Online Leasing Has Arrived

Online Leasing Has Arrived

Jake Harrington, On-Site.comKristy Simonette, Camden Property Trust

Mark Van Tilburg, Archon Residential Management

What has the web changed?

Social Professional Commerce

“Online leasing” – where are we now?

Who’s renting?

78% have computers at home

66% have an internet connection from home

74% use a computer at work

80% of residents pay bills online

2nd highest renewal impact: online/automatic rent payment

56% prefer to communicate through emailMultifamily Executive, March 2008

Do we get it?

76% say the Internet is the single most effective way to generate leads

18% cited Rental Publications

60% will focus their strategies on Internet Marketing

81% say investment in business systems automation is “top priority”

50%+ say that most companies will lease apartments online within two years

93% say portals are “critical” or “somewhat important” to improving resident services and operations

Multifamily Executive, March 2008

What is “online leasing”?

Sales channel Research, neighborhoods, pricing

Transaction (point of lease) Payment, contract execution

Retention Pay rent, reserve space, work orders

What am I doing here?

Rental Address™ online leasing & services

Apply Now™ Ad Blast™ Resident services

Rental Express™ #1 point-of-lease solution

Smart screening Built-in form generation/archiving

On-Site.com goals

No IT support No consulting needed “Plug and play” at the site level – “easy path” “Implementation” should not be a four-letter word Negative recurring charge – wtf? Lease on your first day

Let’s go paperless!

Parallels in other industries

McDonalds Do you want cheese on that?

OpenTable Replaces pen-and-paper at the host stand “Real time” availability + diner database + distribution/advertising (Zagat, Expedia…)

Airlines, hotels – shop for a seat/bed

OpenTable.com

“Real time” availability Easy interface for all parties Connects marketing with functionality

Beyond a classified ad online “If your website can’t do these sorts of things, what else can’t you do?”

Hostess = Leasing agent Diner = renter

Benefits of going paperless

Save trees! But seriously…

Liability of sensitive information Data loss/theft Redundancy Accessibility Convenience “Wow”

One size doesn’t fit all

Six ways to prorate!

No single solution works for all applications Comfort level of users Leasing office layouts Renter demographics Community profiles

Even “revenue maximizing” isn’t right for everyone Value vs. cash flow Total revenue vs. total profit

Requirements of an e-form solution

Legal, defensible Must handle every shred of paper Archived resident file must be complete

Executed lease Legal notices SODA

1) ePad in the rental office

Actual signature captured, so it emulates the offline process

Signature pads are plug-and-play

Easy to defend legitimacy

2) eBarcode stores faxes

Archives all forms

Some forms will never be online (inspections)

Fax in – No scanner required

3) eSign from anywhere online

Off-site (email) or on-site (kiosk or monitor)

No hardware

Guarantors, renewals

AGREEMENT SIGNED – 20 PAGES

• Arizona Rental Agreement for Apt. #1155 for $1060.00 from 3/24/2008 to 3/23/2009 Because We Care Facts About Renter’s Insurance Prevent Moisture Problems in Your Home Garage, Parking, Storage & Vehicle Regulations Recreational Facility Regulations Crime Free Agreement Pet Agreement Community Policies Automatic Entry Gate Policies Fireplace Policies Move-in/Move-out Policies Resident Retention

SIGNED BY

Gerret Martin, Key ID ED8A569AOn 03/22/2008 at 3:32PM EST from IP Address 75.41.23.182

PGP Key Version: GnuPG v1.4.6 (GNU/Linux) iD8DBQFH9YMZr9wnsAIaoqwRAoERAJ4oYlG8aet5Dv+NoeC20wUJ2YWIgACcD/+x YeUSNSO/otm/D3saYcMdohY= =xiA/

AGREEMENT SIGNED – 20 PAGES

• Arizona Rental Agreement for Apt. #1155 for $1060.00 from 3/24/2008 to 3/23/2009 Because We Care Facts About Renter’s Insurance Prevent Moisture Problems in Your Home Garage, Parking, Storage & Vehicle Regulations Recreational Facility Regulations Crime Free Agreement Pet Agreement Community Policies Automatic Entry Gate Policies Fireplace Policies Move-in/Move-out Policies Resident Retention

