Out to Put a Dent in the Multifamily Universe

The Vulture’s are coming – The Vulture’s are coming

July 8, 2009 By Leave a Comment

Vornado Realty Trust owns the space formerly occupied by the Virgin Megastore in Times Square in New York City, shown here in January.
Vornado Makes a Big Bet on Distressed Properties – WSJ.com

There is a large amount of patient cash sitting on the sidelines waiting to be commingled for the purpose of swooping in and feeding on the adversities of others. It will be interesting to watch this play out – in some respects it will be a very large transfer of wealth. Those who had no business playing in the space and or those greed mongers that did not have it in them to turn it off will no doubt suffer the consequence. As much as I feel for those on the down side – I look at this as one of those once or twice in a lifetime chances to get in the game at a good price.

Is your company positioning itself for opportunity?

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Filed Under: Cool Current Affairs

Purchasing feedback: I will pay you vs. I will give you something free

June 11, 2009 By 3 Comments
Apartment Influence

question-markRead the following tweet this morning [RT @[xyz] @[abc] Suggest that you give away a free Flip to every prospect/resident that creates a [management company] Experience Video, Beats  free rent] – it really got me thinking.

I have read both sides of this issue and have taken the position that if you disclose that you are paying for and or giving something away in exchange for an endorsement then frankly it’s okay. It really comes down to what is in the eye of the beholder.  And, I think, at the end of the day, if a person really wants a product/experience they will go and get it/have it despite the persons of influence in their lives. They may read and listen but if they want it – they want it, period.

My real point here is that the above tweet implies that it’s okay to give away a  Flip in exchange for an endorsement. Moreover it specifically states that it’s better than giving away free rent. On that point I ask: What’s the difference? – give away free rent or buy 20 Flips to give away – either way you hit the bottom line. Sure buying the Flip is cheaper and brings along a novelty that escaped the free rent give away long ago but it’s still an expense. It’s just a different form of currency. Marry it with a “you get the Flip free “if” you give me an endorsement and you have really marred the picture but I will leave that for future conversation.

For now – I really wonder what the community thinks – Is the Flip, used in this sense, a form of currency that could be construed as purchasing feedback? If so, is that okay? Would it pass a Yelp sniff test? Do you think the masses really care? Would you give equal stage to people who would speak conversely about your brand experience? Is it better than free rent? If so, why?

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Update – MyNewPlace Implements Facebook Connect: Apartment Search Goes Social

February 19, 2009 By 2 Comments
mynewplace-search-apartments-for-rent-and-earn-cash-back_1235071172893

I tried this application out this morning and while it is very cool and I applaud MNP for giving it a shot, it needs a little tweaking. That being said, I am no expert when it comes to understanding the nuances of Facebook so forgive me if I mispeak in any way.

What I love about it is that it was a seamless exercise to post a property to Facebook – one click on the “post to Facebook” button and and I was taken to the page below. I assume if I were not logged into Facebook, I would have been taken to a Facebook connect log in page.

mynewplace-search-apartments-for-rent-and-earn-cash-back_1235071172893Next, a quick click on the publish button sent the post to Facebook. Now here is where it became a little interesting for me. I logged into my FB account and by default to my news feed page. I anticipated seeing the property posting somewhere in the newsfeed but it was not there. I had to click over to my profile page to finally see the posting.

I find that to be a bit cumbersome in the sense that I hardly ever view my own profile page or the profile pages of my friends. In other words to see the properties that my friends were talking about I would have to navigate to each of there individual profile pages. That is very disconnected and not very useful to say the least.

All that being said, I really applaud the effort but would encourage MNP to make a quick adjustment that would allow these postings to move right to the newsfeed on FB – that is if it is possible to do so.

On a side note, MNP has been actively participating in a Twitter conversation this morning about the launch. It’s been fun to watch as it has included everyone from industry consultantss and users to competitors. I really applaud them for being present and open to the feedback. Check it out here: @mynewplace.

