Have we lost the customer in customer service?

 

When I opened my company back up after retiring to return to speaking and training, it was very evident the changes in how we deal with and interact with our residents and customers has been altered significantly.   The day of calling a property or company and getting a real live human being are long gone.  While some of this has been a gradual change over the years, some of it has also been related to COVID and other excuses, which has in some cases forced us to revert to technology rather than human contact. 

Now I’ve been in the industry for more than a couple of decades and have witnessed us going from answering machines and ledger cards to everything being technology driven.  Some say this is for the good, while I know having talked to the real humans out there and reviewing comments, reviews, and ratings, the customer or residents for the most part are not happy.   This includes those that totally depend on technology being frustrated with their inability to go back to the basics of communicating and a desire for real customer service. People are now being lost in the internet or trapped in a circle of “press this if you want that,” scenarios without any real human interaction. 

When I made the decision to go back to doing workshops, seminars, and keynotes, I first made a commitment to build an extensive database of not just associations (both state and local), but also of management companies of all sizes and locations.  Let me say, it has been both labor intensive and eye opening.   While I have hundreds of contacts in the business through experience, LinkedIn, IREM, NAA, Facebook, and other platforms, I knew there were hundreds and maybe more than a thousand resource contacts out there that were going to take some detective work; and in my case, using some of my military intelligence skills to drill down and tap into and find these resources.    This is where my frustration came into light and discovering the frustrations of our residents and even prospects came into play.

I started by using platforms such as Apartments.com to discover not just the primary and larger property management companies, but also wanted to tap into the smaller and mid-size companies that may not have a large training and employee enrichment program and department.   I then visited their web sites to identify key contacts, corporate office locations, phone numbers, and the number of apartments and communities if that was available.   This is the first trend I was seeing where some management companies did not even have a phone number where someone could contact them on their web site or listed their corporate office physical address.   It raised the question, why would they not want that available to the public and what were they afraid of by not disclosing this information.   I also found “contact” pages where you could not ask a general question or request a contact, with the only option being to put a property you were interested in could not move forward.   There were many sites where unless you were a resident with an apartment number as reference, you were stuck in perpetuity, unable to go any further.   I also found that a vast majority of property management companies who had phone numbers listed were on an automated system and you couldn’t even press “0,” to get a human because it circled you back to the original message of pressing numbers or if only you knew the extension of of the person you were calling could you get to the next level.  My first statistic was how many companies had a number to press for a dial by name directory, only to find out it was not set up or didn’t work.  I found that 57.6% of companies with a dial by name directory didn’t work and took me back to the original message.  It reminded me of a video game that unless you eliminated all the adversaries in the game, only then could you get to the next level and if you could not, sorry you were stuck.   This raised my desire to look at reviews and ratings on various platforms from Google to Apartmentratings.com and others, to see if residents or others were frustrated and confused by the lack of ability to communicate with someone “up the ladder,” so to speak.   What I found was again not only eye opening, but disturbing.  I started taking statistics when this pattern emerged and out of 275 management companies contacted, only 11.3% were you able to talk to a human being.   This equates to 244 companies out of the 275 where a living, breathing human was involved. It used to be if you pressed zero, you at least got a receptionist or someone to answer the phone.   In 87.1% of the cases where I pressed zero, it circled you back to the original message and the endless circle of frustration.  WTH?

Postings of reviews from residents on various platforms were showing the same frustration with hundreds and hundreds of notations saying they had the same experience, and comments were emerging from residents saying such things as, “Can’t wait for my lease to expire because you can never get anyone in the corporate or regional offices.”  Google searches through BBB and Dunn and Bradstreet listings did result in some numbers, with quite a few of them being older numbers that were disconnected or rang with no one ever answering.   I had one company that I was bound and determined to get a corporate contact because if was apparent, they could use someone’s help with resident and guest service.   On multiple sites there were reviews and ratings where both residents and guests were frustrated and could not get past the site personnel who would not even give them a phone number at the corporate office.  Several times I read, “they were informed not to give it out.”   AYSM, is an acronym you can figure out for yourself.  As I said, I was determined with this one company.   No phone number, no contact page on their web site, nothing and a company that had as they stated 22 communities.   I decided to call one of their properties here in Florida and you guessed it, a human did not answer the phone.  It did give me the option of leaving a cell number for a return text message (yes, that was how they stated it), or a phone number if I preferred a call or didn’t do text messaging.  I clearly stated in the voicemail I was looking for their corporate contact information and why.   I chose the latter and waited for the call.   About an hour later I get a text message (not what I asked for) asking what size apartment I was inquiring about.  Apparently, they didn’t listen to the voice mail or maybe chose to ignore it, because I was very clear as to why I was calling.   I did the call again and one more time requested a call and not a text and got the same result (Stupidity is doing the same thing over and over and expecting a different result).  This time when the response came back a text message I replied asking if they could please call me.   Two days later, I finally get a call and she asked what size apartment I was interested in.   Again, maybe you should listen to your voice mail and not just calling someone back.   Anyway, I told her I did speaking and training in the apartment industry and asked if she could give me the corporate office phone number.   Her response was and I quote, “Can I ask what for?”  I repeated myself as to what I did and for a second time asked her for her corporate office number.   She replied, “I’m sorry I don’t have that.”   I asked, “you’re telling me as the manager of a property you don’t have the number to your corporate office.”  She said, “It’s not that I don’t have it (ok you just lied to me), I’m not allowed to give it to you.”  You can’t make this stuff up.   I then had to reply, “so if I’m a resident and not happy and want to speak to a regional or someone in your corporate office you would not give it to me?”  Her response was classic.   “In that case I would be happy to relay your message to someone and they would review and call you back if they needed to.”   I had to write it down because I was flabbergasted in what I was hearing.   On a side note, their rating on of the main review sites was 1.3%.  Out of 22 local sites I called for a corporate office number, only 53% of them would give me the number.    Again, what are they afraid of?

More trends started showing up when I called corporate numbers (mostly large and a few not large national companies).   First, if you were able to leave a message only 6.3% of those companies returned my phone call.   At least have the courtesy to call me back and say you’re not interested or thanks for contacting us.   Out of the 275 companies I researched on the web, 37% of them didn’t have a “leadership,” tab, and of those that did have one only 38.9% listed other than the president, owners, and top executives and not the boots on the ground type people.   Of those that had other than top level executives listed, only 4.6% of those people had an email associated with the person’s picture and bio or a way to send them a message.   In researching reviews, I also witnessed “canned” responses from companies and properties not to mention the lack of a response in many cases for both favorable or unfavorable reviews.   We complain about negative reviews; however, either don’t know how to or are afraid to rebut or respond leaving those that do their homework on finding a new home asking the question, “Do they really care?”

Call me old fashioned, but I still believe our residents and prospects want human contact and human service, and not artificial intelligence or artificial communication as I call it.   This is very apparent in the hundreds and hundreds of reviews and rating comments I witnessed on the various platforms.   When COVID hit, I know staffing suddenly was a challenge and it was easier to go to technology than to pay someone to actually answer calls and review messages and emails in detail.   I get it that this industry like many were struggling to keep staff because the government was paying them more in unemployment and extra benefits than they were making at work.   I understand our industry has evolved and will continue to do so in the future.   We went from physical showings to virtual presentations and processes, and the excuse was a virus caused the change; however, I also heard so many of us wanting to return to some sort of “normalcy.”   I’m just not sure this new normal is providing the service our residents really want.  