SIGNED BY

Gerret Martin, Key ID ED8A569AOn 03/22/2008 at 3:32PM EST from IP Address 75.41.23.182

PGP Key Version: GnuPG v1.4.6 (GNU/Linux) iD8DBQFH9YMZr9wnsAIaoqwRAoERAJ4oYlG8aet5Dv+NoeC20wUJ2YWIgACcD/+x YeUSNSO/otm/D3saYcMdohY= =xiA/

Reality check: “e-signatures”

Nat’l Conference of Commissioners on Uniform State Laws (famous for UCC) drafted Uniform Electronic Transactions Act covering validity of electronic signing 46 states plus D.C. have since adopted the uniform law (no IL, GA, NY, WA) “In a proceeding, evidence of a record or signature may not be excluded solely because it is in electronic form.” Identify, intent, control of document Consider: Judges have latitude

Reality check: paperless office

Line at the computer It’s hard to get more convenient than a file cabinet Many forms are offline

Letters from residents Move-in/move-out inspections

ONLINE LEASING HAS ARRIVED…

The Timeline

Birth of camdenliving.com (February 2002) frames and flash

PMS implementation (October 2004 – June 2005)

YieldStar (Q4 2005)

2005 began talking about website revamp

PMS plug-ins screening work orders and make-ready board online application online pricing resident portal payments platform

… AT CAMDEN!

Automation of processes – change management

Physical offices

Process efficiencies

Hiring considerations

New challenges with the digital age meshing with age old practices

training security fair housing

THE NEW WORLDFOR THE SITE STAFF

EVOLUTION OF THECUSTOMER EXPERIENCE

HOW DO WE KNOW WHAT OUR CUSTOMERS WANT?We ask them!

Prospect surveys

Resident surveys

“Contact Us” via the website

Feedback cards

Organized focus groups

All business units have a stake

Defined requirements

Sent out RFP

In process of selecting vendor

New launch scheduled for Q4

WE NEED TO REDESIGN OUR WEB SITE!

2006 FINDINGS

Website redesign cannot impede progress!

Figuring out how to provide the right customer interaction even though our website redesign seems eons away…

Our target market (Echo Boomers, Gen X and Gen Y) is demanding the ability to conduct all business online. AND – it must be seamless/multi-channel

BUT… WHAT ABOUTOUR CUSTOMERS UNTIL Q4?

Online applications 12.5% 1% of this is sight unseen

CURRENTONLINE STATS

Portal Payments ACH only 17.3%

Community leasing office Focus on sales and marketing

Camden Contact Center (launching summer 2008) Capture the phone calls Better qualified prospects

True Online Leasing (currently in pilot as of 3-26-08)

Electronic Signature Authentication Document Management

THE NEW MULTI-CHANNELLEASING EXPERIENCE

Customer convenience

Process efficiency

Data accuracy

Secure

Cost reduction

THE BENEFITS

Employee challenges

Must stay fresh and simple

Intuitive for customers

Learned behavior

THE TRADE-OFFS

Integrating paper and electronic workflows

Integration offers efficiency!

INTEGRATION

Accounting

WhiteFence

Bank

Renters’Insurance

ILS

DataWarehouse

RevenueManagement

CMS

PMS

Consolidated weekly occupancy trend reporting(from 2 days to less than 1 hour)

Reduced check processing time(from 3 minutes per check to 1 minute per check)

Daily pricing decisions(8 hours per week now takes 10 minutes per day)

No more manual changes for daily pricing updates to ILSs

INTEGRATION OFFERS EFFICIENCY!

WORKPLACEEFFICIENCIES

KRISTY SIMONETTECamden Property Trust

Houston, Texas(713) 354-2625

ksimonette@camdenliving.com

CONTACTINFORMATION