Matt Haggerty's Blog

Our portfolio has a unique opportunity.  We have a property that is breaking ground on a long awaited second phase.  There is an existing building of 64 units that was constructed many years ago.  Phase two will mirror the existing building, but will of course have the newer amenities, features and décor that new construction provides.

Having two buildings, one being an established community with an existing demographic and the other being a lease up, with more amenities, different pricing and possibly different demographics, creates a marketing challenge.  One of the strategies suggested to differentiate the two buildings and attract a unique demographic is establishing the new building as smoke free.  This of course markets to the green and health conscience crowd, a demographic that is more on the move and looking for unique services and amenities.

So much time has been invested in trying to attract renters to communities.  So much time has been spent enticing renters to move and to stay.  It's almost as if this industry works against itself! 

The year 2009 is all about resident retention and trying to capture a diminished customer base.  People are moving, but it seems people are not moving by choice, but because either there is no choice, or because of a perception that there is opportunity.  Renting is either the new American dream, or it's the replacement for those whose dreams were crushed.

What has marketing accomplished during this time...is it opportunism, or is it innovation? 

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.   

I like to watch Keith Olbermann, especially his "Worst Persons in the World" segment.  Usually, the worst person in the world is a public figure who said something stupid, or offensive.  On April 24th's episode, I was surprised to see that multi-family made the list.  A Property Manager was named the "Worst Person in the World" for following company policy.  See link below for the whole story.

News Story:

I am trying something new for our portfolio in the way of content sharing and internal networking for our residential communities. The Operations Support network is open to service providers and The Goodman Group portfolio to share information, ask questions and update web content. Please feel free to upload appropriate content for sharing and review.