This is a great app for your smart phone that can really be of assistance for not only leasing agents, but also for prospects.

The app is called RoomScan and was created by Locometric.  RoomScan allows you to measure the dimensions of a room by simply holding your phone up to each of the walls in the room.  The app is also incredibly accurate with only a small margin of error of plus or minus 2%.

Seeing the app in action is quite impressive, as it is a very user friendly system and fun to use.

As a prospective apartment shopper, RoomScan would allow you to have an exact idea of what can and cannot fit in a potential apartment.  You will never have to wonder if your bed was going to be too large for the room, or if that sofa was going to extend past the end of the wall with the exact dimensions RoomScan can provide.

From a leasing agent perspective, utilizing RoomScan would enable you to to provide extremely accurate dimensions to your prospects for every single room of their new home.  In doing this, you would not only be educating the prospects on the apartment, but you would also be getting them involved with the tour.   This will also allow a leasing agent to prepare ways to overcome objections if a room is small.  Most importantly, using RoomScan will make your tour even more memorable, which in turn would make you standout from your competitors.

I cannot tell you how many communities I have shopped where the leasing agent does not know the dimensions for each room.  It is unhelpful and it makes it appear as if the agent doesn’t know the community.  By using RoomScan, you will look knowledgable and impress your prospects with the exact specifics of the apartment.

Take the time to download the app and give it a try.  If you are a leasing agent, I think you will find this app to be very helpful to your presentation of the apartment and could absolutely lead to more leases.  Plus, the app is free!

Filed under: apartment leasing, Apartment Marketing, leasing tips, property management, Solution To Vacancies, Student Housing by Danny Soule

In case you haven’t  heard,  JCPenney’s “fair and square” pricing strategy that rolled out in January has been a complete disaster. The plan was to rid all stores of coupons and sales by offering products at the lowest price without gimmicks and discounts. Yet the strategy backfired and within 4 months sales had dropped 20%.

But why? This approach seemed to be one that most consumers would understand and appreciate. However, by not studying the customer, JCPenney  failed to recognize key components of buying behavior.  And however unrelated retail and leasing may seem to be, consumer buying behavior is a universal language and something the leasing community desperately needs to focus on.

• Importance of price framing

Prospects are nowhere near as educated about your product as you are and, because of this, it is imperative that you convey the value of your community. One way this can be accomplished is  by “price framing.” Price framing in leasing can refer to only giving prospects your market rents–known as anchor prices. By telling prospects right off the bat that a 2 bedroom apartment rents for $1,300 a month, they automatically begin to perceive a high value in your product.  Then when you close them with a concession and the rent drops a couple hundred dollars, they reference the anchor price (market rent) and believe that they’re receiving a highly valued product at a discount.

• Need for urgency

Another flaw in JCPenney’s marketing scheme was the lack of urgency. Three-day sales and other promotions run by department stores are much more effective at pushing urgency than an open-ended “lowest price always” campaign. Consumers are far more likely to rush out on a Saturday for a bargain they think will only last the weekend. The same can be said for leasing. If you’re attempting to close a prospect, but say that the rent and concession will stay the same for an indefinite amount of time, nothing is compelling them to lease same day– or even same week for that matter. On the other hand, telling prospects the rental rate and concession are only good for 24-48 hours almost forces them into a type of impulse buy because they fear losing the apartment.

• Prospects love to “win”

The biggest mistake made by JCPenney was forgetting that consumers have a need to win. Consumers love bringing coupons up to the register and watching as the price drops because it gives them a sense of accomplishment. Your prospects are no different. They want to feel as though they are negotiating for a lower price and ultimately coming out on top. Your prospect doesn’t need to know that everyone coming through the door is getting the lower rent.

Filed under: apartment leasing, Apartment Marketing, leasing tips, Solution To Vacancies, Student Housing by Danny Soule

Now that you are beginning to lease-up your new community, it will basically sell itself since it’s new…right?

Wrong.

Gone are the days when a community leased-up on its’ own simply because it was the newest kid on the block.  The main reason for this is whereas there used to maybe be only one new kid on the block at a time, now there may be five or six new communities that could all potentially be pre-leasing at the same time.  The newness of your community can still be sold, but when there is new product surrounding you that your prospects will surely be visiting, it’s time to figure out how you can stand out from the pack.

