MultifamilyPro » Tami Siewruk

Training Your Leasing Team To Sell Rent Increases – The Time Is Coming

Tami Siewruk — Thu, 08 Apr 2010 17:15:12 +0000

Getting residents to swallow a rent increase has never been easy; but it’s more difficult now than ever thanks to today’s market conditions. Many communities have been engaged in an all-out concession war for new move-ins. In order to successfully increase rents, your leasing team must be ready for battle. They must understand why the increase is necessary and be confident in explaining it, over and over again. They must be prepared to resolve objections and show residents why living in your apartment community is worth a little extra. In short, they must be well trained!

Start from Day One

One of the most important things to realize is that the selling process starts from the first day of a new resident’s lease. Or If you wait until 60 or 90 days prior to lease expiration to start selling an increase, you will have very limited success. Instead, you must build value throughout the lease term by delivering superior service. “Show value to people every single day, not just a month before their lease is up,” says Joel Kaye, “Show them that what they’re getting now is worth more than what they’re paying—so they’ll be willing to accept the increase.”

That means that your staff must be well trained in the basics of good customer service from the time they begin interacting with residents. “You can’t pass on a rent increase unless you’ve given good customer service,” says Eve Bradford, President of Excel Training and Consulting. “So you have to train them from the beginning of their tenure that it’s all about service. You do that through daily training, through interactions with the staff throughout the whole training program.”

Sue Garcia, Director of Training for Fairfield Properties, says that her company’s training is premised on the fact that people will pay a little more for superior service. Therefore, onsite staff members know that if they offer that superior service, they can confidently ask for an increase.

Get Their Buy-In

You have undoubtedly had experiences with sales professionals (to use the term loosely) who weren’t really “behind” what they were selling. Perhaps you could tell by the tentative way they asked for the sale…or the way their voice sounded listless and bored when they recited their product’s features…or they way they gave up at the first hint of an objection. Hopefully, you’ve also had the opposite of that experience—the salesperson who believed so strongly in his product, who was so contagiously enthusiastic about its miraculous benefits that he was practically irresistible.

In order for your leasing team to perform like the second type of salesperson, they must “get behind” the rental increase and want to sell it. The best way to get this kind of buy-in is to explain the increase to them. If you fail to do so, onsite people may view it as just another obstacle to their ability to lease and re-lease apartments—or as a misfortune for their residents. “Associates who are not educated in the financial matters of the property tend to ‘give away the farm’ on specials,” says Amy Abdallah, District Trainer for Trammell Crow Residential Services. “They extend apologetic empathy to residents and make the manager look like the bad guy—so the manager then has to blame it on the corporate office.”

Show them why it’s necessary to raise rent in real, numeric terms, not just in vague generalities. Share the budget with them to help them understand the economics behind the decision. “Give them a chart so they can see where the money goes…what percentage goes to services, what percentage to maintenance, to payroll, and so forth,” says Eve Bradford. “If they understand how the money is spent, they’ll understand why we need an increase.” Eve also uses a demonstration to show team members what a difference a $10 dollar increase can make: “Show them a formula for the increase, by unit, by month or by year. Explain that that’s the cost of their newsletters, their moving programs, and so forth, so they can see the big picture.”

It may also be necessary to remind teams that you are in business to make a profit—that your owners expect to see a return on their investment, and it is the responsibility of every employee to make that happen. Amy Abdallah suggests using a training class that asks associates to meet ROI/NOI by forecasting income. “They soon see that sometimes the only avenue to increased revenue is in rental income,” she says. “Making them do that really drives the point home.”

The team also needs to view the community’s rental rate in terms of value, not price. “They need to understand the value of the product they offer,” says Carrie Morelan, Training Manager for Shea Properties. “That it’s not just four walls, a floor and a ceiling…it’s the service they provide and what sets them apart.” Sandra Barfield, Director of Training for Trammell Crow, agrees: “Train them to sell value. They have to know why you’re increasing rent and why you think you’re able to do that, what you’re giving the resident in return.” Sandra suggests challenging the onsite teams to go back to their properties and discover for themselves what warrants the increase. This can be an effective way of building support for an increase on a community-by-community basis.

