is now readily available, and smart companies use it daily.
Good says: “Companies like Yardi have helped us become stronger decision markers. We used to do things that were mainly gut reactions – ‘Well, based on my experience, or based on what I’m seeing, we should try this.’ Well now, if we’re using the technology provided for us, we have reports, data, and history. We don’t have to make gut decisions anymore, we can make really informed decisions.”

What’s trending right now: with the popularity of apartment renting as a lifestyle, resident populations are becoming more diverse. Multifamily firms need to be ready for blended demographics. Good says: “We could have senior housing and Gen Z housing all in one community. It will be important to build marketing systems, retention programs and management style that have diversity targeting all the different profiles of renters. Whereas in the past, we’d say ‘this is a boomer community, or a senior community, or a young professional community, or a hipster/just out of college community.’ We’re not seeing that anymore.”

Do you need a new branding strategy? Find out how your prospects view you answer that question. For a recent client, Good surveyed 200 apartment hunters to find out whether marketing messages were hitting home. It turned out that the image projected by the property was being perceived in a drastically different way by the potential renters.
Good says: “When I want to find out if branding is working, I look to see if we are attracting the desired profile that we want from our branding. When we are attracting them, is that the message that they are understanding, is that what they’re hearing from us? You don’t know that until you ask.”

New construction marketing raises everyone’s game. Properties in initial lease-up typically come out swinging with aggressive marketing campaigns, creative social media strategies and even social opportunities to target new residents. They’re among Good’s favorite kind of campaigns to run, and they also make the competition better.
Good says: “They can knock it out of the park – and if you’re been around 2 years, 5 years, 20 years – you’re going to raise your game to stay competitive, and I love that. I like being on the edge, and with new construction you can be on the edge of what’s new and what’s fun and what’s hot.”

What’s hot right now? Multifamily is finally starting to understand social media well and use it effectively, and the right approach can be different from property to property. Good says: “I’ve seen properties where their Facebook page rocks, because you can pay rent on it. I’ve seen another Facebook page that gets a lot of traffic because they have a direct feed for resident reviews, automatically posted, unfiltered. People are using that as resource for finding out about their community. I’ve seen Facebook pages that are entire brochures, with floor plans, and videos, and pictures, and the ability to rent the apartment right there. So, we’re starting to see how social media is becoming both an informational website as well as an interactive point for our residents.”

Rents are going up. How are smart communities selling that? One year into the post-recession recovery cycle, many apartments have been able to raise rents between $100 to $160/month during a lease renewal, and many markets are seeing higher average rents than they were before the economy crashed. Good says: “We’re starting to see incremental increases, the return of the wait list, and balancing out revenue opportunities that we let go of during the recessionary time. During the recession, we unbundled things. We unbundled the garage from the apartment, because that added another $150 onto the rent, and that made it look so expensive. Now we’re bundling the garage, storage and the amenity fee, and putting it together as one offer to add value to the price we’re trying to get. We’re using the garage, storage and amenities as value builders for these really high prices we’re asking for.”

What else should multifamily professionals be thinking about right now? With a recovering job market and new emphasis on professionalism and technical skill sets for multifamily employees, Good hopes that the industry will take a hard look at making wages more competitive. Good says: “I want to challenge companies to think hard about the value of attracting good people to our business and having a compensation package to attract them and keep them and be competitive with other industries. I just feel our industry isn’t offering enough compensation right now for the hours put in and what we expect of a property manager.”

Thanks to Kate Good for taking the time to speak with us. We asked Kate to tell us a little bit more about herself by answering ten fun profile questions, and she kindly obliged:

What is your favorite type of music?

I am a Texas girl at heart and grew up in a small town. I connect with the lyrics and wholesome themes that you find in Country Music. Except for the ones that talk about Momma being in jail. They can’t catch my Mom! And, I love to see any band live. It just gets my juices flowing to hear the drums and guitar crank it out through a powerful speaker.

What is your favorite book of all time and why?

“Oh The Places You Will Go” by Dr. Suess. The book is about never losing your sense of adventure and wonder.

If you have an hour of free time to spare, what do you do with it?

Gather a group of friends and jump on our road cycles, climb Camelback Mountain or hit the slopes of Aspen. I love to exercise in the outdoors. It is the antithesis of airports and hotels.

What kinds of food do you like?

