Apartment Management: Your Business Center
Mar 15th
YOUR APARTMENT BUSINESS CENTER . . . GOOD BUSINESS FOR ALL
by Nadeen Green
Many apartment communities today offer a vast array of amenities—far beyond the mere swimming pool, which was innovative and exciting in its time. From exercise facilities to putting greens, from video theaters to saunas, hot tubs, and tanning salons, these amenities can make apartment residents feel as if they are living at a resort. One of the newer concepts in amenities is the “business center,” which provides a range of services and equipment. For those communities that have decided to, or are planning to eventually, provide this for residents, a well-thought-out policy will help keep your business center from providing “business” to fair housing groups, lawyers, and others whose business agenda is different from yours.
Fair housing groups and lawyers, you ask? Are there really fair housing and legal issues that could arise from establishing a business center at your community? While surely these issues are not major considerations, even if there were to be only one fair housing charge or lawsuit related to a business center, you wouldn’t want that one case to be yours. So here are some things to consider when striving for a well-planned, well-run business facility and satisfied residents (and isn’t that your point to begin with?).
Robin Hein, a well-known Atlanta attorney representing landlord interests, points out
that the starting point is to establish just what you mean when you say you are providing a “ business center.” Do you really intend it to be used only for business purposes (no one can copy Aunt Jane’s special recipe on your copier or fax Bobby’s glowing report card to Grandma?). And how will you monitor “business use only” to begin with? Probably what you really are intending to provide is a multi-purpose environment, so you may want to consider calling your facility a “Business/Study Center.”
Whatever you provide and whatever you choose to call it, your business center is an amenity at your community, and all your residents must have equal opportunity to take advantage of it. You cannot carve out a group of people and say, “You can’t come in here.” While none of you would say “Whites are not welcome,” or “Asians may only come in after 6:00 pm,” many of you would consider imposing restrictions on children—and therein lie the potential fair housing issues. If you should decide to impose rules that govern your facility’s use by children, those rules must be reasonable and have a clear objective related to protecting the premises and protecting your residents. Think about what you are trying to accomplish, and put your rationale in writing. This will help clarify for you whether what you are doing makes sense, and will provide solid reasons for your decisions should you be challenged.
Mr. Hein says that reasonable written rules and guidelines are absolutely necessary before you even open the doors of the business center to your residents. There are two approaches to the guidelines, based on whether you offer computers with Internet access.
If you have no Internet access in your business center, then none of your rules and guidelines should refer in any way to children or age. What those guidelines should provide for is the conduct that is acceptable within this particular facility. Residents (of any age) should not monopolize any of the equipment, and you may wish to consider time limits for use. You can impose a standard of behavior for everyone (again, regardless of age) whereby everyone must refrain from loud talk and boisterous acts. You can certainly require that anyone using the equipment be able to do so in a proper manner. If you have these types of rules in place, it shouldn’t matter whether someone in the facility or using the equipment is 8 years old, 38 years old, or 108 years old—or whether they are there alone or accompanied by someone else.
The issue becomes more complicated, however, when you provide residents with access to the Internet. In this case, the issue of children not being accompanied by an adult in the business center must be considered. The general consensus among experts in this area is that reasonable restrictions on children, related to Internet access, can be imposed, due to concern for the well-being of the children and liabilities to the landlord. As is usually the case, however, it is not as easy to find a consensus on just what those “reasonable” restrictions should be. Here are some ideas for your consideration:
· One of the more conservative approaches comes, interestingly, from Theresa L. Kitay, who was formerly a senior prosecutor for HUD. Now with the Fair Housing Institute and the law firm of Coughlin & Kitay (Atlanta), which are both organizations for landlords only, she suggests that an adult should accompany children under the age of 18. Ms. Kitay’s rationale is that there is information on the Internet that is unlawful for children under 18 to possess, and that the landlord should not provide to minors the ability to access this information.
· Nan Cavarretta, Vice President with Park Central (an award-winning Orlando community) and well-known fair housing instructor, believes that 16 is a more reasonable age cut-off for requiring adult supervision, provided that access blocks to protect minors are in place. If access blocks are not in place, then she confirms Ms. Kitay’s position requiring adult supervision until age 18.
