What's Your Availability? To Share or Not to Share

It is a common ritual in our business – the call-around or “comp check”. Once a week, maybe only once a month, a leasing agent from your property sits down at the phone with the list of the competitors in your market area. They pick up the phone and start dialing. How valuable is this ritual? What do you do with the information? How can you rely on facts when you aren’t sure of the credibility of the source?

I have always been an advocate of sharing this information with my competitors. For those of you who have been in the business for ages, like myself, we know that we all end up working for each other at some point anyway, so why not share and share alike? Good marketing directors, supervisors and on-site managers know just how important this information is for multiple reasons. We should be sharing it, and we should encourage our comps to work with us and share as well.

Pricing and specials

I have operated in markets where a property manager or management company is clearly unaware of what their competitors are offering. In markets where one month free rent and a $100 application was routine, I have seen properties “waive” the application fee as their special. While I have never been an advocate of specials as a tool, a property still has to be aware of what the market is doing to generate business, and what a prospect will expect or seek when they visit. You don’t want to insult their intelligence or skill as a consumer by offering something that just isn’t special.

New policies and procedures

As long as you have them on the phone, and once you have started to build a relationship with your competition, why not ask them what is working and what isn’t? Some markets don’t have the luxury of an apartment association or IREM to network and share. Properties can build an informal network from their competitor properties if they work at it. This information can be very valuable. Thinking about adding an expensive new amenity? Ask how your comp has done with theirs. Do they think it was worth it? Would they have done something differently?

Marketing sources that are working or aren’t

In this same vein, what about asking if they have tried a new marketing tool or technique? While they will probably not be too thrilled at sharing what is working tremendously well for them, they won’t be shy about offering up what failed. Especially in these days of tight budgets and ever-increasing avenues competing for your marketing dollars, having some insight from someone in your market can be very valuable.

Fair housing issues

While I want you to begin to cooperate with your competitors if you don’t already, that doesn’t mean I am advocating opening a floodgate of information to anyone who calls. Obviously, you don’t share availability numbers with prospects – you can’t build a sense of urgency if they already know you have 22 available. The other potential caller you need to be careful about is the shopper who is trying to get you to violate fair housing laws in your state or city. HUD is evil, they know the property management industry and they are trying to take you down. They know that one of the common things we do in the business is call around to our comps. They sometimes call and pretend to be one of these comps, and try and get all sorts of information out of you. If you quote incorrect information, they can use this against you. Be on your toes, and be suspicious of odd questions. Your competition should not be concerned about how many single people you have versus couples or whether you have a large number of Hispanics at your community. You don’t know this information and shouldn’t be sharing it with anyone.

The long and short of it is that the process of calling around and checking on comps is not out-dated, it is a vital and useful tool. We have so many great technological advances with real-time availability and pricing that can fluctuate day by day – but you still need to know exactly what your comps are offering to be sure you are priced right, marketed to the right target and offering the right mix of amenities. Don’t be afraid to pick up the phone and chat with your competitor, you never know when you may be working together.

Christopher Higgins is The Apartment Guy, a professional speaker and owner of multifamily assets with 19 years of experience in the field. His latest session, entitled Flip the Switch: Transitioning from Recession to Recovery is now available for firms and associations.