Sergio Navarrete's Blog

Today I would like to evaluate the use of 7 techniques that will set up an enjoyable work environment for your staff and greatly impact your leasing success. These 7 techniques are meant to help you give prospective tenant that great first impression that means so much in $$$.

1. Curb Appeal - When a prospective resident drives by your property, they have to say WOW! Some of the most economic ways of making that happen are: Keeping the property clean, frequent upkeep of the landscape, and every 1-3 years (depending on need) power-washing the exterior of your apartment and leasing office. Not only will this attract prospective residents, it will help with resident retention, and will make it more enjoyable place of work for your staff.
2. Lighting - The type of light and the placement of light fixtures is important both inside your leasing office and throughout your property.
   1. First, lets address the issue of lighting outside. It is important that your property have lighting throughout for various reasons, but the two most important ones are safety and careful lighting of your apartment's curb side sign (if you dont have one, you should) will add aesthetic value to your apartment at night.
   2. Lighting fixture should be placed higher than eye level, because low lamp like fixtures can shine direct light into people's eyes. There are several types of light, but the best and most calming light is natural light (because of this, sky lights are great). The human body natural physiological response to light is general awareness and the general psychological response is happiness. The physiological excitation elicits a psychological response of happiness. The best way to explain this is: What is a nice day? Sunny and warm or dark and gloomy? When it is a nice day outside, people tend to be more active and typically enjoy themselves more.
3. Color - Colors are a second important component of the environment. Dark colors and red (fire-like) colors are the worst choice. You will want to have light pastel colors that promote calm and secure feelings. Careful color selections can make prospective residents feel happy right when they walk in your door, and will keep your staff happier for a longer period of time. Read more about the psychological response to colors.
4. Smell - This should be fairly self explanatory, but I have been in dozens of apartment offices that are musty! If your office does not smell good there is a big problem. The physiological response to bad musty smells is to leave the area! When you smell something old, musty, bad, etc, the sensory nerves in your brain trigger a "get out of here" or "dont eat this" response. So please, find a happy, soothing fragrance, it will do wonders for your prospective resident's first impression, not to mention your staff will enjoy it as well.
5. Sound - Soothing sounds such as running water have evolutionarily become a source of happy thoughts for humans. When I was an undergraduate, I participated in a study (as in I was a test subject) where we were asked to sit in a waiting room for 30 minutes before we were asked random questions about our week and our day. There were two test groups. One was placed in a "waiting" room with sounds, such as flowing water (like from a fountain) and light music. The second test group sat in the same empty "waiting" room without the soothing sounds. Six-hundred students and faculty participated in this study (300 in each scenario). As you may have guessed, people waiting in the room with soothing sounds, answered the questions positively 80% of the time, while people sitting in the room without the sound, answered questions positively only 48% of the time. SO, hopefully if you follow this logic, your staff and prospective tenants will respond positively 80% of the time.
6. Comfortable Seating - Ok, this is a big deal especially when you want to have a prospective resident fill out an application or a lease. Sitting comfortably elicits a response from the parasympathetic system (or in other words, a calming effect). It is also smart to have snacks near by, because when the parasympathetic system is stimulated, a secondary response is slight hunger (so a bowl of different types of candy works quite well).
7. A Mirror - This tip came from one of my neighbors. For over 25 years he has been a customer service consultant for several companies including Ford, and GMC. Having a full wall sized mirror behind your front desk at your leasing office will do many great things. First, it will make your office look much bigger than it actually is (this is great for properties with small leasing offices), this also positively affects your prospective resident's first impression of the property because they wont feel as cramped in a small office as they usually would. Secondly, having a full wall sized mirror will help you deal with angry residents. Putting a large (full wall) mirror behind the customer service desk will drastically reduce angry resident outbursts. The reason it works: People do not like watching themselves be angry (just like you dont like to watch them get angry), it is a subconscious psychological reflex to seeing their angry selves staring back. Simple, but effective.

I hope you enjoyed it,

Sergio Navarrete

Apartment Marketing by Occupancy100.com

Hey everyone, after reading several reports provided by the National Apartment Association and the National Multi-Housing Council,  I have extracted some of the most valuable apartment marketing ideas and tips. They are listed in order of importance, and if done correctly will help you get more leads, double or triple applications, and significantly improve leasing success. I hope you enjoy!

