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Up from the Pandemic Low: Leading Indicators Show More WoW Improvement

Up from the Pandemic Low: Leading Indicators Show More WoW Improvement
While coronavirus lockdowns are not over yet, as of May 20, all 50 states were starting to re-open to some degree, according to The Wall Street Journal. The East and West Coasts are re-opening more gradually.As I mentioned in my last blog, the openings were already having a positive impact on our industry. During the week ending on May 20, all the major national performance metrics except for Net Effective Rent (NER) moved in the right direction on a week-over-week basis, according to Radix. That marked the first time that has happened since the pandemic began.We seem to have bottomed out as far as declines in occupancy and leased percentage rates, and traffic and leases are gaining ground as well. NER, while still declining, experienced a smaller dip than it did during the preceding week.If traffic and leases continue to improve, the impetus for rapid rent discounts and concessions might slow down as well.Here are the notable takeaways from the week ending on May 20:•    Nationally, traffic and leases were up 13.8% and 13.3%, respectively, WoW. Those figures represent an accelerating improvement (during the week ending on May 13, the metrics increased by 8.7% and 6.6% WoW). On a year-over-year basis, leases were down only 11.6%, which is a major improvement from earlier in the pandemic, especially when considering these gains were made almost entirely while a majority of the markets were still in lockdown. Traffic was down 35.8 percent YoY.•    The national occupancy (92.90%) and leased percentage (94.56%) rates were up ......
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6 Indicators that it's Time for a Pricing Health Checkup

6 Indicators that it's Time for a Pricing Health CheckupModern pricing strategies and revenue management systems have had a tremendous impact on the performance of multifamily owners and operators. While systems like LRO and Yieldstar are quite robust and continuously improved, they are not infallible on their own. In fact, the flexibility they give operators to implement a range of strategies means that users need to review and modify settings as market conditions and strategies change. Forward-thinking and high-performing property management companies realize that, as with any system, a routine assessment or checkup is a powerful tool. Inevitably when you look at your pricing and revenue management system in depth, you find areas of meaningful improvement. Here are six indicators that the time has come for a pricing health checkup: 1. Large Occupancy and/or Price Swings If you see that your occupancy is spiking up and then spiking down, either your system may be configured wrong or there may be something about how you're executing the use of the system that needs to be looked at. This could be caused by a variety of factors, including overrides or lack of compliance with the revenue management system’s pricing. The whole point of a revenue management system is to have much more stable occupancy and steady revenue per unit growth, so if you see volatility in occupancy or revenue per unit, that means you're getting the opposite results from what the system is supposed to be delivering. If you see an occupancy drop of a point or a point and a half in a s......
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A Mid Year Report Card, Is Your Property Achieving Its Goals?

With the end of June,  take this opportunity to review your property’s achievement or progress toward its goals.  Explaining goals during team meetings gives each team member ownership and understanding of these objectives.  Converting each objective into SMART goals gives a value every team member can measure. What occupancy is needed to produce the budgeted rent revenue?  What is the average occupancy for the first half of the year? How do the year to date expenses compare to the budget?  How do occupancy and expenses compare to the property performance from a year ago? With many organizations, success is not only measured in a comparison to budget, but also, it’s year over year expenses, same store sales. The results of changes to revenue and expenses will determine the effect on NOI, Net Operating Income, for the property. Has the Gross Rent Potential increased over the previous year?  This would be achieved if the market rent has been increased.  The impact of rent increases, is lessened by the existing leases on a property.  Managing lease renewals will reflect in a decreasing trend in the rent dollars tracked in a loss to lease expense area.  Failure to increase rents on renewals will decrease the rent revenue on a property. What change has affected the average or economic rent?  Market rents can be increased, but if lease renewals do not result in increased rental rates or move in concessions are increased; the average rent will have decreased from the year before. A property coul......
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Your Online Reputation Could Be Costing You 5-6% in Occupancy


 

 55% of Residents Confirmed Reading Positive Online Reviews Led to Contacting a Community; Only 46% of Property Managers Manage Online Reviews Daily

 

According to a national study, 43% of residents stated a community rated at a 3.0 on a 5.0 scale was too low to be considered a desirable place to live, with the majority of residents focused on a community’s curb appeal, unit condition and rent price when writing an online review.

More break-down on how reviews are impacting renter-decisions and the factors that are considered when residents go to write reviews:

  • Over 90% of residents will read at least one review before touring an apartment.

  • Apartment condition, property curb appeal, and cost were the top three factors residents considered when writing an online review of their apartment community.

  • 55% of residents will either visit a property or contact the community for additional information after reading a positive review.

  • While 95% of property management companies found value in investing resources into managing online reviews, only 46% dedicated time daily to managing their online reviews.

 

 

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A simple checklist for keeping occupancy rates high

A simple checklist for keeping occupancy rates high
Even as property owners add units to the national tally of rental properties, rents and occupancy rates are enjoying a steady climb. While filling vacant units might not seem like an issue at the moment, here’s a simple checklist for attracting and keeping those long-term tenants every landlord wants. Perform your due diligence before leasing. Get started on the right foot with every potential tenant by performing a thorough background and credit screening. Don’t ever go by what you see in just the face-to-face or solely by documentation presented by the applicant. Check references. Keep things running smoothly. When a complaint or request for repairs comes in, don’t let it sit unaddressed. Get it fixed in a reasonable amount of time. This will show your existing tenants respect and help keep the property maintained and looking its best for potential renters. Play fair. Don’t make special concessions for some tenants while not making the same for others. To avoid this situation all together, have rules and guidelines (such as when the rent is due) be the same for every tenant. Communicate your expectations clearly. This builds a good business foundation and retains consistency to avoid any misunderstandings. Focus on curb appeal. Keep the property clean and maintained, plain and simple. An unkempt property is only going to hurt chances of getting new, serious applicants in the door. It could also cause current tenants to begin their search for another complex. Show respect. Treat applicants and tenants with respect in every situation. Just as with......
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Why you should secure every lease as a team

