Looking from the inside out

Not all new communities managed by National Apartment Association members offer amenities that would make a king smile. No matter how many “bells and whistles” your community may have, many opportunities exist to maximize resident retention.  Don’t forget customer service and resident retention starts from the moment of handing over the keys, and does not end until you get them back.

Frequently communities are evaluated from the outside in. The real key to resident retention may lie on the inside, so management companies should be looking from the inside out.

Over the years new forms of communication--Internet, e-mail, cell phones, fax machines--have created new expectations of how people communicate with each other as well as the level of communication. Multifamily housing, along with all businesses, has had to adjust its way of thinking to satisfy the additional expectations of residents. Specifically, residents look for more communication as well as instantaneous communication. They want communication “now” and through various means. A phone call may not be enough anymore. Residents also may want an e-mail communication in addition to a phone call. What have not changed are the basic needs of residents and their expectations.

When prospective residents evaluate where to live and current residents contemplate whether to renew their leases, they consider where they will be most satisfied or if their expectations have been met.  As resident demands have increased with the types of amenities in communities, so have the number of choices of where to live.  Expansive development in many markets has provided more additional competition, and the popularity of the option to buy instead of rent is also on the rise.  This is where exceeding and not just meeting resident expectations can be the difference in reaching goals.

Communication

Once residents finally decide to live in a community, sign leases and move into apartments, they often drop into a dark cavern and are forgotten until it is time to collect rent or when they call with a request or problem. As tools have been developed that provide almost instantaneous communication, the principles of the most effective type of communication may have been forgotten--proactive and person-to-person.

While resident and prospect demands have increased, the ability to meet those demands in many cases has fallen short. For the most part, the perception is that if residents do not contact management, everything must be Ok! This is usually the case until their departure notice arrives, stating that they are buying a home or relocating to another community. We as employees want and expect continual and effective communication in our jobs, from our employers. Imagine this…maybe residents demand the same!

If more than a week lapses from the time a resident rents an apartment home and the day the moving truck arrives, management should contact the future resident to offer assistance. The lease and addenda were signed in advance, to make moving day less traumatic. Resident retention starts not on the day a resident moves in, but on the day the prospect is notified that the application has been accepted. A simple telephone call or postcard offering assistance can leave an impression of how management cares and how management will take care of valued residents.

If residents are coming from out of town, send a copy of the local newspaper, the community’s monthly newsletter and a map of the area.

Next, walk the apartment home and community with a new move-in.  Omitting this action is the second missed step to resident retention. The excuse of being too busy pales in comparison to how much time and money it costs to rent the apartment later. Another gesture is to place a “Welcome Home” banner on the front door and let the neighbors know someone is moving into the vacant apartment near them. Don’t forget to ask the neighbors to say hello should they see the move in progress or recently completed. We advertise ourselves as communities, but seldom reinforce the concept.

Two days after move-in, maintenance should show up at the door with paint and brush to touch-up any scratches or bruises and go over any information about operation of the features. They leave a baby food jar of paint and a foam brush to allow for additional touch-up should they not like the picture or other furnishings where they first placed them. This not only provides additional communication, but also allows the new resident to meet the people that will take care of maintenance needs.

Within four days of the move-in, management should make a courtesy call and deliver a welcome basket, faxable maintenance request forms, a brief questionnaire about how satisfied they are with their new home and community and an invitation to the new resident orientation at the clubhouse. Also notify them that the local Welcome Wagon representative was called, and supply a second set of area merchant coupons not included in the welcome package.

At the 30-day point, management should have had at least three direct communication mediums with the new resident from the day the resident accepted the new keys. On this date management should be sending a separate inquiry or making another direct contact just to see how things are going and ask if further service is needed.

Follow that up with a contact at 60 and 90 days, and the first impression by a new resident will no doubt be above average. Further, asking every resident who is met on the grounds or in the office, “How is everything in your apartment home?” will no doubt exceed expectations. Action in customer service is much greater than words!