You can’t go to McDonalds now and order from a human who might smile and thank you for their order, and are forced in many cases to use a “kiosk,” to place an order.  Good luck if you want a special order such as a Big Mac with not middle bun, because there is no where on their system to put it.   Basically, you are left to stopping an associate and telling them before they make it or just removing it when you get your sandwich.   Try calling customer service at Amazon or any of the hundreds of other companies, or even just finding their phone number and having to resort to submitting a ticket online for help.   I had done some traveling recently and decided to visit some apartment communities in the multiple markets and found some properties that don’t show apartments unless you have an appointment.   YHGTBKM (yes, figure that one out).   I walked into one property where there were no prospects in the office and two associates sitting behind their desk not engaged in other activities and I was informed unless I had an appointment through their web site, they were not allowed to show me an apartment.   And by the way, neither of them got up from their desk or came around from the barrier they were behind to welcome me or make me feel welcome.  Is this a reflection of the new normal?  Is this where I industry is going?  Is this how we want our residents to feel that there is no one who cares or no one else they can turn to for help?   I hope not.  

We are in a very vulnerable position right now with rents raising by double digits and our resident’s income is not increasing at the same rate.   We are in a very vulnerable position where home interest rates having been recently raised (largest since the 1980’s as recently reported) causing two conditions.  First our owner’s ability to borrow just changed and the NOI and cap rates are going to require even further increases when our residents are having a hard time as it is to meet an owner’s expected return.    Home prices have skyrocketed and the average person now can’t afford to buy a home, and can’t afford the rents being asked in many markets.  There are only two practical results that are possible and that is our residents will have to alter their lifestyle and go to a lower-level grade apartment where the inventory is not going to change in the near future and the demands will increase, or get a second job so they can afford the lifestyle they desire and have worked for.  We are at the tip of a double-edged sword and only those with exceptional resident and guest service will survive because that is the one thing that will at least give them some sense of hope and that we care.   We focus on leases when we should be focusing on retention.   We give bonuses base on leases, when we should be giving bigger bonuses for retention.  We should be focusing on people and not technology (both staff and residents/prospects), because until we are leasing to robots, it all boils down to the human experience and not the ability to use a mouse or a cell phone because it also boils down to how we make people feel.   That my friends, will never change.

I continue my research for my contact list I will continue to monitor the statistics; however, don’t expect them to reflect any improvement for our residents and guests.  I am afraid not for what I have found, but where we are inevitably going.  To an industry that is following technology, and not following what our residents and guest really want.

FOLLOW UP - August 2023

The statistics continue to show decline and I almost get the feeling customer service is lost forever.   The return call percentage for my inquiries has dropped to 4.9% as did the other areas such as dial by name directories and calling to only be trapped in an endless circle of press this or press that but never getting a real human being.  As I look further, it appears as though we are not teaching conflict resolution (which may be a reason you can't reach anyone) to our team members, and basic resident services skills are in a tailspin.  So, I contact a company in Tennessee I had been in direct contact a few months ago who said they were in the planning stages to do a company conference and wanted me to present.   I attempt to call the corporate number.   The person that answered kept asking me what property I was interested in, and I repeated three times I was attempting to contact the main office.  Finally, the person said she was not allowed to give the number out.   If this is how we are treating residents today or even someone like myself just trying to get a contact person, lord help us.  Again, what do these companies have to be afraid of?  Are they afraid they might have to talk to a disgruntled resident and because they haven't been trained in conflict resolution it's just easier to make it impossible for someone to reach them?  

New Web Site

My new web site is finally done and even has an audio of one of my NAA presentations I gave on leadership in it.   So far retirement has allowed me to complete some honey-due items, and also allowed me to two other things.  First, it has provided the time to build a database of contacts in both the apartment industry and the fair and festival industry.   What you may not know is that in addition to over 30 years in property management, I have spent the last four years working as the GM for the Osceola County Fair here in Florida.   What an exciting new chapter in my life as I managed one of the largest and most successful fairs in the state of Florida.   I finished the fair in February 2022 before announcing my retirement, ending on a high note. The fair this year had the highest gate admission revenue and highest carnival revenue for the nonprofit I was running in the 78-year history of the fair.  Pretty cool accomplishment and during the last four plus years I have met and become friends with so many wonderful people.  Second thing is I now have two industries to service and expand helping others exceed and excel, which is something I have always had a passion for.   Being in the fair and festival industry allowed me to present for state associations, and also as a keynote speaker for the International Association of Fairs and Events.    

So now as I enter the next chapter in life, I have found new excitement. I return to doing workshops, seminars, and keynotes in the multi-family industry which in my heart I never left and continued to do even as a fair manager, and I have found a new path to travel in the fair industry.  Another bonus is, I am able to continue my writing with my fourth novel in the works and a fifth one planned.  So, did I really retire?   Probably never will and as long as the good Lord allows me, keep moving forward.   Reminds me of a book by Charlie Mackesy called "The Boy, the Mole, the Fox, and the Horse and a very relevant quote from it:

I can't see a way through," said the boy. 

"Can you see your next step?" 

"Yes." 

"Just take that," said the horse.

www.wizardryenterprises.com

Retired?...Not.

 As many of you know I have retired from facility and property management and reopened my company called Wizardry Enterprises to continue speaking and training.  As my wife says, I'll never fully retire.  

My passion for sharing information has always been strong, and I have been so blessed to have the opportunity in helping others excel and exceed over the last 30 years.   Even though I have worked with Fortune 500 companies, my primary industries have of course been property management and the fair and facility industry.  This has allowed me to speak with organizations such as the National Apartment Association as well as the International Association of Fairs Expositions, having presented for their national conferences and state affiliates.  We are finishing up the new web site but for now have a temporary one at https://wizardryenterprises.godaddysites.com.

With new opportunities comes new adventures and I am looking forward to this next one in my life.   

Larry 

Fateful Voyage is complete and available

 I am so glad book three is done and released.  For anyone that is an author, you know the feeling when on that final page you type, "The End."  So far sales are going great and hope you enjoy.  Please, make sure you write a review after reading.  

THE LATEST CHAPTER IN THE WIZARD SERIES JUST RELEASED IN EBOOK AND PAPERBACK

WIZARD – FATEFUL VOYAGE

Here’s what’s been said about the Wizard series:

“AS A FORMER MAGICIAN, I’VE ALWAYS WANTED TO INCLUDE MAGIC IN A STORY.  THIS ONE DOES, BIG TIME, PACKED WITH PLENTY OF MENACE AND PERIL, DELIVERING EXACTLY WHAT THRILLER READERS CRAVE.”  Steve Berry – NY Times Best Selling Author

“Hard to stop reading once I got into it.  Really enjoyable.”

“Magic and illusion save the day again.”

