Executive Brainstorming 2008
In November I went to the Executive Brainstorming session hosted by Multifamily Pro.
The conference brought together people in the multi-family housing industry to discuss marketing, advertising, best practices, management of the onsite teams, including motivating the teams to keep them energized and inspired, especially considering current economics. The executive session placed representatives from ownership groups, management groups, and vendors in a round table discussion environment.
Some of the issues we discussed:
Marketing and Outreach, Considering the Current Economy: No doubt that the times are difficult as owners need to hold onto assets as equity is not available, the price of real estate has dropped, and Cap rates have risen. Acquisition/disposition teams need to change gears and operate as owners because deals aren’t happening. Unfortunately, there is even more bad news on the operational side as vacancies are higher and rents are lower.
We discussed the importance of resident retention and the need to outreach to foreclosed homes.
Retention: The most cost effective approach to keep a property stable is to retain residents. Because the housing industry is so competitive it is important to reach out to residents weeks before their lease is up for expiration. They should be offered a competitive renewal bonus that will keep them on the property, vs. moving across the street because they can receive a fantastic move in package. Because the market is expected to become uglier in the next year or two, we discussed the idea of offering all good standing tenants a renewal now, no matter what stage they are in their lease, with large concessions so that they are signed in and wont be able to leave for more competitive concessions one year down the line. Another incentive to retain residents is to offer a partial payment plan as an amendment to the lease contract. Best practices to create a happy healthy living environment is to create a sense of community. Resident activities, if done correctly will bring the residents closer to one another, closer to the onsite management team, and will overall create a better living environment. Resident referrals are another facilitator for the creation of community, as residents are likely to recommend the apartment building to their friends and coworkers.
Outreach: Outreach: Outreach to the homes that have been listed for foreclosure. Send direct mail to a recent foreclosure list emphasizing the benefits of renting vs. owning. Outreach to single family home brokers by offering double referral fees so they will be incentivized to refer their clients.
Green Initiatives in the Apartment Industry: What can owners and managers do to market their properties as green? It is not economically feasible to convert an existing apartment building to meet LEED qualifications. However, LEED will come up with new qualifications specific to apartments that are attainable. As the market is now, residents are not wanting to pay more for green benefits. So the question is, what can owners do with little overhead investment to cut costs in a green manner?
- Use Non VOC Paints
- Paperless Community
- Replace with Energy Efficient Lights on Turns
- Add Adapters to Faucets and Showers to Reduce Water Use