Another way of gaining support is to have property managers ask their onsite teams: “How much of an increase do you think we can absorb?” According to Sue Garcia, it is not uncommon for onsite staff to suggest an even higher increase than you ultimately decide upon. “When this happens, it can be very motivational for them,” Sue says “Because they think ‘If I said I could get $25 more, and I only have to get $15 more…that’s not so hard.’”

Give Them the Tools They Need

Anticipate the objections your team will receive, and arm them with the information they need to overcome those objections. Some tools that can be useful include:

A “cost of moving” worksheet that calculates all the expenses involved in a move: phone and cable hookup fees, moving truck rental, a day or two off work, security deposit, etc. Total all the expenses and divide by 12, to show that it will be more expensive to move than to stay.

A “value by value” comparison showing how your community stacks up to your competitors. This is useful for deflecting the “They’re charging less down the street” objection.

A worksheet showing how expenses have increased. Collect data on your operating costs—vendor charges, taxes, insurance and utility bills, if applicable—and let leasing professionals use that information to explain to residents why the increase is necessary.

A breakdown of the increase amount by day. Showing that a $25 dollar bump comes out to just under 85¢ a day is a great way to minimize it.

A bargaining chip. Leasing professionals should have something to offer residents who are facing an increase. It might be simply offering to repaint and clean carpets, or to replace their vinyl flooring or their kitchen sink. Or it might be refunding part of their security deposit for each year of residency. It doesn’t matter so much what it is—the idea is to show residents that you value their residency and want to make them happy.

Encouragement. Fielding resident objections about a rent increase can be frustrating, and lead to employee burnout. Be sure to have your onsite managers build in opportunities for “venting” and for morale building. Also, be sure your onsite managers know the importance of listening and responding to associate feedback. “Listen to your associates,” Sandra Barfield says. “If they’re getting stressed out because they’re getting all these objections, the property manager must be able to act on that. Otherwise, you will get the burnout.”

Make Sure They Feel Prepared

“I think the number one thing they have to have is confidence to overcome the objections,” says Sandra Barfield. “You have to get them comfortable with what they’re selling. They have to have that level of assurance to be able to justify an increase.” Sandra says that level of confidence comes from being well trained in the basics. Her company accomplishes this through classroom training; supplemental, position-based workshops, weekly meetings of onsite teams, and a two-hour “leasing blitz.”

Sue Garcia agrees with the importance of a firm foundation in the basics. “Being able to handle the telephone, e-leasing, onsite presentations comfortably…all those kinds of things add up to a leasing consultant’s confidence,” says Sue. “Which will help them know how to handle themselves whether it’s a big increase or a small one.”

Sue also notes that one great way to build confidence is to let team members practice. “One of the things we do in the training environment is to let staff ‘try things on’ in a safe or protected environment,” she says. “We put them in role-playing situations, and let them practice handling resident objections. That gives them the chance to work out any kinks in their presentation and feel comfortable with it, because if they’re not comfortable doing it in real life, they won’t be able to.”

Your community’s continued success depends on receiving the maximum return on your investment. Selling a rent increase is a tough job; but a solid strategy, that brings your team on board from the start, will make it much easier. Start from day one, get your team’s buy-in, give them the tools they need, and make sure they feel prepared. The best sales tool you can possibly have is a team that’s totally sold on the idea they’re tasked with selling!