The ones I cook at home. I was on 142 airplanes last year and the real treat for me is to be home cooking all the recipes I read about in the magazines I buy in the airport (we won’t talk about the Kit Kat bar I buy at the same time). Hold the cheese, use fresh cut herbs and prepare it to perfection and I am in heaven. If I could eat butter poached tarragon lobster every day and never gain a pound, I would.

Where is the most interesting place you’ve ever traveled?

This is a tough one because I have been to 21 countries. Every place is interesting the first time you visit. I was mesmerized by the scenery in Lake Como, Italy. I was interested in history when visiting Vienna. But most interesting to me was Alaska. The wildlife and icebergs made me wonder if we are doing enough to save them for eternity. We are not and it will be sad that one day people will only have photos of what was once the most majestic place I have ever seen. It moved me and I will never forget the memories from that trip with my Father, Sister and Cousin.

What do you like best about your job?

I don’t like the hassle of taking off my shoes, belt and traveling with 3oz of hairspray (that will only last two days) when getting to my gigs but I sure love my job when I get there. I honestly feel proud when the audience laughs at a joke or applauds for a point I make when presenting my best stuff. I recharge my battery on stage, no matter how little sleep I got the night before because the plane circled Atlanta for hours. I will certainly miss it all someday.

If you could have dinner with anyone, alive or historical, who would it be?

My Dad. He left me too soon and I have so much to ask him and tell him. He would make me laugh and listen with love.

What are the words you live by?

“Live, Laugh, Love.” Reminds me to balance my world with hard work, not take myself too seriously and love deeply.

What do you want to be when you grow up?

When I was 7 I would have told you that I wanted to be a waitress. Now, I want to be in a position to deliver a speech that really matters. I don’t know what I will be doing when that day comes but I know I will feel a sense of purpose. Is that when we know we are grown up?

Do you speak any other languages, and which ones?

I speak Prada, Gucci and Canine. Just ask my dog, Mrs. Harry Winston.

If you could own one piece of famous art, sculpture, memorabilia or historic artifact, what would the item be?

The original copy if the Anne Frank’s diary.

What are some things on your bucket list?

Deliver a speech that matters.
Start my charity called “The Birthday Box” which will raise funds, decorations, cakes, gifts and wrapping paper for every underprivileged child to celebrate the one day that God made special in their lives, their birthday.
Walk into Target and spend less than $100. I don’t think it is possible for me but I will keep trying.
Have all of my friends in one place at the same time. Heaven!
Become a travel writer.
I have a theory about why dogs die so young. I want to write a book about it.

What was your last Do It Yourself project?

I painted my outdoor furniture. But the one I am most proud of is that I did my own laundry. I don’t do laundry.

What athlete or sports figure do you most admire?

Mary Lou Retton. She broke the mold when it came to the image of a gold medalist scoring a 10 in the Olympics.

What online sites do you visit?

Facebook, WSJonline, Delta, Hotels.com, ThinkGeek.com and of course NeimanMarcus.com

If you could have a super power, what would it be?

I heard Jenny McCarthy say one time that she always wanted background music playing in her life. I wish I had the power to always create that in everyone’s world. We would all feel like we were in a movie.

What’s something about you that few people know?

I get very nervous on stage. So nervous that one time I rushed off stage to use the ladies room and left my microphone on. I guess I a lot of people will know about this now!

It's Not Just A Parking Sign, It's A Statement

Marketing and retention is more than just flyers and ads. To be effective, you have to address everything you do as it is a reflection of your property's overall mission. Even a parking sign creates an impression. I spotted a apartment community whose tag line is "Our Residents Come First" yet the parking lot parking signage did not communicate this message. It says "Manager Parking Only All Others Will Be Towed"!

Being positive goes a long way. Your signage can actually reserve parking for your best customers and encourage others to participate in promoting your community in social media channels. Thumbs up to Glades Plaza for honoring their Mayor on FourSquare with a reserved parking space. I think this is much more important than reserving a spot for the Manager. Apartment communities also reserve parking for move in day so that the new resdient can have the best space that will put their moving truck close to the entrance door. Why stop there? I think we should have reserved parking for move out day also...and I am not talking about the eviction you are thrilled is finally leaving so you can re-rent the apartment to a paying customer! There are many great customers whose lives have changed and it no longer suits them to live at your community. A positive move out experience will ensure that they will continue to be brand ambassadors and refer friends to the apartment they once loved to live in. Reserve a parking space for these customers too!