Value in Service

Everything about a community has value, especially service. Management must identify which services have value, and remember that the absence of service will usually lead a resident to look for value somewhere else. The topping on the service cake is adding and supporting services that would be missed if the resident were not living at a particular community.   As an example services are far more than those generally provided by the staff, and can be at little or no expense to the site for instance…

For managers who complain that they do not have an expansive clubhouse, alarm systems, large pool or state-of-the-art fitness center, resident retention and turnover is still an issue. No matter what price point or amenities are offered, services can be found that will increase chances of success. A vacant apartment, or the location of a local merchant or restaurant, may provide assistance.

Let’s look at some of the services to consider. As an example, between January 1 and April 15, tax returns are being processed. Contact one of the nationally known tax preparation services and ask if they would be interested in conducting a tax workshop at your clubhouse, vacant apartment, or at their preparation facility.

Contact a local greenhouse or horticulturist about providing a workshop on patio plantings and care. Besides providing information services to residents, some great looking patios may result from the process.

Is the tennis court used more by squirrels than residents? Contact a local tennis instructor to provide lessons. Management may pay for a couple of introductory group lessons, and from that point the instructor can work out private lessons with residents.

Travel agencies will stumble over themselves to hold a seminar on summer get-a ways in April, or for an older population of resident, quilting lessons may be their cup of tea.

From yard sales to cooking demonstrations, informational service programs can lead the way to higher resident retention. Computing, health, lifesaving, scuba lessons in the sparkling swimming pool, bird watching and birding, and a host of other topics are available. Talking with and knowing your resident profile will assist you in the process.

Onsite Staff

Everyone on the maintenance and management staff should play a part in establishing and supporting a resident retention program. Asking maintenance to find one extra item in the apartment home to fix will not just meet, but exceed the residents expectations, ensuring that the entire staff knows the difference between good and great resident service. Most everyone knows the importance of fixing something right the first time, but do they fully understand the ramifications if something is not 100 percent to the resident’s expectations.

Train everyone on staff in effective communication, including maintenance. Effective communication means following up to insure that what was communicated came across with the desired intent. How something is said is as much if not more important as what is said. Does maintenance know how to effectively communicate with a resident about what was done in an apartment home, and what action was taken to minimize the chance of the problem recurring? Often a service request is left, only to say it was fixed. Maintenance should explain what was done to eliminate the recurrence of the problem, and if there are any measures the resident can take to assist in the process. If maintenance is requested, don’t send a person with only fair plumbing skills to perform a major repair. On the other hand, don’t have an office person with only marginal communication skills discuss a sensitive matter with a resident. Sell the concept of follow-up calls on service requests as a resident retention and communication program, not as a means of looking over maintenance staff’s shoulders. It’s also not a bad idea for the manager to follow up on lease renewals with residents to ensure the renewal process was handled professionally and the residents were not left with any unanswered questions.

The staff can be the best asset or the greatest liability when it comes to resident retention. Sam Walton, founder of Walmart once said, “The customer has the ability to fire everyone in your company from the CEO on down, just by choosing to spend their money somewhere else.”

Solving the Puzzle

There is not one sure-fire method to improving resident retention. It takes dedication, commitment, teamwork and understanding to maximize resident retention. The bottom line is if they don’t leave, you don’t have to re-rent the apartment. Marketing does not have to be expanded as much, maintenance doesn’t have to turn the apartment, leasing does not have to work extra hours to fill vacancies, income is maximized and expenses will be minimal. The multifamily industry does not have many rocket scientists, and it does not take one to understand the basic steps to minimizing turnover. I once heard that every apartment community does not have a reputation…only the best and the worst. How true it is!

Basically we we advertise ourselves as communities, but seldom reinforce the concept.  Just remember,  every apartment community does not have a reputation…only the best and the worst. How true it is!

Back to Basics

Back to Basics!

By Lawrence Berry, CPM

It is evident that we have either forgotten or we are not reinforcing the basics of leasing and customer service.  Why do you say that you may ask?  Time and time again in visiting communities some of the basic principles seem to be missed.  This includes professional and friendly greeting, making the visit or communication personable, how we present our apartments, and of course closing and follow-up. 