“His commitment to entertaining the reader shows throughout.”

“Would recommend to anyone seeking a fun read.”

“If you like suspense, thrillers, espionage, and spies, you’ll love this series.”

https://www.amazon.com/dp/B08DN9RN1J

Jonathan Barrow is a world-renowned illusionist; however, he holds another secret only known by the President and a few within the Pentagon. Under the President’s Book of Secrets, he follows in the footsteps of other well-known magicians filling the role for decades beginning with Harry Houdini. His code name, Wizard. Fateful Voyage takes the MAGIC team on a mission they never intended to undertake. This next chapter in the Wizard series will lead them on a high seas voyage of intrigue and danger. Organized crime in Venezuela controls most of the country including the government. A crime lord within the country intends on pirating the newest and largest cruise liner in the American fleet, which is scheduled to set sail on its inaugural cruse with a newly formed company called Royal American. This voyage is loaded with celebrities, dignitaries, government officials, actors and actresses, and some of the most influential and wealthiest people in the world. Their goal, take over the massive ship, rob it of the casino cash and guest valuables, then hold the passengers for ransom which could be in the billions. Hired mercenaries, members of the Venezuelan mafia, and electronics experts have what they believe is a foolproof plan. Their goal, to take control of the ship including; getting onboard stinger missile batteries and other sophisticated weapons to make their efforts pay off bigtime. Having the high-end guest list held as hostages and a significant weapons cache onboard, their actions are expected to prevent retaliation or action by the United States military. Jonathan was hired as the entertainment for the Magic of the Seas maiden voyage, and as a reward for previous successful missions Jonathan has invited his team to join him onboard for a relaxing and fun filled excursion. Little do they know; the cruise is about to steer on a course that could end in tragedy. On the other hand, the crime lords have no idea the MAGIC team is onboard, which could totally disrupt their plans if they're successful. The exciting and harrowing ending leads to discoveries about Jonathan, and what real magic he may possess.

Thinking Out Of The Box

With what has happened over the last few months, creativity is key in resident retention, leasing, and in keeping your staff motivated.  Who would have thought this virus would basically stop the world from turning and our country and the apartment industry on its head?  Job losses, furloughs (which is basically a temporary job loss), and creating situations which have impacted our teams have complicated operations and how we do business.  Virtual apartment showings, dealing with higher delinquency because millions are on unemployment, social distancing, and so much more have created an environment where thinking outside the box is not only prudent, but necessary.  

Many of us went through the downturn in 2008 and 2009, and that that was bad.  We're now in a situation where it's not economic based; however, it is.  We are now faced with challenges we think that are out of our control; however, in some ways they are.  This is where creativity meets results or lack of it meets failure.  I recently responded to a posting by a property manager who said prospects would only do in person viewings when her company would not allow them.  I suggested issuing a satisfaction guarantee, but only if she was confident in her product and her property.  She indicated her company was not interested in that after she approached them and her regional said that was a "not financially good idea."  I simply shook my head after getting her response thinking closed minded approaches can lead to closed or empty properties.  

We cannot be afraid to think outside the box, nor should we be afraid to throw everything on the wall and see what sticks as I like to say.  These are challenging and unique times, and for that it demands different and unique approaches to get us through these times.  I say don't just think outside of the box, but be prepared to build a new one.  

Good luck,

Larry

Changing Leadership Principles

I was recently interviewed regarding leadership and how it has changed in the last 20 years. Remember the word spider, I’ll explain later.  The changes we have seen over the past two generations and have complicated three environments related to leadership and those being the Home, Work, and The Social environments. 

                We start with the home.  So, I’m at thanksgiving dinner around a table of twelve and I see my nephew glancing down occasionally with the random snicker and look up at his sister across the table.  She would do the same and realized they are communicated with cryptic messages to a satellite a few hundred miles in space and then back down to earth when they are only four feet away.  Social skills are now in tweets and IM’s, and it is getting worse and also transfers to the other environments.  Kids spend so much time with a game controller in their hand, which at the touch of a button resets the circumstances and gives them an extra life.  I hate to shock these generation but in the real world there are no reset buttons or extra lives.  Kids today expect everything right now including their food within minutes of making the call but fail to realize relationships both business and personal take time, effort and real communication and friendship is not an event it is a process. Look at the average of 5-7 hours both before work and after work which used to be called family time.  How many can say they are involved with an electronic device rather than thoughtful and constructive communication during that short time together.  No, learning Klingon while watching Star Trek is not constructive or meaningful in the real world. 

                Discipline has been thrown out the window, and God forbid you spank your child for acting like an ass in a public location because within minutes the video will be on Youtube if you give the well-deserved subject a tap on the bottom, as you will be labeled and subject to child cruelty.  In my day, if you called the cops because your dad took a switch to you, they would ask if you learned anything.  You came home from school, did your homework, went out to play before dinner, had dinner with your entire family and there were no electronic devices or complaints unless mom served broccoli as I hated the stuff, then went back out until dark.  And now you have 26 year olds still living in their parents basements, coming home to seclude themselves in the room chatting and playing video games, texting with their friends  while sitting on a couch rubbing their fuzzy comfort animal to feel good about life.  We have generations failing who lack the social and motivational tools to be productive in society and we wonder why the suicide rate is so high.  The they go on the occasional date with a group rather than someone because of the “pack” environment which has been created, sporting the dog or cat hair on their clothing from previously mentioned comfort animal and wonder why they only have 2-3 really good friends.  And when they do go out they are threatened with the possibility they could miss the tweet of the century, only to ignore others and constantly check to make sure you have not been unfriended by someone in your social heirachy. And the clincher, everyone gets a reward for participating but God forbid there only is a 1^st and 2^nd place trophy because it will tramatize them to where they need a comfort animal or special food.  Sorry people, but in life and business there are no participation awards only winners and losers.  Promotions and opportunities are earned, not deserved because you feel they should be.  “I just don’t understand why I didn’t get the VP position.  I deserved it as an up and coming employee.” “Well, Bob who got the position has closed several contracts and you have not.  He has been with the company for 10 years and you have been here three months.”  “I can’t believe you said that.  My feelings are hurt and you have no right to criticize me.  I think I need the rest of the day off and some hot coco.”  “Well, you go ahead and take the rest of the day.  Come to think of it, why don’t you take forever off as we don’t need that kind of attitude.”  “You can’t fire me, I’ll sue you.”   “Fine, have your attorney contact our attorney, Hell, Freeze, and Over.” 

                The home environment has changed and impacted the work environment, which is the second spider in the equation.  My first job at 14 was working on a rabbit farm, and you can guess what I cleaned up for 75 cents an hour and was glad to get it.  Wages have increased in the last ten years more than the previous 30 together combined and these entitled people are not happy with it.  Now, someone gets upset they retaliate with a gun and shoot up an office.  When I grew up many of us in the winter had a shotgun in our vehicle and hunted after school.  We all carried knives and no one got shot or was stabbed.  Today if you walk into a school with a baseball bat you have to lock it up in the school safe instead of being able to take it in the classroom because it’s not a sports item, it’s a weapon.  People work from home, missing the interaction with others.  They hold video meetings to earn your business dressed in a shirt and tie, but because of the camera view you don’t seem them in their underwear.  In 1984 the first cell phone was released and were called the “brick.”  If you ever saw or had one of these you understand and they weighed over two pounds.  It cost $3,900 and had a talk time of 30-40 minutes.  With today’s phones and cameras, these younger generations fail to realize that lude photo you took at a frat party in college now can be found on the web by a potential employer. 

