© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042 LEASING & MARKETING MULTIFAMILY E-mail...

© Bravo Strategic Marketing Inc., 2002 Contact: 704.332.7042

LEASING & MARKETING MULTIFAMILY

E-mail with attachments



How to fill out:• The weekly source of traffic report

• The weekly measurement report



Staffing -- Sufficiently

Trained or Under-trained?



Sales:

Tenure of Labor



Sales:

Insufficient Labor –

Call Centers



Competitive Rent Analysis and Pricing



Net Effective Rents



Availability Specific

by Floor Level



Price Weekly



Price Ranges Based on Supply, Demand and Location of Other

Income Producing Fixed Assets



Pricing Structure

Base Rents +

Amenities +

Premiums =

Street Rent by Address



Flat Line Pricing = No Absorption Velocity



Consumers Make a

Value Choice



“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



“Desire, along with utility and scarcity, is considered

in relation to purchasing power.”

Source: The Appraisal of Real Estate- Eleventh Addition Appraisal Institute



Supply [or Inventory]

What’s Your Inventory Management Strategy?

High Low



Dumping Inventory



Days Required for Sufficient Notice



Lease Status:

Month-to-Month



Lease Status:

Corporate Leases



Minimize

Congested

Activity



Lease Signing Appointments



Strategy:

Every great organization has a strategy before it embarks on a

mission.



What’s Your

Leasing Strategy?



Do you reward the behavior that’s in the best interest of

the real estate asset?


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.



Leasing Strategy

Address Selling



Price

Sheet



Price Sheet with Effective Dates



Leasing Strategy

Point of Depletion



Minimizing Hold-Time Period on Possession



Excessive Income

Erosion



Product Differential – Sell Towards Your Asset’s

Uniqueness



Model ApartmentsShould You Have a Model

Apartment or Not?



YES! When the floor plan unit mix exceeds 50%.



NO! If you have fewer than 220 apartments.



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.



300 – 400 units should have one model.



Put the model in the unit type that historically has the most availability (“Screaming Mimi”).



For models, use an interior designer that will make it ‘real’ using items found at places that people shop.



Three Types of Concessions

1. Value Added

2. Tangible Goods

3. Free Rent



Homogeneous Groups

Availability Profile Case Study





Income Classification – Concessions Can Be

Recurring or Non-recurring



“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



Each Percentage of Occupancy has a

Corresponding Level of Rental Rate


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


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


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


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



“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



“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



Decisions:

Concession?Change Net Effective Rent?

Specific Address?



Consider discretionary discounting to build

market share.



Look in the mirror … is it the market or is it our behavior?



Playing the Pricing Game



First, ensure market demand



Second, inspect available apartment inventory and question whether it meets the expectations of management.



Third, show only unassigned vacants for a greater closing ratio.



Fourth, take steps to ensure that sales training becomes more concentrated and focused on service.



Fifth, categorize your apartment addresses in homogenous groups.



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.



Seventh, reward leasing professionals with higher bonuses on leases with no concessions offered.



Eighth, re-contact potential lease renewals one at a time.



RESOURCE DIRECTORY

www.SMMOnline.comwww.Realhound.comwww.e-tsonline.com

www.TheMarketSherGroup.comwww.TrendLook.comwww.BeaconTech.net

www.ApartmentExpert.comwww.SatisFacts.net



Jennifer A. Nevitt

775. 786. 4242 or 704. 332.7042

[email protected]

[email protected]

Date post:	04-Jan-2016
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