Why you should secure every lease as a team
As a leasing agent there are a lot of things to consider when trying to close a deal. Many leasing agents think of the transaction between a leasing agent and a prospect as a challenge that only they can handle 1 on 1. That could not be further from the truth! When trying to convert a prospect into a resident, a leasing agent should use his or her entire team at their disposal. From their office staff, to the maintenance personnel; teamwork is required and the very best leasing agents realize this. Introduce your prospects to the maintenance staff You want your prospects to have piece of mind. Introducing them to the maintenance staff will allow them to know that when they move in, if anything goes wrong in their apartment home, that they will have someone familiar and reliable that they can call on to fix their issues right away. Additionally, introducing your maintenance staff to your future residents before they execute their lease agreement, gives your prospects a sense of relief and community that they will surely think about if any doubts or worries cross their minds about the apartment. Keep in mind that maintenance satisfaction plays a major roll in your communities occupancy rates. Communities with outstanding maintenance teams usually maintain their current residents longer than those communities with poor maintenance teams. Introduce your prospects to the property manager Find the time to introduce your prospects to both the assistant manager and the property manager. This is a great......
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How to Overcome Reputation Issues and Increase Occupancy

How to Overcome Reputation Issues and Increase Occupancy
In the Property Management industry your community's reputation is everything. It is your bottom line. It is far more challenging to increase your occupancy rate when you have to contend with bad ratings or reviews. It plays a large role in whether or not you will make occupancy quotas and generate new residents, as well as maintain your good residents. Occupancy is going to be the driving force for your apartment community in order to make a profit. As a leasing agent, you must overcome bad press and protect the reputation of the owner's property. This ensures high profits and your job security. If you are fearful that your reputation as a leasing agent is falling short, or your apartment community is being devalued, you need to follow the suggestions below to overcome the negativity.   How can I overcome a bad reputation? The first step to overcoming a bad reputation is to act positively. As a leasing agent, you need to create a plan. If you have current residents that love their apartment homes, ask them to write a helpful review. You would be surprised at how many people will jump at this idea. Reviews can be 50 words or less as long as they portray the community in a positive light. Next, you need to respond to bad press. Get online and be social on your social media pages. If someone said there is a maintenance issue, or an issue that you can directly resolve, get it done. Draft......
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Eliminate low self esteem and demand the lease (Part 3)

Eliminate low self esteem and demand the lease (Part 3)
When it comes to closing the deal and getting the lease, few things are more important than believing in yourself and your property. Not having self-esteem when talking to prospects will cost you the lease. It will cost you profits. It could even be the difference between the success and failure of your company. However, if you have self-esteem and believe in yourself, your prospects will pick up on it. They will find you more charming and engaging. They will be more interested in what you have to say, and they will take you seriously. Once you have their interest, you need to close the deal. You need to ask for their money. This guide is going to teach you the most vital concepts to keep in mind each time you interact with a prospect. ------------- This section is going to teach you about having the right mindset. It is critical to have the proper mindset. If you don't have the right mindset, you will unknowingly let interested prospects walk away. You will be leaving money on the table and you will never be as efficient as you could be. If you lack the proper mindset, you will never reach your full potential. Imagine that you have an old childhood friend. This friend has been looking for a specific apartment in a specific location for years now. You have finally found the apartment of his dreams. You know he will be overwhelmed with joy when he hears the good news. Take......
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Eliminate low self esteem and command the lease (Part 2)

Eliminate low self esteem and command the lease (Part 2)

In Part 1 we discussed how Important it is to have the proper mindset. If you missed it please read Part 1 by clicking this link PART 1 and move on to Part 2.

Part 2

The right mindset will help a lot. But it is not enough on its own. You need to be able to show your prospects why you are so confident that your apartment will be the best choice for them. If you are not able to do that, you will still be losing out on a LOT of leases. So, how can you show your prospects why you are the best choice?

First, make a list of every benefit that you can think of for them to sign your lease. Maybe you are located near popular attractions. Maybe you provide services and benefits that your competitors don't. You need to brainstorm with others and be creative. After you have your list, go through and edit it several times. Then put the most important reasons at the top of the list. Study them until you can recite them in your sleep.

Continue to work on part 1 and 2.

Be on the look out for “Eliminate low self esteem and command the lease (Part 3)”

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Eliminate low self esteem and command the lease (Part 1)

Eliminate low self esteem and command the lease (Part 1)
When it comes to closing the deal and getting the lease, few things are more important than believing in yourself and your property. Not having self-esteem when talking to prospects will cost you the lease. It will cost you profits. It could even be the difference between the success and failure of your company. However, if you have self-esteem and believe in yourself, your prospects will pick up on it. They will find you more charming and engaging. They will be more interested in what you have to say, and they will take you seriously. Once you have their interest, you need to close the deal. You need to ask for their money. This 3 part guide is going to teach you the most vital concepts to keep in mind each time you interact with a prospect.   Part 1 This section is going to teach you about having the right mindset. It is critical to have the proper mindset. If you don't have the right mindset, you will unknowingly let interested prospects walk away. You will be leaving money on the table and you will never be as efficient as you could be. If you lack the proper mindset, you will never reach your full potential. Imagine that you have an old childhood friend. This friend has been looking for a specific apartment in a specific location for years now. You have finally found the apartment of his dreams. You know he will be overwhelmed with joy when he hears......
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