Turning the pages of a new year!

This year we witnessed an improving apartment market even with the single family and mortgage markets continuing to see issues.  Apartment rents are on the increase, and in some markets rising in double digits.  Single family home values have been hurt after the bubble burst some time around 2006 as experts tell us, and while there was money available by lenders qualification standards and skepticism with all the record foreclosures have lenders a little lets say "cautious." 

Development of new sites has again started back up, with permits for new sites on the increase in many areas of the country.  Cap rates have not changed significantly over the past year, and there are still bargains out there for investors just as with the single family and condo markets.  There have been an increase in affordable communities permitted according to the federal government, and as you would assume some areas of the country are seeing growth were others are not.  Reports show that approximately 90% of the loans by Fannie and Freddie in 2011 were affordable communities.  Most of the new construction is not with REIT's or real estate development corporations but with individuals.  According to the National Apartment Association  and National Multi Housing Council the 2011 statistics show almost 50% of all new communities were built by individuals and not corporations and investment trusts we witnessed as significant contributors to the inventory back in the late 90's and early 2000. 

Legislative issues in multifamily in the coming year will no doubt have a huge impact on the future development, as well as how investors will look at apartments as an investment opportunity.  Tax laws including Dodd-Frank and its 200 regulations as well as what happens regarding Capital Gain Tax laws may play a bigger part than first thought.  Even though apartment foreclosures do not represent a large percentage of defaults, changes in the laws and how they are in-acted will play a significant part to determine if investors will continue to put their assets in multifamily.   

While tax issues will be at the forefront in the coming year other issues include energy efficiency requirements, communications, environmental issues, immigration, insurance, sub-metering, privacy, EPA standards, and a host of other priorities will be at the forefront.  This is not including state and local issues we continue to battle such as rental licensing, life safety, impact fees, special assessments, taxes, and maintenance licensing. 

So what does the crystal ball tell us?  The overall market is looking up, but of course could change if our federal government doesn't get its act together regarding taxes.  Changes in employment nationally impact employment in sub-markets, which can change rapidly if things go downhill.  The investment market will be up and it will be down.  Basically, the more things change the more they stay the same in our business.  I was on a panel discussion for a local apartment association in 2008 with developers and experts in our field.  All but myself said the market would improve in the next 12 to 18 months.  I predicted it would be 24 - 26 months before we saw real improvement, and not to be bragging but I was right.  I also stated that tax changes from the federal government would have a more significant impact on future investments especially if capital gains and investments were changed.  Looking at the new today as we near the so called "fiscal cliff" I can say I appear to be on the money again.  We'll see over the next few days and weeks, and I do have concerns for investors in the coming year.  Let's hope I'm wrong about my next prediction or we're in for some rocky times ahead. 

Good days...bad days, and property management days!

Is it a full moon?  No, but some days you ask that question.  Residents try our patience and I wish I had a nickel for every time one of them said, "Can I have the number to your corporate office?"  Most of the time when we are doing our job we are the least liked.  We deal with emotional issues tied to our residents including their pets, homes, finances, children, vehicles, and even their lifestyle.  We ask residents to be courteous to their neighbors regarding noise, pick up after their pets, and a whole list of things covered in the lease.  We can post all the signs we want, highlight certain provisions in the lease, go over details that we have continual issues with, and even reinforce guidelines in letter and newsletters.  There are also some residents no matter what we do to communicate what we are doing to make our community the best for everyone, they are not happy.  Welcome to property management.

Many managers have also had a regional or corporate person overrule a guideline or lease provision in hopes of avoiding controversy.  Even though the lease says if they are late they must repay concessions, we'll waive the fee because they felt they were treated unfairly.  Of course there are always two sides to the story and the property manager in many cases seems to be the bad person in the event for doing their job.  The person making the decision may not know there are five or six others now we must accommodate in the same fashion if we are to be fair and equatable.   How do we enforce the lease in the coming months, if it is waived before?   The thought process seems to be, satisfy them and maybe the problem will go away.  What they may not understand is the ramifications and precedent it creates for the decisions we must make in the future.  It opens us up to Fair Housing complaints, and throws ethics out the window.  Something many of us take seriously.

So how do we handle situations when something like this happens?  First, remain calm with the resident.  To control the emotions of others, you first have to learn to control your own.  Second, choose your words carefully.  Refrain from using the word "no" and think about saying something like, "I'm sorry but removing the fee is not an option we have."  Third don't take the attack personally.  If you do, these types of incidents will wish you had picked another career.  Forth, others that made overriding decisions have the right to do it.  Does not make it right or correct, however, it transfers responsibility to them...or so you would think.  Last, fight the battles you can win and don't waste you energy or get upset over the ones you cannot. 

If this job was easy, anyone could do it.  Yes, residents that call corporate will do everything in their power to make you look unprofessional and the bad person.  After all, you probably did not give them something they wanted and Lord knows you may have even hurt their feelings.  For some reason we have gone from a society where feelings were a right to have, to something we try to avoid.  Again, welcome to property management.