In a recent analysis of six apartment communities I completed for a company, four of the six did not even stand up to greet me.  This is really sad and is one of the first things we have taught as a basic principle to the visit (either prospect or resident).  One person in this series of visits shook my hand, and three of the people never identified themselves.  It was perceived that four of the sites were not prepared for a professional first impression visit, and only in one case was there a big smile and feeling I was important to them.  Three of the personnel seemed to give me the impression I was an interruption. 

Making the visit personable is the beginning to building a friendly and caring relationship.  The comfort level a prospect or resident has when they are interacting with of our team members is extremely important.  Finding common ground, common interests, asking questions that can make it a memorable experience are more important than you think.  For some reason as our industry has softened, we seem to be focused on price only.  Studies show most consumers put a high value on feeling comfortable with the person they are dealing with, and a high comfort level can and will overcome many price differences.  Instead of focusing on price, we should be focusing on people.

Examples start with the phone call.  If a prospect says the have a pet, find out what kind and what the pets name is.  Noting this on the guest card for use at the visit and follow-up communication is not being used.  Remember, people love their pets…sometimes, as much as their children and in some cases they are their children.  When Mrs. Smith comes to my community and I say to her, “Thank you for visiting.  If I remember correctly from our phone call you have a poodle named Coco.  What things are important to you and Coco in an apartment home?”  Now I have touched on an emotional aspect to the person, and started in making the prospect feel comfortable.  What they do in their spare time, what interests they have, what will be critical in making this very important decision, and finding out how customer service will play a part in their decision can all be questions that will lead to the lease.

When going to our model or show apartment, several key points can raise the comfort level of the prospect.  Do you walk in front of them?  Are you carrying on a “genuine” conversation?  Reinforcing what they had said earlier about the important needs and desires in an apartment home, and letting them get to know you as well.  Remember, relationships of any kind are about both people.  Do you let them open the door to the model or apartment and stand back?  Let them walk in ahead of you so they perceive ownership from the start.  Do you question their intelligence?  Now I get this all the time and here is an example.  If you walk ahead of them and point into the kitchen and say, “Here is the kitchen,” you have already questioned their intelligence.  Usually the location of a refrigerator, dishwasher, stove, and cabinets has already told them what they need to know.  You don’t know how many times I hear this.  Let them feel comfortable in the showing and before you leave, then is the time to ask questions to qualify if they identified the key appointments in your homes. 

Next, one of the most critical areas we seem to be missing is both with trial closes and formal closing.  Ask them if they can envision their furniture working into the floor plan.  Help them to overcome objections and be prepared to provide alternatives.  Verify the things you know you provide with the items they communicated were wants and needs.  And most importantly, ask them to complete an application and reserve their new home. 

Last and one of the points that can produce increased results is the follow-up.  Of the analysis I did on the six communities, I never received a thank you card or phone call…not one!  And they wonder why they are 8-12% below the market average occupancy. Key aspects of this are timely communication, multiple communication mediums (phone, card, email), and how you communicate.  Writing a personal note specific to the visit and reinforcing key points identified to create a memorable experience.  Prospects will see an average of 4-6 communities, with many of they having the same amenities and styles.  If you remind them of you and your product, you have a greater chance of getting at least a return visit.  Something like, “Mrs. Smith I want to thank you for visiting ABC Apartments and enjoyed our conversation.  I remember you had emphasis on closet size and counter-top space, and wanted a first floor near the pool.  I also remember you talking about your companion Coco, and look forward to having both of you and serving your needs.  Thank you again and I will follow-up to assist you in this very important decision.”  Whoa, that can leave an impression.  Don’t forget for those that lease to send them a thank you card as well.

None of this is rocket science or requires a master’s degree to understand.  It’s basics, and if practiced will produce results.  Sometimes we just need to be reminded what is important.   

Leadership is the key

Effective Leadership

By Lawrence Berry, CPM

The misconception that "people are born leaders," will be debated at depth including the idea leadership is tied to a position or title.  A leader can be a leasing consultant that helps another employee or makes a decision when the manager is not around in order to please or take care of a resident, or the CEO of an organization.  Leadership should be thought as a responsibility...not just a position.  It is not what we do when things are going well that makes us a leader; it is what we do when we are faced with challenges that determine our true leadership ability.  Over the years I have identified what I consider to be 15 traits that are critical to effective leadership.

