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© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
E-mail with attachments
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
How to fill out:• The weekly source of traffic report
• The weekly measurement report
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Staffing -- Sufficiently
Trained or Under-trained?
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Sales:
Tenure of Labor
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Sales:
Insufficient Labor –
Call Centers
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Competitive Rent Analysis and Pricing
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Net Effective Rents
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Availability Specific
by Floor Level
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Price Weekly
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Price Ranges Based on Supply, Demand and Location of Other
Income Producing Fixed Assets
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Pricing Structure
Base Rents +
Amenities +
Premiums =
Street Rent by Address
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Flat Line Pricing = No Absorption Velocity
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Consumers Make a
Value Choice
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
“Consumers form their price image of providers by their shopping
experiences. It is this price-value perception that drives consumer
behavior.”
Source: Tim Flanagan,
The Partnering
Group
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
“Desire, along with utility and scarcity, is considered
in relation to purchasing power.”
Source: The Appraisal of Real Estate- Eleventh Addition Appraisal Institute
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Supply [or Inventory]
What’s Your Inventory Management Strategy?
High Low
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Dumping Inventory
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Days Required for Sufficient Notice
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Lease Status:
Month-to-Month
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Lease Status:
Corporate Leases
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Minimize
Congested
Activity
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Lease Signing Appointments
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Strategy:
Every great organization has a strategy before it embarks on a
mission.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
What’s Your
Leasing Strategy?
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Do you reward the behavior that’s in the best interest of
the real estate asset?
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING WITHOUT CONCESSIONSFast In … Fast Out --200 Residents – Four Cities
ApplicationDate
To
Move-inDate
Less than21 days------------NOW
36%or
72 Rentals
Under 1 Year1-2 Years
Still There
45% or
90 Rentals
21 to 60day lead----------SOON
37 or 51%26 or 36%9 or 13%
14 or 16%43 or 48%33 or 37%
5 or 13%11 or 29%22 or 58%
19%or
38 Rentals
More than60 days------------FUTURE
Source:
Edward Kelley 1994
Used with permission.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Leasing Strategy
Address Selling
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Price
Sheet
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Price Sheet with Effective Dates
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Leasing Strategy
Point of Depletion
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Minimizing Hold-Time Period on Possession
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Excessive Income
Erosion
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Product Differential – Sell Towards Your Asset’s
Uniqueness
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Model ApartmentsShould You Have a Model
Apartment or Not?
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
YES! When the floor plan unit mix exceeds 50%.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
NO! If you have fewer than 220 apartments.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Model apartment homes should always be on the first floor except when the unit type access is only on the second or higher floor level.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
300 – 400 units should have one model.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Put the model in the unit type that historically has the most availability (“Screaming Mimi”).
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
For models, use an interior designer that will make it ‘real’ using items found at places that people shop.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Three Types of Concessions
1. Value Added
2. Tangible Goods
3. Free Rent
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Homogeneous Groups
Availability Profile Case Study
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Income Classification – Concessions Can Be
Recurring or Non-recurring
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
“Sluggish purchasing power keeps the pressure on supply in check. If
purchasing power expands, the supply of a relatively fixed commodity will dwindle
and create a market-driven demand to increase the supply.”
Source:
The Appraisal of Real Estate- Eleventh Addition/ Appraisal Institute
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Each Percentage of Occupancy has a
Corresponding Level of Rental Rate
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
Market Demand Curve Specific Unit Type$1000
$950
$900
$850
$800
$750
$700
$650
$600
$550
$500
80% 85% 90% 95% 100%
Occupancy Rate
Ave
rag
e R
enta
l R
ate
L1
$740$730
$710 $690
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
Market Demand Curve Specific Unit Type $1000
$950
$900
$850
$800
$750
$700
$650
$600
$550
$500
80% 85% 90% 95% 100%
Occupancy Rate
Ave
rag
e R
enta
l R
ate
L1
Occupancy Rate
Corresponding Rent
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
Market Demand Curve Specific Unit Type $1000
$950
$900
$850
$800
$750
$700
$650
$600
$550
$500
80% 85% 90% 95% 100%
Occupancy Rate
Ave
rag
e R
enta
l R
ate
$775
L1
L2
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
Income Management Performance$1000
$950
$900
$850
$800
$750
$700
$650
$600
$550
$500
80% 85% 90% 95% 100%
Occupancy Rate
Ave
rag
e R
enta
l R
ate
L1
L2
L3
$825
$775
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
“A market in which the forces of supply and demand are in balance will result in prices significantly different from those produced by a market in which supply and demand are out of equilibrium.”
Source:
The Appraisal of Real Estate-Eleventh Addition/ Appraisal Institute
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
“Sluggish purchasing power keeps the pressure on supply in check. If
purchasing power expands the supply of a relatively fixed commodity, it will dwindle and create a market-driven
demand to increase the supply.”
Source:
The Appraisal of Real Estate-Eleventh Addition/ Appraisal Institute
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Decisions:
Concession?Change Net Effective Rent?
Specific Address?
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Consider discretionary discounting to build
market share.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Look in the mirror … is it the market or is it our behavior?
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Playing the Pricing Game
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
First, ensure market demand
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Second, inspect available apartment inventory and question whether it meets the expectations of management.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Third, show only unassigned vacants for a greater closing ratio.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Fourth, take steps to ensure that sales training becomes more concentrated and focused on service.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Fifth, categorize your apartment addresses in homogenous groups.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Sixth, price specific apartment addresses with the longest days vacant at a lower price [net effective rent, not a concession] with the condition that the offer expires within 48 hours.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Seventh, reward leasing professionals with higher bonuses on leases with no concessions offered.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Eighth, re-contact potential lease renewals one at a time.
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
RESOURCE DIRECTORY
www.SMMOnline.comwww.Realhound.comwww.e-tsonline.com
www.TheMarketSherGroup.comwww.TrendLook.comwww.BeaconTech.net
www.ApartmentExpert.comwww.SatisFacts.net
© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042
LEASING & MARKETING MULTIFAMILY
Jennifer A. Nevitt
775. 786. 4242 or 704. 332.7042
Info@BravoStrategicMarketing.com
Info@ApartmentMarketingCoach.com
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