Will the iPad Replace Model Apartments?

Good post and question, Brent - but I would say no. It will certainly be a good tool (all of the new tablets, not just the I-pad) and it would be wise for management companies to embrace the technology and use it to their advantage. But the internet didn't replace in-person tours 15 years ago and the I-pad won't either. Think of how many people still schlepp to the mall to try on a stack of jeans to find the right "fit", rather than just buying them online. Certainly many people are comfortable with e-commerce, but there will always be a core group who prefers to do it on site. That will be true in apartments too - some people won't trust a video on a tablet, they will have to see it for themselves. A company that loses track of that in an effort to move everything to a new technology will alienate "old school" customers.

Chris I have to agree with you and say no, although I am a big fan of the iPad and all the ideas and uses that come with it. However, if that it was that easy to replace model apartment homes, wouldn't community websites have done that along time ago? I know we've built tons of websites we great photos, virtual tours, and videos. Some of our customers are even smart enough to display their websites and website like kiosks in their leasing offices now, but they also still have real life model apartments to show prospects.

Great post Brent!

I think the short term cost difference swings in favor of the iPad, but I think in the long run it actually costs you MORE to get rid of your physical model apartment.

One of the biggest factors that influences the people I lease to seems to be the way they "feel" when they are in an apartment. One lady the other day walked into the luxury (granite, stainless, hardwood) model and seemed to really like it. She then asked me to take her to the classic model (laminate, cream colored applicances, plush carpet). After seeing the classic, she had me take her back to the luxury and said, "yes, this is it. This apartment hugs me and feels like home".

I thought it was interesting because there is a certain way people feel when they are hugged by another and so she had that feeling of euphoria "with" the model. Securing the lease depends upon taking advantage of the time when the client is on an emotional high of excitement about their new home. Therefore, an actual model is a key sales tool and is irreplaceable.

I have an iPad and have found that while it does not replace a personal visit...it does help when I am marketing several different communities...if a prospect isn't "feeling" the apartment we are in...I can pull out the iPad, go to our website and present other Roscoe communities that might fit better...they can see photos, floorplans, a video tour, fill out an application and more...plus, there is still the added "cool factor".

I am looking forward to finding more unique uses for the iPad in apartment marketing...so thanks for all the info!

@Alex Steele, @Brent Williams: I'm perplexed about the model apartment method of marketing. Never found a use for it, never found a need for it. We show the exact, vacant apartment that a person will end up renting and have had many years of success doing so. Given the cost of model apartment marketing, creating a one-size fits all design must be a real challenge.

@Carrie White: I could see where the iPad could be useful in the marketing experience.

There are many reasons for a model. The economic one, on a property large enough to support it, is that you can pre-lease all of your units on notice. If you are waiting until the unit is vacant before showing that unit to a potential renter, you have vacancy loss. Another important reason is for visual and depth perception. It never fails that when a client sees a unit that is completely bare, the rooms seem smaller and they may not be able to visualize their own things in the space. Many years ago I showed a very short woman a master bedroom that was 17 x 21. She said it seemed small. 17 x 21 is huge, but because she couldn't see how it compared with the size of a king mattress, she couldn't get her bearings. We in this business see units occupied and vacant all the time- but the model isn't for us, it is for our clients who do not have that same experience. Lastly, prospects who see vacant apartments can easily suffer from white out - all they see is white walls, white counters, white appliances (frequently) and light colored carpet and tile. The actual features get lost in the blandness. Color, furnishings and props solve this problem. Now a property with 100 units and a 10 unit waiting list doesn't need a model. Any larger property probably does.

@Christopher Higgins: We have 346 apartments so we probably would have the economies of scale for a model apartment, but I still don't quite get it. We've been successful with pre-leasing, sometimes many months in advance, showing a different vacant apartment.

I agree that a prospective customer may not perceive the size of a vacant room, but I also know that furnishings can sometimes get in the way of the experience too. With so many varied tastes, things like color schemes and design touches can become distracting when they clash with individual tastes. Real estate professionals sometimes encounter this when showing an occupied home for sale.

Further, it's not uncommon for us to lease an apartment sight unseen, simply using the floorplan. I'm sure other properties have had similar experience.

And, there are many factors that go into a leasing decision, such as the surrounding neighborhood, convenience, schools, exterior curb appeal, amenities, etc.

@Christopher Higgins, @ Rick Hevier: Christopher probably could not have better described why a model is a great asset to a property big enough to sustain one. It is statistically true that empty rooms look smaller than full rooms. I love using my models to show how much you can fit into an apartment and it also helps people envision how they would set up their stuff. Most people absorb things better when they can see them and touch them.

I have never had anyone say they don't like the model furniture or say that the furniture bothers them. In fact, we have ours so nicely decorated that people often ask if they can move right in to the model I think having it decorated creates a sort of grand entrance every time I open the door and wait for the reaction. I almost always get "oh, this is lovely" or "wow, I really like this". The furniture turns the "apartment" into a "home".

Models can also save a lot of time. I lease for over 400 units by myself and I cannot always keep a running list of what we have available in my head. If I have a walk in and that person just wants to see something real quick on their lunch break, it's a no brainer and I take them to the model. It also makes showings really easy for someone who has a move in date of 4-5 months down the road (being located next to a major medical, dental, and nursing campus we get the parents and students sometimes a year in advance).