Related story: Apartment Search Goes Social…Almost

MyNewPlace Implements Facebook® Connect: Apartment Search Goes Social

SAN FRANCISCO, CA- February 19, 2009 – MyNewPlace™, the Web’s fastest growing apartment and home rentals site, today announced that it has added Facebook® Connect functionality to its Web site – allowing its users to get feedback on prospective apartments, condos and home rentals by posting property information to their Facebook page. MyNewPlace is the first real estate and apartments Web site to implement Facebook Connect, allowing consumers to tap into their social graphs to make more informed decisions about where to live.

“Most people want the opinion of friends, family and roommates before choosing a new place to live. Facebook’s more than 150 million users can now quickly and easily log into MyNewPlace using their Facebook account, post properties they are interested in to their Facebook page and get feedback and advice from the people that are most important to them,” commented Mark Moran, Vice President of Marketing and Business Development for MyNewPlace.  “With Facebook Connect, getting opinions from friends and family is as simple as a click.”

Over 3 million people use MyNewPlace monthly – ranging from recent college grads with several roommates, to families with young children, to corporate relocations. MyNewPlace’s internal research indicates that over one third of its visitors already have a Facebook account, while many others may choose to sign up for a new Facebook account to utilize this functionality.

Facebook users communicate and share information through the social graph, the network of connections and relationships between people. Giving users control over their privacy is paramount on Facebook. With Facebook Connect, users can be assured that the same privacy settings they have set up on Facebook will follow them when they log in to MyNewPlace.com.

About MyNewPlace

MyNewPlace is a nationwide apartment and home rental site where consumers can efficiently search through over six million rentals to find the perfect place to live. The award winning site combines extensive and up-to-date property information, including photos and videos, with advanced mapping and other functionality. The company provides the multifamily marketing professional with the most innovative and cost-effective tools to fill their vacancies.   From MyNewPlace.com: the industry’s fastest growing Internet Listing Service for apartment search, to MyNewSite: the industry’s most cost-effective website solution, MyNewPlace puts the best tools in the hands of owners and managers to help market their apartments for rent. Headquartered in San Francisco, CA, MyNewPlace was founded in 2005 by John Helm, the founding CEO of AllApartments/SpringStreet, which became the number one apartment rental and relocation site on the Internet before its sale to Homestore in 1999. For more information, visit http://www.mynewplace.com.

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Facebook® is a registered trademark of Facebook, Inc.

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Realfacts Q4 data

February 9, 2009 By 1 Comment

NATIONWIDE DECLINE IN RENTS

Posted Monday, February 2, 2009 by Realfacts

The release of the Realfacts 4Q08 data provides the first comprehensive
assessment of the rental market in 2008.

Renters looking for an apartment at the beginning of 2009 will have more
choice and be able to get a better value for their rent money. A study of
nationwide rents just released by Realfacts, the Novato data specialists
who are marking their 20th anniversary, shows that rents declined in
nearly every MSA in the country between September and December of 2008.
The year end survey found the highest rate of decline in Miami-Ft
Lauderdale FL (2.4% in the 4th quarter), Riverside-San Bernardino CA
(2.4%), San Jose CA (2.0%), Oxnard‐Thousand Oaks‐Ventura CA
(1.8%). Rents also went down by 1.6% in Orlando, Phoenix, and Los Angeles.
Nationally, the average rent for an apartment once again dropped below
$1,000 declining from $1002 in September to $993 in December.

The decline in rents was matched by a decline in occupancy. The occupancy
rate for apartments in the United States dropped to 92.2% in December,
down from 92.9% in September. That decline in
occupancy meant that 10,000 apartment units were vacant as the year
closed. The Realfacts survey covers an inventory of nearly 3.2 million
units of rental housing in 60 MSAs. In 2008, only 9,248 units
were added to the supply. This compares to an average for the previous ten
years of about 65,000 units per year of new construction.

