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.

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!).

Kate's Key to Managing Time

Track and Field: How to Stay on Track

I don't really like to run. It hurts and I get a little bored. But add some competition to the effort and I am engaged. This is the reason why I loved being on the track team but still loathed running. Being on a team meant I was competing as an individual and a team. My mission was to run faster and jump higher. To accomplish these goals, you have to have a strong sense of self discipline to stay on track and improve. Being a star at work is no different and now more than ever, we are expected to run faster and jump when duty calls. It's best to stay ahead of yourself so when you fall behind, you can quickly catch up. Here are a few tips to help you stay on track and win with your team:



What motivates you? Most people start off their day easing into their routine. This is the first step to getting off track. For example, you can look busy at your desk by looking at your computer screen but catching up on the overnight Facebook news feed is not going to get you to the finish line for your day. You sit down at the computer, and you swear you'll be productive. Next thing you know, it's three hours later. You've checked your email, updated your Facebook status, browsed the trending topics on Twitter, read your RSS feeds, looked up your favorite band on Wikipedia, vanity googled yourself, cyber-stalked your ex, looked at all your high-school crushes' Facebook photos, watered your plants on Farmville, and lost a week's pay playing online poker.

Tomorrow, I dare you to mix up your routine and start your day with a mind charging activity that will motivate you to dig in. Go directly to your to do list and do not pass through Facebook, Twitter, or junk mail! In fact, many overachievers spend the first hour of their day working on tasks that accomplish their goals THEN they check email. Think about how much you can get done in that first hour of the day if you were not thinking about the ten things that dropped in your lap. There will be time to get those items done but if you jump into them now, it just may consume your entire day and you never got to the work that truly helps you meet your goals.

I have expanded my world of speaking to include building apartment communities. Many of you know, this was always my dream. I had no idea how many meetings are needed to build a great apartment community. There are days when I am rolling from one meeting to the next and it is vitally important to make sure this time is productive and concise. This is why I believe in agendas. Today when someone says you have an agenda they may not be flattering you! But in my world, it means you are organized and prepared. Two essential actions needed to stay on track. I learned years ago, if you have a meeting with certain departments at the Sears headquarters, you would be meeting in a room with no chairs, just pub tables (sadly there is not a dirty martini in sight) to lean on and take notes. The idea was that you will be more productive if you are standing versus sitting. At Chrysler Technology Center meeting rooms have timers for the lights and the maximum time is 30 min. When time is up the lights go dim. This is your reminder to wrap it up. We have to meet or our businesses would fail because nothing changed, make those meetings powerful.

I like outlook because I can set up appointments with myself. When there is something I have been procrastinating about I set up a meeting with myself to get it done. It is a reminder that the work needs to be done but the appointment takes some pressure off of me knowing that I have scheduled time approaching.



There are many of us that have to put diversions in our path because we simply do not have the discipline to stay on track. Look for tools that will set you up for success. StayFocusd is a productivity extension for Google Chrome that helps you stay focused on work by restricting the amount of time you can spend on time-wasting websites. Once your allotted time has been used up, the sites you have blocked will be inaccessible for the rest of the day. We have parental controls for our kids, so it is okay to have professional controls for you!

Now, Run Forrest RUN!

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.

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.

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!

8 Tips to Increase Rent for New and Renewed Leases

Originally Presented by Kate Good
8/25/2011

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

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

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

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

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

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

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

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

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

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

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

Would You Dip Into The Company Ink?

Before you think this article does not pertain to you, allow me to clarify that I am not writing about internal office dating. We will reserve that article for later! Today I am asking the question, how far would you go for your company? Would you consider allowing yourself to be permanently branded with your company's logo or icon in the form of a tattoo? I know, I know, you company does not allow for visible tattoo's right? Okay, let's stick to the concept and think about your loyalty to the company. How loyal are you?

Employees of Anytime Fitness, a workout chain based in Hastings, Minn., can get the company's purple running man logo permanently inked on their bodies by a tattoo artist who shows up at monthly training sessions. More than 350 employees have gotten permanent tattoos including CEO Chuck Runyon.

Runyon says the tattoo represents a significant commitment to the brand. Employees receive standard benefits like retirement plans and health insurance, but they also have flexible hours and an office culture that includes contests and giveaways among staff, a combination of perks that Runyon believes encourages employee loyalty.

Studies show that employer loyalty is not what it used to be. I remember a time when another company came to me with an offer I could not refuse. My salary would increase by $20,000 annually, and my bonus opportunity would double. They would grant me an extra weeks vacation and give me a hefty car allowance which would enable me to get the convertible ride I had been eyeing on the car lot. The only thing that was missing in the offer was the fact that it was not Trammell Crow. You see, I was loyal to my employer who had basically raised me to be a shining star within the Trammell Crow group and I was very appreciative for that opportunity. I did not take the offer to my Regional Manager and ask them to meet the offer. That would have been an insult to the investment they made in me and the risk they took in hiring a fresh 18 year old with no experience.

While I never went as far as to sport the company ink, I did feel that I had a loyalty that I struggle to find in the world today. I can now look back and see that I made the right decision. My history with Trammell Crow has paid out ten fold for me. And, I bought a cool convertible car anyway!

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.

Motivating Your Team In the New Year

Our front line team members are typically looking for a little fun and excitment at work. A great sales person loves to look forward to the unexpected and break out of a normal routine. My experience is that the front line loves to compete and work towards an goal for accomplishment. Start by asking them to compete with themselves. The best way to do this is to have a goal writing workshop. Ask each member of the team to write goals for near and distant terms. The goals should be both personal and professional because it is our pro life that gives us the fuel and resources for our personal life. Remember a goal must be written, shared, and specific with a deadline. Next write a plan to accomplish the goal. Create a visual board to remind people of their goals and their progress. Allow the team to decide what their prize for accomplishment will be.

Communication can be a source of motivation. Share with your team, each week, the goals of the property, specific areas of focus and success. Bring everyone into the “business” that you are managing. Don’t just make them feel like they are there to only do their jobs but that they are part of something bigger.

Start the new year on a positive, fun and meaningful note.

No Matter Who Signs Your Paycheck, You Are Self Employed

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

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

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

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

Trend: Be Your Own Director of Training

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

A Year Without Lease Renewals?

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

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

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

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

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!

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

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

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

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

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

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

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

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

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

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

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

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

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