Who's number one?

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.