· Mr. Hein believes that no specific age restrictions are necessary, providing two things. One is that the rules and guidelines you have established make it clear that the landlord needs written permission from a child’s guardian to allow him or her Internet access without supervision. The second is that the landlord assumes no liability for whatever information the child may be exposed to (even if the landlord has provided access blocks, which often can be circumvented by computer-savvy users). If this is the choice you make, be sure to obtain the signature of the appropriate adult on a document stating that supervision is not necessary and landlord liability is waived. Mr. Hein suggests that management attempt to block access to sites containing inappropriate sexual content or violence. Careful thought should be given as to whether to provide Internet access at all as part of the business services offered. Alternatively, if access can’t be controlled, Mr. Hein favors restricting Internet use to persons over the age of 14 unless supervised by an appropriate adult.
Foresight and planning are always important, and if you think about what you are trying to accomplish, put your rationale in writing, and have consistently enforced rules supporting that rationale, your business center will be the valued amenity you want it to be for everyone.
Fair Housing Focus is written by Nadeen Green, Senior Counsel with For Rent Magazine®. The information contained in this article is not to be considered legal advice, and the author and FRM strongly recommend that you consult with your own counsel as to any fair housing questions or problems you may have.
Apartment Marketing: New Resident Orientation Video
Mar 11th
Moving has been ranked just behind a death in the family when it comes to stress. Move-in day is a frantic time for both the office staff and the new resident, but we should always set up appointments for the paperwork process and not allow residents to sign the lease while a U-Haul sits outside running.
This will make the important information you are imparting and the new beginning you are undertaking much more enjoyable and successful. Ask each new resident to schedule a “New Resident Orientation” at a convenient time in the ten days prior to his or her move-in. This will allow you to comfortably review the lease agreement, and community policies, answer their questions, and view the “Orientation Video.” This video is designed to educate the resident on the most important parts of their new home. It should be no more than eight to ten minutes in length.
The most important part of producing a video is the preparation. The entire message should be written out and divided up into segments. First, you might want to begin with a welcome message and some general information about the location of amenities and facilities. Second, you should tell residents briefly about the most important community policies. Finally, you need to do a maintenance walk-through of an apartment, with demonstrations of minor repair techniques—such as operating the commode, thermostat, and water shut-off valve. This segment is the one we are most interested in. Please be sure to make the first two segments no more than a total of three minutes.
We have tracked unnecessary service requests that can cost your property up to $585 per month. This video is an opportunity for the service department to demonstrate important information and communicate directly to the residents in a very powerful way.
Contributed by Toni Blake
Toni Blake is an international speaker, author and comedienne. Having invested more than 28 years of her life in multifamily housing, she tours over 50 cities each year inspiring thousands of industry professionals. As an author, Toni’s expertise has been published in over 36 trade magazines across the country. She was selected by the National Apartment Association as one of the industry’s “Marketing Gurus” and is recognized for her research and innovative concepts in customer service, sales, and marketing. Toni was honored at the very first Multifamily PRO “People’s Choice Awards” winning awards for Educational Excellence, Imagination and Innovation. Utilizing her multi-lingual talents, Toni was a featured speaker at the 2006 ISTA Conference in Kassel Germany, presenting IN GERMAN to an audience of over 260 German multifamily professionals. She is the president of TotallyToni.com and lives in Northern Colorado with her husband and two stepdaughters. |
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4945 West Eighth Street
Greeley, CO 80634
Totally TOLL FREE: 866.889.6600
Phone: 970.378.6784
Apartment Marketing: Scuba Lessons At The Pool
Mar 8th
SCUBA LESSONS AT THE POOL
Idea/Theme: We offered scuba lessons for residents and guests at the pool! Contact your local Dive Center to see if this is possible for your community.
Key Visuals: Divers logo, snorkel, mask, pool, and flippers.
Media Vehicles: Community newsletter, listed as an amenity in apartment publications and Internet ads.
Estimated Cost: FREE!!
Results: A resort-like amenity that residents stand in line for!
Contributed by Christine A. Fleck
Apartment Management: Reduce Resident Turnover
Feb 27th
Make a Dedicated Team Effort to Reduce Resident Turnover
We have over 23 apartment communities in seven states in our portfolio, including approximately 12 in one metro area. In that metro area, turnover traditionally runs approximately 70% in class B product and our experience was in line with the metro averages. We analyzed that our greatest opportunity to increase portfolio returns was to reduce resident turnover. We estimated that each turnover costs us approximately $2,000. plus. This is a combination of down time, utilities, labor, apartment preparation costs, marketing, and more.