It’s a fact that, as a leasing agent, you cannot control how your community was built and what amenities were or were not included in the development of the community.  You are required to sell whatever the make-up of your community may be.  If your community has very nice features, but the newer community just down the road has even nicer features, there is nothing you can do about that.  You cannot change the dynamic of your property.  Therefore, since you cannot alter your apartment’s features, you have to concentrate on controlling something you can do better than your competitors, no matter what their product is like, and that is customer service.

There are many ways to “out” customer service a competitor and it’s the little things that go into this that can make you and your community memorable to a prospect:

-Always go out of your way to properly greet a prospect.  Properly greeting a prospect is accomplished by meeting the prospect as they walk into your community’s doors, welcoming them to your community by name, introducing yourself and then asking them if they are looking for a new apartment home today.  If it is an appointment that is walking through the front doors, assume the person walking in is your appointment and greet them by their first name.

-Ask questions about what a prospect is specifically looking for in their new home and show true genuine interest in determining which apartment home you have available will be perfect based on their needs.

-Cater your tour to exactly what the prospect is looking for based upon the questions that you ask.  This will show the prospect that you truly listened to what was important to them.  If the prospect says that they enjoy to cook and you know you have tons of amenities in your kitchens, then spend the extra time to point out each amenity, as the prospect that is interested in these features will truly see the value in them.

-After the tour is over, take the prospect to a quiet place in your office to discuss the application process.  If they are still on the fence on whether they want the apartment or not, figure out exactly what may be holding them back to ensure that there is nothing you missed they may be looking for.

-Regardless of whether or not the prospect fills out an application, treat them as if they did and thank them for stopping by.  To go the extra mile, stand up when the prospect is ready to leave, walk them out the front doors of your community to their car and shake their hand and thank them once again for coming by.  This may be the most important customer service act, because prospects will always remember the last thing that occurred on their tour.

Going above and beyond of what is asked of you from a customer service aspect is the most inexpensive way to make your community stand out…it’s free!  It is on the leasing staff to ensure they are always prepared to wow each and every prospect that walks through the front doors.  I promise you if you are able to implement these basic customer service pointers, you will have a buzz generated by people talking about the service they received at your community, as well as more leases!

Filed under: apartment leasing, Apartment Marketing, leasing tips, Solution To Vacancies by Danny Soule

Prior to picking up the phone, a prospect has most likely researched your community online and has determined it is a viable option for their next apartment home.  So why do some leasing agents struggle to convert over 50% of their phone calls into walk-ins?   A decade ago, people drove past your property and called the number on the sign in order to learn some important details about the community.  But when the phone rings today, 90% of your prospects are simply confirming a rental rate, availability and making sure that you are open.  If you are not convincing these prospects to walk-in the door, you are doing something wrong.   Here are 5 keys to converting a phone call into a walk-in.

1. Bring the enthusiasm:  In sales, there is NOTHING more important than being excited about your product.  Smile, be enthusiastic and let the tone of your voice convey the pride you have in your community.  Act as if your property is the PERFECT place for your prospect to live and that they will NOT find a better value anywhere else in town.
2. Listen:  Most salespeople are known for having the gift of gab.  But you should only be speaking 25% of the time.  The rest of the time, you should be asking questions about your prospect’s lifestyle and listening to their answers.  People buy from someone they like, and people like someone who listens.
3. Get their information:  This is more than just a phone number and move-in date.  Get their pet’s name, what they do at their job, their favorite football team and where their spouse works.  There is a direct correlation with the amount of information written on a guest card and the number of leases you can secure.  The more you know about your prospect, the better chance you have of leasing to them
4. Sell the property:  Have you ever described your favorite restaurant to someone?  Have you ever told them about an awesome vacation you took?  The detail and enthusiasm in which you described these places should match the way you describe your property to a prospect.  Don’t just list the amenities, but tell them how they are going to feel lounging around the pool and meeting their neighbors on a sunny Saturday afternoon.
5. Build Rapport:  The number one reason why someone moved in 2012 was not price, job transfer or the economy.  It was because they were not satisfied with management or maintenance at their former community.  Find a way to establish rapport with your prospect and they will associate their connection with you to the way they will be treated if they become a resident of your community.  Find a connection, a similar hobby, a favorite band or just a way to make them laugh.  If you connect with your prospect on the phone, they WILL come see your community before choosing to lease somewhere else.

