Assets are more than property...they are our people!

As I have finally hit my 30,000th visit to my web site, I thank the hundreds of you that have commented or contacted me on how it has motivated you to exceed and excel. Now I don't say this to boast or brag, but to stress the point of sharing information and how it can expand horizons.  I have equally learned from your comments and feedback, making this what is was originally intended to be...a learning experience for everyone.  Whether marketing, leasing, sales, or any task we may take on, most of the time we depend on others in reaching goals and objectives.  

A topic that I have loved to present and speak on has been hiring and in particular hiring the right person for the right job.  I have a full day workshop I present on this, and has been one of my more requested topics.  In my opinion, it is also the most important!  I can present or train on leasing, marketing, risk management, maintenance, budgeting, financial analysis, etc., etc., etc.  The end result if I do not have the right team to implement actions in all of those areas to reach goals and objectives, basically "I'm fishing without bait."   I may enjoy the water, the tranquil environment, and even the sunset, but basically I'm not taking anything home at the end of the day.  Whow, I just thought of that!  

If you have ever read "Good to Great" by Jim Collins,  one of the primary things he highlights is "People are not your greatest asset; the right people are!"  Now think about it, we all have people but do we have the right people and the best people.  If I were to ask you if you left today to start you own property management company or business, who would you take with you and why?  Think of those people that really make a difference to your current organization.  Then think of those that you would not take and why.  Last, think about what you could do to help those on the lower rung of the ladder to climb higher.  Now we are touching into what a true leader does consistently to insure we think of our people as our assets.  We can renovate or fix up a property to improve and make it more marketable, however, we don't always look at what we can do to insure our people assets are also able to excel.  

Another area is if we have done all these things, what do we do with team members that do not develop into those we would take with us.  I believe we all know the answer, and it is not the easiest or an area anyone from a management or leadership likes to deal with.  Question: If I made changes...hard decisions, how much more would it add to the success of the team and therefore my success?  We do not work in a vacuum, and the our success as well as the success of our team or department is based on decisions we make related to the people we hire and position within the organization.    Jim also said in his book; "Get the right people on the bus, get the wrong people off the bus, get the right people on the right seats on the bus, and the bus will take you somewhere great."  

Who do you have on your bus and are they the right people and in the right seats?  Remember, you are the driving force of the bus and it is up to you if the bus reaches the desired destination.  The right maintenance, the right fuel, the right stops, the right speed, and the right direction are in your hands.  And as you have heard me say before, "Now go lead!"

What the future holds...only time will tell!

While those of you that know me understand my love for property management, there may be something new coming on the horizon.  When not speaking, training, or consulting I just happen to work for a mouse...Mickey Mouse that is!  Disney  has been great in working with my schedule, and as you also probably know I get to do some pretty cool stuff diving with nine to ten foot sharks on a daily basis.  When I decided to leave my speaking and consulting company and return to corporate life a few months ago, I knew I should keep my options open.  In doing that I decided to apply for the Disney Leadership Casting Call, which is not easy getting through the multiple hoops and being placed in the leadership pool for possible positions.  Several personal interviews, then panel interviews, then more personal interviews, and maybe out of hundreds of applicants you are selected.  Well, I was notified this past Friday that I am in the pool and waiting to hear further.  

I have come to admire Disney and the basic principles they stand for.  Just as in my career with property management and training, Disney truly looks at creating excellence.  If you have ever visited Disney World or Disneyland, you understand what I am talking about.  After all any company that can make a people trap run by a mouse must be doing something right.  The details make the difference as professionals in property management, and it is evident details are very much a part within Disney.   From the plush landscaping to the elegant costumes and parades, everyone would like to say, "I'm going to Disney World."  And to think I work there and spread pixie dust every day!  Pretty awesome in addition to being the favorite among friends and family members that come to Orlando for some odd reason.  Also interesting that relatives I had not seen or talked to in over a decade now have found my phone number when planning a trip to the Magic Kingdom.  

What will the future bring?  Who knows and only time will tell.  Could it be I return to property management in some position?  Will I start a new career path with Disney as part of their leadership team?  You know what, either one would be an opportunity and I would be extremely happy either way.  After all I have have a passion for property management, and have found a new passion for creating a different kind of magic with Disney.  As I have always said, "If opportunity knocks you should at least answer the door." 