The decline in rents and occupancy is certainly good news for renters. For
people who have invested in income property, the news is less welcome. In
essence, while income from rental property remained flat in 2008,
inflation drove costs up by 3.85%. This gap is reflected in a smaller
number of sales transactions during 2008. The Realfacts database shows
just 386 sales of apartment complexes larger than 100 units, which is
about one third of the previous three year’s volume.

This data for 2008 indicates that the year’s widespread economic problems
have finally affected the rental market by the end of the year. The choice
to invest in income property for the last several decades has been based
on the assumption that rents would continue to growth. In 2009, investors
are likely to evaluate rental properties based on current income alone.

via an email I received today.

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Renter’s want current infomation

February 8, 2009 By 1 Comment

I ventured over to Forrent’s website tonight to find out if they had an alert function built into their site. I am thinking something along the lines of Craigslist’s RSS feed that alerts apartment seekers when new listings are posted. Forrent seems like the perfect platform for such a feature. More on that in a later post. What struck me tonight as I moved toward the bottom of the page was the fact that the Talking Funiture copy was still posted. Might be time to take that down and replace it with the winner’s information. Just a thought. No ill intent meant.

Apartments For Rent – Nationwide Apartment Rental Search – ForRent.com

Enter ForRent.com’s “If Only Your Apartment Furniture Could Talk…” Video Contest for your chance to win $10,000. Visit www.WinApartmentFurniture.com
and submit your video by June 15, 2008. Vote on your favorite videos
and share them with friends to help select the Top Ten Finalists and
the Grand Prize Winner!

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EQR’s Q4 Earnings call transcript

February 7, 2009 By 3 Comments

Equity Residential Q4 2008 Earnings Call Transcript — Seeking Alpha

The first nine months of the year really carried the day for us and the fourth quarter saw a dramatic fall off of pricing power. We are clearly experiencing one of the worst economic climates in anyone’s memory. According to some, unemployment could climb as high as nine to 10%. These would be levels we have not seen since the late ’70s or early ’80s.

That perspective from one of the most well respected multifamily REIT’s in the country. I can’t help but to feel that there is a major ping happening in our space. Having worked at EQR for nearly ten years, I have the confidence that leadership is doing everything possible to weather the storm.

I can’t help but to be optimistic in the sense that we have an opportunity to pick up a serious education during this catasrophic hiccup. You can’t buy this kind of experience at even the most prestigious of instituions. Those of us that look at each and every nuance of the business, especially in this climate, will be positioned to take advantge of an insanely great upturn that is sure to come.

Your looking forward to the next eighteen to twenty-four months optimist,

M

 

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Twitter – How businesses are using the platform to enhance customer experiences

February 6, 2009 By Leave a Comment

Twitter is hitting the business mainstream in a number of ways. Check out this story from USATODAY.com

Travel firms respond to events, share news via Twitter – USATODAY.com

Hotels, airlines, airports and other travel companies are joining the Twitter community, too, to pitch services, update travel conditions and respond directly to the individual needs of customers. They’re finding the mobile nature of the technology is ideal for talking to travelers.

“We consider our Twitter account akin to an information booth,” says
Morgan Johnston, manager of corporate communication at JetBlue Airways.
“Responding to situations after they’ve happened is a great idea;
responding to situations while they’re happening is even better.”

Twitter is a great customer experience tool but the one thing I would caution you against is pushing your services over the medium. The one word that pops out at me in this article is, response. Response vs. react, Twitter allows you to quickly catch and respond to experiences that are out of alignment with your core business values. And, I would encourage you to think of those responses as being a valuable marketing tool. If responded to in a agile manner, they could boost your business as much or more so than an expensive push campaign. Twitter is no doubt changing the way we interact and respond to our consumers. It really is up to you to get in the game.

Drop us a comment after you read the article, I think there is a lot of value gain from a good conversation on the topic.