1. ALL marketing materials must have your main contact information (This means your online rental application and website address too! - see #2, #3): Let me explain this a bit further. Many people have the misconception that advertising and marketing are the same thing - they are not. It is true that successful marketing will pay huge dividends when advertising, but it is not the same thing. Marketing is the act of creating brand recognition and "buzz" about your company. So, when I say that all of your Marketing Materials must have your main contact information, it means that everything that you produce (news bulletins, surveys, signage, and of course your ads).
2. You must have a strong Apartment Marketing Website: Your community website should be geared to both your current residents, while catering to new prospective residents. Here is a good example of an Apartment Marketing Website. Your website should have helpful information for your current residents, such as online rent-pay, resident work order request, community news, and a directory of local schools, services, shopping, recreation, etc. Most importantly your website should have well organized and direct sales information for your prospective residents. Floor plans, apartment amenities, discounts, maps/directions, and MOST essential every single page of your apartment marketing website must have a link to a web based rental application (see #3). Here is an example of an Online Rental Application.
3. A link to your Online Rental Application on every page of your Apartment Marketing Website and every single website advertisement: This point goes along with #1. An Online Rental Application will allow your prospective tenants to "contact" you and thus it is part of your contact information! All ads and other online marketing materials should include a link to your website AND a link to your online rental application. VERY IMPORTANT NOTE: If you have your own Online Rental Application, and it is not encrypted, you are liable! You are collecting sensitive renter information, and it is your job to keep that information SAFE!
4. Respond to prospective resident leads and Online Rental Applications within 60 minutes of being received: (I give Robert Green - a fellow MFIer - credit for the following line). Think about your potential resident leads and rental applications as milk left out on the counter. You only have so much time before the milk is sour and can not be salvaged. In our personal experience, Online Rental Applications responded to within the hour they are received, close over 50% of the time if they qualify
5. Re-adjust office hours: It is a wonder why apartment leasing offices are open during "regular business hours" - 8am-5pm, it just doesn't make sense. Why is this? After 3 years of research (over 700 Online Rental Applications, and countless leads) and compiling data, we have found that over 50% of leads and Online Rental Applications are received after 5pm! So this means that all of those leads and rental applications are not being responded to within the 60 minute time frame. Also, many people chose to look for apartments after work, after 5pm, and if your not in your office, you are losing leases. The office hours we suggest are 9am-7pm.

I hope you enjoyed it,

Sergio Navarrete

Physiological responses to visual stimuli that make your customers feel (Psychology) happy, secure, and calm.

Lets explore the simple psychological and physiological responses in humans and apply these to how we can improve customer experience.

• Physiology is what the body physically does (the phys- part of the word) when stimulated by the environment.
• Psychology is how your brain interprets physical stimuli or in other words how it makes you feel.

Psychological and Physiological responses are completely different and separate responses to stimuli from the present environment (sound, colors, people, room arrangements, sitting vs standing, and many other factors are part of the environment) although physiological responses affect psychological responses. It is important to be able to differentiate between these as an understanding of such responses will help you create an effective environment to deal with all sorts of problems. An effective environment will help your leasing consultants close more leases, your staff will be happier and more comfortable at work, and it will even help calm angry residents.

So I will give you this scenario: A resident in your multi-unit property is furious because they have had a maintenance request open for 3 weeks, and no one has even contacted about them. Oh oh! This could mean trouble as an angry resident will not only cause you a personal nightmare, there is a distinct possibility that it could cost you a lease or more!

What if your leasing agent is in the process of having a potential new resident fill out a lease an application, or even a lease agreement?!

So what do you do? How do you set up your leasing office environment to calm an angry resident or help promote trust to get more applications and leases?

Today lets look at the visual components of the environment:

Light is the first and most important component, not just the amount of light but the type of light can make a big difference. There are several types of light, but the best and most calming light is natural light. The human body natural physiological response to light is general awareness and the general psychological response is happiness. But why is this?

• Physiology - When your eyes and skin are exposed to light several sympathetic (or rather in simple terms, excitation) responses are triggered. The stronger the source of light the more this response is elicited.
• Psychology - The physiological excitation elicits a psychological response of happiness. The best way to explain this is: What is a nice day? Sunny and warm or dark and gloomy?

The sun's light is the strongest and best source of light (plus its free!). Having several large windows will allow you to utilize this beautiful natural resource.

Good light = happy and focused staff + happy prospective residents + helps create happy calming feelings in an angry resident.

Colors are a second important component of the environment. Dark colors and red (fire-like) colors are the worst choice. You will want to have light colors that promote calm and secure feelings. To read more about the psychological response to colors click here.

