My high school basketball coach’s favorite truism was; perfect practice makes perfect. He was relentless with his disciplines, focusing always on the basics; ball handling, proper footwork and hard-core defense. Shooting was always secondary to the core of our workouts. Not any less important but, in his mind, done better when the other things were mastered. As a result, we won many more games than we lost and we became better people in the process.

As you head into another week of routine, take on a mantra of: out-prepare. Be ‘that guy’ or ‘that gal’ that speaks from a good posit on everything related to your property or your portfolio.

Feel free to share your successes and or your shortcomings with us.

Your focused on Out-Preparing multifamily maniac,

M

You’ve just surrendered not only a block of time but your freshest, best chance to start something new.

Time Sucks

It’s true; if I start my day in the office I inevitably get caught up in the race to get my inbox count to zero. Or, I get drawn into the necessary but time sucking “got a minute” conversations. Both of which leave the “move your business forward” stuff to suffer. There has to be a better alternative.

Something New

My something new for this year? It’s not really new but it is a more determined effort to exercise a relentless focus on delivering the things that matter most. Things that move my business forward. Things that keep my apartment management clients, collaborators and vendors feeling connected, communicated with and most important – wowed.

With that I’m considering a more mindful approach to consuming email, Twitter, Facebook and the such. I’ll be focused more on the end result of my actions as opposed to the processes that get me there. I’ll employ the build backwards approach to getting things done; thinking first of the end goal then the avenues and resources to get me there. It’s saying no more often. No to email. And, no to – got a minute meetings. A more controlled approach if you will.

First Things First As it Relates to Business

I am making this blog one of my first things first. I’ve admittedly been all over the board with my posting efforts. Will I do it better in ’12? Will I do it more in ’12? Will I at very least be more consistent? I think so. One of my blogging goals is to post on Mondays (Brief: inspirational – motivational) and Fridays (Apartment marketing, operations and at the urging of a friend some accounting).

Main takeaway – take control of your time as it will always be happy to take control of you.

Your taking back control of his time multifamily maniac,

M

Photo credit: GoodROI Internet Marketing 

However, some sales calls I get super excited about.  Here is my advice to sales people – not only in multifamily.  Some of them happen to apply to our leasing associates as well!

11 Sales No No’s.

(FYI, all of these things have happened to me in the last week or so)

1. It’s about a relationship, stupid.  Please don’t be fake.
2. Do not cold call me with no knowledge of my company or what we do.  At minimum, please use Google.
3. I do not respond well to threats or super pushy marketing tactics like name dropping or insulting our current efforts.
4. If we, or I, determine your product isn’t right for us (now or even in the future), don’t bully me to change my mind – that really ends the possibility of a future relationship.
5. Don’t send pushy emails copying my superior, especially when I still don’t know why I should care about your product.
6. Don’t request me on LinkedIn before we have had a positive conversation/interaction or any at all.
7. Please be prepared.  I don’t want to wait on the phone for 2 minutes while you look for your earring back or listen to your uncomfortable pauses and sighs when you aren’t sure what to do next.
8. NEVER ask me what we pay your competition for their services.   If you don’t know what your product is worth, I do – $0.
9. Call a million times a day without saying why I should want to call you back, you will likely not get a call back if I have no clue why I am calling you.  Its super weird for me to call you and say “Hi this is Melissa, I have no idea why I am calling you but please, pretty please, sell me something.”
10. By the way, NOT COOL, when I finally begin to try to have a conversation with you (warranted or not), that you berate me for taking so long to call you.  Give me a reason first and I will respond more quickly!
11. This one is too hard to explain, so here is the actual email. Don’t do this, ever, and at least spell my name correctly!!!!!!!   I have never interacted with her (I think she left me some empty voicemails)…

“Haven’t given up Melisssa…

Certainly don’t want to be a  ”thorn in your side,” so I’ll try & make this as painless as possible.

Eager to know your level of interest in our training offerings. Please check an option, promise no hard feelings : )

___ YES, send me a FREE DVD  preview of  your latest & greatest training programs,  __customer  service __leadership

___ I prefer to preview online, set me up with a FREE demo with your web-based platform.

___ Training doesn’t fall under my umbrella, try contacting ___________________________.

___ My plate is more than full, better timing would be  ___later this year,  ___ early 2012,  ____ never darken my
doors again.”

The Best do these things.  Short and SIMPLE and it doesn’t waste my time or yours.