                Which takes us to the next spider on the web being the social environment, which has connections to the other two environments being work and home.  Now you can see why I mentioned the word spider because each of these is cross connected with the others on the web of life,.  If you dislike someone there probably was no direct personal interaction outside of social media and it’s easier to just unfriend them, even though you have known them for years and don’t want the possible controversy associated with whatever it is.  Violence and destruction and protesting is not the answer.  Mix in politics and you have what I call the circle of strife versus the circle of life.  Webster’s definition of strife is the bitter disagreement over fundamental issues.  Sound familiar?  When did it change the individual rights of some to enjoy a meal or go shopping should include shouting and cursing of others in a public setting and believes their rights are more important than someone’s else’s and condemning what a person does rather than who the person is.  Try at work saying no person can use their cell phone during work time or be on Facebook/Twitter, realizing you are there to work not for the entertainment within your social life.  Lord forbid you did that as you might traumatize an employee who now needs additional comfort time because their behavior was unacceptable and it couldn’t be their fault because they have been taught there are no winners or losers, just participants.  They will tell you this is not fair and you have hurt their feelings and they have to bring their comfort animal to work with them in order to cope with the hostile work environment.  Get a life people. This is business and there are no rewinds or comfort foods, no participation trophies or someone else to blame.  Because of the work and home environment changes, social environments have changed and we speak in metaphors, GIF’s, and symbols and bits of information instead of a full dialog.  Today you may be someone’s mother but you may be downgraded from BFF for someone else because you took their phone away when they were not doing what they should have been doing.  It’s more important to be liked on social media, as that status is more about what how people “feel”, than who you are.   Get over it cupcakes, your feelings will not bring you great success or happiness in the end. Who you "choose" to associate with becomes you.  Who you choose associate with can dictate your life.  And last and most important, who you choose as friends and associate with limits your perspective on life as being liked become more important than being you.  You can pick your nose and you can pick your friends.  Both can lead to unsanitary life conditions you allow to be created.  

I am positive some reading this who are in or on the cusp of some of the younger generations are at this time unfriending me or cursing me out because how dare I challenge their generation to bring back values such as respect, earning what you get, contributing to society instead of making up your own society, telling them their feelings are irrelevant, or calling them out for who they are and how they act.  If that’s the case, I have made my point and so be it.  Everyone of these environments (spiders) is inter-webbed with the others.  Everything is connected between these three environments and the exponent of 3 is 27 meaning there are 27 different interconnections.  Leadership has changed, but the core principals of effective leadership have been successful for generations until recently.  Now we face generations who demand or feel they deserve a different approach, just because they “feel” they are different.  Once again, hate to shock them but you’re not special, your feelings are not in play, and a comfort hedgehog will not replace personal interaction and make the world better for you as we are all the same….people in an ever changing world.   

                   

Workshops for 2019

Really excited about the lineup for 2019 and the workshops I am presenting.  Seems I have received quite a few inquiries regarding my emergency preparedness workshop in light of the recent hurricane to hit the southeast.  Had one company say, "We should have contacted you months ago."  Just remember disaster doesn't have to be in the event of a hurricane but can be a winter storm, summer storm, tornado, fire, flood, or even that major crime event that makes the news.

Please contact me regarding how I can assist you with your education and training needs, or maybe just that keynote for your corporate conference (or both).

LEADERSHIP – FINDING THE LEADER IN YOU

Everything boils down to leadership, period end.  Leadership is not a born trait, but one learned and many times governed by those that have led us as well as those we emulate.  This workshop helps others find the leader in them, identify key leadership characteristics of success, and discover leadership is not a title with anyone having the ability to act as a leader.  Learn what your leadership style is and what it means through this interactive and participative workshop.  This award-winning presentation will provide leadership development tools and provide key aspects of leadership skills I learned at Disney.

HOW TO SELL A BUDGET

Budgets can be intimidating as can the financial reporting that goes along with it.  Truth is, it doesn’t have to be this scary process managers dread.  Revealed will be tips and tricks to take the fear out of budget time which also will develop skills associated with monthly analysis of financials and reporting.  Included are templates to assist in the budget process, as well as critical techniques and tools to provide a more confident a approach and take fear and intimidation out of the equation so you get a better budget which can be sold.

EXPECT THE UNEXPECTED – EMERGENCY PREPAREDNESS

Disasters can occur at any time and in many shapes.  Tornado’s, floods, winter and summer storms, hurricanes, fire, earthquake, are just a few events which can have an impact on a property manager, owner, and company. How will you or your team handle an emergency and are they ready for the unexpected.  This workshop provides the templates and knowledge to be prepared when the unexpected hits and guides the attendees in formulating a plan for preparedness.

MAINTENANCE FOR MANAGERS – New for 2019

This workshop was developed with the intent of informing and educating not just managers, but your entire support team.  Service is such a critical part of the success of any site. Having a better understanding of the service side of the business benefits your employees in gaining a better perspective of the services maintenance performs, preparing them for the next level of advancement with a higher knowledge base, and reinforcing what they must do in support to the overall service mission.  Studies still show the biggest reason residents leave is because of lack of or poor service, not their rent.  What are you doing to maximize resident retention and in support of your service teams when it relates to maintenance?

EXCITEMENT TO CREATE EXCELLENCE – A Magical Experience

Created and designed to cover two key areas which are critical to improving NOI.  The first area deals with our employees and team members, who are the foundation to your organizations success.  What can we do regarding training, communication, and creating inspiration that makes them want to do their job not because they have to…but because they want to?  How do we create excitement in the workplace so it inspires excellence?  Second, what can we do to create excellence for our residents so the last thing on their mind is giving you a notice to vacate?  What do your residents really want when it comes to amenities, activities, communication, and feeling they are part of a community?  How do we create excellence while dealing with things like rent collection, lease enforcement, the renewal process, and service?  How can excellence through excitement be transferred to your brand identity, marketing, and reputation within your market? 

*LET US CUSTOMIZE A MESSAGE FOR YOUR CONFERENCE OR EVENT

New Processes - Old Principles

The property management industry has changed in so many ways over the years, yet some things have not.  Rent optimizer systems now tell us what we should be charging for rent and renewals, marketing algorithms direct what is happening with our advertising and how productive they are, computers have replaced ledger cards, maintenance techs get new service requests in the field versus coming in the office to see what their next task is, residents no longer use a key to access their community or their home, print publications have all but gone the way of the dinosaur, and communication with residents and prospects is now only a tweet or mouse click away and takes seconds for updates to reach millions.  