Strengthening Your Apartment Community’s Fitness Center Strategy

Tami Siewruk — Sat, 27 Feb 2010 04:58:48 +0000

There was a time when being able to boast an on-site fitness center afforded you a distinct competitive advantage. Unfortunately, those days are gone. Today, most (if not all) of your competitors have fitness centers, and some might even be better than yours.
On-site fitness centers came into vogue as a means of attracting an increasingly fitness-conscious public. They proved their worth as residents realized the benefits of convenient on-site facilities that were comparable to those at the local gym (the keyword here being comparable), without the extra membership fees or hectic commute. They were an “easy sell” at the start, and by and large, we’ve been selling them pretty much the same way ever since.
Meanwhile, the health club industry has continued to ride the wave of the fitness trend to its fullest extent, bringing the workout experience to higher heights. Television commercials for even small neighborhood spas look like MTV videos, with flashing laser lights, shining chrome, supermodel aerobics instructors, and row upon row of mega-machines that look like they just beamed down from the Starship Enterprise. What used to be comparable between our communities and the neighborhood gym isn’t so much anymore.
Among those communities who caught the clue, the race is officially on to design and offer the biggest and best fitness centers around, with more trendy accessories, and newer and more versatile equipment. Where one or two good multi-exercise machines and mirrored wall were once sufficient, many communities are now filling their fitness centers with health club-quality equipment. Existing fitness rooms are expanding to accommodate everything from new machines that look and feel like virtual-reality video games, to juice bars and multiple televisions.
It hasn’t escaped the notice of our future residents that fitness industry state-of-the-art is a tough standard to meet. That’s why simply stating that you have an on-site fitness center in a brochure, on a website or over the telephone is no longer sufficient to grab their attention – even if every other community in the neighborhood doesn’t have one too, the gym down the street is a tough act to follow. Nor is it enough to just point at the fitness center door and mention it in passing during a community tour. If you’ve put effort into ensuring that your fitness center is worth selling, then now’s the time to sell it for all it’s worth!

“Results-Oriented” Presentations
Back when fitness centers sold themselves, Leasing Professionals didn’t have to know much about them. Product knowledge training often goes into minute detail on each apartment home’s interior, but offers only a cursory run-through of the community’s amenities, and still doesn’t include much information about fitness centers beyond that they exist. As a result, we know enough about ice-making frost-free refrigerators and self-cleaning ovens to spout off until a future resident leases or dies of boredom (whichever comes first). The features and benefits of other exterior amenities are still pretty straightforward, but today’s fitness center has more to offer, and deserves to be given special attention in our presentations. A well equipped fitness center represents a significant investment – one that an accomplished Leasing Professional should take pride in presenting as one of the best benefits of living in the community.
Not only does the investment warrant special treatment, but consumer desires also demand that fitness centers be placed in the spotlight. Our health conscious future residents are increasingly savvy about the benefits of various types of fitness equipment, and in turn, demand more from an on-site fitness center. This is why it’s important for Leasing Professionals to be not only aware of the value of the fitness center as a community feature, but to be well versed in the features and benefits of the various types of equipment it offers. Granted, it’s a bit much to expect all Leasing Professionals to be fitness experts too, but a little extra product knowledge can go a long way. For example, there’s a big difference between “We have a treadmill here and a bike over there” and “Our treadmill has a variable incline” or “This bike will also monitor your heart rate”.
On-Site fitness centers may come in all sizes and in many settings, but the one thing they all have in common is that they can be used as a powerful marketing tool. The key, as fitness centers become more commonplace, is to spotlight the features and benefits that make yours unique.
I recently came across this segment in a new fitness magazine:
“We realized that just having an on-site fitness center would not be enough,” says Pamela Hughes, President of South Hampton Property Management, “Our goal was to have a better fitness center than the competition.” For its Monticito development, a luxury apartment complex in Houston, they installed two Textrix VR bikes – virtual reality bikes that feature interactive computer graphics and motion. “When we show our fitness center to a prospective resident, we take them straight to the VR bikes, “ says Hughes. “It really makes an impact. They may have seen seven communities in a day, but they remember that the Monticito had something that the others did not.”
When planning a new fitness center, adding to one, or simply revamping your leasing strategy, focus on what will make your facility stand out from your competition. Your facility’s unique selling point may be a special piece of equipment, like one of the newer VR bikes, a rock-climbing wall, or a treadmill with the latest monitoring technology. It could also be an accessory, such as an individualized audio/video entertainment system or an aerobics area. It could even be an intangible benefit, such as 24-hour access or a beautiful view of the pool or skyline.
No matter what you do to put your fitness center above the competition’s, you have to train your leasing professionals to sell it if you want to accentuate its differences. Keep in mind that a unique selling point is not a replacement for having a good fitness center. It is that special feature which will help you close the lease.
Unique Selling Point (USP) – A key marketing principle which states that to rise above the competition, you must be perceived as being in some way different from and better than the competition.
Here are a few tips to help you get the most out of you fitness center.
1.   Add some pizzazz!
Purchasing equipment is only the first step in designing your fitness center. After functionality, appearance should be the primary goal. This means selecting visually appealing carpeting or flooring; installing mirrors to open up the room; displaying attractive and instructional (or motivational) posters; decorating with plants; prominently exhibiting your accessories; and adding as many extras as possible to distinguish your center from the competition.
2.   Talk the Talk of fitness training. Use words that those “in the know” will know.
In your brochure, ads, and presentations, make your words count! Use hot-button terms such as “state-of-the-art,” “user-friendly,” and “results-oriented.” Be specific about your equipment and its advantages. The average consumer is becoming more familiar with the different types and brands of equipment available.
3.   Give your future resident a test ride.
If your community is lucky enough to have a VR Bike or other special type of equipment, strap the future resident in and let them have some fun. If you have a great sound system, crank it up. Make your future resident want to come back.
4.   Use the Internet
As the Internet has becomes more ingrained in our society, people are using it to gather information before physically visiting a location. This may now be your first line of contact, and is a fitting place for information about your cutting edge fitness center. Include pictures of your fitness center on your Web site and remember to show people using the equipment in the photographs.
5.   Don’t Just Answer Questions.
When someone asks specifically about your fitness center, this is an opportunity to close the deal. Unfortunately, the scenario usually goes like this:
Future Resident: “Do you have a fitness center?”
Leasing Professional: “Yes, we do.”
Future Resident: “Does it have treadmills?”
Leasing Professional: “Yes, it does.”
These future residents are telling you that your fitness center is an important issue to them – maybe even the deciding factor! Take advantage of this situation by selling your fitness center and its unique features:
“Yes, we have an excellent fitness center complete with cardiovascular and strength equipment” or “Yes, as a matter of fact, we have 3 treadmills, 2 climbers and 4 bikes!”
6.   Use Incentives.
It’s easier to retain residents than it is to replace them – and you’re more likely to keep them if you can keep them using your fitness center. How? Give them more reasons to use it! Many property management companies hold contests, fitness awareness classes and seminars in the center or clubhouse, or feature personal trainers during certain hours. These “fitness-focused” programs not only encourage use, but they help create a center of activity around your fitness center, and lend a fitness-conscious character to your whole community!
7.   Be Creative.
Use your treadmills for a “Walk Across America” race, or use climbers to climb the Empire State Building. Open the contest to your entire market area, charge a nominal entry fee, and donate the proceeds to a local charity. Programs and events like these build camaraderie among users and generate great public relations. Use your imagination to discover new ways to use and publicize your facility.