1. Interact with our company on our social media platforms in a meaningful way (not name dropping your company), we like that and builds trust.
2. Start conversations, not sales pitches.
3. Be an expert in your field and help us when possible – without our business at first.
4. Go the extra mile.
5. Help our company and teams increase efficiency.
6. Use email at first then move to the more personal phone call.  Refer to number 10 above.

Final Thought:

Above all else, do us all a favor, and LOVE what you do and what you are selling.  If you don’t, why should I?

Thank you for listening to my rant.  I really want to like sales people (I will always love ours though ), but for some reason only a limited few really get it.  Does your team?

I would love to hear that these things happen to other people, so please tell!

Loss to Lease

There is a question floating around our office along the lines of, “What do you book in loss to lease line of your budget?” Also, “On a percentage basis, where do you like to see that number trend?” With that question comes a number of schools of thought but no real definitive answer. And, that being said, I am not sure there is a right way or a wrong way to look at it. In the end, it all shakes out in the Rental Income line. That said, there is value in tracking the discount from new vs. renewals and even budgeted rental increases that drive the loss to lease margins.

Our current practice is to book both discounts from new sales and renewals to a single loss to lease line. And, we try keep the loss to lease number at two to three percent of the the gross potential or top line – if you will.

Here are a couple of schools of thought to throw out there:

What gets booked in loss to lease?

1. The only thing that gets booked in the loss to lease line is discounts from market on new leases only. Renewals that maintain any discount from the top line should be booked as a concession.

2. Any discount from market gets booked as an upfront or recurring concession – be it a new lease or a renewal that transacts at a rate lower than the top line.

Where should loss to lease trend as it relates to the top line?

1. The number should be maintain between two to three percent of your top line

2. The number will trend at nearly ten percent of your top line

Is there real value in tracking loss to lease as a line item?

If it all shakes out in the rental income number – is there any real value [up market or down market] to tracking this number?

I’m curious to hear your thoughts. I am really curious to hear from those of you that are utilizing LRO as I think you have done away with the concept of loss to lease – correct?

Technorati Tags: @mbrewer, mbrewer, mike brewer, apartment operations, loss to lease, gain loss,

Persistence

“There are no magic wands, no hidden tricks, and no secret handshakes that can bring you immediate success, but with time, energy, and determination you can get there.” – Darren Rowse, Founder Problogger

A ton of rhetoric has been penned about social media as it relates to apartment marketing, resident retention and the such. Some of it is really good and some of it is just fluff and fill. Some has merit and some has not the sense god gave a billy goat.

Apartment management brass tacks

Toss it all aside and get back to the brass tacks of good old fashion property management – what do you have? Boring, mundane, uncompelling and anti-dramatic and melodic methods of madness. Anyone who has been in the business for a very long bit of time would agree that property management is not rocket science. Just a couple days ago I was sitting diagonal from a finance quant who thought he hit the nail on the head when he made that very statement.

Personality

At the end of the day – it’s the culmination of personalities laced with wit, wisdom, humor, elevated emotion and a purpose larger than life itself that bring about the want to persist with the quest of managing property. And, those who do it well would admit that it’s what gives them life.

It’s the time that they love to spend.

It’s the energy that they love to exude.

It’s the determination of pursuing a worthy goal that keeps them coming back for more.

Admit it – There’s something about this business!

What is it for you? What keeps you coming back for more? I dare you to tell me in the comment section below! Double dog…
M

Details

“My motto is ‘release’ I have it written in my violin case. ‘Release’ , meaning, ‘Step back a little’. Those are the words of world renowned violin virtuoso Charlie Siem. It struck me as I was reading through the latest copy of Monocle magazine. So many times in life and in the multifamily business we get caught up in the detail of things. We major in the minors making huge mountains out of what should be considered but mere speed bumps in the path of progress.

Major in the Majors

Charlie goes on to say, “Because when you hone in on all the tiny details, it’s natural to tense up – and then nothing flows.”  Suffice it to say that everything moves at the speed of light anymore. Not when you tense up and take time to focus on the minutia at a very granular level. It stalls flow, it mitigates advancement and it stifles trust.

Granted mistakes can be and always are traced to the details of things and more astutely to people. Causes are often found in flawed policy and or application of business practices by teams or individuals. It’s still, at least in my head, not cause for alarm but rather time to address the mess and move on; a teachable moment.

