Motivational Leadership Goals

When I look at motivational leadership goals I remember  distinct times in my life that had an impact on me.

A friend of mine ask me if I ever did any running. I said yes, in High School I ran some track.  He said, how would you like to run a marathon?  Now I ran the 100 yard dash!  When I asked him how far a marathon was and he told me 26.2 miles, my response was, “I don’t even like driving 26 miles let alone run it.”  He said it builds “character.”  I said, “It would build to a heart attack.”  He said it would be inspirational for my employees that worked for me as a team leader.  I said, "yes, they can say nice things about me at my funeral".  Now I did not run the marathon so you won’t see me with some picture up on the screen crossing the finish line in front of some guy from Kenya.  Now in this I realized I needed to find other ways to motivate and create effective leadership with my co-workers.

We are all motivated for different reasons as each of us have different values and goals.  When I was young life was different and over time everything changes just as what motivates us may transcend.  I have friends that must go out and buy the latest I Phone, just because they want to be the first to have one.  Having the latest technology motivates them and makes them happy...that is until six months later they are motivated to spend another $300 on the newest device.   Having grown up in a time when we did not have cell phones, my values do not see the need to have a device that can tell me within twenty feet where I am at.  I look around and remember where I have been, which in turn tells me where I am.  Do I need an app to determine what motivates those I work with?  The answer of course is no!  I observe, ask questions, and most importantly listen to understand my subordinates so I can truly lead.  Remember leadership is not taking individuals where they want to go, but where they ought to be. 

What goals do you have for your employee's, and even a greater question might be do your employees have goals.  One of the first parts of motivational leadership as stated above is understanding what goals your employees have for themselves.  No matter what goals you have for them, if they do not see where they want to go as a goal you will not be successful.  Another key is that goals they have just as we have should be specific.  Saying, "I want to be a manager some day.", is a broad goal.  Saying I want to be an regional property manager or the manager of a four diamond resort helps me understand what path to take with that person as well as if the goal is realistic based on their potential.  Second part is creating the motivational environment which makes people believe and want to strive for a higher level. 

The message leaders send has a lot to do with the environment they create.



7 ways for leaders to send out a powerful and positive message: Themselves!

1. Leaders manage the process, but lead people
2. Leaders inspire people, they don’t just drive them
3. Leaders are easy to respect and look up to
4. Leaders are easy to like and get along with
5. Leaders help people to like themselves
6. Leaders help people to believe that what they’re doing is important
7. Leaders are responsive to people

If you are truly a leader, you will help others to not just see themselves as they are, but also what they can become.  Now go lead!

New way of thinking

I never have understood why we keep focusing on leasing when one area is so much more important and productive to both occupancy and cash flow....keeping our residents.  My opinion is we have conditioned some of our people to believe leasing is the primary job they should be doing, and some of that is in the titles we use.  As an example, we have leasing specialists, leasing associates, leasing consultants, leasing agents, etc.  Maybe there is a new way we should be looking at this position.

I propose we change the title to Resident Care Specialist and here is why.  First, as the name implies, the first and most important part of our people is in taking care of our residents.  Providing care to them, providing services to them, and making it so they know how important they are to us is critical and being missed.  Now don't get me wrong, one of the tasks of an RCS is leasing...when necessary.  If we change the mind-set of our people that leasing is secondary and taking care of our residents if first by reflecting this in their title, maybe they will adopt the principles we need for them to in providing service and care.  Maybe if we teach them and condition them to take responsibility and accountability for our residents through increased training and education, maybe we will see changes in the retention of our residents.  I know many of you are right now saying, "We do this."  My response is, "But do they really get it and is it truly working?" 

Second, prospects want more than a lease...they want to know they are going to be taken care of after the move-in.  The title of leasing "whatever," implies that is their primary job...closing a lease and then moving on to the next person.  We condition our prospects/guests with the words what the experience of deciding to live with us is (a leasing event), and through this condition our employees believe this is the most important part of what we do.   I believe our prospects will see the title of Resident Care Specialist as not something as an event or a one time experience, but as a process that is more permanent and portrays the potential relationship they are really seeking.   I also have an issue with paying leasing personnel a bonus but not paying service personnel for what they have to do...but that's for another blog.

Our industry has experienced many changes, however, the true meaning and value of resident retention has been skimmed over for those not in management roles and remains the same.    Interview a leasing person today and get to discussion of salary and one of the questions more frequently asked by them is, "How much is the leasing bonus."  I propose a dramatic change within our industry and that is to "stop" paying leasing fees or bonuses and only pay "renewal" fees or bonuses.    Some companies have looked at this and talking with regional managers and owners at conferences and workshops they tell me, "It is the only way we can keep good leasing people," and "This is what they expect."  My response to this is, "No, this is how we have conditioned them."  When asked what other challenges they are facing 9 times out of 10 say either resident retention and/or higher turnover costs as factors most impacting NOI and cash flow.  After hearing this I want to say, "Daaah!"

