You can also make revisions to your current residents’ profiles due to personal and business changes during the year. As rental rates increase, the annual
salary requirements of your residents will increase. By reviewing your resident
profile, you can determine if your current residency will be able to absorb their
rental increases.Changes in rental rates have a direct relationship with the
resident profile. Is your marketing strategy meeting your goals of attracting
residents who can afford living at your community, today and next year?
It’s important to find out what businesses are located within a one- or two-mile radius of your building that can support the community. Often, specific
rental incentive programs for these businesses need to be developed and promoted through various marketing tools—from postcards, to flyers, to letters,
to human resource departments.
To make such programs more successful, telephone calls and actual visits to
businesses are vital, allowing more direct communication to “sell” the benefits
of the apartment community to employers who could promote the property
through their internal newsletters, magazines and company manuals. Some
management companies go even further, meeting people in their business
parking lots with donuts and hot coffee while they hand out their flyers.
Changing or adding to your existing amenities will also impact your resident
profile. For example, if your apartment community has a tennis court that
residents do not use, review the resident profile and results from a survey; you
may find that you can and should convert the tennis court to a basketball court,
or something else that residents will use and appreciate.
SHARPEN YOUR COMPETITIVE EDGE
Once you understand your resident profile, it’s a good idea to shop the competition. Mailing flyers on a regular basis to tenants or residents at nearby
apartment communities, office buildings or retail centers, is an effective way
to capitalize on your competitors’ weaknesses. The average resident will move
within a one-mile radius of their current dwelling unless there is a significant
increase or decrease in their salary. Adding your property to the many leasing
Internet sites (more potential residents are choosing this venue), as well as
improving your signage to attract potential renters who drive by your properties, are tried-and-true ways of marketing properties.
Marketing database companies should be able to provide lists of both
residential and business addresses in specific locations. Companies that can
inexpensively mail your flyers and postcards, as well as companies that can
facilitate e-mail blasting to multiple recipients, are valuable resources.
A property management company can also market to potential clients
by sending solicitation packages (postcards, flyers, use of Internet and Web
advertising) that provide a quick and attractive overview of its operations.
Send only as many solicitations as you can and follow-up with telephone calls
the following week. You should also look at the legal sections of newspapers
and magazines to find out who is seeking permits to build properties. Contact
lending institutions and the courts to let them know you manage foreclosed
properties, or that you offer services
Just as you must review your resident and business tenant profiles
for your clients’ portfolios, you must
also review and evaluate your current
management services and clientele.
Perhaps it is time for your company
to consider single-family management. Once the market conditions
change, single-family properties
become inventory for sale. Have you
thought about managing homeowner
associations? Associations not only
provide a source of management fees
but also compliment a single-family
management and residential sales
department within your firm. What
about adding expert witness services?
You may have staff members who
can provide this service to the legal
There are many options to explore
when it comes to diversifying your
services. Make sure you review all the
REVIEW & REDUCE
Along with increasing and diversifying your services you also need to
focus on the second part of getting
back to basics—reviewing operations
and expenses to find ways to cut
Your first step is to examine your
2008 financial operating expenses.
Every line item needs to be reviewed
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