Solution: We decided to dedicate a full time team to the number one goal of reduction of turnover in our major metro area. We identified our best two leasing agents in our portfolio and moved them to a centrally located, separated office in the clubhouse of one our properties. We gave them the assignment of tracking lease renewals by property, month, and floor plan, and the goal of working with each properties staff to reduce turnover and to be pro-active in lease renewals. We utilize the software “Rent Roll” for on site lease management. Using the F-148 report which details month by month and floor plan by floor plan lease expirations they review each properties lease expirations in the upcoming months and establish goals, plans, and ideas for each property. As an example, if they see a particular property has a large number of leases expiring three months from now, they will go in and analyze those leases and see which leases are closest to market rent. They, or property staff, then use various materials to contact those particular residents with a small incentive to renew now, with no increase to some month where we have less potential turnover. They design, coordinate and attend lease renewal parties. They track each properties progress on lease renewal follow up, making sure that each resident is being contacted well in advance, and follow up is made. They have designed and implemented contests between the properties with an emphasis on renewals.
The Results: As of the end of the Third Quarter our turnovers have dropped by approximately 7% from last year. Turnovers through the third quarter are 172 units less than for the same period last year. We are also seeing the workload of staff flattened out by managing expiration dates better and a resulting reduction in overtime. Further, now that the program is really rolling and in place we are optimistic we will be able to improve upon those numbers in the quarters ahead.
Contributed by: Jerry G. Banks
Apartment Management Leasing: Be Smart and Safe
Feb 17th
Always Be Smart and Safe
The safety of your team is invaluable, and worth any measure! We’re not lawyers, so be certain to check with your legal counsel before implementing any policy, but here are a few ideas for you to consider:
« Ask every future resident for their driver’s license or a photo ID. Remember, Fair Housing demands that if you ask one visitor, you must ask every visitor. Leave it in the leasing center during each demonstration, in a predetermined place.
« Remind Leasing Professionals to always let someone else in the office know which apartments they are going out to lease. This information can be recorded in a centrally located logbook.
« Instruct Leasing Professionals that after opening the door to an apartment, they should turn the deadbolt once again to the locked position (leaving the door open) before removing the keys from the lock. This will keep the door ajar, and help limit the chances of the leasing professional being locked in the apartment against their will.
Less is More
By Kathleen Dover,
Over (or under) decorated leasing offices can be a problem impacting our market window. Staff members love to participate in decorating during special promotions or holidays, but often with mixed results. We entitled our effort “Less is More”.
This year I recommended that the management teams choose two colors (white/gold) and that their theme revolve around this. In addition we banned anything remotely looking like a paper decoration and then we held a contest for the most “tasteful” office, using media representatives as judges. The result was a huge improvement, at around $200 per office, with the staff taking ownership and pride in the result!
Let the Footprints Do the Talking
By Katrina Poitras,
If you need to connect more than one office, paint footprints along the sidewalks leading the prospective resident from one place to the other. Have your sign company make a large footprint stencil then spray paint the footprints leading in the right direction along the path. (Make sure they’re very neatly and tastefully done.) Estimated cost: $50 for the stencil and paint.
Learn how to motivate everyone to increase performance
Tailor motivation efforts to individual team members’ tastes by asking them flat out: “What motivates you?” Then dig deeper to uncover the answers to questions such as:
· Private or public? Some team members will view an invitation to lunch with the boss as the best type of recognition. Others will dread that type of recognition, yet bask in the glow of hearing themselves praised in front of their teammates.
· Quality or quantity? Ask team members whether they prefer praise for high-quality work or high-volume production. Some may crave recognition for their error-free results, while others will pride themselves on how much they can do quickly.
Leasing Training: Overcoming Objections
Feb 15th
Training Tips
When I am holding a training class we discuss overcoming objections, I ask the participants to give me a certain number of objections that come up at their site. I write them on a flip chart and assign a number to each objection. Using a target that I’ve drawn the numbers one, participants form teams, and one member of each team shoots at the target with a Nerf dart gun. When someone from the team hits a number, they have 45 seconds to come up with a response to the corresponding objection. If they get it right, the team receives one point.
Another technique that I use in start-of-session introductions is to ask each participant to tell one thing that they do better than anyone else in the room. This lets us get to know something about someone that we may never have known and it also helps break the ice!
Contributed by: Amy Aguiar
Generosity Trend: How Small Businesses Can and Do Help Charities
Feb 10th
As people are becoming more concerned about poverty and suffering around the world, Corporate Social Responsibility has become somewhat compulsory for many large corporations. According to the Giving Institute (www.givinginstitute.org), Walmart, Microsoft, Johnson & Johnson, Exxon, AT&T, and many others are known for donating millions of dollars to charities each year. Yet, they only account for about 5 percent of all donations to U.S. Nonprofits.