Why do they need renters insurance?

Those of you that know me or have been to one of my workshops have heard me talk about emergency preparedness.  On occasion we as property managers are faced with the many types of challenges related to the topic. I have instructed companies and associations on how to prepare for them and presented to hundreds of managers all over the country.  This past week the Northeast was dealt an unforgiving hand with Hurricane Sandy, and I personally had to deal with a fire a my community.  These events emphasize the importance of being prepared and expecting the unexpected.

True story!
So I just get off of work and it's 6:19 PM on a Friday.  My cell  phone rings and on the caller ID it's the company that monitors our alarms...not a good sign!  Now we have had issues on occasion with ground faults related to the alarms, but there had been no storms or anything to lead me to believe it could be that.  The person says, we have a fire trouble signal in Building 3.  I ask, is it a trouble alert or fire?  Then I hear that four letter word we never want to hear, "fire."  Ok Larry, take a breath and think...rule number one!

After arriving I did all the things I teach others to do, and wouldn't you know it I even beat the fire department.  Check the apartment with the fire and assess the status, check.  Fire out by the sprinkler system but now water is flooding the apartment.  Wouldn't you  know, it's a third floor apartment and water never travels uphill.  Check surrounding apartments to get residents out, check.  Call the water extraction company, check.  Call the sprinkler company as the system will have to be inspected and tested before residents can re-enter the building, check.  Call the on call service technician, check.  Check the status of the apartments downstairs, check.  Provide comfort to the residents who were involved, check.  Begin efforts to protect the asset and insure cleanup is started, check.

Luckily there was more water damage then fire damage, if that is luck.  Luckily we require our residents to maintain renters insurance.  If you have ever witnessed sixteen families wondering around your office like zombies because they have just lost everything they own, have no where to go, and don't know where to begin the process of recovery you understand what I am talking about.  Unfortunately I have had to experience this type of event far too many times.

The next time one of your residents asks, "Why do I need renters insurance?" ask them the following.  Can you guarantee you or your neighbors will not have an incident that could put you in a financial position where you have to replace all the contents of your apartment?  Accidents can happen and it does not have to be your fault where you are put into a position that everything you own could be lost.  What if you put a pot on the stove and leave it for even a few minutes and it catches fire?  Who will be responsible financially for the damage?

Insurance means peace of mind both mentally and financially.  We resisted when we started charging our residents for water and said they would leave, and they didn't.  We resisted when we started charging for trash and said they would leave, and they didn't.  We resisted when we started requiring renters insurance and said they'll choose somewhere else, but they choose your community.   Renters insurance should not be a choice or an option it should be a requirement at all communities.  Look at what is happening with the Northeast and imagine the thousands of renters impacted by potential loss.  Hopefully all of them have insurance, however, we know many of them do not.

Thinking outside the apartment box

Our industry has changed considerably over the years.  From doing our accounting on ledger cards to lease optimizer programs, nothing is for sure but our industry is changing.  Financial success means thinking outside the box and if you are afraid to look at operations beyond the norm and how we have done them, you will probably get left behind. 

Owners and managers struggle to find ways of increasing revenue and new ways of generating income streams.  The obvious way to improve income is increasing resident retention, which is the highest controllable expense we oversee.  With the average cost of turnover including vacancy loss being well over $3,000 in most markets, keeping ten more residents on a 200 unit community (5%) means $30,000 of improvement to the bottom line.  Other critical points include managing lease expiration's and of course providing excellent customer service (also tied to resident retention). A property I recently took over had 68 expiration's in one month.  Can you say, "who in their right mind would allow this to happen?"  Apparently someone that did not understand the concept of expiration management. 

So where do we go beyond the obvious and what "outside the box" ideas should be looked at?  First, a great leader and manager never is afraid to test the waters and take risks.  We have all heard people say, "If it's not broke, don't fix it," or "We've always done it that way so why change."  Whether it is raising application or administration fees, pet fees versus deposits, or charging for premium parking spaces, you never know if it will work if you don't try it.  Companies are looking at taking prime parking spots in front of buildings and charging "convenience" fees for these spaces, generating thousands of dollars in additional income.  One of the new trends is actually setting up mini-markets in apartment offices where residents can purchase toilet paper, paper towels, toothpaste, dish washing and clothes detergent, and other items they run out of and are willing to pay a little extra for the convenience of walking out their front door and purchasing on the site.  With gas at $4.00 a gallon, this type of out of the box thinking is generating additional revenue.  Putting motion detectors on lighting at tennis courts at a property I oversaw paid for itself in 10 months. 

Expenses are rising related to taxes, utilities, payroll, and other areas.  It is up to us to find ways to offset those expenses and improve the bottom line.  Creativity is the key to success, and owners have expectations on their return on investment.  For years apartments have been called, "the vanilla box."  How about putting a little topping on that vanilla, and take a risk.  We would never have reached the moon or developed a new property in a new market without taking risks.  Think about it and you may come up with the next idea in raising revenue.