8. Continue Marketing.

Build value in your community by reminding residents of all the great amenities your community offers. I created the Healthy Choices series to encourage residents to use the many healthful-living amenities we offer that they don’t always use to full advantage. Residents who make it part of their everyday routine to use our valuable, fitness-enhancing amenities are likelier to not only live healthier, happier lives, but are more likely to renew!

Available here

How do you use your Fitness Center?
Your feedback and comments are welcome! Please leave us a comment and let us know how you’re using your Fitness Center as a strong marketing and retention tool. One more thing -- don’t forget to squeeze a short workout into your schedule this week. There’s no better way to get to know your community’s fitness center (and the residents who use it) than to get in there and work up a sweat yourself!

Save the Date for Brainstorming 2010!

Tami Siewruk — Mon, 14 Dec 2009 17:22:43 +0000

Are you ready? Do you have your shiny, new 2010 calendar in front of you?!? Well flip it open and write BRAINSTORMING 2010 on September 15-17 (with the usual Meet & Greet on Tuesday the 14^th), 2010 at the Sheraton, Dallas! I just spent the weekend at the hotel and it’s going to be the perfect setting for our event. We haven’t selected a theme yet, but several Facilitators are already leading the discussion online to gather suggestions from throughout our Brainstorming community; so look for the buzz to kick up today via Facebook http://www.facebook.com/mfbsconf and on Twitter (#mfbsconf). Spread the word! We’ll see you in Dallas!