The significance of this statistic is the fact that the largest donor group is made up of individuals and small businesses. According to a study by the Wells Fargo/Gallup Small Business Index, a staggering 90 percent of small businesses support local charitable organizations and nonprofits. Though the individual contributions may be small compared to the donations from multimillion-dollar corporations, they are collectively contributing billions of dollars to philanthropy.
All of this goodwill reflects positively on small businesses in local communities and does not go unnoticed. As the economy shrinks and the public becomes more aware of the struggles that local charities are experiencing, raising funds to help these organizations increases a businesses visibility and may even bring in new revenue. The key is to maximize exposure by publicizing events or donations through media attention, newsletters and advertisements. People feel better when they associate themselves with businesses that are helping the community. For some people suffering through their own hard times, doing business with a company that supports charities may be the only way they can help causes they care about.
Charity Marketing: A Mutually Beneficial Arrangement
Obviously, the charitable organizations benefit by partnering with businesses, but it’s also a good marketing strategy for those companies that make such a commitment. The keys to successful charity partnerships include choosing the right charity partner, choosing the right avenue of making donations, and choosing the right marketing strategy to inform your customers about your involvement.
Partner with a Charity that Reflects Your Values
Finding a charity whose work and values are reflected in your company’s mission is an important first step. Support of any charity is a good move, but finding one that compliments your vision and your customer’s values will maximize the rewards for the charity and your business. For example, when Storyville Coffee (www.storyville.com) was looking for a charity partner, they sought to extend their philosophy that a cup of coffee is a catalyst to slow down and create space to dream and imagine. They found their match with the International Justice Mission’s (www.ijm.org) fight against human trafficking and modern-day slavery. By helping the IJM’s work to physically set people free, they also helped those people become free to dream.
Storyville Coffee and the International Justice Mission worked together to develop a plan to help raise money and awareness of human trafficking. To spread the word, Storyville Coffee publicized their decision to donate 100% of their profits for an entire month and to organize and sponsor a national concert tour to raising awareness about International Justice Mission.
Through these charitable acts, people heard about and cared about Storyville Coffee.
Create Your Avenue to Donate
Depending on the type of business, there are several ways to raise monetary donations for a charity partner.
1. Percentage of Sales - As illustrated in the Storyville example above, if you run a business that sells products or services, it is simple to designate a percentage of profits towards a charity donation. This could be an across-the-board percentage of total sales, or it could be a percentage of a particular type of product or service sold. Product-based businesses can designate certain products to generate donations. Service-oriented businesses can offer discounted deals and packages with some of the proceeds benefiting the charity. Be creative in offering your charity designated products or services.
2. Private Label Products – Any number of products can be developed and sold to benefit the charity. There are many private label companies that produce products such as beverages, condiments, chocolates, cosmetics-almost anything you like. These products can be customized with a private label.
An example of a private label success is Ethos Water, founded in 2001 as a social start-up venture to help children around the world get clean water.
It was acquired by Starbucks in 2005. Ethos Water and Starbucks are committed to raising awareness of the World Water Crisis. The water is now sold in Starbucks stores and in many large grocery, convenience and drug stores throughout the US and Canada. A portion of the sales goes towards humanitarian water programs.
3. Affiliate Sales – Businesses can partner with charitable organizations who promote the company which in turn donates a commission or portion of the sales generated back to the charity.
Getting the Word Out
1. Enlist the Charity’s Lists – Enlist volunteers of the charity to sell your role in making donations. Ask them to send out information in their newsletters and fliers and spread the word on social networking sites such as Facebook or Twitter. Give them additional incentives to encourage higher sales. You will benefit from the increased exposure, and they will earn much-needed funds.
2. Organize an Event – Special events to help raise funds for your favorite charity can be rewarding and fun for the whole community. Encourage other businesses in the area to participate by helping with the organization of the event or by volunteering services in exchange for their name being included in the list of sponsors. To save costs, get as many special deals as you can by explaining the event is for charity. In any negotiation, always ask “Is that the best you can do?” You will be surprised by how powerful that simple sentence can be.