Filed under: apartment leasing, Apartment Marketing, Follow up, leasing tips, Solution To Vacancies by Danny Soule

CLASS has spent the past month leasing a by-the-bed student property at Texas A&M University.  In a saturated market it is extremely important to quickly identify emerging trends in order to capitalize on market share. By gauging these trends and tweaking our sales process, the property is almost ten percent ahead of last year’s pre-leasing numbers.

Here are three trends we’re seeing this year:

• Enhanced focus on cost-effectiveness

Having leased-up the same property last year we have noticed an unmistakable uptick in the number of students paying rent on their own, whether through part-time jobs or student loans and grants. This results in a consumer far more involved in the buying process than we’re used to seeing. Whereas last year’s student, with parents footing the bill, didn’t care about price tags, this year’s student wants to ensure they’re getting the most bang for their buck. It is imperative that value is conveyed to this year’s student. Whether that means calculating how much money your community will save them on utilities each month or charting out the bus route to show how much closer they’ll be to campus, you must be communicating value at all stages of the sales process. In order for the price-conscious student to lease at your community, they need to perceive some sort of value in your product. Resident events and parties are no longer cutting it for a lot of students.

• Short-term leases

Reading that may have you cringing, but it’s true. The reality is that many students don’t want to lease an apartment over the summer if they aren’t planning on staying in town. However, students want short term leases so badly that they’re willing to pay almost anything for them– and Mom and Dad are too.

At my current property, the only alternative to a 12 month lease is one beginning in August and ending in May. With our current rent concessions taken into consideration, the 12 month lease actually ends up being the cheaper option when compared to the 10 month lease. Naturally, you would think that students would agree with the math and choose the longer lease. However, that is not the trend. Students are choosing the 10 month lease at almost every opportunity and sighting their “summer freedom” as reasoning. Our competitors have also taken notice of this tendency and one property in particular is charging a premium fee of $100 a month for 9 month leases.

• Applying and leasing online

There is nothing this generation loves more than the ease of technology. While some of you would never personally apply for an apartment online, this year’s students are doing that and more. Recently my property expanded upon the typical process for applying online. Instead of filling out the standard contact form and having a leasing agent get in touch with the prospective resident, our new website allows for the entire lease to be signed via our property website  without ever stepping foot on the property. While this approach certainly won’t appeal to every student, it definitely has caught the attention of some. In almost a month’s time we have received an average of about 20-25 online leases. While this number may pale in comparison to the number of leases signed in the leasing office, it is significant nonetheless. It’s very likely that the property may have lost out on these leases had we not had the online process in place.

Filed under: apartment leasing, Apartment Marketing, leasing tips, Solution To Vacancies, Student Housing by Danny Soule

CLASS is pleased to have guest blogger Michael Shadeed of Franklin Street Insurance Services provide us with an insurance marketplace update.

“As apartment owners, you are part of one of the most volatile insurance marketplaces in the country, with coverage options and pricing continuously in flux.  I understand that most owners view the insurance premium as just another line item, but due to recent industry-wide changes to coverage, make sure you read exactly what it is you are paying for.  Outside of the premium page, the following are some coverage options you need to review on your next proposal.

The most widespread change to the coverage options for most carriers are the way they are handling the wind and hail coverage options, and the valuation of your roofs within the policy.  Recent tornado and hail claims over the last seven years have hit carriers hard, so in areas deemed high exposure coverage restrictions and deductible variances have recently hit the marketplace.  These changes are separate from your traditional fire coverage, and the deductible will be designated as the separate “wind/hail deductible” outside of the “AOP” (all other perils) deductible.