What we think of as processes making our business easier, has in fact made it substantially more complicated and in some aspects scary. Here are a few examples:

• In days gone by we printed newsletters and delivered them in nice plastic bags on every apartment door.  This process was time consuming in developing the medium, folding it, placing it in the bags, and of course taking the time and manpower to deliver.  Today we can use a template with populated information and post the information on our web site or deliver electronically in a matter of hours and not days.  So you ask, what has made it more complex.  Today we are inundated with hundreds of pieces of communication in our social sites or emails. We get so many pieces of communication we now filter what we are reading and if the last issue was not deemed important, relevant, or beneficial, the next one is simply deleted by operand or instrumental conditioning. The new process has made it easy for us to develop these communication mediums; however, also complicated matters in the ease of not even glancing at the information to see if the next issue is something they should consider to read.  Before if the print version sat in the apartment home long enough the resident might at least give it a cursory view, where now, it's just another communication in hundreds we receive and is deleted without consideration. 
• Electronic advertising is here to stay and we will never go back to print. We now can reach thousands every day who might be interested in a new apartment home with photo's, bullet points, and data to create interest.  What a fantastic age we live in, except! Prospects can search hundreds of communities on multiple web sites in search of an apartment home making our business much more competitive and complicated.  But isn't this much easier you ask?  With so many more options including multiple web sites which our prospects do look on, so much data can become overwhelming and complicated.  Before, a prospect would pick up a guide of some type, dog ear pages they found interest in, and plan their attack looking for a new home. Today a prospect looks, closes the browser to do something else, only to come back to it again days later and basically begin the search all over again because it is so easy to find what they are looking for. The other side of this is, if one site is not easier to navigate than another site they have looked on, they simply don't go on that site which may be the location your advertising is on.  It also is more challenging because there are so many sites, unless you have a very large budget you can't be in all of them.  Before you had a choice of two or three publications and now you have dozens including one in NY called Nakedapartments.com.  Have to admit, it's a catchy name. 
• Twenty to thirty years ago if a resident was unhappy they may have told a handful of people and it disappeared quickly in an uncomplicated world.  Today, current or former residents who are "unhappy campers," as I call them can now tell millions with a mouse click. Complicating matters, they can make you seem like the worst landlord in the world when in fact they just didn't pay their rent and were being evicted and you have little recourse.  You can respond to the situation, but your rating will not change nor the fact someone looking for a new home will seek out the bad information and for some reason not read the good reviews of hundreds who are happy living with you.  Welcome to the computer age.

There are so many more examples and one could probably write a book on the changes in this industry over the years.  What has not changed is the human factor.  In 2002 I wrote my best selling book, Complex - A Guide to Apartment Management with over 11,000 copies sold worldwide.  In it I mentioned handling a new prospect with a video call and making it a more personable experience through technology.  Today, that vision has come true and companies are reviewing Skype and other means to use as a leasing tool.  For some reason was have added technology but taken the human and personable side out of what we do.  We have replaced talking with someone for tweeting or emailing and have been conditioned to believe this is the easier and better way.  We have replaced dealing with challenges in a direct and personable way, to indirect and non-personable methods.  

We are teaching our leasing and community teams how to deal with software and technology; however, neglected to teach them how to deal with people.  We have taught how to develop our people to be managers, but neglected to teach them how to be effective leaders.  We have emphasized the importance of closing, but neglected to teach them how to be open with our prospects and residents.  We are so tied up with the feelings of people, we have forgotten how to feel. 

Larry is an award winning regional manager and President of Wizardry Enterprises, LLC, a company which provides training and education in the multifamily industry to apartment associations and management companies all over the country. He is an accomplished author with four publications in print, and has successfully led hundreds of teams with a passion for leadership.  Contact us at lawrenceberry@verizon.net about how we can help in your education and training needs and provide excellence to exceed.. 

Two new exciting workshops being offered

I am excited to announce the creation of two new interactive workshops at Wizardry Enterprises in addition to my other educational presentations.

“Excitement to Create Excellence,” is designed to cover two key areas critical to improving NOI.  The first area deals with our employees and team members, who are the foundation to your organizations success.  What can we do regarding training, communication, and creating inspiration that makes them want to do their job not because they have to…but because they want to?  How do we create excitement in the workplace so it inspires excellence?  How can you set goals and make those goals something your employees strive to reach?  I believe in the concept of treating our employees as number one, and they will in turn treat our residents as number one.  Second, what can you do to create excellence for our residents so the last thing on their mind is giving a notice to vacate?  What do your residents really want when it comes to amenities, activities, communication, and what will provide them with a true feeling they are part of a community?  How do we create excellence while dealing with things like rent collection, lease enforcement, the renewal process, and service?  How can excellence through excitement be transferred to your brand identity, marketing, and reputation within your market?  These are just a few of the areas we will touch on in “Excitement to Create Excellence.”

“Maintenance for Managers,” is a workshop with the intent on informing and educating not just managers, but your entire office support team.  Service is such a critical part of the success of any site. Having a better understanding of the service side of the business benefits your employees in gaining a better perspective of the service maintenance performs, preparing them for the next level of advancement with a higher knowledge base, and reinforcing what they must do in support to the overall service mission.  What should we be asking every resident when they call or come in the office to request service?  How does preventive maintenance play a factor in keeping residents, and what strategies can you provide in support to make it a simpler, more efficient, and effective process?  What is your resident’s perception when they make a request for service, and is it one of inconvenience or appreciation? How can leasing and the move-in experience contribute to service through a proactive approach?  How easy do you make it for residents to request service, and are you using the latest techniques and processes available?  Studies still show the biggest reason residents leave is because of lack of or poor service, not their rent.  What are you doing to maximize resident retention and in support of your service team when as it relates to maintenance?

Please contact me at lawrenceberry@verizon.net so we can discuss how I can provide support to your educational needs.

INSPECT WHAT YOU EXPECT

I wrote an article for UNITS magazine some years back titled "Communicate, Don't Complain" talking about this as it relates to vendors and service providers; however, the topic includes other areas.  Inspecting what you expect also relates to our team members and the job they are doing.  Let's start with the basics.

Site inspections for any regional or district manager are part of the position.  First, any site visit should not feel intimidating but in support of the overall goals and objectives of a company or property. Making a  site visit feel more like a treasure hunt and a learning platform is a skill, and is a leadership characteristic which supports the team approach and can be motivational versus intimidating.  When I visited my sites, they knew I wasn't there to find faults but to find opportunities.  The old adage you don't see the forest for the trees applies; however I like to look at it as you don't see the trees for the forest.  Think about it and you'll understand what I mean.  After all, it's the details which make the difference and support both resident services and leasing as well as building effective teams.  They need to know, and more importantly feel, you're there in support of the operation.

Vendors and suppliers are needed in most operations such as painting, cleaning, carpet cleaning, and providing services outside of the abilities or scope of the team.  Which is why I encourage and require the team to adopt certain behaviors that can lead to getting what is expected:

(1) Have written specifications on what the task is expected to provide.  As an example, do your  cleaning specifications call for edge cleaning along baseboards, air and return air vents, fixtures such as lighting and globes, appliance details, cabinets and drawers, payment for services, reporting conditions which management needs to be aware of, and the fact you will be conducting inspections?  I asked in a recent seminar I was conducting who had these processes and only one in the room of over 30 property managers could say they had them.  You should have the same type of specifications for carpet cleaning, carpet and tile installation, painting, pest control, pool maintenance, or any services you contract out.  

