Are People Moving Less?

Since late last year, attracting prospective residents to view our communities has become very competitive. Apartment communities are giving incentives such as free rent, including utilities, short term leases, low security deposits, and daily specials, just to name a few. As a result of these offers, many apartment communities may have to cut back on payroll, amenities and services. Struggling through this period by offering larger concessions than the community across the street, reducing rent and offering give aways ultimately leads to cutting costs and services which only serves to compound the challenges in the long term.  Prospective renters and current residents might be looking for more services and more attention and those communities who provide it will get through this period in a much stronger position than ever before.

To face these questions and decsions, it's important to understand that renters and prospective renters have been affected by the economy too and have to make tough choices. For renters signing a new lease, or deciding to renew a current lease, financial concerns, the increased presence of available homes to rent, the news and advertising that there is reduced or free rent has complicated this important decision.  The days of stop, look, lease are few and far between, as prospects are expanding their apartment search, researching areas and asking for advise much more than they have in the past.  Are prospects and residents really looking for free stuff?  It can't be the main motivation.   

Below is an article detailing some of the dynamics people consider when making the decision to move.  The article, Moving Truck Courtesy of the Recession by Emily Bazelon posted on slate.com should remind us about how important it is to ask questions, not just talk about the specials.  We need to know what the needs are of our residents and prospects, ask how their apartment search is going and find out who else is involved in the decision...we are a resource in finding their new apartment home, not just a sales person reducing sticker prices. 

The reasons for moving are diverse and each prospect has an experience to share. This is also why we need to track leasing activity, make detailed notes and follow up, as most prospects are heavily weighing their decisions. Most importantly feedback is essential to understand why residents are moving.  Tracking why prospects are selecting, or not selecting our communities to call home is essential to success.  Don't be afraid to ask questions and always listen.

Moving Truck Courtesy of the Recession