1.   Willing to take a risk:   No leader has ever been successful without taking risks.  One of the key elements is not staying with the status quo and doing something out of the ordinary.  Whether leading a charge or leading a property management team, achieving objectives includes the element of risk.  We deal with risk management issues, and with that element of our job we try to avoid risks or minimize them.  With leaders, we take them and the key point is taking what I call educated or focused risks.  We may decide to spend funds on a marketing medium or campaign, taking the risk we will benefit from the expense to increase revenue.  As long as we enter the risk with forethought and focus, we minimize the risk we take.  We would have not reached the moon or developed a new piece of vacant land in a new market successfully if we had not accepted the fact that risks are part of the success equation as leaders.

2.       Willing to work smarter, not just harder:  Interviewing candidates for new positions I hear time and time again the statement, “I am a hard worker.”  I will take someone who works smarter; as they will in turn tackle hard challenges with greater success while accepting that some tasks are hard and need to be seen as such.  I also hear them say, “I am a people person, “ which I am glad I am not hiring someone for a veterinary position.  Great leaders learn from the trait of delegating to the right people…the right job.  Great leaders find ways to utilize resources and personnel so tasks are not as challenging.  Great leaders formulate strategies learning along the way and planning during and after the process how they would do it better next time.   Don’t get me wrong, I believe we need hard working people and they are to be admired.  Working smarter also means being able to manage my time and resources intelligently to get the most result from the least amount of hours and people.

3.       Willing to see leadership characteristics in others, even when it could be considered by some to be threatening:  Great leaders check their ego at the door, which can lead to realizing it takes a team of others to meet the goals of a company or owner.  I hire people looking for qualities that have the potential to surpass mine.  It took me a long time to figure out that by finding and keeping people that were better or had the ability to be better then myself, enabled me to be more successful.  I want people that some day can fill my position.  This should not be threatening, however, is often perceived as a threat to managers.  A manager that hires a leasing consultant that is better at sales than they are or an assistant manager that is better ad administrative duties than they are not only compliments them, but will inspire them to do better as well.  The proudest moments in my career have been seeing someone I took a risk on and hired as a leasing consultant, now is acting as a leader as a regional property manager or director of property management for a major company.  I have had several such successes, and with each knew they would some day exceed my abilities…and did.   The adage of, “they are over qualified,” should never apply unless we are uncertain of our ability to lead them. 

4.       Willing to admit they are wrong:  I hope my wife and mother read this.  Ok, I’m a man and the ladies out there may think this is an impossible feat.  Any person in a leadership role, man or woman, that cannot check with reality when they are wrong will quickly lose respect and credibility…period end.  You may try to fool yourself, but since we do not work in a vacuum you will find you will not be able to fool others…at least not all of them.  If you do not think this aspect will not come back to haunt you in your career, you are sadly mistaken.  This is a human characteristic, and is one of the hardest leadership traits to overcome.  Referring back to the previous trait, we need to accept we may not always have the best answer and hiring and keeping others that may have a better solution to a challenge will broaden your efficiency as a true leader beyond your wildest dreams.  Everyone makes mistakes in their career at some point in time.   Admitting your mistakes and learning from them will carry you farther and with more respect than covering them up or denying them.  Just ask a guy named George Washington who did not win a single battle fought from his time of taking over the Continental Army in July 1775 until his first victory in December 1776, and later became one of our greatest generals and our first President of the United States. 

5.       Willing to empower others, and not wield power:  Empowerment is said to be a leaders greatest tool.  In addition to allowing others to be empowered and make decisions comes the risk they will at times not make the right decision, or a decision that was not your first choice.  I once had someone tell me after I explained my position as a Regional Manager, “you must be a powerful person!”  “No” I explained, “I have powerful people working with me that know how to lead.”  Power is not synonymous with force.  Force will never, and I repeat never, allow you to be an effective or efficient leader.  I have heard more times than I can count one of the biggest fears of managers are that of making the wrong decision and failure.  I tell them, I would rather them make the wrong decision than no decision at all.  That is empowerment!  You can learn from decisions both right and wrong.  You cannot learn from inaction, as there is nothing to learn from. 