Let's look at it from a financial standpoint for both the team member and the bottom line, and for ease I will use an example of a 300 apartment community.  The staff totals an Community Manager, Assistant Manager, one RCS, as well as three in the service department.  Let's say we use an easy number of $50 for a lease, and turnover on an annual basis is 40% or 120 apartments.   This equates to $6,000 in bonus or leasing potential.  On the flip side of this your average turnover costs including vacancy loss, specials, and capital is $3,000 (below the average in many markets, however, an easy number to use).  This means your expenses and lost income associated with turnover is $360,000 (yes I said $360,000...you do the math).

Now lets say you offer the bonus not on leasing but on retention only and help them understand and condition them to relate to the primary job of resident retention.  A minimal improvement of 5% in retention would mean only an improvement of 15 renewals than before, however, $45,000 in lower expenses and improved income.  If I were to say to a team, this is how things have been and the financial aspects of what it means.  The current bonus for the team is $6,000 for leasing.  How would you like to increase that by $4,000 in the coming year?  Here is how we do it.  First, resident care is first and foremost and we will start by changing titles from leasing to RCS.  Second, take personal accountability for those you move in and build a case based process around them.  This means minimal in person communication with your resident every two months, and I don't mean by leaving a voice mail.  Truly build the relationship so renewals are not an event...they are a process.  Third, increase the retention by just 5% in the next twelve months and tell them what that means....about one additional renewal per month, or JUST 15 renewals over the year.  This presents a manageable and totally understandable and reachable goal.  Remove the leasing incentive and take the $10,000 ($6,000 original and $4,000 new money).  If you are doing the math this equates to $51.28 for each and EVERY renewal the team does at the new renewal rate of 195 apartments.  What this also does is make everyone's job easier, marketing costs lower, and expenses reduce or income improves by a net of $41,000 ($45,000 in lower expenses plus the $6,000 you were paying before in leasing fees, less the $10,000 new program).  This also increases the property value in just one year at a 5% cap rate by $820,000.  (Now I have the owners and upper managers attention).

We have changed with technology and how we market our communities and automated leasing and responses.  We have been provided with software that does not require for us to think about rental rates.  We have gone to texting versus talking and dependent on the internet for where people find us.  What we have forgotten about is the "people" part of this and what that can mean to the bottom line.  Maybe going back to the basics of service, resident care, and personal communication can still have meaning and value.  I believe it does, however, it is going to take a new way of thinking...or is that an old one? 

Making your mark!

As I was writing earlier today about my niece, it reminded me of something I had written some time back.  We were asked to write something about her as she prepares to graduate from the University of North Carolina Asheville.  Her sorority does a ceremony for graduating seniors where family members write things they remember most as she was growing up.  As I pondered what to write, I remembered the following poem and pulled it out of my archives.  I did not write this for her or for her sorority, however, my writing today triggered the basis for originally writing this...what do you want to be remembered for?  So here goes:

Making Your Mark!

Leaders are asked where do you stand

What mark have you made on this great land

What influence you’ve made to measure success

On what others would label you as one of the best

Is it wealth that says your mark has been hit?

Or is it the laughter created and amount of your wit

Do positions matter in measuring your place?

Or the title you receive and the corner office space

Why is it we look at the mark as something material?

When true rewards from your mark are often intangible

Where pride and satisfaction come from the feeling within

And true happiness is something you cannot even spend

For making your mark must start from inside

And be lead by emotion and feelings and pride

And no one can tell you what your mark should be

As it is built from the base like the roots of a tree

Success is not the miles traveled or places you see

But what you shared with others while adding humility

It’s not that you climbed a mountain because it was there

But why you did it and in the end what you shared

For in the end it is not from the place that you start

But where you have landed and what comes from the heart

So the next time someone asks you what mark have you made

Tell them it’s the hearts touched and the groundwork laid

For long after I am gone and the ashes are released

I want to be remembered for truly resting in peace

And not for what I was or for being courageous and bold

But for who I was and the values in life that I hold

Larry

So you want to be a property manager?

I first want to thank those that have recently contacted me to let me know how much they enjoy my page.  Those that know me can attest I have two passions, being leadership and property management.  OK, maybe I have a few others like diving with sharks and family.   I have had some amazing experiences in my property management and now Disney career as a leader.  What an amazing ride it has been so far.

