I have written at length about
the story of who is number one. I am a believer and advocate of treating
our employees as number one, and by doing so they will treat our residents and
guests as number one. There are two parts to the Number One equation,
with the second part being equally as important. That second part is
simple; treat our residents as number one and they will be less likely to
leave.
Our industry has recovered nicely
from the doldrums of the housing industry challenges beginning around
2008 and 2009 , lasting several years. Rents are on the rise,
property values are on the rise, and we are witnessing the re-birth of new
development of apartments in many markets. Several factors have been at
play assisting in the multifamily rebound including the increase of
foreclosures providing more of a demand for apartments, some recovery of the
employment markets even though national wages have declined, and a decrease
until the last couple of years in the construction and development of new
homes and sub-divisions. The metrics continue to be positive with rent
growth still above 4% (a decline from the 5% we saw up most of last year and
until October 2015 where it dipped below 5% after strong first, second, and
third quarters). Occupancy has also been strong remaining around
94-95% for since mid-2012.
So everything is coming up roses,
right? Not so fast buckaroo, we all know our industry is cyclical as are
financial markets overall, and we also have variables in our future that may
turn that cycle around much faster than it took to recover. Think of it,
in 2016 we have a major election. Markets have dropped and risen just on
who is in the White House and who controls the houses of Congress.
Additionally, while we have had hundreds of thousands of homes under
foreclosure purchased and flipped or in some cases turned into rental income
homes, there are hundreds of thousands the banks are holding on to and if the
housing market begins to signs of declination may create instability in both
the financial and physical sides of the market. We also work and live in
an increasingly relevant world market. Who would have thought twenty
years ago China may have more of an influence on the stock and real estate
market than what is going on within our own boundaries. This is why we
must never loose focus of what I consider will always be the two most important
factors in successful management and leadership, being taking care of our teams
and our residents.
This is not rocket surgery or
brain science...or is that the other way around. It is going back to
basics. Motivational factors with our employees and teams want to know
they are appreciated and acknowledged for good behavior and performance.
This is true even more true with generational studies, and a greater influence
on the younger generations impacting the job trends of today.
Training and education will continue to be a motivator, giving our employees hope
there is a path up the corporate ladder. Communication has influenced job
satisfaction with enhancements in the ability to communicate in multiple
mediums. Skype instead of a phone call adds a personal aspect and visual
cues to a meeting or project briefing. Shared folders for easy access of
updated data including resources and trends allow for open and transparent team
review. Last but not least, just showing we care. Nothing, and I
repeat, nothing says I care like showing you care.
And finally our residents. They
are very similar in some our employee motivational factors, with the most
important influence being on service and communication being a motivator to
stay. I years ago before it was a trend set up a requirement at my sites
to call back every service request thanking them for allowing us to serve them
and insuring resident satisfaction. At first when my idea was presented
they said things like they won't have time for this, saying our residents
really didn't care, and this will only create more work. After providing
the "why" behind the program and the "reward," they became
more favorable. What the clincher was when they actually heard guests
saying no other community the lived at did this and thought it was a nice touch
followed by improved resident retention, they were not only believers but
followers. At the time some companies were doing a percentage of call
backs, while most were not doing any at all. How much effort, energy, and
finances does it take to keep a resident versus finding a new one? I am
guessing if I surveyed most management companies and communities we would find
a handful that call or email every resident as a follow up to service.
Think of how this would look in a marketing campaign? Our residents want
to feel wanted and appreciated. They want to feel they are part of the
community. They want to know they are heard and not just a number in
building 200.
The lesson here is two
fold. Do not get complacent in where we or your community is in the
market, and second never under estimate the power of our people and our
residents. The more things change, the more they stay the same. We
have all heard this quote and when it comes to our industry we may witness
significant changes with our technology, profile, and resources, but the true
constant we often forget is simple...people.