6.       Willing to accept criticism and contrary ideas:  Whether an annual review or general criticism, we have a hard time being objective because our pride and selfishness interferes with our ability to see reality.  It’s hard for us to be objective and with most people it is almost impossible to accept criticism or contrary ideas without it being perceived as a threat to us personally.  Leaders not only accept criticism and contrary ideas, they seek it and from all levels.  Keeping an open mind to contrary ideas and accepting what may be perceived as a critique in our course of work, will help you sail into a stronger leadership role.

7.       Willing to take corrective action immediately upon its need:  Managers are afraid to address shortcomings or discuss areas of needed improvement mostly because they wish to avoid the potential controversy associated with it, and in many cases not having to deal with possibly hurting someone’s feelings and pride.  We talked earlier about the annual review.  Often we tip toe through employee issues throughout the year, only to deal with a ticked off team member later when we failed to communicate or officially document needed corrective action timely.  A great leader never puts off the inevitable, and understands the importance of addressing sooner rather than later.  The lack of taking timely corrective action not only is not beneficial to the team member, it can have a significant negative impact on the rest of the team.  Leadership should never take joy from having to deal with corrective issues, however, understands the critical need for not putting off what needs to be done.  It also means dealing with the emotional issues of corrective action.  To control emotion when dealing with others, you have to learn to control your own.

8.       Willing to be open about themselves and their goals and objectives:  Most leaders are afraid to let their peers and subordinates get to know them.  In the past, this has been construed as opening the door to identifying potential weaknesses.  They are afraid they will cross the line between friendship and being the boss, and not being able to manage with authority.  There are certain things your team must and should know about you.  These include your personal goals and objectives, the basics of your leadership principles and style (without being intimidating), what motives you, what you like to do for leisure, what excites you (different from what motivates you), how you can help them (without being the know-at-all), and what values you hold.  Being open with your team will instill them to be more open with you. 

9.       Willing to see the abilities of others and able to provide gratitude seriously:  Openness in your ability to see the strengths and abilities of others is crucial to your development as well as theirs.  Focusing on only what I have done and not identifying the strengths of others is shortsighted and self-destructive.  Look for and seek greatness in others. This will not only create a motivational environment, you will also find it self-rewarding.  Give praise where praise is due, not just to give it.  A great leader searches out greatness in others, shares it with others, and instills it through these channels so others desire it.  Leadership encourages people to not do their job because they have to…but because they want to.  Sincerity of praise in their abilities is more important than the praise itself.  If you just say, “good job,” without substance it will more than likely be construed as “lip service.”  Follow the adage of praising in public and reprimanding in private.  A great leader is unselfish and always willing to give credit where credit is due.  Remember, each of us has the POWER to recognize the goodness in others.

10.   Willing to not accept mediocrity, and always striving to excel:  Management skills as we have identified are important, however, not enough to provide excellence.  Excellence demands great leadership.  Our jobs as property managers are not to meet our residents’ expectations…but to exceed them.  Leadership is no different and the expectation of merely doing a good job cannot and will not lead to great success.  Instill this greatness as a leader by both leading by example, and reminding them what greatness leads to.  It is difficult for someone to hit a target they cannot see.  Those that have worked with me have heard this many times and understand the importance. 

11.   Willing to accept new challenges and not judge based on subjective perceptions:  Adapting to change is difficult for many individuals, and even more difficult for teams.  To put this in perspective, it is a human characteristic to resist change.  We do not like change, however, nothing is permanent but to expect there will be change in our lives.  When presented with change we have all heard, “We’ve always done it this way.”  Great leaders struggle with change just as anyone does, but they look at it differently.  If we believe there is always a better way and strive to constantly exceed and excel, we are not afraid of change.  Remember ignorance is doing the same thing over and over, and expecting a different result.  I wish the federal government would follow that principle.