Life's Challenges - Making us strong

We face many challenges in life both professionally and personally.  The true character of someone is not what they do when things are going well, but what we do in the face of adversity.  Recently my friends and family know I faced some tests and challenges both personally and professionally.  Having my position in property management eliminated was the beginning, but never giving up on my faith and ability to continue on.  I picked up myself and got on the speaking circuit, and when not traveling and sharing with others through education and training was blessed with the opportunity to work for "the mouse."  Yes, that's Mickey Mouse for those that may not know.  Disney is a fantastic organization and being able to do something I have a passion for in diving and get paid for it was a blessing, not to mention really cool when your dive buddy is Mickey himself.  

Unemployment was not for me, and I found a way to make ends meet without depending on the government.  What is the saying, "what doesn't kill you can make you stronger."  Now don't get me wrong, there were days when you wondered "why?"  Family, friends, co-workers were always there to encourage me, supporting and loving in every way.  After deciding to return to property management I polished up my resume and started taking interviews.  You don't know how many times I heard, "It has come down to you and one other candidate."  I heard that so many times I thought I was running for public office. 

Challenges do not have the big ones, but also the ones that touch our heart.  A little over a week ago I lost one of my best friends, our dog Trevie.  She touched our heart in so many ways, and was loved by family and friends.  The home next to us just happens to be a vacation home, and each year a Canadian family rented the home for several months over the winter.  Trevie for some reason took to Don and Arlene, and when I would let her out she would prance over to the door at the pool enclosure checking to see if they were home.  They had become so fond of her Don would actually come over on occasion and ask, "Can Trevie come over and visit."  We wondered why she was getting so fat and why it took dragging her home because she didn't want to leave, only to discover meatballs and other human treats were better than the dog food she was getting at our house.  There were the times she would sit on the couch with me, sitting up like a human watching television.  Of course her favorite channel was Animal Planet.  God forbid I would stop rubbing her, and can still feel the gentle nudges she would give in saying, "Dad, why did you stop?"  Holding her head as she took her last breath will forever be in my mind, but knowing she is in a better place gave me peace of mind. Trevie, I love you and miss you.

Whether the challenge be what shirt to wear too work or facing life and death situations, it is not about what challenges we face...but how we walk through the rough road of life and making sure we reach the destination with our character and humility in tact.  There is no doubt more challenges are on the horizon for each of us, and it very well may be the most difficult are still to come.  None of us received a guarantee or warranty that life would be walked on a bed of rose petals, with the reality that roses have some pretty sharp thorns that can hurt.  We have all heard when the world give you lemons, make lemonade.  Or if you are over twenty one, Mikes Lemonade.  Face your challenges knowing and learning from them and always remember, without challenging times you have no idea what the good times are.

Upcoming Events

Putting the final touches on my presentations for the Indiana Apartment Association Annual Conference and Trade Show.  I will be speaking on two subjects, both of which I believe are essential to success in property management.

In the morning I present "Financial Management - Your key to success."   Here we will review and present key factors related to our fiscal responsibility as property managers, and look at the key areas that make a difference in maximizing income and minimizing expenses.  We will look at alternatives, changes within our business, and possible ways to improve your bottom line.  Also presented will be the subject of budgeting, a task many managers dread every fall.  Why are budgets so intimidating and what can we do to remove the fear of the process?  What areas of potential income may we be missing and a look at new trends which also bring new revenue.  

The afternoon session is one of my absolute favorites and is entitled, "Peak Performance Management - Leadership versus Management."  There are distinct differences between management and leadership, and while they overlap we need to understand how each plays a role in the positions within our industry and business.  We will identify and discuss fifteen key traits of successful leaders and help you understand the tpye of leader you are and identify with.  Management skills are important, however, not enough to lead to success and excellence.  Excellence demands strong leadership, period end.

Both of these workshops are intended to be fun, educational, and informative.  As a professional magician, we'll also add a few "tricks of the trade" to enlighten the attendees and create a memorable experience.  I look forward to meeting new friends and old, and the conference is lined with some great speakers who I have known and worked with over my years in property management.

I am also taking advance order for my book at the discounted price through my website.  I'll have a coupon code posted by the end of the week.   It is available also for your Kindle on Amazon.com, I'll be bringing some hard copies with me for those who want a hard copy.  Email me at lawrenceberry@comcast.net so we can bring additional copies for anyone interested.

See you in Indianapolis for what is going to be another great conference.

A Writers Vision

Someone recently asked me, "why do you write?"    Writers are never satisfied with the result, and always critical of what they produce.  The best writers I am told are always looking at their work wondering, what could have I said or done to make it better.  So why do we do what we do?  There are many reasons including sharing information, continuing interest in topics I have a passion for, and what I consider personal therapy in keeping the creative juices alive in me.   Developing skills to communicate in a manner where others desire what you provide and can relate to a topic is part of an evolutionary process.  When I wrote my book "Complex - A Guide To Apartment Management," the ink was barely dry and I was already looking at what could have I done to make it even better.  This was after almost a year of writing and editing, and you would have thought in that time it was the best it could be.  Even today when I receive compliments on how this publication inspired others to exceed and excel in property management or introduced them to our industry, I still am second guessing and asking myself, "what if?" 