• Physiology - Light colors reflect more light or rather "light up the room". Again like above this triggers the excitation of the human nervous system.
• Psychology - Like above, excitation of the nervous system caused by natural light promotes feelings of happiness.

Light or rather pastel like colors reflect more light, and promote feelings of happiness. Here is something to think about: Do you remember your high school yearbook? What color were the eyes of the superlative winner of "the best eyes"? Almost all of the time they are light blue. More on the color blue.

Light pastel colors have higher light reflectance = happy and focused staff + happy prospective residents + helps create happy calming feelings in an angry resident.

Look for our post tomorrow on how sounds can help your customer's experience.

Also keep in mind this applies for your resident's apartment living as well.

I hope you enjoyed it,

Sergio Navarrete - Apartment Marketing

PS - Comments are always appreciated. :)

Submitting a rental application is a HUGE step for both the potential renter and property manager alike. Once the potential residents have submitted a rental application, they have made a conscious buying decision. It is a fact -phone leads, email leads, and walk-ins are great, but completed rental applications are golden.  It's a wonder then, why so many multi-family properties still use only paper and PDF applications when it comes to leasing their apartments! In the age of technology, it has been proven time and time again that electronic submissions are faster, easier, and more organized than a long paper trail.

I'm sure you're thinking, "I have a PDF application that potential renters can print, fill out, and bring back or fax it to me; what's the difference?"

The difference is huge!

First, ask yourself, "How many of your PDF rental applications have you received from your website and internet ads in the last 12 months? 1, 2, 5?"

PDF applications don't work because they are essentially the same as a paper application that is picked up at the office. In fact, in most cases it is the exact same paper application, just uploaded to the Internet to be printed. Applicants still have to fill it out and bring it to you or fax it. We've learned that the less running around people have to do, and the more convenient their application process is, the more likely they will be to rent with your property. Convenience is key!

We personally own ten multi-unit apartment properties in the Southeast. Our properties, receive an average of 2-5 new rental applications a week from their websites and internet ads! One of our properties had 29 sight-unseen leases last year!

Sergio Navarrete

Online Rental Application by Occupancy100.com

The past year has seen a rapid decline of the U.S. economy, taking home ownership with it. With foreclosures on the rise, the multi-family housing industry is getting a great boost. Apartment living appeals to people for its convenience and affordability—it lacks the need to maintain your own home and outdoor space, it is easier to relocate yourself and your family should the need arise, and rental homes are generally located in areas that have suitable access to transportation as well as shopping, schools, restaurants, etc. It’s no wonder that the tenant trends in renting span across many demographic profiles. In terms of income, a diverse group of people tend to rent—there are those who can afford to purchase a home and instead rent pricey apartments and lofts with upscale amenities in high-end neighborhoods, and there are those renters who do so out of financial necessity. Many young professionals rent near employment centers and metro/subways in order to improve their commutes. Empty nesters often rent in the suburbs to free themselves from the burdens of homeownership, as well as to be able to travel and explore the world following their children’s departure.

In general, immigrants tend to rent more often (and longer) than those people born and raised in the United States. Young adults from the ages of 18-30 also tend to rent more often due to their newly found freedom from the homes of their childhood, their lack of funds due to student loans, and their general inexperience when it comes to homeownership and all the bureaucratic paperwork that comes with it—renting is a much simpler option, and often much less of an investment for young adults just starting out in the “real world” not knowing where their lives will take them. The “echo boomer” generation (the children of the “baby boomer” generation) at 75 million strong, is one of the largest populations of renters in the United States.

It is safe to say that there is not one specific type of renter out there. Though immigrants and young adults tend to rent more often, all people in all stages of their lives can be influenced to do so through a specifically tailored marketing approach. Occupancy100’s staff is here to help you create a marketing design that can attract all types of renters whether they are college graduates or empty nesters. Renting is an experience that everyone can enjoy!

 Sergio Navarrete

Apartment Marketing by Occupancy100.com

More traffic… more qualified traffic… better closing techniques are the name of the game for owners and managers.

However, achieving this is a complex task.  A significant key  is recognizing that the American demographic is a changing thing.  Did you know that 72% of new tenants for the next 10 years are expected to be minorities and that half of these will be Hispanic/Latino?  Also, did you realize that this year American schools will graduate the largest class in history?  Or, what about the fact that seniors as a part of population will grow disproportionately over the next 10 years.

What about economics?  How does the loss of wealth from the recession impact you?  Or, how will increased savings impact renting?