12.   Willing to share information and provide guidance to inspire greatness:  This is one I absolutely love.  Anyone that knows me understands I believe in the principle of sharing information and the importance of sharing from an educational standpoint.  Share everything you know, and see what sticks.  With every training session, workshop, NAA and local association event, I would share with my teams my highlights and notes.  With any event, I would find what I called, “Take-A-ways!”  What can I take away from what I have learned that will benefit others?   Don’t look at your next site visit or team meeting as just what they are called.  Find a way to make them learning experiences.  A great leader will take a property inspection and turn it into a treasure hunt to find ways everyone can excel.  I remember one time closing an office and taking the entire team to view ready apartments and walk the site.  What came out of that was a bond and understanding of the services we were providing and the product we were producing.  One of the leasing consultants said, “What if we miss a prospect?”   I replied, “I would be happy to miss one prospect if it means finding ways to keep hundreds of our existing residents happy about where they live and working as a team for the benefit of our community or the chance of losing ten prospects because we did not have the best product to show them.”  Show them the way, share with them the why, provide guidance to inspire greatness, and they will follow.

13.   Willing to not dwell on issues, but look at the big picture in reaching goals:  A great leader will not dwell on small issues and challenges, but will delegate them to someone else.  Leadership is for all intensive purposes a disciplined passion and balancing act.  If we think about it, it is not the small challenges that usually come back to haunt us, but the big ones.  It also means taking on the big issues first as we manage our time.  When I interview someone, I always ask them what they would do if coming into work they found they had six projects for the day; Two were very hard, three had some difficulty and sensitivity, and one was exceptionally hard.  I then proceed to ask how they would manage their day?  About eight times out of ten I hear, “I would get the easy stuff out of the way first.”  This answer is not the leader I am looking for, and for many reasons.  Great leaders tackle the larger issues and here is why.  First, studies show the more difficult challenges we are faced with involve some aspect related to finances.  If it deals with cash flow, deal with it now.  Second, difficult issues are usually more time consuming.  If you put them off, you will find yourself running out of time and more than likely taking the problem home or loosing sleep over it.  Remember the section on working smarter, not harder?  Third, if we have the difficult task hanging over us like a black cloud, our ability to make good decisions on the easier issues is jeopardized because we are always thinking about the hard task we will have to confront later.  Leaders will look at difficult challenges as opportunities, and other issues as manageable interruptions. 

14.   Willing to make decisions, even when it may not be the best-accepted decision:  Leadership is having the courage to make tough decisions knowing they may not be popular (but best for the team).  Many times people are afraid to make decisions because they have the fear they may be proved wrong later.  Leaders or managers who put off making difficult decisions usually do so because they lack courage to make them.   There is no escaping the fact that all leaders will have to make some very difficult decisions in their career or fame, and when and how they make these decisions many times will set the stage for whether or not the team is willing to follow them.  At times people look for excuses to put off decisions including saying the need to “evaluate” to make the best decision, or let’s form a task force or committee to look into this.  Sounds like the government again, and we know how efficient they are in their decisions for us.  Ineffective leaders are usually insecure and try to find avenues to protect themselves by not making decisions.  Team members will follow a decisive leader, they will never follow someone who is afraid or does not have the courage to make a decision…no matter what direction the decision may need to be in.  A poor decision made decisively is better than no decision made at all!

15.   Willing to give their people the time necessary when something is important to them:  Basically, leaders are willing and effective listeners no matter what is being discussed.  Leadership is listening effectively, even when the idea or suggestion is lets say, “out there.”  Not listening can be considered “exclusionary,” and one of the primary basic principles of leadership as we have learned is inclusion.  Relating to all people at all levels is not a gift it is a learned behavior.  Great leaders involve and engage their people, and everyone matters and they know it.  It’s not about creating an environment that makes them happy, but to create an environment that makes them want to excel at what they do. 

Listening, coaching, recognizing peoples efforts, and giving people decision making authority.  We have been conditioned to believe the customer is number one.  I believe there is another alternative and that is to treat our employees as number one…and they will in turn treat our residents and customers as number one.  Leadership is never really completed or done; rather it is an evolutionary process.  Find the leader in you, and you will no doubt find leaders in those that work with you.