I write about those things I enjoy, have knowledge and experience in, as well as subjects where I have life interests.  Writing an article for UNITS Magazine may focus on the business side of my brain as an industry professional and property manager, while writing a screenplay about scuba diving or magic brings another form of enjoyment which I find is exciting as I push my creativity.  As an example while our industry is constantly evolving, most of what we do has been wrapped around basic principles and practices.  Coming up with a new marketing concept or resident activity can be measured in income and occupancy, however, innovation in what property management professionals is limited in many aspects by finances and staffing.  On the other hand when I write a novel or screenplay, I am only limited by my imagination.  Both are gratifying as stated in the above rationale, and each allows me to use as a means of communication.

Those of you that know me understand my passion for property management and helping others exceed and excel is exciting to me.  Not all of you know I have another side, and that is writing for personal gratification.  I have written two movie screenplays and started converting one screenplay to book format.  The first screenplay I wrote is called, "Quarry - What lies within?"  It is the story of a rock quarry which in blasting for granite, struck an underground aqua fir and releases what was thought to be extinct...a megalodon shark.  After all, great white sharks are said to be on offspring of the "megy" as they are called, and since we know more about the moon than we do our oceans and water systems who is to say they still could not exist. The story is based on a group of divers and the quarry they dive in on a regular basis.  My diving hobby and knowledge of sharks inspired me, and with some research and creativity developed the screenplay.  Actually had Warner Brothers as one time looking at the script.  Have not received any options yet, but that never held me back from writing other works.  I have just about completed the first draft to put this writing into book format, and who knows what the future may hold.  The second screenplay which I just completed recently also involves something I have knowledge and interest in...magic.  Having worked in the intelligence field and performed as a professional magician for a number of years, the two seemed to merge into "Wizard - Dirty Secrets."  It is the story of a professional magician who just happens to be a spy for a secret government agency called Military Assisted Global Intelligence Command (M.A.G.I.C.).  Using magic, illusion, and a team of specialists they fight terror and threats to our country and the world.  I have already started a sequel to the first, and hope to expand the screenplay into book format as well. 

Writing can be fun, inspiring, and keeps my mind active.  Often wondered if searching on the internet for information about Uranium 235 if the FBI would come knocking on my door wondering what I was doing.  Probably have a file somewhere in the agency archives wondering who this person is that researched how to make dirty bombs.  Hold on, need to answer the door!  Just kidding of course.  None of us knows what the future may bring or what taking a risk may provide in rewards.  Failure is never having made the attempt, not how high the bar may have been set.  Find your vision in whatever you  do and no doubt you will be inspired as I have been.  

Pets are residents too!

One thing is for certain, we love our pets.  Because we deal with pet issues, we also deal with the emotional side of how residents feel about their pets.  Whether it be breed restrictions, picking up after their pets, pet fees and pet rent, insuring pets are registered, we deal with so many side of pet issues.  With that in mind, how do we use pet residents to our advantage and know how to handle challenges dealing with pets.

First, embrace the fact you have pets and make them part of your community.  Having dog waste stations convient makes it easier to enforce and have pet owners take responsiblity.  Explain to new move-in's their responsiblity, and point out dog walk and park areas for them to use.  Don't assume just because your advertising says you accept dogs they all take their responsibility seriously.  Take a photo of your pet to include in the lease file.  If they know you have a picture, they also know you can identify their pet if there is an issue.  I love having a new move-in package include a few pet treats if we know they are moving in with a pet.  This includes for both dogs and cats, so don't forget the purrrrrfect animals as well.  Nothing says we are pet friendly like starting the new lease with a treat for their loved pet. 

Market through pet kennels, pet groomers, vet hospitals, SPCA, and other operations, expecially if you accept large dogs and multiple pets.  Not all communties accept multiple animals or large breeds.  Designate a month as pet month.  Call it "Pet Appreciation," or "ABC Apartments Pet Fair."  Invite those pet kennels, trainers, pet supply box stores, vet hospitals, SPCA, even the K9 corp from the sherriff's department.  Doesn't take a rocket scientist to figure out you can have a really cool and productive resident activity surrounding your pet population and their owners. 

As part of your concierge services have mobile pet groomers, vets taht make community calls, trainers, and dog walkers in your community.  I am currently working with a local vet to provide quarterly on-site pet checkups and vaccines at the site. 

Use your imagination and use your pets as a marketing tool.  We often focus on the people side, but don't forget the four legged friends that also play a part in where people choose to live.

Resident Retention and Activities

Many communities struggle with new ideas for resident activities as a method for increasing resident retention.  While resident retention should be approached from many different angles (the least of which is excellent service), we also need to be reminded renewals are not an event but a process.  Constantly keeping your resident energized and excited about where they live can be a challenge, unless you let your imagination run with the wind.