Creating Excellence

Whether training, coaching, or consulting, the end result is to create excellence and guiding others to exceed and excel.  From a leadership perspective it's helping others dig as deep as they can, sometimes showing employees how they can do more then they ever imagined on their own.  To excel means reaching goals through showing them they had the potential to reach but maybe didn't have the confidence to see what was possible.   Creating excellence may be related to working with individuals or a team, and on a larger scale with an organization.  If you are passionate about creating excellence and can communicate it, that passion can be transferred to those you are working with.  So where does one start and how do we measure success?

The first stage is completing a needs analysis or needs assessment.  This is where you have to put on several hats including being an effective listener (my Mickey Mouse hat), asking the right questions (my attorney hat),  asking exploratory questions (my detective hat), being receptive and understanding (my warm and fuzzy hat), looking at all the options which lead to excellence (my Einstein hat), not being afraid to step out of the box and take a risk (my John Wayne hat).  

Next, formulating a plan or "path to success" related to the goals and objectives.  This means a different set of hats including being able to present and communicate what needs to be done and why (my Ronald Regan hat), identifying what assets or tools you will need in completing the mission (my mechanics hat), guiding or navigating others in seeing the vision (my explorer hat), and being ready to address the resistance to change (my protective helmet/hat).  

So many hats, so little time to wear them in!  Which takes us to the next part which involves implementing and taking into consideration time constraints and expectations.  Upper management wants measurable results and if you give a time frame for when they should see positive change, you had better deliver.  With any individual or team and meeting time goals first you must have clear goals and expectations.  If I've said it once I've said it a hundred times you can't hit a target if they can't see it, understand it, and have a vision in the path to reaching it.  Make sure you communicate expectations in both clarity and in relation to time.  If I say I need a report next week, it could mean Monday or could mean by Friday.  Same thing in regard to other time considerations including sales/closing goals, new account contracts, specific financial results (i.e. meeting budget), or personal accomplishments (completing a class or course). Be specific in your expectations or be ready for disappointments.

Communicate accountability and at all levels.  The lack of accountability has been said to be the downfall of many organizations and teams.  In an organization where there is a lack of accountability, people tend to blame everyone else and nothing positive gets done.  Having leaders that are not accountable will bring down a team and an organization faster than anything else.  Part of the reason is being accountable means taking responsibility.  Leaders must be willing to empower through responsibility, have an open and transparent way of providing both positive and negative communication, an open way to provide praise and recognition,  and acknowledging team achievements by being an effective leader not necessarily a cheer leader.  A good leader will learn from their mistakes.  A great leader will admit them!

Last but not least never being complacent and continually looking for ways to excel and exceed.  The job never ends when a goal or objective is met, it is just starting.  The bar has to be continually raised to avoid an organization and even individual positions from becoming stale.  When staleness sets in, employees leave which means a leaders job is never really done.  We constantly have to be looking for ways to motivate and inspire our teams and personnel, new ways of perfecting our trade, and never being afraid of change.  Look at what has happened just within technology in the last 20 years, and they way it looks it's only a beginning.  Now go lead by creating excellence.  The ladder to success is only limited by your passion and inspiration (and maybe a little perspiration).  Remember management is climbing the wall of success.  Leadership is making sure the ladder is on the right wall and tall enough to reach the top.

Maximizing value of our assets

As property managers, we have an obligation to maximize income and minimize expenses.  All of us have had to contend with a budget, sometimes realistic and achievable and sometimes not.  While I have talked about budgeting in the past, what I want to focus on now are the aspects of maximizing the NOI of your community or communities no matter what the status of your budget is.

There is no doubt, the first and best way to improve NOI is reducing turnover.  Fewer residents move out, less vacancy loss and lower turnover expenses.  So how do we do this?  Excellent customer service, exceptional communication, maintaining the asset and their apartment, and providing services that enhance their lifestyle (of course based on your target market).  What most managers and team members do not know is the cost of turnover and the time relationship of turnover.  Average turnover varies and is reported anywhere from 40 - 60% as the median.  We know turnover varies based on markets, property types, seasons (NMHC reports 46% of renters report they moved in the June - September time period), financial cycles, etc.   Recent trends and reports show rents have been on the increase since 2010, construction of new communities on the upswing in 2012 for the first time in four years, and turnover has been declining in most of the major markets.  Some of this related to uncertainty within the financial sector, challenges still related to the foreclosure markets, and I also believe property managers continuing to more effectively relate to resident service and services. 