(2) Everyone on a team needs to know the expectation by service providers and support and understand these specifications. I will say it again, you can't hit a target if you can't see it.   Walk apartment turns with the team so they understand what a quality product looks like.  Ask them to inspect with you, reviewing and covering any areas which could be improved on.  Make it a treasure hunt not an inspection. 

(3) Actually perform inspections and at times walk apartments with your service providers and the team.  It all starts when you hire them with setting the expectation and insuring there are clear expectations.  I'm willing to pay a little more if I know a service provider gives me a quality product, and it will show in the bottom line with satisfied prospects and residents.  

(4) Inspecting the services we provide is so critical to success.  I can tell you the number one reason residents leave is lack of or poor service, not rent.  We spend ten time more on leasing than we do on resident retention, which in my opinion is backwards.  Do you have an effective program for resident satisfaction and do you take action and respond to the resident if there are deficiencies?  What percentage of service requests do you follow up on?  If you have electronic satisfaction formats is it easy for your residents to complete and do you have both acknowledge and a reward for contributing. I suggested in a recent workshop they consider having a monthly drawing for anyone completing a satisfaction survey.  Just in the past week, I received an email from a property manager saying she had offered a $50 rent rebate with anyone participating eligible for their drawing.  Her communication informed me it was a huge success in the first two months of offering.  Another side to this coin is identifying employees or services which were substandard and needed correction or coaching. Remember the "don't see the trees for the forest" statement. 

(5) Do you listen to phone calls if you have that option (and you do have that opportunity even if not electronically by listening to the calls your office staff are on), and do you coach for success and developing to create an environment of excellence?  Do you survey visitor traffic to see how good of a job your leasing team is doing?  

It used to be that an unhappy resident told a handful of people about their poor experience.  With the advent of the Internet, now they have a platform to tell millions.  Management is helping others climb the ladder of success.  Leadership is making sure they're on the right wall.  Coaching, training, supporting, and yes inspecting what you or your residents expect leads to a cohesive environment and helping others exceed and excel.  Communication is also so important when dealing with this topic so your team understands the reason behind what is being done and what success feels like in meeting objectives.  Let them know the method to the madness.  This also goes with sharing successes and letting the team and team members know when they have met the excellence goal.  Now, go lead. 

Taking Risks

"You cannot live life based on what might happen, otherwise you will miss the things in life that can happen." 

As I prepare for my workshop in Savannah, GA with the Coastal Georgia Apartment Association, I was reflecting on my leadership presentation after talking with a friend.  Life is full of risks, and sometimes taking them leads to life changing moments.  As my friends and family know, I am a professional Dive Master and love diving...especially with sharks.  I remember my first scuba dive with these amazing creatures and was shortly after getting my certification.  Standing on the back platform of the boat I looked down into the crystal clear water of the Florida Keys and seeing 10 - 15 sharks swimming below me.  My heart was pounding and I thought, what the hell am I doing and is my life insurance paid up.  I gained my courage and took the giant stride into shark infested waters and headed to the bottom which as about 35 feet below.  After getting on the bottom sharks were coming around me and acting like puppy dogs wanting attention.  I soon learned they were not there to eat me and came up from the dive saying, "Can we do it again?" which we did.  I can say I was hooked and came to appreciate these awesome and majestic creatures. I later went on dives with hammerheads, tiger sharks (largest one was 16 feet), lemons, reef sharks, black tips, sand tigers, and the list goes on and never at any time felt threatened.  I have ran my hand down the side of a 14 foot tiger shark, who came back around several times as if to say, "Please rub me again."  People say to me all the time, "Aren't you afraid of sharks?"  To which I reply, "Have you met some of the residents I have had to deal with?"  Everything is relevant.

I have para sailed, bungee jumped (which I will never do again), dropped out of an airplane at 10,000 feet, rock climbed, swam with sharks, and even raced a car at over 130 miles an hour.  Life must be lived and fears overcome to make the most of life.  I remember a quote by Richard Cardinal Cushing:

Every day sends to their graves obscure men who in all probability would have gone to great lengths in their career of fame. The truth is you cannot stand back back thinking of the cold and danger, but jump in and scramble through as best you can.  

Live life to the fullest and find your sharks.  For life it to short and you never know what new adventure will be your career of fame. 

Improving NOI - Focus on Expenses

Income is only one part of the equation when it comes to improving NOI, with the second part being on the income side.  It's no secret the biggest way income can be improved is through resident retention.  This key component also has a dramatic impact on the expense side...but there is more.  Many of the factors of minimizing expenses we understand, but you may not have practices in place to fully reap the rewards.  Others involve capital improvements to lower expenses which we will also cover.  So what are the greatest aspects of controlling expenses?