Owners need to pay attention to the roof valuations on all assets age ten years and higher.  Carriers are no longer rewarding full replacement cost claims to roofs they deem outdated.  Now most carriers will begin to devalue a roof five years after installation, changing the valuation to actual cash value, which is replacement cost of the roof minus depreciation.  Once the roof is eighteen years from the last replacement, it is deemed to have no actual cash value.  Some carriers will actually try to remove roof coverage all together regardless of the age, so review your quote.

The older your asset, the more building upgrades are needed to satisfy current code in the event of a rebuild.  The payment for these expenses is under the “Law and Ordinance” coverage section of your policy.  Make sure the limits are adequate to pay for increased rebuild expenses that involve consulting an architect and engineer to meet all current code specifications.

Obviously all of the mentioned coverage options come at a price, so how do you find the carrier willing to put forth the most competitive rates?  Consult an insurance broker who specializes in apartments and works with multiple apartment product types, as the age, construction type, and geographic location are all major contributors to the number of carriers willing to be aggressive on their pricing options.”  – Click here to contact Michael Shadeed

Filed under: leasing tips, multifamily development, property management, Solution To Vacancies by Danny Soule

Working for an apartment leasing company requires constant market research.  While I was browsing an industry website this morning I stumbled upon an article detailing how prospects shop around for new apartments. The article was great until I read the header titled “Get Off Craigslist.” My jaw dropped, but I kept reading. The author stated that posting ads to Craigslist is a waste of time and that no one reads the posts anyway.

As someone who has done my fair share of apartment lease-ups, I completely disagree.

Why wouldn’t you post Craigslist ads?

• It’s easy

Speaking from experience, nothing is easier than posting a Craigslist ad. It takes 3 minutes tops. Write a quick blurb, include a few photos, and click post. Of course you can add bells & whistles like links and videos to increase the “stickiness” of your page, but it’s not required. All you really need is the apartment description, pictures and your phone number.

• People do search Craigslist for apartments

Below is a breakdown of the leases obtained from a class A property in a tier one market where we are currently working.

As you can see, Craigslist accounts for almost half of the leases and is more than twice the amount secured by the second leading source. Imagine all the leases this community would’ve missed out on if the leasing specialist hadn’t been posting on Craigslist!

• All it costs is your time

Craigslist does not charge you to make an account on their site nor do they charge to post. Therefore, it should only cost you a few minutes a day to upload your ads.  Once you’ve created a few unique ads most of your work is done! From that point on, you can just click ‘renew’ and the time to post decreases even more!

Filed under: apartment leasing, Apartment Marketing, leasing tips, property management, Solution To Vacancies, Student Housing by Danny Soule

Drive-by. Online. Property Website.

If any of these three items above are currently listed as options for your traffic sources, guess what? You are not accurately tracking your traffic and could be throwing your marketing dollars out the window!

I’d be willing to bet that all three of these are currently listed as traffic source options on 99% of communities around the country. I’m not saying that these three items cannot be traffic sources, but listing them as how the prospect originally heard about your community is inaccurate. To further explain, let’s take a look at each one:

• Drive-by. Think of all of the things that could be out in front of your community that good marketing dollars are being spent on: monument sign; banners; bootlegs; amenity signs; balloons; etc. Unless you ask a prospect “was there something specific you saw when you drove-by,” you have no way of knowing what marketing item made them stop. Maybe it was the beautiful landscaping that you finally got done after begging the owner for more money to make the entrance look more visually appealing. Better yet, maybe it was the balloons that you spent all morning putting together in a huge arrangement that caught the prospects eye. Regardless, always ask the prospect what they saw when they drove-by.
• Online. Entering a prospect as an online lead is about the same as saying the prospect dropped out of the sky and happened to land on your community. It is probably the most vague traffic source you can enter, because it literally tells nothing about how the prospect heard about your community. It is your job as a leasing agent to dig a little deeper so if the prospect mentions they heard about you online, ask them if there was a particular website. What search engine did they use? What did they type into the search box? Even just asking these two things can tell you a lot, because if you search your property daily, as you should be doing, you can usually determine what link they clicked. Was it Apartmentguide.com? Was it Forrent.com? Did they see the property website? Many times we go to communities and the client is spending money on both Apartmentguide.com and Forrent.com, but they are looking to discontinue using one. A leasing agent providing the traffic source of “Online” would do nothing to assist the client in knowing which one of the two ILS’s is working.
• Property Website. If a prospect tells you they heard about you through your property website, this does not make sense as a possible traffic source. Unless a prospect just so happens to think of your exact property name, or exact property URL, there is no way they just happened to search for your property website. They had to have searched for a general term first that allowed them to be able to locate your community. It is important that you understand because you need to be aware of what prospects are searching that is allowing them to find your website. In doing so you can help track what SEO tools are working or what key words are being effective in helping your community be recognized by Google.