Raising rents is the next way to increase NOI.  There is a tradeoff between raising rents to where residents continue to find value, and the point where resistance makes them want to look somewhere else.  That balance in order to be used effectively must be understood by property managers.  Regional Managers and corporate management I believe can do a better job of training in this area, versus dictating changes to the sites.  Help them understand the process and the analysis, as they will better "buy in" to raising rents if they understand the "why and how factors."  Average turnover costs have dropped in the last year, basically because vacancy has declined and the loss to vacancy has been reduced in most markets.   Lenders use 95% as the rate structure for loans, while property managers typically use 95% as the balance point for raising rents.  With improving occupancy nationally, this is likely to change...at least for a period of time.  One thing is for certain, nothing is permanent in our business but change.

Last but not least, minimizing expenses.  Enhancing and doing a better job of inventory control, insuring things are fixed the first time, insuring we are using the most effective marketing mediums, finding energy conservation measures, making wise purchasing decisions, and hiring the right people to get the best team are all ways we can minimize expenses.  Ever business and property can find ways to cut costs.  Just wish our government would believe that as well.

Finding 

From both an investment and an operations standpoint, 95% occupancy is considered the optimum level for multifamily properties. Lenders use the 95% occupancy rate to structure loans, while managers consider 95% to be the balancing point between keeping a property full and focusing on raising rents. - See more at: http://www.ccim.com/cire-magazine/articles/maximize-apartment-value-through-strategic-management#sthash.KthAnU4p.dpuf

From both an investment and an operations standpoint, 95% occupancy is considered the optimum level for multifamily properties. Lenders use the 95% occupancy rate to structure loans, while managers consider 95% to be the balancing point between keeping a property full and focusing on raising rents. - See more at: http://www.ccim.com/cire-magazine/articles/maximize-apartment-value-through-strategic-management#sthash.KthAnU4p.dpuf

From both an investment and an operations standpoint, 95% occupancy is considered the optimum level for multifamily properties. Lenders use the 95% occupancy rate to structure loans, while managers consider 95% to be the balancing point between keeping a property full and focusing on raising rents. - See more at: http://www.ccim.com/cire-magazine/articles/maximize-apartment-value-through-strategic-management#sthash.KthAnU4p.dpuf

If life gives you grapes...make wine!

I'm sure some of you have heard it differently involving lemons.  Don't know about you but wine just sounds more fun, unless it's a hot summer day then lemonade fits the bill.  Where I am going with this is to emphasize we have the ability to make what works and what applies, if we choose to use the resources available to us and use what works best for the situation and time.

We all make choices in life, some of them easier than others.  What movie do I want to go see tonight?  That one was easy as I yesterday took some "Larry Time" and went to go see "Now you see me."  Being a magician and based on the recommendation of some friends at Disney, I made the choice to spend more than the movie ticket on popcorn and a drink to see the movie.   Some choices are more difficult and with longer lasting consequences, but have high rewards.  Some choices are out of necessity while others voluntary, keeping in mind they are still choices.

As my friends and family know, I have made the choice to return to the executive/leadership world after spending several years training, consulting, educating, and when not doing that working at Disney doing something I have a passion for.  My friends, co-workers, and supervisors at Disney have been fantastic, and the memories and relationships I have established will last a lifetime.  So I could transition back into leadership I stopped taking contracts for speaking engagements.  Opportunities here in Florida have been slim, and I have even turned down a couple of positions because it was not a good fit.  One of the opportunities involved a company that had a very bad reputation, including not paying their suppliers and there were even reports of pay checks bouncing at the regional level.  I chose to keep looking, and do not regret for one instant the decision I made (even though it was for a lot of money...keeping in mind if the check cleared). 

One opportunity I recently applied for is not in Florida but back in North Carolina, where we were before coming to the home of the mouse.  What is hard is moving away from my daughter and grand-daughter (and of course my son-in-law), which I know will break Taylor's heart.  But, sometimes we have to do what we must do.  Interview completed and have been told will know within the next week as they have other candidates to talk with.   As I said, sometimes choices are hard and sometimes easy.  Not sure where this will go, however, if given the opportunity I have always said, "If opportunity knocks...you at least answer the door."  Those that know me understand the passion I have for the business that has provided for me for over twenty years.  Outside of the training and education part, property management is who I am and what I do.  We'll keep you posted and let you know what happens from here.  Either way, the choice is mine.

Get out to get knowledge!

I can't even begin to count how many times I have asked a site team about their competition, only to get a blank stare or answers that were far from reality.  "Tell me about ABC Apartments which you list as one of your primary competitors on your comp sheet."  Most of the time they can tell me if they are newer, older, etc., but not the details to help them understand or help them sell their own site and product.  Many times, unfortunately, they say they have never physically shopped them.  OMG!