There are spaces and places where you don't want your residents to park. Have a little fun with this message too. Funny trumps everything and will communicate a policy while still keeping a smile on your resident's face. Approach all decisions you make for your community with a customer service and marketing eye and not just your policy manual.

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.

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.

Spring Office Cleaning

How many of you have more responsibilities today than you did a year ago? A virtual show of hands proves the answer is everyone! While I can't do much about that, I can help you set yourself up for success when it comes to getting it all done. We're all busy, but if you commit to set aside one day to organize your work space and put some effective systems in place for keeping it organized, you will spend less time digging and more time accomplishing your goals.

Reduce Clutter
Small and infrequently used items such as paper clips should go in your desk drawer. The top of your desk should be for things you are working on that day. Nothing else. Otherwise you become distracted and fall off your schedule for accomplishing the day's priorities. Move bulky items such as inbox trays, file folders and printers onto bookshelves.

Do you have that pile of cords on your floor and or draping off your desk? This looks messy and in turn sends a message of disorganization to your customers and coworkers. Control your cords! You can buy a fairly inexpensive cord holder that will keep everything together and out of the way.

Paper is a Fashion Don't
Keep in mind that 80% of paper you file, is never looked at again. Today, technology is allowing us to create digital storage and by creating a good back up system, we are more comfortable going paperless in our leasing offices. Often times, digital storage is faster to access saving you time in your day for other things, like figuring out what to do with the fax machine you have not used in 5 months.

Every desk will inevitably still have some paper. Don't let it take over your desk. Keep hanging files with these four categories: action, project, reference, and cluster. The cluster file may be new for you. It is one of my favorite time management techniques. When you know you have a big project coming up like writing your marketing plan, keep a file that contains notes, ideas, resources and gems. Now, when you sit down to embark on the project you will have an amazing jump start on getting your project underway. Clustering is also a good cure for procrastination.

Now that you are on your way to a solid spring cleaning, maintain order by instituting this three fold approach to staying organized:
1. Daily - every night, clean up your desk. Organize papers, files and projects so when you come in tomorrow your desk is ready for immediate action.

2. Quarterly - take and hour or so to see what systems need re-engineering and organizing. If everything is not working the way you would like it to, stop wasting time with inefficiencies and make necessary adjustments.

3. Yearly - between December and February is the time when you should annually purge old papers and files from your work area. Do it in these slower months so that when leasing picks up in March you are working in tip top shape.

Ready, Set, Lead

There are a few certainties in the world: people will disappoint you, others will amaze you and whatever you think about tomorrow is probably not going to happen. The reason? Change. And the rate of change is speeding up - rapidly. Several factors are causing this acceleration such as the expansion of technology, access and exposure to knowledge and our need to be entertained is insatiable.

By 1900, it had taken 150 years to double all human knowledge. Today it takes only two to three years. And some estimate that by the year 2020, knowledge will double every 72 days. The millennial generation (born in the 80's and 90's) are the largest to enter the workforce since the boomers. Nurtured through the era of "google it" instead of "look it up" they have a keen understanding of how to access anything. The question is, who is leading them?

In the past, leadership was an economic entity. The priority was to develop structures, set controls and raise income as effectively as possible. This was accomplished through a ladder system of people managing other people as they do tasks.

Today, the speed of change demands a evolved leader. To be that person, you must rapidly adapt to change and require constant involvement in skill development while leveraging increased knowledge. It is not enough to know how to do a report, but rather to read, react and adjust based on the lesson gleaned from the data.

We have to be experts in human capital, not just financial capital. We must master emotional intelligence not just economic competence. Control is out of style because it is the customer who is calling the shots. We have to align people based on this reality and not structures and spreadsheets.

Today's leader has a grasp of emotional aptitude and understands the new order of customer influence and peoples motivations. It less about technical or financial expertise.

Does this make you nervous? Think about what your computer can do for you. It does the counting, tracking and comparing. You have to be the person who understands what to do with the information. Now we shift from managing deadlines to managing success factors. A key success factor is to develop skills for your team members so they not only produce a report but react to the report. You lead them to direct change. Leadership does not happen while you are standing still.

Your ability to manage change will be your key success factor. And my friend, it is all changing. Winning organizations are building leaders faster.