So you want to be a property manager?  How does one get into this business?  I have asked that question of hundreds of property management professionals, and more times than not it was not something they were seeking rather something that found them.  Most people do not get into this industry through a college degree.  There are only a handful of universities that have property management programs, while we have hundreds of thousands of employees in this business.  Maybe they were familiar with the job because they applied for an apartment previously and had great customer service skills coupled with an outgoing personality.  Maybe a friend or family member in property management recommended they look at industry opportunities.  I have actually had several respondents who said they needed a job and lived in an apartment community that was hiring.  

So what does this industry provide that others may not?  First, no two days are exactly the same and something new will always be on the horizon.  If you want diversity, this industry provides it.  From the service side that may have ten service requests one day and because rent is due now you have fifty.   Or the office staff who is outreach marketing one day, answering the phones another and leasing apartments another, and yet another planning or putting together a resident activity.  We forget about the service tech that is called out at two in the morning because someones toilet is flooding the apartment downstairs.  Or how about the property manager who must wear one of the following or many of the following hats at any given time and be prepared to adjust to the moment:  Risk manager, financial consultant, marketing director, human resources consultant, project manager, emergency preparedness administrator, advertising expert, sales adviser, trainer, psychologist, asset manager, budget and reporting expert, inspector, and occasional babysitter when a lost child wonders into your office.  You may have to deal with some really "heart tough" issues including collecting rents, dealing with the death of a resident, or raising rents that challenge both your residents and staff.  You may be faced with fires, floods, hurricanes and severe storms, car accidents, equipment failures, budget cuts, market changes, and not to mention dealing with personal issues related to your team.

For those of you in the business, you're probably feel you need a raise after thinking about all the responsibility you are given and the hats you must wear.  If you are not in the industry you may be thinking, "Waiting tables at Olive Garden doesn't seem so bad."  One thing is for sure, if you find yourself in property management for any period of time it gets in your blood and into your soul.  This is especially true within multifamily and the apartment industry, because of the diversity of jobs and the diversity within those jobs.  All of the above for some of us is why we love the challenges and opportunities provided in property management.  You may also find when you ask that waiter who made a customer service impression on you, "So, you want to be a property manager?," this was exactly how you discovered the profession you have chosen. 

Activate your Activities

Activities at your community are critical to a sense of "community," and have a significant impact on  your resident retention.  What activities work at your site and are perceived as "value" to your residents?  The first part of the process is understanding your demographics of your resident profile and what are the key interests of your residents.  You can plan functions, parties, and activities, but without interest and perceived value to your residents you are wasting your time and resources. 

Look at the lifestyle of your residents as well as other factors such as income levels and age groups.  Unless you are managing a senior community or college property, you may have a very diverse profile living at your site.  Remember, activities do not have to be a cookout or what we traditionally have known as events most of us have tried (end of summer party, holiday events, etc.).  We live in an information age any there are so many factors related to information that may benefit them.  Let's look at some of the examples of events you can consider:

*  Genealogy has turned into a passion for many people.  Web sites and even television shows have been developed for tracing your family tree.  The resources are as far as the imagination can take you, and you can visit foreign lands and do research without leaving the comfort of your living room.  Bring in someone who has expertize in genealogy and research to assist residents in tracing their family heritage.  Doing it as a group shares the surprises you may find, and is an extremely low cost activity.

*  Health and wellness seems to be a topic that stays around through generations.  Whether it be bringing in a fitness trainer once a month to your exercise facility or coordinating volley ball teams to play at your court, use your imagination look at the possibilities.  I had one site that brought in a fitness trainer and because he consulted with several residents on fitness and was paid directly by them, wanted to increase the days he came to the site.  An initial investment for this activity soon turned into a free service for our residents.

*  Finances and investing are something everyone has an interest in, however, few have a true understanding of how the financial markets work and how they can plan for their financial future.  Bring in a representative from Schwab or one of the other financial institutions to provide a workshop on educating your residents.  I have found these financial institutions will fall over each other to have the opportunity to bring assistance and information to your residents. 

The ideas are endless form chess clubs, cooking demonstrations, travel, nutrition, gaming (computers are of course huge), pet health and training, discover scuba classes in your pool (yes, I'm a a diver but this has been a huge success), pet adoption events, emergency preparedness, storage and closet organizing systems (especially since our residents have more stuff than ever before), DVD and game sharing clubs, gardening (patio or container gardens are really hot for apartments), homeopathic information, bicycling events, pet activities and fairs, and the list goes on.  Also remember activities can be as simple as tracking resident birth dates and putting a balloon on their door or sending them a card.  We get this information on the application and all you need to do is set up a calendar specific for residents birthdays and someone daily checks it as part of their daily checklist.  Imagine coming home and unknown to you there is a happy birthday banner across the door and a balloon wishing me a happy birthday.  Effective, but simple and how many other communities do this?  Resident retention is not just about relationships, it's about building and maintaining them.

