Tactics in New Construction Lease-Ups

by Chris Wood on May 25, 2012

MINI and multifamily at AIM 2012's New Tactics in Construction Lease-up panel with Apartment All-stars speaker and occupancy specialist Kate Good.

A lot has happened in apartment Internet marketing and technology since the last big development boom. With the consideration that new community lease-up budgets are often eight to 10 times larger than typical community marketing budgets, the Bozzuto Group’s director of interactive marketing Michael Kilmurry and Apartment All-stars speaker and occupancy specialist Kate Good ran AIM attendees through an exhilarating gauntlet of creative lease-up strategies in their Tactics in New Construction Lease-ups session at AIM 2012.

“Whatever you do, you’ll want to track analytics through all channels,” said Kilmurry. “In fact I want a t-shirt that says I love tracking URLs. But creating a new community ultimately comes down to starting a conversation, and you’ll have to do that, too.”Bozzuto has found recent success starting conversations by networking deep into their PR and marketing associations, pairing up with luminaries and brands like Candace Bushnell, Neiman Marcus and Georgetown Cupcakes for event based marketing that has turbocharged preleasing at the firm’s new communities.

“The market is focused on what’s new, what’s hot, what grabs our attention and holds it,” said Good. “With lease-ups we’re looking for a great launch, because 10 percent of the market typically influences the purchasing decisions of the other 90 percent. That’s the new, critical importance of brand advocate marketing.”

Good shared insights from marketing campaigns including Dollar Shave Club and MINI, and suggested a deeper social media and technology empowerment at the site level to throttle lease-up success, including personalized leasing agent web sites and URLs and training leasing teams better on delivering messaged communications. “Add value to the leasing conversation,” Good said, “and I do believe that 50 percent prelease openings can happen with regularity.”

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.

Does Anyone Work Here Anymore?

It's Friday night, you invite your best peeps over for happy hour. People start to arrive, walk in your front door, look around and you are missing. The guests make their way all the way back to your kitchen and find you munching on your favorite potato chips in the pantry. They start to feel as though they may have arrived on the wrong night! You would never think about doing this to your good friends. So why would you do it to a customer who is in control of your paycheck? If a customer walks into your leasing center and has to come find you then you have failed to make a welcoming first impression.

Last summer while on a beach vacation, I became freindly with a certain little beach bar one block from my rental house. I spotted the team members wearing these "Yes, I work here" shirts and immediatly left my vacation behind and started to think about our team members wearing them to let all of our customers know we are always there to serve and will never hide. In addition, the act of waering this shirt will serve as a constant reminder that we put customers first.

I wonder what I will find on my next trip?? Stay tuned!

Pinterst Contest: Repin to Win

I was standing in line at the grocery store with my iPhone in hand searching for something to occupy my time and mind. No texts to respond to, email is caught up and Facebook takes too long to load on a smart phone. Seems like the right time to be a "pinhead" otherwise known as a Pinterest addict. Are you pinning too?

As much as I love this app I have struggled to find the best way to use it in our industry. I looked up and saw that the grocery store was running a contest and that is when I thought about a contest on Pinterest. I quickly discovered that I was not the first person to think about it but I will be implementing it!

Pinterest is now a great tool for posting a picture and asking your residents and Facebook fans to help spread the word to their followers. Post a pic and ask them to repin onto their Pinterest boards. The top pinner will win a cool prize! Happy pinning.

Quick! Name Your Top 5 Brand Advocates

The Hangover: Rental Edition

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

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

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

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

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

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

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

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

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

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

Can You Overcome Any Objection?

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

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

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