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.

+0



...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?

+0
...written by Karen Long, October 27, 2009
I'm so glad to see this topic discussed. I too got my multi-family wings in markets where a concession next door warranted a "yes, I've heard they have problems" response. I like the solution of recouping and locking the renter in with a longer lease. I think that should work! Get us through 2010 as best possible, give the prospective resident a "good deal" they expect, and keep our rental rates as strong as possible in a very tough market.

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

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

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!

Recently Published in Landlord Times: 6 Questions With Kate Good

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

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

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

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

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

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

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

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

3) What has stayed the same?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Marketing in a Down Economy

By: Steve Hendershot
Issue Date: April 2009

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

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

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

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

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

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

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

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

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

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

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

Good News For Apartments

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

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

Best Cities for Jobs
by Joel Kotkin, Forbes.com

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

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

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

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

The Big Winner: Texas

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

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

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

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

College Towns as Emerging Hubs

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

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

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

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

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

Economic and Power Shifts

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

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

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

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

More Promising Places

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

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

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

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

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

I'm a Blue Blood

In December I was visiting with my client, Heather Slack who is a Vice President with Alliance Residential. We discussed common sales and management themes we shared and quickly acknowledged that so much of what we know and practice today came from the early years in our career working with Trammell Crow Residential. I will call this “back in the day.”

On my first day with this company, I was told that Trammell Crow was awarded the second best company in the nation to work for by Forbes Magazine. This was part of the impressive story we were instructed to tell every prospective resident. Our sales process was hammered into our heads that we should tell the Trammell Crow Story, discuss the 30 day move in guarantee and explain the 24 hour maintenance promise. But working for Trammell Crow was more than just a story.

I believe in traditions and in a time of change I like to see companies honoring their traditions. Some of the traditions at Trammell Crow would be that we would never step over a piece of trash, wear our uniform with pride, do right by those that do right, look forward to promotion from within, attract exceptional people, have the best benefits program in the industry (people would retire without ever missing a paycheck), and proudly wear your tenure pin.

There was a time when this was the largest and most prestigious company to work for. I think a lot of it had to do with the fact that in the 80’s we were building so many apartment communities and if you worked onsite, you wanted to work at the newest and nicest community. There was a strong company spirit rooted in the honor and tradition of working for this company.

As I grew in my career, I climbed to a position that created the opportunity to meet Trammell Crow at his home in Dallas. My president, Bruce Webster, arranged it so that I would get my tenure pin from Mr. Crow himself. To this day, I feel so lucky to cherish this photo as a milestone in my career. When the partners started to “cash out” by taking their divisions public, I was in the Chicago office and saw my division split between Gables and Avalon. While each of these companies seemed to be destined for exciting times, I was very sad to leave Trammell Crow.

Today I write in my blog with fond reflection of a time gone by, when there was a huge sense of pride and enthusiasm to be the most professional company in the industry. I wore my name tag and tenure pin with an attitude of excellence and carried my business card with responsibility to carry on the traditions. For this reason, Heather and I both agreed that our blood was Trammell Crow blue. I am sad to say that Mr. Crow died last week. Today, I see remnants of the company I once knew and hope to see the allegiance appear once again for another brand as strong as back in the day.

The Return of the Interview Suit, NYTimes.com

My last blog was about making certain your company retains top talent. Many of you are the top talent (because you are smart and read these blogs). I want to make sure your company tells you how important you really are. For those of you who are not feeling the love, you may be contemplating a change. Others may have found themselves the victim of the industry slow down. Break out the resume and the interview suit. This article, found in the New York Times, should get you motivated.

One note on interviewing....I once "got the job" because when I walked in the President's office, I picked up a ball of paper on the floor that looked like trash. I was hired because a "Trammell Crow Employee Never Steps Over a Piece of Trash." While you are in that snappy interview suit, look out of performance indicators such as the old piece of trash on the floor. -Kate

By ERIC WILSON
Published: November 12, 2008

This is possibly a bad moment to bring up a 1959 film called “The Best of Everything.” But, oh, was that a glorious period for the interview suit. It’s hard to imagine rejecting Hope Lange for a job when she walked into 375 Park Avenue, and the breeze caught her cuffed navy jacket, revealing a flash of its polka-dot lining and a smart blouse that matched her cream hat.