Do your research, and don't be afraid to ask your residents what is important to them and what they might have interest in.  Developing a plan is the first part, with the most important marketing and implementing the activity.  Get your team involved, and don't be afraid to survey your residents in developing an action plan.  Plan at least 90 days out for any activity, and the better the organized and marketed usually the better the attendance.  As I have said before, throw everything on the wall and see what sticks. 

Multifamily Evoluation

It has rained all day here in Central Florida, which provided me with an opportunity to jot down some of the things I have been thinking about recently.  This is also the first chance I have had to write since my trip to the United Kingdom.   Nothing like the fresh air of Ireland and beautiful scenery to trigger your senses and reflect on life in general.  Something about a rainy day just makes me want to write, so here goes.

The term "apartments" was derived from an American standard of living in the late 19th century. While apartment living has been traced back to Roman times, the concept of multifamily or apartment home living transitioned from the term "flats" which is still used today in the northeast. Census estimates show that at the beginning of 1900 almost 75% of Americans lived in apartments. Most early apartment buildings were upper floors of homes or converted hotels and more closely related to studio's or efficiency units. Then sometime around and after 1920, multistory buildings were being constructed the the phrase, "studio apartment" was coined in the New York metro area also called "cooperative apartments." After about 1930 apartment buildings were common and amenities such as private bathrooms and kitchen appliances were common.  A large apartment building might be 20-30 apartment homes or flats, and in some cases were nothing more than a converted warehouse with walls added.  Then something happened, and none other than the US Military assisted in developing what we know today as an apartment community.  During World War II, military bases built entire communities of multi-unit buildings to house families of those serving in our armed forces.  Prior to that period there was not as much consideration for the familial unit in the armed forces, and changes had to be made.  They added parks, swimming pools, and playgrounds in an attempt to provide housing for those serving and in training of our military. 

From what started as mom and pop renting out rooms in the upper story of their home to the complex and diverse industry of today, many changes have taken place.  From rent by the week with nothing more than a handshake to leases several pages long, we have witnessed the evolution.  From ledger cards keeping track of receipts and charges and NCR (no carbon required for those under thirty years old) work orders the business of apartments has transitioned into one of the largest industries in the world.  From signs on a telephone pole advertising "apartment or room to let" to Internet web sites where you can take a virtual tour and rent your apartment in a matter of seconds without even seeing it, we have come a long way. 

Today it is estimated that only about 33% of Americans live in apartments.  The dream and reality of home ownership has changed, coupled with the construction of "cookie cutter" homes and communities.  That being said, there are indications apartment home living may be on the rise again...at least in the short term.  Jobs have started to come back, however, annual medium income has been declining over the past 6-7 years.  We had what was termed as "the housing crisis," tied to economic downturns starting in 2008 and increasing foreclosures and bank defaults.  Occupancy has been steadily rising in most apartment communities and in most major markets, and new construction of multifamily sites is again on the rise.  The most recent report for 2014 shows apartment occupancy is the highest it has been since 2000, and both rents and occupancy have been on the rise.  

Everything in our business runs in cycles and we don't need a Quija Board to discover what goes up, will some day come down.  These cycles used to be more determined on the banking industry, federal reserve, national economy, government regulations, technology, and interest rates.  Today we live in a global economy and external factors as well as internal factors play a huge part on these cycles.  Technology is changing quickly and in addition to rent optimizers which automatically set rents for a site staff, the way we communicate with both our teams and our residents is changing.  To throw out some numbers only 10% of homes in 1950 had telephones, compared to an average of multiple phones per household today including cellular devices.  Today's apartment community has wireless Internet, multiple pools, a full fitness center, dog parks, a business center, walking trails, and trash picked up at your door.  I some years back predicated in one of my articles we would see convenience stores in apartment offices and on some communities and voice activated lighting, and it is already being offered.

While our industry has evolved, in some regards it has also remained the same.  What has not changed is we are still dealing with humans and their homes.  We touch their emotions dealing with their home, cars, pets, finances, credit rating, familial status, and their lifestyle.  We forget that service is more than an email and expectations will never go down, only up.  As we raise rents, so do we raise the expectations of our residents.  We may have new ways to market through electronic mediums, but the emotions and feelings of our residents is what guides their wallets and their mind just as how it always has.  So the next time you hear the phone and think, "another prospect," you are wrong it is a guest because they seldom stay forever.  The next time you ask when a resident calls in a service request, "What is your Unit Number?", you would be wrong because they live in their home not a unit.  Don't ever forget they have the ability to fire everyone in your organization from the CEO/Owner on down, simply by choosing to live somewhere else.  While our history has been interesting and ever changing, some things never change.