Not all charity events need to be like a national concert tour. An example of a local charity fundraiser is one held recently in a small town in New England. The event was advertised as semi-formal and was held in a beautiful bed and breakfast. The owners were happy to offer the Inn at no charge since they let people tour the rooms and take brochures. To keep costs low, the food was kept simple. The dining room was set up with a variety of cheeses, fruits, bread and crackers. Volunteers prepared and served hors d’oeuvres, desserts and wine to the guests. Another volunteer softly played a violin in the background. They charged $75.00 per couple and sold items via silent auction that were donated by local businesses and artists. It was a very memorable event. Not only did they raise a considerable amount of money for the charity, but the generosity of the businesses who participated in the event made a lasting impression on the guests.
Charity Marketing isn’t just another marketing gimmick. According to the study by the Wells Fargo/Gallup Small Business Index, eighty percent of small business owners surveyed say they believe their community efforts benefit the communities they serve more than their own business. Being committed to giving back to the community by helping those who are suffering and in need, reflects the core-values that are important to many small-businesses and their customers.
About the Author:
CherryPlanet.com was founded to help local businesses attract customers by providing a platform for businesses to create coupon campaigns for free. The site offers a way for businesses to save money on advertising and marketing while helping customers save money while shopping and doing business locally. In addition, Cherry Planet is committed to donating 10% of their profits to worthy charities. Visit www.cherryplanet.com for more information.
125,000 Ways To Reach Out To Your Residents: R.A.K
Feb 4th
In case you missed Brainstorming 2009, one of the things we did was review the key trends affecting our business now and into the future. One of those key trends is toward Random Acts of Kindness. You know what I mean here … surprising your residents and future residents in innovative, unexpected ways that express how much you care.
This simple, under-used tactic, if practiced consistently and long-term, will delight residents and potential residents, and do more for positive brand buzz than most mass advertising campaigns. Think everything from little surprise gifts to loyal residents to picking up the tab when a resident orders a pizza: make a deal with your neighborhood pizza joint that for every fifth pizza ordered by someone at your community’s address, you’ll pick up the tab … heck, they might even deliver it for FREE in exchange for promotion! Or how’s this for a surprise… pay for pizzas at a competing property!
A a well-crafted, well-understood Random Acts campaign will soften up even the toughest of customers. Consider these points from a recent New York Times article:
· The unexpected nature of R.A.K. gifts will leave the customer not just pleased but also grateful. Gratitude is a powerful, and potentially quite profitable, emotion to inspire.
· ‘Surprise’ is key’: R.A.K. need to be unexpected, and there should be no discernible pattern to which customers will get them. A good example: Hyatt Hotels launched a campaign which empowers employees to give Gold Passport guests ‘pleasant surprises’ to delight them during their stay.
We should start to think about RAK as an under-utilized form of marketing. They don’t have to cost a lot and the possibilities are unlimited! If you need a little help coming up with fresh ideas, these amazing cards from ChildsPlay Marketing in Australia (yes, they deliver internationally!) will really get your juices flowing. They’re designed especially to help businesses brainstorm fresh marketing ideas and campaigns by combining the cards in the 3-deck set to create more than 125,000 ways to reach out to your customers. Check out the “virtual cards” HERE.
Multifamily Fair Housing Training Idea
Feb 2nd
Strapped for time, I began looking for other ways to get my teams the training they needed. I contacted the local HUD office to inquire as to what programs were offered for Fair Housing Training. I found many different organizations that will do the training for me at my location and, amazingly, at no cost to me! I then contacted local community colleges and universities to see what classes were offered in the area of “workplace” or “career” development. This has worked well. I have found that I can use these classes to help develop employees’ skills in areas where they are lacking, such as written or oral communication, financial reports, etc. It makes for a more “well rounded” employee. Not to mention the employee is happier in their position as they can be more helpful in the office. My most recent expense was only $99 to $159 per
class.
Contributed by: Regina Banks
Multifamily:Leasing and Renewal Tool
Jan 30th
“Did you know” is a renewal/leasing tool used in our student living communities. We use a postcard designed to depict a man holding a 1st place ribbon, with fun fonts on card. The cards highlight different amenities and/or services that are available at our communities – one amenity/service per card. Our service team leaves a “Did You Know” card in each apartment after completing their service request! We also have the cards in the leasing area for future residents to browse through. For only around $250 per community, the cards help current residents remember why they chose our community to begin with (renew) and assist our future residents in making the right choice – without being hit with information overload during the tour. The results have been great! We have had higher than normal renewal ratios and our communities are leasing like mad!
Contributed by: John Kerrigan, JPI