Today we live in the "knowledge" age, where information can be obtained at the click of a mouse and people based on studies are constantly seeking new information.  Previously we would have a cookout, holiday event, pizza party, or other event only to have the same residents show up every time for the events.  We must remember we deal with a very diverse resident profile today, even when you may have a  specific target profile.  We also should tap into that knowledge and information resource when we consider our resident functions and activities.

Look at your resident profile and review some of the diverse opportunities and potential interests.  Look at what are leading topics in the news or today's world that have a personal or emotional impact.  Look at where you might be able to make ties with local businesses and even employers, benefiting not only your residents but your occupancy.  Look at the trees to see how vital the forest can be!  Some ideas that have proven to be extremely successful include information sessions and not just fun activities.  Here are some examples:

1.  Travel with certain profiles is something that interests our residents.  Cruise lines and travel agencies love to give information sessions related to travel.  As an example in Houston, TX there is a local company called Vacations to Go.  In Philadelphia is The Cruise Agency.  In Orlando, Florida is Cruise Planners, and the list goes on.
2.  Lowes and Home Depot or your local garden center will fall over themselves to do a workshop at your property for free on "plants for your apartment or balcony."  Not only is this a great workshop for your residents while working with a large employer in your market, you probably will get some great looking patios and balconies out of the workshop.
3.  Financial planning is something everyone today is looking at, especially in light of the potential Social Security is not going to be there for everyone in the future or at least not in the present form. 
4.  Cooking and healthy cooking in particular are extremely popular, and add to that seminars or presentations on cooking specifically for busy lifestyles and people on the go touch on a lifestyle trend.  Throw into the mix gourmet and specialty cooking, and you have several categories and events to choose from.  Even places like Bed, Bath and Beyond will sponsor events like this.
5.  Wine and cheese and the effects of wine and food are popular to many residents.  How many times have you seen in an apartment a wine rack or wine refrigerator?  Not all wines go with all foods, and having an expert on "cause and effect of food and wine" is a great workshop.  Places like Total Wine and ABC Wine and Spirits are great resources for information sessions.
6.  Self defense with crime issues in most communities can be a big draw for both adults and children.  If you have an indoor fitness area or sports court where it is big enough for lessons, I have witnessed local dojo's enthusiastic about holding classes at a community.

Now for the clincher.  None of these cost you money and there are many more areas we have not even touched on.  Mobile pet grooming and even vet services at properties, genealogy (look at the show Who Do You Think You Are and Ancestory.com increases in popularity), on site massage night, swimming lessons for that pool that is not used very often, etc.  Each presenter brings food and beverage, and has "give-aways" to entice resident participation. 

Use your imagination, throw everything on the wall and see what sticks.  The impact on the bottom line can be significant, and the happiness of your residents and the sense of community can be rewarding. 

Preparation leads to production

Just like anyone that  is looked at as a professional in whatever they do, preparation is an important aspect.  A baseball player would not stand in the batters box at Busch Stadium in the National League without spending thousands of hours before in a hitting cage and practicing their swing.  When I provide training and education programs I can easily spend over a hundred hours in research and preparation before I ever consider walking into a room of property management professionals to provide a workshop.  Those  of you that know me as a professional magician know I am constantly practicing my craft to be the best I can be.  And those that work with me as a Divemaster can associate with the preparation given to insure my equipment and the equipment we give to guests is ready and in proper working order.  So where is all this taking us you ask?

Being mentally and physically ready when a prospect walks in the door or calls on the phone is essential to any leasing person or managers success (of course this also relates to our valued service associates).  I can always tell when someone is not mentally ready for a prospect, as it shows from their voice to their actions and in the final result.  Maybe they are having a bad day or did not sleep well last night.  Maybe they have personal issues or problems that complicate their ability to focus on the task at hand.  I believe we can help our associates condition themselves to overcome such challenges, however, we seldom provide instruction and guidance which can play a beneficial role in their success.  Leasing is about more than just showing an apartment and taking down some information, it's about relationships and showing your prospects and residents you genuinely care.  As leaders of others, coaching and helping others exceed and excel is paramount to their success and mine as well.  Taking a little time to communicate, ask questions, and get to know the individuals we work with can help you identify if their mental status is conducive to a successful environment and beneficial in reaching the goals we set for them. Physically ready means my work station is neat and organized, my apartment is ready for viewing, I have the physical tools ready to document the visit and sell the apartment, and I also believe my appearance is professional and neat.  Do I have the tools to do the job, and do it at the highest level possible to attain the result expected?

Leadership is about identifying where can we direct preparation to improve production.  It is about focusing on our people, being able to identify with the tasks they are asked to perform, and analyzing what needs to be improved on and directing them to success.  We often are too busy to do these things, and wonder why associates are not meeting goals or fail at tasks.  Taking a little time to help them understand preparation and guiding them through effective leadership can and will lead to higher production.  Just ask any coach and successful athlete as well as any star performer and their leader, and no doubt you will see how being prepared leads to preparation for success.

The decisions we make!

As my Dad used to tell me, "Sometimes things happen for a reason.  You may not find out what the reason is right away."  My father was a very wise person, and I miss him dearly.