It is crucial that you are obtaining the most accurate information when it comes to sourcing your traffic. In doing so, you’ll be able to track exactly what is driving prospects to the door. Marketing is oftentimes a numbers game, but it can be a whole lot easier if you are able to allocate your time and money toward sources that are driving qualified leads to your community.

Filed under: apartment leasing, Apartment Marketing, leasing tips, Solution To Vacancies by Danny Soule

I’m the type of person who does plenty of research before purchasing anything–even a pair of shoes. I want to know who else has bought them, if they’re comfortable, if they run large or small, if they’re good quality, etc.  I don’t spend as much time on the website that describes the shoes. Why would I? I know the shoe company isn’t going to share any negatives about their shoes. I want honest feedback from the people who’ve worn the shoes so I look at customer reviews.

If I’m doing all of this for a pair of shoes, why wouldn’t I look at the resident reviews for an apartment I’m considering? Just like the shoe company, I’m not going to fully trust an apartment website. They say they are a luxury community and they take care of all maintenance requests within 48 hours, but I want the feedback of people who live there.

I’m not the only one looking for resident reviews. Today’s consumer’s place a heavy weight on what their peers are saying about products they purchase.  For this reason, the name of the game isn’t only about getting resident reviews– it’s making sure the reviews show your community in a positive light. Here are a few tips!

1) Today’s renters are more likely than ever to check out a community’s reviews before leasing—so make sure they’re looking at you

In most cases, prospective residents are researching possible new homes online before even stepping foot inside a leasing office. A search for something as simple as “apartments in Denver” floods a prospect with a multitude of websites and reviews.

Google+ results

Ensure that they see your property by creating a Google Place page. A Google Place page not only gives prospective renters your location and information, but it also provides reviews from current and past residents. The more reviews your community has the more important Google considers it. Encourage your residents to share their experiences here and not only will it impress prospects, but it will increase your SEO too!

2) Don’t be afraid to ask for reviews

Some property operators are wary about asking residents for reviews because they don’t know what will be said. Many would rather have a page with no reviews than deal with this uncertainty. However, there are many ways to curb negative reviews and promote positive ones:

• Place flyers on residents’ doors or in your leasing office with a simple straightforward message: if they share their experience on Apartment Ratings, Facebook, or Google Place, they will be awarded a $5 gift card. However, in order to receive a gift card, they will have to sign the review with at least their first name. Requiring a name will ensure that the correct person is getting the gift card while simultaneously decreasing the likelihood of a scathing review. This is because 1) there is now accountability as opposed to hiding behind an “anonymous” signature and, 2) collecting a gift card requires that the resident come into the office. It would take a very bold person to ask for a gift card after writing a not-so-nice review!
• Every property has a few residents that seem to be in the leasing office almost daily. More than likely you’ve established a friendly relationship with these residents and, if asked, they would gladly post a review online for you. Have your Google Place or Apartment Ratings page already pulled up when they come in and simply ask them to write a few quick sentences. You’ll be surprised to see how willing they are.
• When a future resident is applying or signing their lease, ask them to share their excitement about moving in! This could be as quick and easy as, “Can’t wait to move into ABC Apartments! My new apartment is huge and I’m excited to finally have access to a 24-hour gym!”

3) Don’t think a negative review will send prospects running the other way

A negative review is bound to happen; there’s almost no stopping it. However, it isn’t about how you dodge negative reviews—it is how you deal with them. In most cases, disgruntled residents posting negatively on your page did so in the heat of the moment. They may have felt as though they weren’t being heard and used a page like Apartment Ratings to vent their frustrations. Simply taking the time to respond to these negative reviews can make all the difference. This expresses to your unhappy resident and prospective renters that you care about their problems and are attentive to their needs.