Have a compelling Friday. M

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EQR and Avalon Bay give lower than expected forecasts

February 5, 2009 By Leave a Comment

Just one more reason to really design a phenomenal employee, prospect and resident experience.

NEW YORK (Reuters) – Shares of apartment landlords fell on Thursday
after two large apartment real estate investment trusts (REITs) issued
lower-than-expected forecasts for 2009, citing the weak U.S. job market.

“It is jobs that are the single most important determinant to the
health of the multifamily industry, and today’s jobless claim data is
further evidence of just how bad the job picture currently is,” said
David Neithercut, CEO of Equity Residential EQR.N, the largest U.S.
apartment REIT.

The U.S. government said on Thursday the number of U.S. workers
filing new claims for jobless benefits last week hit a 26-year high.U.S. apartment stocks fall on weaker outlook | Reuters

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Today Show – Is it time to consider renting?

February 3, 2009 By 2 Comments

Take a look at this video clip from the today show.


Visit msnbc.com for Breaking News, World News, and News about the Economy

Response from NAA:

Many of you may have seen the segment that aired Tuesday morning on The Today Show about residents negotiating rent with their apartment owners. Please click here to view the clip of the interview between Meredith Vieira and real estate agent Barbara Corcoran about the rental market in these tough times.

Scenario: If a current resident or a prospective resident comes to your community’s leasing office and demands free rent and any other unreasonable amenities/concessions, be prepared to speak to the value of apartment living. Do not simply give in to their requests.

First and foremost, apartment staff must consider Fair Housing. It’s the law. What you offer to one resident, you legally must offer to all. And, whatever “deals” that may be offered to residents should first be put in writing by the owner and shared with the leasing staff. Leasing professionals should not “wheel and deal” with current residents or prospective residents and should not offer “rogue” renewal agreements.

Following are some other key “selling points” to use in such cases:

1. For current residents who are seeking a renewal, owners should consider offering the same concessions as they would to prospective, first-time renters. Again, details of such “deals” should be communicated in writing to leasing agents from upper-level management.

2. If a resident specifically mentions “The Today Show” segment, remind them that the guest on the show is from New York City, which operates in a different “type” of rental and economic climate (i.e. condos). What is acceptable in NYC does not necessarily equate to conditions in Seattle, Denver, Orlando or (fill in market) from most of the rest of the country.

3. Tout the benefits of living in a professionally managed apartment community, compared to signing a lease with inexperienced owners of condos or single-family homes. Staff at professionally managed communities are experienced and capable of serving their residents’ needs in an effective way.

4. Mention that the ownership of some single-family homes and condos can be unstable in today’s economic climate and these properties run the risk of suffering foreclosures in the near term. Apartment communities owned and managed by established companies are more stable, as their owners invested in these homes for the long term. Operating apartment buildings is their core business. They are not in it as part of a get-rich-quick plan.

5. For communities owned or managed by large firms, remind prospective residents that they have set their rents based on yield management software, which determines rental rates on a daily basis, using sophisticated formulas and algorithms, and that the resident truly is getting the best price, based on the competition, in that specific submarket.

6. If your community offers flexible lease terms (such as a monthly or six-month plan), promote the benefits of signing a lease under those conditions to create more flexibility for these residents’ lifestyles. And with a set rent rate, these residents are living “inflation free,” especially if they lock in their leases for longer term leases, such as two years.

National Apartment Association: NAA Link | 4300 Wilson Blvd., Suite 400 | Arlington, VA 22203
phone: 703-518-6141 | fax: 703-248-9440 | Feedback

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eSignature

January 24, 2009 By 1 Comment

I am starting the process of looking for an eSignature mechanism to employ at one of our student properties. The driving reason is the absolute mayhem that happens when forty to sixty sets of parents and roommates show up to move in on the same day.

I think the process would be so much smoother if we did the bulk of it over email and online. In my mind the move in experience would be amplified by the fact that they didn’t have to deal with the paperwork. They could simply stop by the office to pick up the key. That’s it, done.

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