• Employee Turnover: Turnover of your team members can be costly in more ways than one.  In addition to the cost of advertising, hiring search firms, having testing in place, placing a team member in a position at a higher salary than the previous person, background and credit checks and other expenses, the training piece can also be costly in both time and finances.  This is where consistent training as a motivational tool can play a positive roll in keeping great team members, not to mention making them more productive which also impacts the bottom line. There is a hidden factor we don't always think about and it is familiarity.  Your residents get to know the staff, feel confident in them, and if we build relationships as we should will leave to them feeling they are in a stable environment.  A revolving door of team members does not instill that confidence and can have an impact on resident retention. 
• Inventory Management:  I cannot count how many shops or offices I have seen while either managing or consulting which gave the appearance of disorganization.  With disorganization comes ineffective ordering and maintaining inventory levels.  Having shelves with labeling showing what is there and displaying PAR numbers to reflect what stock should be on hand is something few properties practice.  Only maintaining stock of any item for immediate needs through a PAR system keeps ordering to a minimum and organized.  If there are boxes of unopened inventory or items just thrown on shelves haphazardly, how do you know what you really need.  If you also have a system of maintaining proper inventories you won't run out of an item.  This means your team won't be scrambling to one of the big box stores or the local hardware wasting time and money to get something needed to take care of a service request or turn.  Having the items needed for quick repair or replacement also leads to higher resident satisfaction because the request is being handled timely and efficiently.   Inventory management is not restricted to the shop but also to the office.  Office supplies should also be organized with PAR levels established.  If an item goes below PAR, you know you need to order.  I have an inventory spreadsheet I developed which will automatically flag when an item is below PAR and should be ordered. Taking a physical inventory twice a month will keep appropriate levels and remind the team when something needs to be ordered.  
• Inspect What You Expect and Training Contractors:  I wrote an entire article on this for Units Magazine entitled "Communicate, Don't Complain."  Replacing contractors is a pain and time consuming, not to mention expensive and in more ways than one.  You hired the painter, cleaner, carpet cleaner and it's a quick turn for a new resident with not a lot of time between the old resident leaving and the new one coming in.  They finish and the next day is when the new resident is arriving so you send someone to inspect. Paint is not the best and cleaning isn't detailed.  The edges on the carpet got missed and to top it all off the new resident arrives at  ten AM in the morning...not good.  There are several components to what could have and should have been done to prevent or minimize the challenges.  First, anytime a new vendor is used you physically show them what the expectation is and what areas are commonly missed.  I am betting very few management companies have this practice in place.  Second, you inspect what you expected.  Every team member including the groundskeeper or porter should have a unique understanding of what is a quality product and what is not so anyone can be used for inspections.  Especially with a new contractor you do spot inspections and always do the first service they have done for you in detail with them.  Hold them accountable just as our residents hold us accountable.
• Improvements Which Impact Expenses:  I get owners cringing when I bring this subject up until they are sold on the result.  Just like selling a budget which is one of my favorite seminars I like presenting, selling an improvement for a future reward is the only way you will get an owner or upper management to see the light.  Perform a cost benefit analysis on changing carpet out with laminate or tile.  I guarantee you if presented properly with real numbers and facts it will make sense, but only if you show a real return on investment. Let's just say you are paying $1,300 for a two bedroom apartment with a basic carpet including pad and installation and the average covered area in the apartment is 800 square feet. You decide to look into laminate and can do for $2.  Two components to this scenario as well.  First, who follows up and tracks to verify warranty for stains and wear consistently, then actually holds the installer and manufacturer responsible for what they tell us?  Second, plain and simple, our residents don't treat the apartment like if they owned it. Third, I don't care what they tell you the carpet never has the life expectancy they tout (No offense to those carpet companies I have worked with over the years).  Ten year stain resistant and wear warranty...right!  If we held them to the warranty they would soon be out of business, at least in our business. If I can show an owner where in less than two cycles the laminate pays for itself and the facts be what they are, I'm installing laminate.  Guest what, you also don't have to clean the carpet at turn or need to offer as a renewal incentive.  Last there is the "puppy factor," as I call it.  Don't think I need to go much further on that one.  
• How about inspecting each and every apartment home before renewal.  How will this save on expenses?  Please tell me you're not actually asking this question.  Trust me, I have seen my share of apartments you went into and thought, "OMG, they live here."  And yes, they are doing it to your asset!  Do you not think their general upkeep also doesn't haven an impact on how they treat your dishwasher, tile, refrigerator, HVAC, and other features?  

I could go on further and cover other areas but you get the hint.  It's not rocket science and but it is common sense.  I believe they should change the phrase from common sense to "occasional sense," as that is more appropriate. Each year we are asked for the NOI to improve and that fact is never going to change.  We work in a business and for owners and investors.  The reality is, it is our obligation and the expectation so we might as well face it and not complain each budget season or be surprised when we are asked to show improvement in the coming year.  

Now go lead.

YOUR ACTIONS DEFINE YOU

It continues to amaze me how some that call themselves leaders have no concept of true leadership.  I speak from experience having had the owner of a company actually think criticizing someone before their peers and subordinates on a conference call and telling them they should not be in the position was acceptable.  The sad part is, he didn't do this just once, but multiple times and to different team members.  This is the same person he promoted into the position without guidance and direction.  This employee had never been in a leadership role before and had never been responsible for an entire department; however, he was expected to succeed not given the support and guidance of how to be an effective leader.  And he wondered why he failed when in fact the owner failed the employee.

Actions such as this has a ripple effect throughout an organization.  Actions such as this create a fear factor for everyone, not allowing for upward and outward thinking but holding back those that would normally be thinking outside the box.  I had one employee call me one time about a truck which had broken down about 100 miles from the corporate office.  The employee called me asking what he should do.  I informed he had only one choice and that was to tow the truck.  Now I was not responsible for corporate vehicles but was not afraid to assist and give guidance because that is what leaders do.  He then proceeded to say he didn't know to have a towing company from Orlando bring the truck to the corporate office or have one in their area go down and get it.  When I mentioned it didn't make a difference as the company was going to charge for a round trip no matter who he used, I got the response, "Oh, never thought of that."  When I asked why he was calling me as the only option he had was to have the vehicle towed back to the corporate office he said, "Because when people have made decisions like this in the past they have gotten fired."  Yes, those were his exact words.  The fear in the corporate office around the owner of this company was so severe, employees were afraid to make even the most common sense and basic decisions.

I had not been with the organization but for a short time and knew there were issues within the company when I asked the HR person what the employee turnover was.  Her response was and I again quote, "You don't want to know."  I soon found out employee turnover in a two years period was almost 100% and basically positions were being filled by revolving door.  Why would you ask I take this position knowing there were great challenges in the organization?  Because I believed and was confident in my ability to make a difference.  Problem was no matter how many discovery questions I asked in the interview and the research I performed could have made me aware as to how deep they were.  The company had great people, it just had ineffective leadership and an owner who would not allow others to do their job because he was afraid to relinquish power.  This was after telling me in my first meeting with him he was stepping back and letting the new VP of Operations and myself run the operations, which never happened.

Fear is not condusive to great leadership and will stymie greatness and limit the ability of others to reach their potential. Fear will never allow greatness and has ruined many organizations. Even after a discussion with this owner about some of the issues I witnessed and him telling me he would "change," it never happened and continues to this day as does the revolving door.  Needless to say, I am not with that organization and pray for those within it.  Stupidity is doing the same thing over and over and expecting a different result.  

Now go lead!

You can lead a horse to water, but you can't make them drink!

It amazes me when I run into people with absolutely closed minds.  Individuals who are either afraid of the truth, or just refuse to see it will never been effective and efficient leaders.  When I wrote my book on leadership, it included a section I titled "Not being afraid to admit when they were wrong."  This characteristic is one which can be very difficult to recognize and to admit because we are human.  I also had written about other leadership characteristics such as willing to empower others but now wielding power, willing to accept critique and contrary ideas, and many others.  All of them extremely important to being a true leader.

Some people are great at management, but quite frankly suck at leadership.  The CEO who is not open to new ideas and can't see there may be another or better way will quickly loose respect.  A person who criticizes in public versus private will not only loose respect of their people, but also loose great people. They often find it easier for them to belittle someone or to even go to the extent of firing them because they lack confidence to lead them.  This is where they cannot comprehend the difference between management and leadership, which in the truest meaning is the ability to get others to follow...and that means willingly follow.

I remember consulting for a Fortune 500 company and meeting with the President of the company.  He said he perceived challenges within the leadership chain and a lack of "cohesiveness."  Well, he was right, with some of the problems being with how his upper leadership looked at him. There was fear of not doing the right thing, fear of consequences, and the lack of trust.  I had two hats made up with one embroidered "President" and one "Leader."  After my analysis I met in his office and gave him my findings and the hats.  I asked him to put on his President hat and asked him what that meant and how he felt.  I then followed with asking him to place the Leader hat on and tell me what that meant.  We talked for almost an hour and with each concern that came from upper and middle leadership his answers would change when I asked him to place on the Leader hat.  At the end he looked at me and said, "Maybe some of the problems I thought with the team were problems with me."  My reply was, "No sir they are not problems with you, they are opportunities."  I went back about three months after the visit expecting to meet with him in his office.  Instead I was directed to a large room with every department head in it along with the President of the company.  I received a standing ovation and the President of the company came and handed me the hat which had "President " on it and said, "I won't be needing this anymore."  What a profound moment and one that almost brought tears to my eyes.  We talked in an open forum for about two hours, and you could tell the atmosphere changed from individuals to a team.  At the end, their "leader" stood before them and gave a short speech on he meeting we had in the office and the story of the hats.  He went on to explain learning that leadership was more important than being perceived as "the boss" and why it was more important to be respected than liked. I was shocked to see what happened next.  The entire management team took out hats which had the word "Leader" written on them and placed them on their heads.