“Working Girl,” in 1988, reflected another moment for the interview suit, appropriately enough during the pinnacle of the broad-shouldered, brightly colored power suit, when Elie Tahari and Jones New York were staples of a career woman’s wardrobe.

It was so much simpler then.

For a generation of young people who were recruited to technology, financial and news media fields right out of college, and who may now be competing to hold onto the jobs they have or to find any that might be available, figuring out what exactly is the modern day “interview suit” is not so easy to do without looking like Melanie Griffith. Walking downtown the other day, the designer Nicole Miller noticed an attractive young woman who was headed toward Wall Street. The woman was wearing a gray pantsuit, which caught the designer’s eye because, for much of the last decade, corporate fashion has pulled so far away from the polished, two-piece look that the outfit, while professional, seemed dated.

“I hadn’t seen anybody in a pantsuit for so long that I thought it looked wrong,” Ms. Miller said.

But with the unemployment rate in America at a 14-year high and more than half a million jobs lost in the last three months alone, there has been a detectable shift in the way people are dressing for work. In the financial sector, certainly, the tone has become more serious, and as a predictable result, somber suits are making a comeback. Companies like Men’s Wearhouse and Tahari are reporting an upswing in suit sales, particularly for those classic navy or gray pinstripe styles they classify as “interview suits.” Arthur S. Levine, known as the suit king of Seventh Avenue (who now designs a collection of women’s career clothes in a joint venture with Mr. Tahari), said he sold 1.8 million outfits this year, almost 10 percent more than he had expected.

“We are back to a time when every company expected both women and men to wear suits and we didn’t have a Casual Friday,” said Gloria Mirrione, a managing director of A-L Associates, a financial services placement firm. “They are looking for a sharper style. I recommend a strong suit that says you are collected and ready to work.”

Still, there are a lot of possibilities for error, and even fashion professionals differ in their opinions about what style will make the best impression. For example, on the great debate of pants versus skirt, Simon Kneen, the creative director of Banana Republic, had this advice: “I would definitely go with a pantsuit because that gives a better silhouette.”

Ms. Miller said the opposite: “I’m really against pants. They look too casual in most situations.”

Who to believe? There isn’t always a right answer, but each decision an applicant makes — pants or skirt, bright color or neutral, heels or flats — sends a subtle message that may play a role in how she will be perceived in an interview. To relieve some of that pressure, designers and career counselors offered some points to consider when deciding what to wear.

PANTSUIT, SKIRT SUIT, OR NO SUIT?

“There is no one right way to dress,” said Karen Harvey, a recruiter for top fashion and retail jobs. “But there are a lot of don’ts.” The key is to research the corporate culture to learn what a potential boss might expect. But on a basic level, “it doesn’t have to be a suit at all. I recommend clean and simple lines — anything that doesn’t distract the interviewer from understanding the qualities you bring to the table.”

Jenna Lyons Mazeau, the creative director of J. Crew, said a pencil skirt or tailored trousers, worn with a simple cardigan (preferably cashmere) and a beautiful necklace, looks as sophisticated as a pantsuit. A more individualized look is also a modern way to approach an interview, she said, suggesting that the applicant is creative, free-thinking and confident. But it also depends on the field, and the sportswear ensemble look may be best suited to creative fields. For corporate interviews, the options are still slim, and usually require a suit of some sort.

Mr. Kneen argued that the advantage of a pantsuit is that it elongates the legs, and “it’s all business when you’re wearing pants,” he said. He recommended double-face fabrics, which look more expensive and feminine than pinstripes. Another traditional choice would be a solid wool crepe dress worn with a matching blazer, as long as the dress is well fitted and flattering.

“And if you decide to wear a white shirt, make sure it is pristinely clean,” he said. “A new shirt is always the whitest.”

TO STAND OUT OR TO BLEND IN?

“I’m a big fan of sticking with navy or gray pinstripes,” said James Purcell, a onetime Seventh Avenue designer who now works as an image strategist for executives and politicians. “But avoid a solid black suit. It’s the worst thing a woman could wear because it shows any sign of dandruff and every gray hair that you have.”

But color can be a tough call. The majority of human resources professionals recommend wearing the classics — navy, black or gray — but, then again, playing it safe can also run the risk of looking too uniform.