A response to a negative post can be as easy as:

“John- We are so sorry to hear about this. ABC Apartments always strives to make sure our residents are as happy as possible and we clearly fell short this time. We would love to set up a time to speak with you when you’re available. Please contact the office at 555-000-000. Sincerely, Jane ABC Property Manager.”

No matter how untrue or exaggerated a pessimistic post is, it’s important to reply without arguing or attempting to prove the poster wrong. Nothing looks worse to possible renters than a combative exchange between staff and residents.  Prospective residents will be pleased to know that problems they may have in the future will be dealt with professionally.

Filed under: apartment leasing, Apartment Marketing, property management, Solution To Vacancies by Danny Soule

With all the talk about marketing and leasing to college students, we often find that a critical decision maker is left out of the sales process.  I’m talking about the parents.  You know, the folks who are actually writing the rent check.  While the property must first appeal to the student in order to have any hope of procuring a lease, we often underestimate the influence that a parent can play in the decision making process.  This is especially so if we are looking to maximize rents and the price point is going to be a key issue.

Before we explore some ways of marketing to parents, we first need to understand the basic dynamics of buying behavior.  When two parties are considering a purchase, one typically finds that the party who initially identifies the product will take a pro-purchase stance, while the party who was not present during the initial inquiry will often play devil’s advocate.  This is true in most cases, whether it’s the wife who first viewed the apartment and the husband must now be convinced, or the senior citizen who identifies a 55+ community but must now talk it over with skeptical children.  In other words, don’t just focus on the person who made the initial inquiry.  It is often more important to sell to the party who was not present when the property was first viewed.

As the Student Housing Industry continues to mature, most CMO’s are aware of the need for a robust, year-round marketing program.  Targeting students used to begin in January and end in May.  Today’s student properties incorporate resident functions, social media, web presence, reputation management, and traditional marketing strategies into a 12 month program geared at building a sense of community and a recognizable brand.  While these robust programs can make identifying the source of traffic and quantifying the ROI on marketing spends very difficult, it also means that prospective residents are very familiar with our properties by the time the leasing season gets cranked up.  But how do we sell the property to the parents?  Below are 3 ways that you can target this all important decision maker and ensure that they are happy to pay the rent each month!

• Get parent testimonials during lease renewals or lease signings.  Offer a free Starbucks card to any parent who provides feedback via email or on a review site regarding the ease of move-in, convenience of rent payment or overall satisfaction with the operations of the office.  It is not just the younger generations who value the feedback of their peers!
• Get their email address.  Have your CA’s acquire the parents’ email addresses on the phone or during the initial tour.  If received on the phone, send the parent an email and Cc the student. (Cc’ing the student is very important, as generation Y hates any lack of transparency and will want to be privy to the conversation).   The email should be short and personal.  It should explain that their son or daughter has contacted the property and you are writing to simply introduce yourself.  It should include pictures, floor plans and pricing as well as an attachment with some testimonials from both residents and their parents.  It should conclude by providing a good contact number and an invitation to either call or visit the property if they have any questions.  Finally, include a coupon for a free coffee or sandwich from a local restaurant or coffee shop for the next time they are in town.  With the click of a mouse you will become the parent’s first choice. This will help overcome any price objections by demonstrating value and customer service.
• Direct Mail.  As the postal service continues to scale back operations and mail volume declines, direct mail is becoming a viable marketing source for the older generations.  Have a direct mail piece drop during the Thanksgiving and Christmas Holidays while the children are at home.  Direct it to the parents and it may become the catalyst for a dialogue between parent and student about their housing plans for the following year.

Make no mistake, if the student does not consider your community as a housing option, any of the above suggestions will be futile.  However, marketing to the parents can be an extremely effective compliment to your existing student focused strategies.  Parents can’t make the sale, but if they are not on board they can certainly break it.

Filed under: apartment leasing, Apartment Marketing, leasing tips, Solution To Vacancies, Student Housing by Danny Soule