As I wrote last week, going back into property management is something I look forward to doing and PM is something I have a passion for.  Going a few months with interviews and being told I was "one of two candidates we have narrowed our search down to," was becoming familiar and in some ways frustrating.  Being told I was "over qualified," knowing if I was looking for someone I would rather have over qualified than under qualified was also a hard pill to swallow.  But, I remember back to what my father said and continue on.

This week I was provided an offer for a position, and a favorable offer considering the task and compensation.  It was also with a very well known and respected company in the industry, and they made multiple efforts to encourage me to come on board with their team.  Unfortunately, there were a couple of things that made the decision difficult and one stumbling block that weighed heavily on my decision to decline the offer.  As I told them, I did not take the decision lightly and even though I am anxious to get back to work full time had to respectfully decline.

Leaders make decisions and one critical trait of a successful leader is being decisive.  When talking with my wife and with friends I have in the industry, the question was raised related to the decisions made and where does the basis for the decision fall if personal or professional?  Tough question, as a former co-worker told me but then reminded me leadership is also about respect for oneself as well as for others.  Never ceases to amaze me how friends can help us see things in a new light, even when we know where the switch is all the time. 

None of us knows what the future holds except for the decisions we make and how they impact our future.  Was this the right decision?  Time will tell, and second guessing can only cloud our perception and possibly have an impact on the next decision we are faced with.  Sometimes your heart says one thing, while your head leads you in another direction.   There again maybe that is why God gave us one of each, and we would probably look really strange with two heads anyway.  I remain confident I will find the right position with the right company, and I am also confident in my ability as a leader.  That coupled with loving family and friends is what carries me through, facing the future with optimism and determination another opportunity to make another decision will be in my future.  Kind of sounds like leadership when we talk about optimism and determination, following the passion for what i love to do....lead others to greatness.  The only fear we should have is not finding the courage to make the decision both personally and professional, and I look forward to the next chapter in the revolving book of life.  As I said at one of my conferences I was presenting on leadership, I would rather have one of my managers make the wrong decision than no decision at all.  After all we can learn from our decisions both right and wrong, we learn nothing from inaction. 

New Friends and New Opportunties

I am getting excited and ready for my visit to the Washtenaw Area Apartment Association in Ann Arbor, Michigan next week.  The topic, "Expect the unexpected...Emergency Preparedness."  Over the past weeks I have received friend requests from both service providers and property management professionals in Michigan, and look forward to seeing them at the workshop.  Our industry is expansive, however, in some aspects small.  We all share common interests and even though there are tens of thousands of professionals in our industry, it never ceases to amaze me how common topics bring us together.  Service providers, site maintenance professionals, and management and leasing members have become new friends on Linkedin and Multifamily Insiders with me.  I will have the honor and privilege to meet some of them next week, and hopefully build new relationships and share information as we discuss this very important topic.  This will be a very interactive workshop, and I promise will be not only informative but also enjoyable.  I have a couple of surprises lined up to make it fun and we'll throw in a few magic tricks to make it memorable. 

It has also been a week for looking at new opportunities.  My friends and many I have worked with in my career know I miss the challenges and opportunities of leadership and management.  One of the managers I worked with a few years ago recently called to check on my status, reminding me how relationships we build can last a lifetime.  I have thoroughly enjoyed doing the training and education, traveling all over the country sharing information and myself learning along the way.  It never fails I learn something as well with every workshop or seminar I either prepare for or present.  As my father once told me, "If you learn something new every day, you become a better person every day."  Sure miss my Dad, as he was not only my best friend but also the wisest person I have ever known.  Anyway, looking to return to property management has been something I have concentrated on for the past few months.  After a couple of months with only a couple of interviews, I have three this week and am very thankful to have the opportunities.   Hopefully I will find a home with a new company, doing what I love and have a passion for.  In addition to the speaking many of you know I also have been a diver for Disney, spending time in the water with sharks when not speaking.  Someone once asked me if I was afraid of being in the water with 9 foot sharks on a regular basis.  My response was, "Have you met some of the residents I have had to deal with?" 

We'll keep you posted on where I end up, and the blog will no doubt continue.  I was extremely proud when I reported week before last I had over 3,000 visitors to my blog page, and as of today I hit 4,000.  An email I received yesterday from another friend and former co-worker told me I was NOT allowed to drop the blog in returning to active management.  Her comments and the others I have received encourage me to continue to share information now matter what I am doing, which is something love doing. 

Have a great week and  remember the key to knowledge is not having all the answers...but knowing where to find them.

Leasing isn't difficult...so don't make it so hard!

First let me say thank you to the now over 3,000 people that have visited my blog site.  I hit that mark over the weekend, and am excited to reach this milestone.  I also have received hundreds of great comments about some of my topics, and a few phone calls saying they appreciate the forum.  Those that know me understand I do this to keep our industry as professional as possible and hopefully help others with subject matter than can help apartment professionals exceed and excel.   Now, on with this weeks topic.

