Topic: Lease Up Marketing Question

Can someone help me understand the idea behind spending thousands of dollars on lease up marketing? Let me be specific about which part I am referring to because I completely understand needing to get the word out about a new property.

What I don't understand is spending thousands of dollars on special events and promotions that gives residents the idea that life at this community will always be this spectacular. We will have bbqs every weekend, and huge parties that cost $2000 to $3000 every few months, cooking classes that cost $200 and are only open to 10 residents, wine and cheese nights where we will buy all the wine, concierge services and more. That's great if the plan is to keep that level of resident retention budget for the next 5 to 10 years.

What I don't understand is that it seems the norm to throw tons of money for events and such at the beginning with the idea that it will phase down once the property is full. My husband and I came in to serve in this very kind of situation, and we had many residents that had been there since the beginning really feeling like they had gotten the bait and switch. We eventually won them over, and some of the worst complainers because our hugest fans. But even into our last year at that property, we would hear the "I remember the good old days when..." stories.

Sorry for the long lead up to my question, but it all comes down to this question. Why not choose to start with a sustainable level of resident retention/attraction events? I only have my experience, so can someone help me understand the thinking. I am all about resident retention. But can't it be done for less money and in a way that still gives residents the feeling of being pampered?

While thinking about all of this, I had a brainstorm and would love feedback on this as well.

What if you involved residents in hitting lease up goals? For instance, let the first people that move in know how valuable they are to you. Instead of feeling embarrassed to say how many have moved in, make it a big deal.

"We are so grateful that you have chosen XYZ community as your new home. We also know you are best marketing. So we are inviting you to celebrate with us every time this community reaches the next goal." Then have a party when the community reaches 100 leased apartments, 150, 200, 250, 300, etc. And make it a big thank you party to all who have chosen to make it home and have spread the word! My thought is when we involve them and celebrate the successes of the community with them, they feel more connected, more sense of ownership in the community.

This is of course in addition to the regular events you are doing.

So what are your thoughts on this idea? Too crazy? Completely wrong way to market? Am I loco? I'm seriously asking for feedback.

My thoughts on hitting the ground running in a lease up is to really create a buzz about your community and make your presence known in the area. When we've hosted lavish events like the ones you mentioned, our intent wasn't so much to schmooze our current residents, but to invite our prospects, business owners, locators and others from the community. You're basically starting from scratch, so anything you can do to get your name out there, the better off you'll be. It's simply another piece of the marketing puzzle of a lease up. It can be as elaborate or as simple as the budget allows. My goal when starting a new lease up was to seek out a 5 mile radius around the property and really "own it." Make yourself known, and the leases will come. That was the events were always about for me.

When dealing with a new multifamily development, what is the average marketing budget/ad spend prior to lease up?

Thank you

Kay