Here Come The Holidays!

Tami Siewruk — Mon, 30 Nov 2009 16:33:14 +0000

Now, I know many of you are still trying to get your Thanksgiving decorations in order, but the yuletide season is close upon us. While you’re carving jack-o-lanterns and stuffing cornucopias, here are a few ideas to get your brain started before December finds you without a plan! Here’s a great list of ideas that will help you make your community a real Holiday Home!

Deck the Halls!

Start decorating for December on the day after Thanksgiving. This not only gives you plenty of time to decorate appropriately, but helps you and your staff get into the holiday mood. Break out the eggnog and put on some holiday music to really get the festivities flowing!

We all know that nothing smells like a real Christmas tree, but few things are more practical than a realistic-looking artificial one (the key word here is realistic… unless you’re going for retro kitsch, silver foil isn’t an option). A little pine-scented potpourri in a pretty bowl can supply the scent, as can a few strategically placed real pine boughs. (Note: spraying pine disinfectant on your artificial tree will not do the trick. I only say this because I actually know someone who tried.)

Here is a green idea for your residents! For those who are not LA based we need to find away to offer this to our residents this year! Christmas trees are 1) awkward to transport and 2) terribly depressing when they’re discarded in January. Los Angeles landscape architect Scott Martin founded The Living Christmas Company which gives LA residents the chance to temporarily rent a living Christmas tree and have it delivered right to their door. Unlike regular Christmas trees (around 20 million of which are felled each year in the US), living trees are transplanted, roots and all, into pots to be enjoyed over the festive period. After the holidays, Scott and his team pick up the trees, replant them and nurture them until next year! (more at http://livingchristmas.com/)

Tiered rows of poinsettias make an excellent “tree”! Have your service team assemble a stand made of progressively smaller boxes that stack on top of each other with a wide enough margin around each to place rows of potted poinsettias. Place a dowel in the center of the top box to attach a star!

Decorate your tree to complement your décor and atmosphere. You can choose a more sophisticated, coordinated set of decorations; or make it a little more "homey" with hand-made ornaments contributed by your staff and / or residents. Add plenty of brightly wrapped "presents" (empty boxes) under your tree. Use the nicest wrapping papers you can find (red, green, silver, and gold foils look great). Your local fabric or craft store should have an excellent supply of ribbons from which to choose, including wire edged varieties that can be shaped into big elaborate looking bows with little trouble.

Remember that the holiday season doesn't mean Christmas alone. Hanukah and Kwanzaa are also celebrations of the season. Decorate for and plan community events accordingly. Find out more about the holiday traditions of all your residents, especially if yours is a multicultural community. I once attended a holiday party where the host's decorations included a gorgeous Christmas tree decorated in an African theme for Kwanzaa and a lovely Menorah burning in honor of Hanukah. The guests were inspired by the decor to get to know more about each other's holiday traditions. We all learned a great deal that evening, and felt as though we had truly experienced the joy of the season.

Play holiday music in your Leasing Center, clubhouse, and even models! The staff may tire of them, but they'll really brighten the mood for your visitors.

Keep a running supply of holiday refreshments (cookies and punch or spiced cider) in the Leasing Center for visitors. A crock-pot full of warm spiced cider makes a great treat for future residents visiting on a cold day.

Lights are a must. The tiny white outdoor ones are perfect for trimming windows and shrubbery (also great for adding sparkle year round!).

Don’t forget your models! A miniature decorated Christmas tree on the coffee table or counter, a few wrapped “gifts”, and some pine or cinnamon potpourri is all it takes to add a warm holiday touch to a decorated model, or turns a vacant apartment home into a holiday mini-model! Play a little seasonal music in the background, and you’re ready to welcome your new residents home for the holidays!

Be careful not to overdo it. Simple elegance is best. Plastic figures on the roof or a puny tree can look tacky and convey a tired image. Remember that the holidays can be a stressful time of year for your residents; and are especially trying for future residents who are searching for a new home during the hectic holiday season. Your message of polished professionalism will be well received and appreciated.