Never ceases to amaze me in the number of leasing associates that do not follow-up or do not follow-up timely.  We review our advertising, make sure our apartments are the best, check to make sure the amenities  show well, and even polish our shoes.  For some reason we do all these things but forget to polish the sales and leasing techniques that create the lease and often discover additional information that can increase income and occupancy.  This is not rocket science people, and often times is what triggers getting the deposit.

Recently I visited properties and was in the "shoppers" world as I made my rounds.  I wish I could say this was a one time problem I have run into, however, we all know the answer is that it was not.  Last week I visited four communities and in the past month have shopped about fifteen sites for various reasons.  The results were not encouraging and I have to say rather disappointing.  One in five sites gave me an email or phone call within 24 hours of my visit.    Three other sites contacted me within three to four days of the visit, and the others I believe were abducted by aliens and the communities are now being leased only to Martians.  Only six of the fifteen sites asked for the deposit or asked if I would like to fill out an application at the visit (guess they were 100% occupied and didn't need my money).  Of those six, only three did a great job of selling me and ones I would consider good leasers (that was until two of them did not do timely or failed to  follow-up).

I can only guess they all had so many other prospects coming in the door they didn't need my lease.  In this day of emails, instant messaging, and software that can track my inquiry down to the underwear I was wearing during the visit, we have forgotten some of the basics.  Oh and by the way, I have received ZERO thank you notes or cards telling me they probably failed to order ink for the printer or pens so they could right me a personalized note.  Honestly I expected more from what are supposed to be trained professionals.  There again, possibly training and checking guest cards for things like follow-up maybe have been forgotten because we are too busy twittering and doing financial reports explaining why our income is so low.

I'm sure Lisa, Mindy, Kate, Rebecca, Bill (last names withheld to protect the innocent) and all the other great trainers out there are probably shaking their heads, but not surprised to see the results.   We have so many challenges and difficult things to deal with and follow-up and selling our sites, management, team, and apartments does not have to be one of them...it should be the easiest if we only do what is so easy.

Now go lease!

Follow the money

Never will you hear an owner or supervisor say, "It's about the people...not the money."  That being said, it is about having the right people to insure NOI increases and the property is profitable.  Our job is to increase property values with one of the primary ways being the increase of Net Operating Income. 

We look at how we can improve NOI with the obvious being rent increases.  We do this through several key factors, however, we do not always keep them in mind as our site personnel go about their daily tasks.

*  The first and most important way is through resident retention.  In no other area can we have such a positive impact on income and expenses both.  This is done through exceeding resident expectations, providing "WOW" customer service, effective communications, and insuring all of the team contributes and understands the critical nature of how it impacts the bottom line.  We preach resident retention, however, I suggest we don't practice it on an every day basis.  This is where having the right people, the right training, the right follow-up, and the right attitude will make the difference between success or failure.

* Second, keeping your eye on the market and your finger on the rent button.  Managers for some reason are hesitant to raise rents.  They perceive this and believe it will drive prospects and residents away.  They also believed we would have empty properties when we started charging for water, sewer, and trash, only to find out it didn't happen.  This is where a good regional or district manager through conditioning can eliminate that fear, and then passing on that conditioning to the leasing staff.  Get a manager who resists changes to rents, and you will more than likely get those working with that manager to feel the same way.  By keeping your eye on the market, knowing your product and the product of your competition, you can maximize rents in any market.  Teach your team to be pro-active and the leader in the market, and you will probably find other properties wanting to be like you and following suit.

*  I have said this a million times, resident retention is not an event....it is a process.  Like the first bullet above where I talked about one of the keys being resident retention, if you provide exceptional service and a great product don't be afraid to ask for its value.  Why is it we wait until 90 days before lease expiration to then send a resident a letter or make a contact (maybe for the first time), only to have it asking for more money.  I have blogged about this before and stress the importance of making resident retention a process, which will lead to a higher success rate of retention and higher revenue.

*  Don't be afraid to adjust fees to increase revenue.  Application fees, administration fees, late fees, and of course pet fees are all part of our revenue.  This is especially true for pet owners, as they will pay for their pets.  Now I have never been advocate of pet rent, and find it crazy to expect a pet to have a job to contribute to pet rent.  Pet owners however, will pay a pet fee and few managers would ever contemplate making the pet administration fee for that lease term only or raising the fee to overcome an annual fee.  I can hear managers cursing me now, however, stepping out of the box is often a way of stepping into success.  I heard of a community raising their pet fee by $100, however, they included a free annual checkup with a local vet in the area.  The vet was anxious for new business, and would come to the property four times a year (one Saturday each quarter) to give registered pet owners an exam for their pets.  He got a ton of business and the pet income increased by $11,000 in the first year.  I also suggest we need to do a better job of verifying pet owners are registering their pets so we can collect fees, and you may have heard me talk about my pet amnesty program and how it improved pet income at one property almost $4,000 in one month it was done.


*  Collections are another way to improve income.  Time is money, and insuring your team knows how to effectively and efficiently collect rent and fees can have a huge impact on income.  The basic aspect of this is being consistent, firm, and timely when addressing collection of rent and fees.