Simple things can lead to great results, but anyone in a position of power must be willing to see the opportunities with effective leadership and admit their own shortcomings.  If they are not willing to do this, the same result will continue.  As the saying goes, ignorance is doing the same thing over and over and expecting a different result.  None of us is perfect, however, we all have the same chance to learn if we open our minds and our hearts.

Now go lead!

Secrets to Higher Occupancy

Being a magician I am often asked, "Do you have a wand?"  Apparently some people are too caught up in the Harry Potter  phenomenon to understand you don't need a wand to create magic, especially when it comes to occupancy. There are of course two parts to this equation with the first and most important being resident retention and the second being the leasing side of it.  At this time we continue to enjoy high occupancy in most of the major markets, however, as reports show new construction permits are rising and as our industry is cyclical there will come a time when markets will loosen up.  As expected because the average market occupancy is high so are the expectations for you to remain at or above those statistics.  It's a never ending and evolving industry, which is why many of us love this business.  No two days or months are ever the same.

Why is it over seventy percent of marketing budgets are dedicated to bringing in new residents when it is a fact it costs seven times more to replace a resident than to keep them?  The national average cost of a resident leaving you is high, and you might be surprised to see what it actually is.  Depending on your market and your price points, the actual cost of losing a resident can easily be three thousand dollars and in many cases more.  This includes lost rent, marketing costs, turn costs (paint, cleaning, damage repair, upgrades, floor covering, marketing, and one of the factors most of us forget...time and personnel resources).  Which leads us to the age old question, "How do I keep my residents and prevent them from moving out?"  Here are just a few of the key elements to higher resident retention with the list being a lot more than what we will cover here:

• Realizing that renewals are not an event but a process and the retention process starts from the day they walk in your office to rent an apartment home.
• Understanding what residents want which can include simple things like method of communication, expectation of services, to be treated with respect, to solve their challenges related to their apartment home, and the list goes on.
• A friendly team that makes them feel special and recognizes them as individuals.  Do you great them by name when they come in the door?  Do you follow up even when follow up  is not anticipated? Does your team provide a  cohesive service presence making it feel like they live in a home and not an apartment?  
• Do you provide services other communities do not setting the bar to a higher standard?  This can include one night a week an office and a service person staying until seven or eight PM just for them and not for leasing.  Maybe they have access from a secondary door and you have beverages and pastries for them to come and enjoy giving your team a chance to get to truly know their residents and provide personal time to get to know them.
• Does you maintenance team go by the rule when performing a service request or preventative maintenance of finding at least one thing else you could do in their apartment home and letting the resident know they did it.
• Do you perform renewal visits in their home and not yours.  Two things happen here with the first being on their turf taking away the office environment and giving us a chance to see if you really want to renew them or not or if their might be things that can be taken care of at renewal.  Trust me, I have seen more than my fair share of resident homes who should not have been renewed because they were destroying or not taking care of my asset.  If they are doing that, what kind of neighbors are they?  
• Does your team know how to handle resident complaints or challenges?  We train them to lease but for some reason we fail to train them on how to handle a difficult resident or situation which in more cases than not leads to a resident leaving. You have heard it we have one chance to make a good first impression. Sorry, but that is bull hockey sticks as the saying goes.  Every day, every interaction, and every interaction we have the opportunity to loose a residents confidence in us, the team, and the management company. We should be reinforcing this but hardly anyone does.
• Does your community provide services others properties do not? Some time back I recommended putting in a type of mini market supplied with items of necessity at property.  This included toilet paper, hair care and hygiene products, paper towels, dish and dishwasher soap, non perishable goods, etc.  I got a look like a deer caught in headlights and objections such as having to get a retail license, state taxes, etc.  Once they looked into this and discovered it was not difficult to over come these they tried it and the success was beyond their expectations and the residents loved it.  I recently talked to the manager of this site and their regional and they said sales have averaged well over a thousand dollars each month and with the markup have added another income source for other revenue and resident retention is up and surveys say the residents love this amenity. Now with Amazon Prime it is even easier, less time consuming, and more profitable to have items delivered to the office door of your community.  These are items your resident can't wait for Amazon to deliver in a day or two and discover they are out when they come home from work and don't want to venture back out.  Hotels do this, why not us?  Do you have a laminated community identification card and agreement with local vendors for discounts only available for your residents in exchange for their brochures and or information available at your concierge desk? Which raises the questions, do you have concierge services or are you just a leasing office?
• Do you make contact with a new renewal and thank them for choosing to stay with you, knowing they do have a choice.  
• Do you have special renewal events for those renewing the previous month including food, beverages, and maybe even a drawing for gift or gift card donated by a local merchant for them attending the event?

The next part of the equation is of course leasing and it begins with the right people, the right leadership, and the right training and expectations.

         T - Train for success for your team, your individuals, your community, and your company.

         R - Recognize potential of the individuals and any areas of needed improvement

         A - Adopt a training plan and plan your training

         I -  Instill motivation through training, leading by example, and having clear expectations.

         N - Never assume training is understood and ask questions to verify the message is clear

Here are some additional key factors related to the leasing process:

• Perform observations related to leasing and do not depend on shops alone.  
• Provide critique and not criticism to coach for a higher level of performance
• Never let technology get in the way of having a personal touch.  There are times that technology is great and others when we need to personalize.
• The listening and analysis aspect of a guest visit should never be overlooked but often is.
• Does each member of your team know how to recognize the "moment of truth" when it is time to ask for the lease or to possibly identify we need to change our approach?
• I personally dislike a leasing agent being behind a desk and having that barrier between them and the prospect.  New concepts such as pod systems and mobile lobby devices versus computers are gaining success.  Imagine sitting at the couch or out by the pool with an IPad and doing the initial interview (both of them and of you) from a relaxed environment or maybe even on the way to the model.  Being able to jot down notes while interacting with the guest, asking and documenting discovery questions and responses, and expediting the leasing process with it being mobile. Come on people, get with the current times.
• Is there a forty-five point checklist in the apartment being shown or in their apartment on move-in day showing the lengths we go to in making sure their new home is the best it can be?

Does your team send photographs along with the thank you email showing those things we identified as desirable or necessary features to emphasize we have what they want?

The list goes on and I could talk on this subject for hours, which I do when conducting seminars on the subject.  I believe you get the drift and the message of what we can do to improved occupancy and the bottom line, no magic wand required just some magical services.  Now go out and create your own magic and you will no doubt find the incantation to greater success and an awesome team.