Happy Holiday Activities

Host a tree-trimming party in the clubhouse, and supply all of the materials for
residents to make the ornaments!).

Hold a Christmas tree drawing. Give away a tree, complete with decorations!

Plant a live tree.

Hold a door, patio, or balcony-decorating contest. Award the winners with a special wreath on their door, and / or a holiday gift certificate.

If you community features include fireplaces, deliver firewood on December 23rd with a note offering "Warmest Holiday Wishes." If you can't afford to give firewood away, make it available for convenient purchase on-site.

Promote January and February lease renewals by sending out a stocking cut out of construction paper that reads: "Spend another year with us and we'll put something extra in your stocking! Renew your lease today!"

Hang stocking or wreath shaped party reminders on your resident's doors the day of your holiday party.

Team up with a local charity to provide a gift-wrapping service to your residents.

Clear out a storage area and offer it to parents in the community as a "Santa's Hideaway" for gifts. You may want to have residents sign a release of liability, and allow access to only select staff members.

Plan a "Twelve Days of Christmas" party count-down.

Hold a Santa's storytelling hour in the clubhouse to give parents a little free time to assemble and wrap presents!

If your area allows referral incentives, create and distribute a referral flyer that reads "Let us Give You a Christmas Present!"

Host a one-day, on-site Christmas tree sale with a local charity that sells trees.

Print holiday safety tips in your newsletter.

Plan to offer Christmas tree recycling on-site. It makes great mulch, and is a nice way to get some positive press as well!

Hold a drawing for front-row tickets to a local performance of The Nutcracker or A Christmas Carol.

Last Minute Holiday Party Themes

Toyland - A magical world of giant lollipops, candy canes, ornaments, toys and huge packages wrapped up with colorful ribbons. This fantasy theme will bring out the child in every resident.

Surfin' Santa - Tell your residents to leave their heavy coats at the door and come out to the beach! Set up a volleyball net with beach balls. Add a "Christmas" palm tree. Hang a bright sun, beach towels, sand pails and shovels with a sprinkling of Christmas decorations (pink flamingos with holiday wreaths around their necks, beach pails full of Christmas cookies, life preserver Christmas wreaths, etc.)

Reindeer Round-up - Bring the spirit of the West alive with Country and Western holiday music. Decorate with a cactus done up as a Christmas tree. Use rope around the room like garland, and serve western-style treats.

Last But Not Least – Remember to Stay in the Holiday Spirit

A warm inviting smile from your staff is the perfect crowning glory to your holiday decorating efforts. Greet everyone with a warm welcome, and ensure your faces and attitudes reflect the same joyous message that is presented by your community decor. Nobody wants to lease an apartment from The Grinch!

Don't be distracted by the Holidays to the point that you forget your number one mission: it's more important than ever that our residents and future residents receive the full benefit of our commitment to provide quality service!

Tom Peter’s “Brand Called You”

Tami Siewruk — Sat, 28 Nov 2009 18:53:35 +0000

Remember Tom Peter’s ‘Brand Called You’? It has to be one of my all time fav articles.

From the article: “No matter what you're doing today, there are four things you've got to measure yourself against. First, you've got to be a great teammate and a supportive colleague. Second, you've got to be an exceptional expert at something that has real value. Third, you've got to be a broad-gauged visionary—a leader, a teacher, a farsighted "imagineer." Fourth, you've got to be a businessperson—you've got to be obsessed with pragmatic outcomes. It's this simple: you are a brand. You are in charge of your brand. There is no single path to success. And there is no one right way to create the brand called You. Except this: Start today. Or else.”

Fast forward to ‘now’. Personal branding is bigger than ever. But it’s BRAND CALLED YOU 2.0 now. It’s about being an interesting and desirable brand to other individuals. To peers. To friends of friends. To fans. To followers. To family. It’s playlists and videos and pictures, it’s one’s thoughts and creative outbursts, it’s gaming scores, it’s preferences, it’s portfolios, it's stories you can tell, it's knowledge and skills, it’s an entire personal branding campaign trying to impress everyone except perhaps… big corporations.