* Finally to the expense side of the equation.  Managers are so focused on the numbers, they often miss the meaning of the numbers.  It's kind of like the old saying, can't see the forest for the trees.  We have them doing monthly reports, but do they really know what they are looking at and are they effectively monitoring expenses during the month to be pro-active versus re-active?  My suggestion is they are not, and keeping their eye to expenses (especially turnover and service) and training their team to do the same can have a huge impact on meeting budget or being over budget.

This is why property management is not a job...it is an adventure.  We can always find way to improve and we can always encourage our people to improve and excel.  I remember a manager that had for the first time exceeded budgeted NOI in several months and seems to have an attitude of "stepping back" rather than looking forward.  I asked her if since she proved she could do it, was there any reason why it could not be done every month.  She looked at me and said, "I suppose I could."  I asked her to review her statement and told her I had faith in her team and her and would not accept "suppose or I could" as a response.  After all, what was done was already history and I wanted her to keep her eye on the future...that my friends is the only thing that matters.  Almost every month after that for the rest of the budget period, she met or exceeded goal.

Hitting a moving target!

Leadership as you know is a topic near and dear to my heart.  I believe there are certain qualities in great leaders, and I also am a firm believer there are distinct differences between management and leadership.  That being said, both management and leadership has a responsibility to insure those that follow or work with them have the tools and knowledge to exceed and excel.  We can complain that someone is not performing or meeting goals, however, what are we doing to insure support is provided that leads to greatness.  That support comes in training.

Training and education is never done, but it is an evolutionary process.  It also means following up on what is taught to insure clear understanding, and keeping an open mind to finding new resources and ways of teaching and seeing the benefits.  The moment we believe we are done with training or supporting from an educational standpoint, we have failed both ourselves and those working with us.  Fair Housing is one example of an area we "assume" our team members know.  We give them an online course to complete or on occasion send them to a workshop if the funds are in the budget.  I have in the past written about the trend witnessed related to this topic.  When interviewing managers or anyone that is already in the business I always ask, "What are the protected classes in Fair Housing?"  I have yet to have more than two candidates in ten able to easily give me the correct response.  Our industry has many resources for education and training from site led reviews, regional workshops, Internet based courses, corporate conferences, and apartment association events.  So why is it our people do so poorly in this and other areas we "assume" they are trained in?

The answer is in several areas all critical to benefiting our teams, creating a motivational environment, and raising the skill levels of our associates.  First is follow-up.  How often do we confirm understanding of what is taught?  What I have found when talking with industry trainers is we seem to be lacking in training trainers and leaders/managers to verify educational success.  We instead assume they get it!  The key to great education is not that they can pass a test on an Internet required course, but they "retain" what they have learned and can use it effectively.  Second, we fail miserably at conditioning the training over time.  Humans for the most part need conditioning.    Our people pass that Fair Housing poster many times a day, why don't they know what is on it?  Because we fail to provide reminders and conditioning over time about the importance.  Third, we fail to explain the importance of the training and what they should expect.  This is to not only insure they have a clear understanding, and they won't be surprised as to why we will be following up with occasional testing. 

These points are also true when it comes to closing, troubleshooting for maintenance, risk management, and so many other areas.  Make education a process and condition your teams to expect it and you will probably find they desire it.  Help them identify with how this will help them move up the ladder of success, and you will no doubt find yourself being more successful.  Great leaders also have willing and great followers.  Since we cannot do the job alone, it is the great followers you develop that will raise your ability to lead further as well.

A New Year

Maybe things are starting to turn around.  As my friends and people I have worked with know, I started seeking a position back in property management.  Training and education has been fun, informative, and good, however, I sure miss the challenge and opportunities being in leadership. 

I went a couple of months with virtually no interviews, and now it's like the flood gates have opened up.  Two phone interviews today, one early next week, and a follow-up interview from one of the phone interviews today already scheduled for next week as well.  What has been interesting about the interviews has been the questions received and how some are only presenting basic questions while others really dig deeper to find out about the candidate (yes, that's me).  One interview today told me a lot about the organization, and did a fantastic job at getting into core areas.  Having written articles on hiring and spoken at NAA and many management company and NAA affiliates related to the topic, much can be said about the interviewer and organization.  As an example, one of my postings on hiring talked about making sure we give not only the good things about why someone should work for them but also give expectations and challenges.  I respect an organization and their interview team who isn't afraid to present what some may feel as "intimidating" questions and comments. 

Yes, they were tough questions and made me think and dig for answers.  That is what an interview should do to make sure we are hiring the right person.  Remember it's not hiring someone to fill a position, it's hiring the right person to fill the position.  I won't mention names or companies, however, I will say one interviewer impressed me enough to write this piece tonight and reflect once again on the importance of getting away from the standard questions. 

Hopefully one of these opportunities will pan out, and once again I'll be visiting properties and doing what I love most and have a passion for.  Make it a great weekend and I'll chat with you next week.