Aaron Lynch's Blog

Did you know that if you create a great community blog, you'll get more traffic and in turn more leases?

A recent report shows that businesses (your community is a small business) that blog 20 times per month or more are attracting an amazing amount of direct traffic to that blog, and in turn to their site which creates more opportunities to lease.

Just imagine if you were the first place online to attract potential customers. It's possible and probably if you begin blogging and do it correctly.  Here are a couple of high level tips to get you started.

Social Media Marketing Ideas for Apartment Communities

I’ve spent the past few months talking to marketing managers, regional managers, and property managers about social media marketing.  There’s a similar theme among all three:

• They know they should be doing it
• They’ve tried it with few results
• There’s just not enough time
• They put it on the shelf for now

I’ve told them all the same thing.  It works…if you commit to it.

You want to raise my rent how much?

I have been involved in quite a few renewal conversations, and what always makes it difficult is when residents are taken by surprise.

Renewal conversations are difficult enough, and to have a resident come into it angry is not a good start.  I think if they knew what to expect from the beginning (move in or even during the initial tour), life would be easier on everyone.

Welcome Party!

Resident initiatives are seriously scary.  Finding people you can trust to get involved in community activities takes time, but it is seriously worth the effort.

When residents take ownership in a community some amazing things can happen.  Here’s one idea that can have a profound impact on your community.

Social media marketing is all the buzz right now.  Marketing companies are popping up left and right telling you to get on Facebook, Twitter and YouTube, “now before it’s too late!”  Many of them of course are trying to scare you into using their services. Quoting statistics like 97% of all consumers now begin their searches online.  That is NOT a good reason to start an online marketing campaign!

While it’s true that you need to have a significant online presence, and that social media is a huge part of that, nobody tells you why or how.  My suspicion is that they don’t know, and you can tell because they aren’t producing the results they promise.

Prior to going full time as a marketing consultant, I worked at a community as part of a team that grew occupancy from 89% to 96% in less than a month.  Previous to that I worked at another community with another team that grew occupancy from 91% to 98% in less than 2 months. I would love to take credit for this awesome growth, but something else was at work. Something many of us didn’t even realize, and probably couldn’t duplicate because we didn’t take notice.

The next 3 years are projected to have some of the highest rental increases in multifamily history.

So, what if an apartment community guaranteed no increases for 3 years, or 5 years, or for the entire time a resident stays?  Insane?  Maybe not.

Right now I think residents at most communities are tired of being beat up by rising rental rates. Many of them don't have a choice, can't really afford to move, and certainly can't or choose not to buy right now.

The multifamily industry is capitalizing on the collapse of the housing market, and in my opinion, taking advantage of people who for one reason or another can't purchase, can't afford to move, or just simply don't like change.

I've seen projections from large REIT's recently showing incredible occupancy and rent increases over the next few years.  But, what would happen if a company or community decided not to take advantage of its residents, and lock prices in for the next 3 years.  Perhaps loyalty to the residents would be reciprocated.

I think you would attract some long term residents.  Over the next year turnover would be reduced to those moving out of town (but maybe to a community owned by the same company).  How much money would an apartment community save by not having to turn over apartments?  Or having long term residents that were loyal and paid rent on time?

Let's do some math.  Let's say conservatively a community of 300 apartments loses 30 residents each year because of raised rents.  Honestly, I think that number is low because most residents won't give this reason.  Let's estimate that on average a turnover only costs $1000 in down time, repairs, paying your turnover crew, etc.  This doesn't take into account money spent bringing in a new tenant, advertising, admin set up, and other costs.  That's $30,000 in turnovers.

Ok, so the other 240 occupants (assuming 90% occupancy) get their rents raised by $50 per month.  That's $144,000 in increased revenue.  Seems like a no-brainer right?  Go with increasing rents.

But, what if because of your loyalty to your residents, they told their friends about the 3 year lock.  And the word got out, and people were clamoring to get in.  Maybe you could even start the rent a little higher than current market rates.

What if occupancy increased by 5% and new move ins were paying $50 more than market?  Assuming your average rent is $800 per month (now $850), your increased revenue is $153,000 (assuming a 12 month lease)!  And you're going to save $30,000 in turnovers!  What if occupancy went to 98%?  Yikes, REIT's don't like occupancy that's too high, that means they could have raised rents!

Now of course you have to plug your own numbers in and see what happens.  Maybe you wouldn't come out ahead.  Maybe that's OK.  Maybe it's time to put people ahead of profits.

What are some other intangible benefits that would come from this?

Marketing is about doing something remarkable.  See more at HowToMarketApartments.com.