It's interesting that in a down economy, there are so many low-cost opportunities to "wow" residents.  I'm noticing that residents are responding especially well to community-building "interactive" amenities much more so than the usua

l "physical" amenities like pools, fitness centers, and business centers.   It's really shown me the value of more community-building types of amenities as a cornerstone of resident retention and leasing strategy.
In talking to property managers, they all share the same complaint in these economic times.  Old tenants are moving out, and new tenants are not moving in as quickly as they used to.  How are their management companies responding?  Many are slashing marketing budgets and lowering rents.  I don't see this strategy as working well for them, however.  It's a bit of a Catch-22: they need visibility, but they can't afford to buy it.  We're seeing that our most successful customers are actually increasing their budgets for small-ticket items that pay off in big ways, and they are still charging among the highest rents in their territories.

I think the a big reason so many communities keep lowering their rents in a recession is that they get into a bidding war, because they aren't making themselves stand out.   Many offer the same types of "physical" amenities like gyms, business centers, and pools, so that they become relatively indistinguishable and compete mainly on location and price.  But in fact, residents tell us time and again that they are more likely to sign or renew their lease

s, regardless of location or price, when they feel emotionally connected to their communities by getting to know neighbors with similar values and interests.  What they want more than anything is to meet other residents more often, and in the right way!  You might call this a demand for "interactive" amenities, rather than "physical" amenities.  We also notice that some physical amenities, such as clubroom areas, kitchens, or certain outdoor spaces, go largely unused, just waiting for managers to turn that dead space into a profit-generating "interactive" amenity.  The great thing is, creating these sorts of amenities is extremely quick and easy to implement.  Best of all, it's incredibly inexpensive, since communities already have a multifunctional space, and they already have the residents!  All managers need is to pull them together with the right activities and a little creativity.

We always tell our customers to think of their clubhouse as the neighborh

ood's town center or social hub.  Imagine residents filling those empty areas socializing in small groups each week, really getting to know each other, and making friends in the neighborhood.  Those beautiful clubhouse areas are specifically designed for group gatherings!   By organizing such gatherings, managers finally put those spaces to good use and tap into their biggest marketing asset of all - the residents themselves, waiting to meet each other around interest-based activities.  We've seen many types of community-building activities flourish, including:

• Volunteer Groups - organize a group of neighbors to participate in a charity walk, or create a bake sale fundraiser.  Get the staff involved!
• Book Clubs - get residents together to read and discuss bestsellers.
• Gourmet Cooking Classes - bring together residents with a hands-on, live cooking show with a professional chef.  This is an ultra-p opular, high-class amenity at little cost.
• Wine Lectures - have a vivacious wine expert bring together your residents for a trendy, upscale "happy hour."  It's like a night out at a wine bar with friends, but on-site!
• Group Fitness Classes - bring in professional fitness instructors to host after-work pilates or yoga classes once a week.
• Intramural Sports Teams - organize a community softball team to participate in local intramural leagues.  This increases pride in the community.
• Mom-and-tot Play Groups - Buy some inexpensive toys and games for the kids, and host a morning coffee-and-muffin indoor play gathering in your clubhouse.  Moms can relax on sofas and chairs while kids play in a safe space.  Or, organize a bring-your-own lunch outdoor playgroup in a grassy area or playground.

These are just some of the things that we've seen work at our customers' communities over the years.  But especially now, they are really hot!  And we're getting strong feedback that the monthly cooking class and wine lecture program is their number one most successful amenity.  They even use this event as a marketing tool in their "For Rent" magazine ads, on their property tours, and even announce it when new residents are "on hold" when calling in.

Anyway, today I just wanted to talk a bit about this idea of interactive amenities helping communities create a real in-group mentality and a lot of b

uzz among their residents, since it requires a bit of a different mindset.  Next time, I will touch upon some of the challenges we face in dealing with different property management styles, and maybe some of you will be able to offer some insight on that.

I look forward to meeting more of you in the weeks and months to come.