As owners and manager, studying our markets is critical.  This implies studying our local market and market trends.  This means understanding global trends.  Finally, this implies coming up with techniques to capitalize on these factors once understood and quantified.

 Apartment Marketing

The Hispanic community in the United States has an incredible $800 billion worth of buying power, even in today’s economy, proving to be an incredibly lucrative investment for the multi-family units willing to tailor their marketing approach in order to meet the needs of the Hispanic renter community. Home ownership proves to be incredibly challenging among the Hispanic community, with lower average education levels, large family units, the general lack of Social Security Numbers for applications and background/credit checks, and a relatively lower average age of individual households deterring most from being able to possess their own homes.

The majority of the Hispanic community is of foreign birth, opting to make their way to the United States by way of major cities such as New York, Miami, and San Francisco. These densely concentrated metropolitan areas are generally home to few owners, and more renters, thus making home rental among the Hispanic population a popular option. The road to home ownership is often lengthy and bureaucratic—60% of United States Hispanic residents opt to rent their homes, and take pride in doing so. Studies show that Hispanics take pride in paying their rent on time and are often more eager to keep a clean living space and uphold tenant/landlord requirements within their homes. Because of this, many multi-family complexes are reaching out to the Hispanic community and adapting the general structure of their renting process and marketing approach to accommodate these eager renters’ needs. In a world where identity theft is happening all around us, a vast number of apartment applications no longer require Social Security Numbers, and many complexes are making concessions for large families. Apartment marketing efforts targeting the Hispanic market can bring you many qualified and eager renters.

 How are you preparing? Do you have any suggestions? Do you have a spanish rental application?

Name Your Price!

I tried posting this as a discussion as well, but I would like to reach a broader audience.

This question is for all multi-unit leasing agents, property managers, apartment operators and apartment owners.

If you were to think of a price per pre-qualified lead, per pre-qualified rental application, and price per lease that would be acceptable. A price for each of these that would allow you to make the decision on the spot.

NOTE- Pre-qualified = a potential renter interested in YOUR apartment.

Here is an example:

• Price per tenant lead: $20.00
• Price per rental application: $50.00
• Price per lease: $100.00

What is a price for each one of these that would make you say: "That is a great deal! I will take it!"

Thank you all for your input,

Apartment Marketing, Tenant Leads, Rental Applications

Sergio Navarrete

A Submarkets' Buying Habits - The single most important money saving and lease producing practice.

I am still astonished to find that multi-unit properties do not collect market information from each and every lead. This is what I mean:

Say an apartment property manager is responsible for advertising (which is usually the case). This property manager even with training starts advertising in the most common places.

• Newspapers
• Apartmentfinder.com
• Rent.com
• Local Magazines
• Craigslist
• etc.

This is a good start as naturally they will start receiving leads from each of these ad sources. GREAT!...

The big problem is many apartment managers stop here. They focus on the normal common places for advertising and get mediocre results at best, but here is where they can make the most difference by asking a six word question.

"Where did you hear about us?"

This question is empty however if the data collected from it is not quantified and analyzed. This data will allow you to track how many leads are coming from your ads, but are these leads going to leases? What if you are spending hundreds of dollars a month on something that is producing no leases?! Surprisingly, most property managers spend hundreds of dollars on ads that produce lots of leads but few leases.

One of my favorite examples of this is:

At a property in Fayetteville NC, the previous apartment manager poured hundreds of dollars into newspaper ads as they knew from experience that the newspaper ads created the most leads. Turns out, only 1/5 leads could even qualify (after background and credit check), and only 1/5 of each lead converted to a lease. That means that out of 100 leads, only 20 qualified  and out of those 20 only 4 converted to leases. At this point in time, they were struggling at only 70% occupancy.

Today after much improvement, and eliminating costly low ROI ads they are holding steady at comfortable 92% occupancy with 96% pre-leased.

Here comes the second phase, all you have to do is add a single question to your lease.

"Where did you hear about us?"

If you can get your apartment manager to carefully collect and quantify these two valuable pieces of information, you will be on your way to eliminating costly ads that produce little end results.

The final piece to this equation is to get rid of low ROI ads, and invest the money you saved in new creative ads. I encourage all of you to invest your time in new ad sources such as the internet, social networking sites, free internet listing sites, etc.

Our apartment marketing solution strategies incorporate this into every single tenant lead and online rental application that is received.  Good Luck!

I hope that this is helpful,

Sergio Navarrete

Apartment Marketing