“To me, the most important thing is give people something to remember,” Ms. Lyons Mazeau said. “There’s going to be a lot of people out there competing for a job, so pick a color, as opposed to wearing all gray.” But no brights, she said, and “if you are a blonde, pinks can look less expensive. This is not about wearing a neon sign.”

Earthier colors, like brown or a rich blue, impart a distinctive personality without coming off as overpowering. But beware of pastels: “I think that lightly colored suits, unless they are absolutely perfect, can feel a little Eastery,” she said.

Lisa Axelson, a senior vice president of design at Ann Taylor, said colorful accessories are another way to add color to a basic suit without risking an outfit so loud that the candidate appears out of place in a conservative environment. Prints, meanwhile, are discouraged. As Ms. Miller said, “They’ll remember you better, but what you want is for them to remember your personality, not to be totally distracted by that person who came in wearing the loud print.”

ISN’T THERE SOMEONE TO COPY?

Take cues from what powerful women are wearing, as in Michelle Obama or Sarah Palin. Mrs. Obama wore a J. Crew cardigan with a textured skirt on “The Tonight Show With Jay Leno” that demonstrated a classy combination of polish and ease. And Governor Palin, despite the controversy surrounding her campaign clothes, was most often wearing sensible suits from Tahari Arthur S. Levine that she had mixed and matched. Mr. Levine was upset that news programs were so impressed with a red suit with a ribbon belt that they assumed it was by the likes of Oscar de la Renta, not the Tahari suit sold at Neiman Marcus for about $498. About 20 other suits from his collection worn by Ms. Palin cost less than $198.

“The point is, you can look like you are wearing designer for not a lot of money,” he said.

HOW TO FINISH A LOOK?

“The bag you carry is key,” Ms. Axelson said. “You don’t want to be walking in with an old shopping bag. You want a beautiful, chic tote that carries your BlackBerry and your résumé. A tip for people who wear black suits is to pack a small lint roller in your tote bag.”

And if there’s room, some designers advise packing a nice pair of heels to change into just before arriving at the interview, so that they remain unsoiled.

“There’s nothing wrong with wearing flat shoes and bringing heels,” Mr. Purcell said. “Maria Shriver has somebody who carries her shoes for her. High heels help your stance. The American Orthopaedic Association may say I’m crazy, but the right heels will help you get a job.”

You've Got Feedback!

Yes, I still use AOL. I know it is for tweens and gmail is quickly taking their market share, but AOL is just easy! I use this box for my personal mail and for my Mother so that I can be her technical support department. One of the things I love about AOL is that when I log in I hear the ever familiar "You've Got Mail." LOVE IT! And, it makes me think of Meg Ryan and Tom Hanks checking their email for love notes from each other...top 10 movie but of course I'm a sucker for a romantic comedy that includes a wonderful dog!

Last night my team sent out another installment of my newsletter which means when I log in a few hours later I will hear "You've Got Feedback" (well, it rings in my head when I read my email). Today, I found feedback and confirmation. If you look at the previous post on Wednesday, January 7, 2009 "Fewer folks popping bottle tops as champagne sales fizzle" you will see I was writing about things we can do to step ahead of our competition in difficult market. Scott Knauer, Principal and Chief Investment Officer with Orion Residential, shared with me some thoughts to support my 2009 strategies.

Scott agrees with me that the name of the game is to get our unfair share of the leases. To do so people need to spend more on advertising, marketing and training and they need to spend it cost effectively.

Next, he reminded me of a strategy that Jack Welch follows about our people productivity. Mr. Welch believes that there are people out there who are deserving of a great job with a great company but they do not work for him. He lives by the concept that it is important to trim the dead wood, this means that the bottom 10% of team members either need to meet your expectations or move on because there are better people out there that need jobs. Does this make you shake in your designer shoes a bit? Me too. But I think I agree. Embrace your fear as it is a key ingredient to success. That which we are afraid of we overcome by facing head on and conquering. This always makes us stronger and smarter.

Last year I worked with Scott Knauer consulting for one of his portfolios. He reminded me to calculate breakeven occupancy, what is the level of occupancy that the property needs to cover debt service and then determine the number of leases needed to achieve break-even. This is how we determined our goals. I am passionate about goals. They must be realistic, measurable and active.

I want to say thank you to Scott for his feedback and invite you to do the same. My father taught me to never stop learning. So, I may be the teacher when I turn on my microphone but I earn the right to teach by always being a student.