I have written about the shortfalls of really knowing their own product (how many outlets in the living room, feet of counter top space in the kitchen, how many drawers in the kitchen, etc.), and how this knowledge can make them a better leasing/sales person.  You can't truly sell your own apartments or come across as credible if you don't know your own site and apartments.  The other side of the coin is knowing your competition. On occasion I have had managers who have visited the competitors, but then it may have been last year or cannot really answer specifics about the product.  Everyone....everyone at your site should visit the comp's at least twice a year.  So the question is, what do your really get and what areas are critical?

Nothing is permanent but change, and sites change.  Staff changes, fixtures change, amenities change, and sometimes for the bad as well as the good.  How good of a job are their leasing people doing?  What does their office and desk area look like?  What does their advertising and lease package look like?  How well is the site being maintained?  Have traffic patterns changed making it easier or harder to ingress and egress the site?  How is their lighting (means you should look at after dark as well and review breezeways as well as parking areas)?  Have they made upgrades to their interiors?  Have they upgraded counter tops and appliances?  How does their floor plan compare to ours and what are the positive and negative points?  Does their square footage include balcony and patio?  Are their dimensions listed accurate?  Have they changed their pet policies?  Are they using lease optimizer software?  Have they changed how they accept payments?  What does their web site look like and what is available as far as features through their site?

As you can see so much can be obtained, analyzed, and used and all you have to do is take a field trip and get out of your office.  Observe and learn is also another key point.  You might learn a new way of saying something listening to them talk on the phone or to a prospect.  You might also learn what not to say as well, but let's focus on the positive.  On the other hand, never...and I repeat never, say anything negative about your competitors to your prospects.  Point out the positive and how you are better.   If a prospects states they have visited XYZ Apartments use your gained knowledge to show how you are better.   I have actually had leasing specialists say, "Oh you don't want to live at XYZ Apartments because their kitchens are small."  Instead say, "I am sure if you visit our competitors you will find we have the largest kitchen space in the market and more cabinet space to provide the highest quality of living."  

We must constantly be learning and to do that constantly be assessing the market.  We also must be continually find ways to excel and exceed, as well as making sure we are the most knowledgeable we can be by training ourselves and others.  Knowledge is power and can lead to success for you and your team.   

Motivation

I once had someone come up to me after speaking at a convention and said, "You have inspired and motivated me.  Why don't you do more motivational speaking?"  

How many of us have gone to a "motivational" presentation, got pumped up at the event and felt entertained (and maybe motivated), only go to work the next day and not feel the motivation?  Now don't get me wrong as there are some people that I have heard which have made me feel very motivated.  So where does motivation come from and what makes us highly motivated.  My belief is motivation comes from within and around us (by those that work and lead us), more than it does from any seminar or speaker.  That is where effective and continued motivation makes a difference.

First, motivation must come from within.  If we don't want to be motivated or do not have the desire to be motivated, it likely will not happen.  Positive attitude has a lot to do with drawing motivation from within us.  You have heard the saying, "you can lead a horse to water but you can't make him drink."  Motivation is no different, herein the "within" factor comes into play.  Those that are positive instill motivation not only for ourselves, but with those around us.  We have all been around co-workers who did not enjoy what they did, or were not willing to give 100%, dragging other members of a team down.  We have also had the opportunity to be around team members that were always happy, enjoyed their work, and took great pride in what they did.  Look back at those different team members and remember how it had an impact on you and your team.  This is especially important for leadership because nothing will drag a team down faster than a leader who is not positive, excited, and inspiring. 

Which brings me to the "around" us part of motivation.  Creating a motivational environment is the second part of the equation.  A leader take people where they want to go.  A great leader takes people where they ought to be!  You cannot equate a favorable motivational environment in any one area.  It takes compassion, communication, clarity, effective listening, empowerment, openness, and a host of other talents from a leadership standpoint to create a true and effective motivational environment.  So if you are the leader, motivation for others begins with you!

So the next time you attend one of these "motivational" events, do not expect to go to work the next day with fire coming out of your....self, all the stars to be in alignment, and your co-workers begin a rendition of "Kumbaya" as you enter the room.  Nothing you hear will have harps playing in the background as you make important decisions and interact with your team.  Isn't going to happen unless you want it to, and those around you including leadership are motivated along with you.  It does however, start with you, which can be infectious and motivational to those around you.  This is why I would rather speak on topics that help others excel at what they do and create motivational conditions that last for extended periods of time, than tell a few jokes and build a short term result.