Last year at this time I was speaking with a colleague regarding an improving economy, occupancies nearing 98% with demand on the rise, and rents increasing. But what a difference a year makes. Today many apartment communities in Oregon and Southwest Washington are starting to struggle with increased vacancy rates, lowering rents and concessions on the rise.
Now more than ever it is important that you add value to your apartment community. Why should a prospect choose your community over your competition? What does it mean to add value to your community? According to Wikipedia, “the value of a product within the context of marketing means the relationship between the consumer's expectations of product quality to the actual amount paid for it.” Realistically you may not need to lower rents and give away concessions but you must demonstrate to your prospects that you are a good value for the amount of rent being paid.
This starts with your curb appeal or the overall appearance of your community. No matter the age of your community you can add value by keeping your curbs and speed bumps painted, maintain your landscape by pruning and keeping your flower beds fresh, paint your vacant unit front doors, keep your leasing office and clubhouse clean and welcoming, and ensure that your flags, banners and signage are in good condition.
Being the most exciting selection of apartment homes in the market is not about free rent. Before you give in to temptation to give away free rent, try a contest with an exciting (non-rent) giveaway instead! Before you begin, remember that everyone who visits your community must be allowed to enter a contest in order to comply with fair housing regulations. Choose a giveaway that people in your market would love! For example, add value to the apartment home by giving away a free painted accent wall, install a high end ceiling fan or add an iPod docking station. These items remain with the apartment and are selling features that can be sold to future prospects. Other giveaways may include a home office and computer, printer, and software package or a mountain bike. You can offer vacation packages for very little, and you can offer them to everyone including your lease renewals!
To add value inside your vacant apartment homes create a great living experience. First remember to remove the old residents ceiling hooks and any other items that make the home feel lived in. Industry expert Toni Blake says, “People like to feel like the apartment is NEW! Even though a friend buys a used car they will say to you “I got a new car”! It is new to them! People feel the same way about their apartment. You need to Re-package it! Re-market it! Re-present it! RE-markably!” I know we all like to shop at the Dollar Store but often times it makes the apartment look and feel cheap. The idea behind a mini-model is to increase the value of the apartment thus a good mini-model may cost you $100 or more. Your “vacant show ready homes” should feel, smell and look good. After your maintenance team has turned over the apartment it is your job to make it shine. How about using a “spiff kit” to make this happen? At minimum this kit should include wipes with 409, Windex Wipes, paper towels, lemon ammonia, Pine-Sol, Carpet Fresh, Febreeze, light bulbs, a broom, and trash bags. In addition you should add items like the great smelling Wall Flowers from Bath & Body Works (lemon verbena, vanilla and coconut). Plug one in and leave it during your “show” time and move it to the next target apartment once it is leased. Add a great music CD as it helps the prospect to relax and makes it feel like home.
Prospects are looking for value and they are also looking for things that remind them of their core values: home and family. Nothing says home and family like cute little “Fluffy!” That’s right, allowing pets is a great community feature and statistics show that residents who own pets have a tendency to be longer term residents than those that do not have a pet. Did you know that 80% of residents that live in the Northwest own a pet? By not allowing pets you are significantly reducing your pool of potential prospects. Have you thought of making your community the “Pet Friendly Place to Live?” This could be your niche. In an effort to reposition itself during a down economy, popular airline Jet Blue, recently added value with their new pet program, “We’re excited to introduce JetPaws, JetBlue’s exclusive program designed to provide pets and their owners the tips and tools they need for a smooth trip from start to finish. We’re simply committed to each and every one of our customers-including the four-legged ones,” said a representative of JetBlue.
Finally I challenge you to look at your community and see what you can do to communicate value, illustrate your community and management company’s strengths, and create a feeling of warmth.
Now more than ever it is important that you add value to your apartment community. Why should a prospect choose your community over your competition? What does it mean to add value to your community? According to Wikipedia, “the value of a product within the context of marketing means the relationship between the consumer's expectations of product quality to the actual amount paid for it.” Realistically you may not need to lower rents and give away concessions but you must demonstrate to your prospects that you are a good value for the amount of rent being paid.
This starts with your curb appeal or the overall appearance of your community. No matter the age of your community you can add value by keeping your curbs and speed bumps painted, maintain your landscape by pruning and keeping your flower beds fresh, paint your vacant unit front doors, keep your leasing office and clubhouse clean and welcoming, and ensure that your flags, banners and signage are in good condition.
Being the most exciting selection of apartment homes in the market is not about free rent. Before you give in to temptation to give away free rent, try a contest with an exciting (non-rent) giveaway instead! Before you begin, remember that everyone who visits your community must be allowed to enter a contest in order to comply with fair housing regulations. Choose a giveaway that people in your market would love! For example, add value to the apartment home by giving away a free painted accent wall, install a high end ceiling fan or add an iPod docking station. These items remain with the apartment and are selling features that can be sold to future prospects. Other giveaways may include a home office and computer, printer, and software package or a mountain bike. You can offer vacation packages for very little, and you can offer them to everyone including your lease renewals!
To add value inside your vacant apartment homes create a great living experience. First remember to remove the old residents ceiling hooks and any other items that make the home feel lived in. Industry expert Toni Blake says, “People like to feel like the apartment is NEW! Even though a friend buys a used car they will say to you “I got a new car”! It is new to them! People feel the same way about their apartment. You need to Re-package it! Re-market it! Re-present it! RE-markably!” I know we all like to shop at the Dollar Store but often times it makes the apartment look and feel cheap. The idea behind a mini-model is to increase the value of the apartment thus a good mini-model may cost you $100 or more. Your “vacant show ready homes” should feel, smell and look good. After your maintenance team has turned over the apartment it is your job to make it shine. How about using a “spiff kit” to make this happen? At minimum this kit should include wipes with 409, Windex Wipes, paper towels, lemon ammonia, Pine-Sol, Carpet Fresh, Febreeze, light bulbs, a broom, and trash bags. In addition you should add items like the great smelling Wall Flowers from Bath & Body Works (lemon verbena, vanilla and coconut). Plug one in and leave it during your “show” time and move it to the next target apartment once it is leased. Add a great music CD as it helps the prospect to relax and makes it feel like home.
Prospects are looking for value and they are also looking for things that remind them of their core values: home and family. Nothing says home and family like cute little “Fluffy!” That’s right, allowing pets is a great community feature and statistics show that residents who own pets have a tendency to be longer term residents than those that do not have a pet. Did you know that 80% of residents that live in the Northwest own a pet? By not allowing pets you are significantly reducing your pool of potential prospects. Have you thought of making your community the “Pet Friendly Place to Live?” This could be your niche. In an effort to reposition itself during a down economy, popular airline Jet Blue, recently added value with their new pet program, “We’re excited to introduce JetPaws, JetBlue’s exclusive program designed to provide pets and their owners the tips and tools they need for a smooth trip from start to finish. We’re simply committed to each and every one of our customers-including the four-legged ones,” said a representative of JetBlue.
Finally I challenge you to look at your community and see what you can do to communicate value, illustrate your community and management company’s strengths, and create a feeling of warmth.
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