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The New Revenue Recovery: Efficient Evictions to Make Properties Whole

The New Revenue Recovery: Efficient Evictions to Make Properties Whole
In a perfect multifamily world, monthly rent payments would always arrive on the first of the month and any outstanding debts would be settled at the time of move-out. Unfortunately, that’s not the reality. Debt recovery has become just another part of the leasing lifecycle, and the economic implications of the pandemic haven’t done anything to alleviate the potential for rent loss. Typically, the task of tracking and pursuing resident debt falls to onsite property managers, who are overburdened and time-taxed with the day-to-day responsibilities of running an apartment community. Property managers already juggle multiple administrative processes, and debt recovery can become the stressor that begins to expose cracks in the dam. It’s not a part-time endeavor, and without a diligent, automated approach an operator will inevitably begin to leak revenue.  Multifamily is beginning to realize the operational benefits of technology solutions and third-party services to free up onsite teams to perform the jobs they were hired for. A new revenue recovery process built with automation and integration better positions operators to mitigate the risk of bad debt and optimize the debt recovery processes. Finding and implementing best practices in eviction processes and installing a stopgap to prevent revenue from slipping away, ensures properties are made whole.  Take the task from property teams Property teams are not debt collectors. When encumbered with the responsibility of debt recovery, they are generally ineffective for a number of reasons. First, onsite associates have too many other responsibilities on their plate. They’re focused on the tenets ......
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Money on the Table, Finding the Hidden Opportunities. Part 3.


Lately I have been hearing questions about whether to raise prices or not to raise rates. There are many strategies to increase revenue and some that are right there glaring at you, but seem to be hidden. Let's uncover some of the hidden opportunities.

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Value Over Risk: Increase Revenue By Evaluating Pets on an Individual Basis

Value Over Risk: Increase Revenue By Evaluating Pets on an Individual Basis
As a property manager, it’s only natural to think of things in terms of risk. Whether it's the new diving board at the resort-style pool, the transition to a keyless entry system or a modification to the types of pets allowed at the community, you can bet the associated risks don’t easily evade the property manager’s mind. But while considering risk is part of the property management ecosystem, sometimes a modified approach can yield better results. For instance, viewing pets on the basis of value rather than risk can serve the dual purpose of generating revenue while enhancing the resident experience. Tech advancements have made it possible to evaluate each pet with a household-related risk score based on its individual behavior history and that of its owner, as pet owners sometimes play a significant part of the pet-risk problem in housing. The risk score creates a much more sophisticated way to determine which pets can be allowed at the property. Rather than restrict based upon breed, weight or any other preexisting characteristic, communities can establish a value-benefit analysis of the pet based upon its all-encompassing individual risk assessment. Here are some ways this can benefit onsite teams:  Sliding-scale pet rent The riskier pet scores on the risk-scale, the higher premium for it to live at the community. Low-risk pets receive benefits in the other direction in the form of baseline pet rent. This is not only a plausible concept—it is already practiced at numerous communities across the nation. Revenue management teams have cr......
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Technology Revenue Drivers

Technology Revenue Drivers
The multifamily industry has truly turned a corner. Rather than being skeptical that technology will produce any ROI at all, many apartment owners and operators have begun evaluating technology based on how much ROI it’ll produce. It’s no longer a zero-sum game in their minds. But it is vastly more complex to evaluate every technology based on how much revenue it’s going to generate rather than whether it will generate any at all. And technologists certainly aren’t making it easy.Ever the optimists in search of being the next Google, technologists tend to over promise when it comes to revenue projections. Yet, we’ve now had enough experience with technology in the industry to know what drives the most revenue and the most value for our assets. Here’s a rundown of some of the new and old technologies that have clearly proven ROI and what I believe will drive revenue going forward for apartment owner/operators. Revenue ManagementRevenue management is the clear winner in revenue driving technology. It not only helps owners and operators increase rents intelligently in hot markets, but it also protects against rent losses in slow markets. Of course, the technology doesn’t work on its own. It needs human input, but it’s ability to capture and process large quantities of information to provide a suggested price that maximizes revenue is something no owner or operator should live without. Implementing revenue management technology is simply a no brainer. Customer Relationship Management SystemsSales is a numbers game. The more quality leads you can attract, the mo......
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A 'Humans + Machines' Virtuous Cycle in Multifamily