I rather think you pick a course, put your metrics [budget] in place, gear yourself up [get the right people on the bus] and run the marathon set before you. Understand that you will experience adversities along the way, just make sure you have plans in place to address them quickly. But overall, stick with the majors. Sticking with the majors as it relates to a marathon would be to pace yourself, keep yourself hydrated and feed yourself mentally and physically along the way. Do that and the rest falls into place.

In contrast, focus on the nagging toe nail pain, foot pain, side cramp or bleeding nipples caused from friction between your shirt and skin and all of a sudden you stall your pace. You forget to hydrate and your mental and physical faculties give way to fatigue. It’s just not worth it.

My word this week – ‘Release’

Your releasing contributer,

M

A lot of renter’s in our communities are one life circumstance away from total financial ruin up to and including losing their apartment. It has given cause for desperate behaviors such as sacrificing their electricity, gas, phone, cable etc. in order to make the rent. In other cases they use creative means such as robbing electricity via extension cords run to your common area outlets in hallways and laundry rooms. It’s amazing what you see out there anymore.

Now one could argue that life choices predicated on fulfilling wants over needs or necessities has contributed to a lot of this and in the same respect I think there an equal amount of people out there that make all the right decisions and still get hit with the downside of adversity.

Our residents are not the only ones faced with making the rent. Many of our employees are waging the same battle month after month. And, sometimes it leads to desperate actions.

That leads me to the premise for my question – money orders left blank by the prospective resident and or current residents paying rent are so very tempting in a desperate time of need. Can you share some of your processes with me as it relates to keeping good people honest. What do you do to keep integrity in the system on your bigger sites where you have six, eight or even ten people working an office and handling money. Specifically, what do you do to make sure these blank money order gems are not used as float to get by to the next pay period? How do you make sure that once an application is taken that it is processed in your property management software asap?

While they are a necessary evil – I have to believe there is a system of handling that keeps theft to a minimum.

Thank you in advance for your considerations and feedback.

Your ready for some economic prosperity friend,
M

I have to say, I see the absolute logic in this and in the same respect see the value a property management firm brings to both the top line and ancillary services.

I am interested to hear the over-arching reason for moving this direction.

And, what are the thoughts of the community – please leave your feedback in the comments below.

What are the top pet peeves landlords have of their tenants?

Shift in Thinking

In addition to being taken aback by the words landlord and tenant, my knee jerk response was a laundry list of have not and will do. Then I starting thinking in the context of new media and my whole person changed.  It instantly shifted from a position of attack to one of concern. I questioned that if I posted my response in the form of an adverse laundry list and a resident read it, would they retort in an adverse manner? And, would they be right in doing so? The answer is very possibly yes, the real question is to what extent?

Now I am stuck and curious how the community might answer the questions – would love to hear your thoughts…

Tell them about waking up on a crisp fall morning and taking a run in Forest Park just one block over from your apartment. Tell them about stopping back by Velocity Coffee Shop to have a cup of coffee – served by a friendly Barista named Tracy who rarely smiles but wants to. Tell them about the free copies of the New York Times, Wall Street Journal and the St. Louis Dispatch. Tell them about the free wifi. And, oh – it’s a bike shop too with cool bike motif everywhere. The bathroom even has a cool chalkboard where you once drew a giant dragon that looked as if it were eating the giant flower someone else drew.

Tell them about Papa John’s pizza and Subway at the end of the block where Tony and Charles remember your name and serve you with a smile. Tell them about Atlas Restaurant located in the heart of the neighborhood and the amazing food and desserts that they serve. Tell them about The Loop and The Central West End [very cool Saint Louis neighborhood hangouts] being just one mile away and don’t forget to mention the friendly cab driver resident who will drive you over while entertaining you with great conversation. Tell them about all the fun nights you had in those neighborhoods.

Tell them about Mr. and Mrs. Wang who own the dry cleaners right next door to Papa John’s and how they wash and fold clothes for $0.75 a pound. Tell them how much you love the fact that each Christmas they give your children big canisters of candy as a thank you for your business.

Tell them about the dog park even if you are not a pet lover – not even in the least.

If you haven’t figured it out yet, this is the neighborhood that I fell in love with in Saint Louis. Oh yeah, and I lived in a great apartment that overlooked a tree lined street that looks amazing in the fall.

Tell them with conviction how much you love the neighborhood the rest will fall right into place.