Introduction Automation is a term that has been thrown around a lot lately in multifamily (a lot of times by yours truly: See exhibit A).  Furthermore, I have pushed the idea of a 'Humans + Machines' workforce where humans and machines work together to create new workflows, but that is just the beginning. Adding a digital workforce to work alongside your team is the basis for a virtuous cycle of success. From increased NOI to attracting more owners to managing more properties, the digital workforce can change multifamily's economics.     What is a Virtuous Cycle? A ‘Virtuous Cycle’ is when one success leads to another, and then another, in a repeating loop. Before we jump into the Multifamily Virtuous Cycle, let’s take a look at Netflix’s Virtuous Cycle.     Netflix Virtuous Cycle Here is the Netflix Virtuous Cycle as explained by Netflix CFO David Wells:     Let’s break it down. Netflix invests in producing more shows. With more shows there is more variety, which means there are more watchers. More watchers means more talkers. This leads to more subscribers. More subscribers generate more revenue. With more revenue, Netflix can invest in more shows. And the cycle continues. As you can see, the cycle fuels itself for future success. By creating more shows, Netflix will set off a chain of events leading to more revenue. As long as Netflix keeps investing in new shows, the cycle will continue. So now that you have seen a Virtuous Cycle, let’s explore how a digital wor......
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Did we have you at "hello"?

Did we have you at "hello"?
  Normal 0 false false false false EN-US X-NONE X-NONE You had me at hello…the 3rd time! So when does follow up really end? In the apartment biz, the standard practice for follow up that I was taught 20 something years ago, still rings true today. After a prospects initial visit, if they did not rent, you started the follow up process. Call within 24 hours, send thank you note within 48 hours (by snail mail of course! Lol) another follow up call in 72 hours, and so on, until the prospect came back and leased, or their phone was disconnected. Yes, this was back in the days of landlines! With technology advances, follow up techniques have changed, and now include emails, Facebook posts, videos and calls to cell numbers that never change, but the principle has stayed the same – continued communication. But, what about continued follow up with residents once they move in? Do we keep that communication open and on an ongoing basis? If not, what if we did? A phone call within the first few days of their move in checking to see if everything was going okay, a “Welcome to your new Home” card sent out within a week. A personal visit within 3 months to offer a personal hello, send a birthday card, holiday greeting card, and so on.  When we have them at 'hello" do we change our communication to be just "show me the money!!" Far too often we forget about the resident after the......
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The Hangover: Rental Edition

Although all indicators exist for a healthy year of rent increases, it does not make our job as Leasing Consultants and Property Managers any easier. Simply put, our Residents are not prepared for increased rent when they are still nursing their recession hangover. For most Americans, the recession was a tough time filled with learning how to live with less, reprioritizing needs vs. wants and living in fear of the unknown. We became a nation of bargain hunters eagerly checking our Groupon email first thing in the morning and exploring options for a “staycation”. A few good job reports and a strong uptick in the stock market is not enough to erase memories or change our bargain hunting instincts. People still want a deal and they are expecting you to give it to them. Here are a few strategies to help you meet the goals of your owners and your residents.1. Flat rate pricing is a dead end street. Many communities tried this during the recession to fill up fast and now have a community where people think that most pay the same amount in rent. The price was typically based on the lowest rent we could offer even though more than half the apartments had higher value. Price the apartment based on the attributes which make the apartment unique. Why should a person rent the subject apartment over another? The answer to that question will help you see the individual opportunity for this apartment price. Once you move to this ......
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