You may want to read and reread that last line a couple of times. [It's okay - I'll wait.....]

I think for many of us, me included, it’s usually more along the lines of what do we do next? What is the next thing to tweet? What is the next platform to try? What is the next marketing idea stone that needs to be turned over? How do we differentiate? How do we compete?

All good questions and likely good stimulates for conversation. But, what we leave out is equally if not more advantageous in forming an effective strategy.

What are you choosing not to do this year?

Related material: Two Lists You Should Look at Every Morning

Pic Props: TSLBO

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

Your genuine action will explain itself, and will explain your other genuine actions. Your conformity explains nothing. The force of character is cumulative. – Ralph Waldo Emerson, Self-Reliance

…How would you describe today using only one sentence? Tell today’s sentence to one other person. Repeat each day.

(Author: Liz Danzico)

Multifamily Sentence

Fail forward fast, learn, grow and press for excellence in all that you do.

Your taking it from the gut today contributor,

M

Abide in the simple and noble regions of thy life, obey thy heart. – Ralph Waldo Emerson

Write down your top three dreams. Now write down what’s holding you back from them.

(Author: Michael Rad)

Dreams

Dream Big

Top three dreams

1. See my three children prosper in health, family and their definition of a meaningful contribution to society

2. Reconcile relationships that I have marred along the way

3. Buy a home in a foreign country – in prep for retirement with my soul mate

What’s holding me back?

I feel blessed to report – not a thing…we are progressing well and taking actions to give ourselves the best shot!

On an aside, I want to give a quick thanks to those that have given me some kind words along the way in the #trust30 challenge. And, for those of you that have endured when the topic gets off the multifamily path, thank you as well.

Your continuing to love the #trust30 challenge contributor,

M

When good is near you, when you have life in yourself, it is not by any known or accustomed way; you shall not discern the foot-prints of any other; you shall not see the face of man; you shall not hear any name;—— the way, the thought, the good, shall be wholly strange and new. – Ralph Waldo Emerson

…Can you remember the moment when you stopped walking a path of someone else, and started cutting your own? (Author: Bridget Pilloud)

Multifamily Moment of Truth

I am a bit off prompt again today but hopefully you can appreciate the spirit of it.

I can remember the day like it was yesterday. It was late 1998 and I lived in Silverdale, Washington. I worked for a national REIT at the time. I was privileged to work for a gentleman that I still consider one of the best in the business especially as it relates to the topic of leadership. He was a teacher first and a business person second. Working for him was an absolute education.

The moment of truth for me came in the way of an employee concern. This individual had an alpha dog Type Triple A personality. Bite first and forget

Type A

about asking questions later. I had given it everything I had up to that point and resigned to calling my RM in. What did he do? Nothing! He listened to my plea for him to assist in taking care of this guy and he simply kept asking me what I was going to do about it? To me, I was doing what I was going to about it; I wanted him to deal with it.

Up to that point in my career; two things existed for me, 1. I worked on amazing assets and 2. the people loved what they did. The path I followed up to that point was one of little to no resistance to getting things done. At this moment the only path that existed for me was vertical and gave cause for a major pain in my side. And, I no ability to displace it. G thanks, Mr. RM man.

Fast forward: I survived!! Mr. RM man forced me to stare my moment of truth right in the eye and do something about. I had to choose my own path and fortunately it worked out. I was able to forge a new beginning with Type Triple A and he actually thanked me for taking the time to care. Whoa! Not what I expected to hear.

From that day forward, I looked at every employee issue – like new.

Your looking at everyday and every circumstance like new contributor,

M

Photo props to cheesy42

I will not hide my tastes or aversions. I will so trust that what is deep is holy, if we follow the truth, it will bring us out safe at last. – Ralph Waldo Emerson

How will you surprise yourself this week?

(Author: Ashley Ambirge)

How will I surprise myself this week? I have a sleeping problem. Not that I get too much but rather that I get to little. The daily routine, in short looks something like this: 

5:30 to 6:00 rise (varies but no later than six)

6:00 to 8:00 read/write/run/get ready

8:00 – 5:00 Meetings/site-visits/working on the multifamily operations business

5:00-9:00 Family time

9:00 to 2:00 or 3:00 – Multifamily & Social Media Work 

How will I surprise myself this week? Make it to bed by 1:00 – I think it’s a realistic start. 

How about you? What will you do? 

These are the voices which we hear in solitude, but they grow faint and inaudible as we enter into the world. Society everywhere is in conspiracy against the manhood of every one of its members. – Ralph Waldo Emerson

My thoughts on fear took me back to the words we used when writing on the subject of fear just a few days ago. That said, I am going to use this prompt in the way providing a tip.

Multifamily customer service

I have a new manager in my portfolio; started just about ten days ago. Last week we were talking through some site specifics, concerns and areas of opportunity. In the course of the conversation we came across the subject of decision making and communication. Any good property management organization makes the allowance for people to make decisions in the moment of truth.

For many new managers, fear is front and center in those moments of truth. “What if I make a bad one?” is a common question they ask themselves. When faced with those moments; they fall on the sword of, “Let me call corporate” [a word I abhor] or “Let me ask my manager.” [An act I abhor]

Now some sales people would contend that these two statements are useful in selling. The old, “I talked to my manager and we are going to do this for you.” Knowing full well they would do it for everyone; it gives the appearance of going to bat for your new found friend. But, to speak to the point of this post, let’s agree that we don’t like that approach to making a decision.

Make a decision and let’s talk about it later

My mantra has always been; make a decision under the premise of serving the customer first. In my head, I have entrusted you with the keys to a multi-million asset and part of the expectation is that you can make good sound decisions. So exercise that muscle; I say. And, in the truly big stake moments of truth if you resort to calling me for guidance and I don’t answer, just make the decision.

I tell every new leader to face the fear of making a bad decision by just making it. The thing you fear most is the thing you do next so in the moment; act. I follow by guiding them to set a premise for their decisions by asking the following question; “If that sign outside read [Insert Your Name Here] Apartments, what decision would you make? Or lead by giving themselves a little self-talk pep-talk; “I have been called to do what is the best interest of this person that is standing in front of me right now and with that in mind, I will act and make a decision.

I end by saying that if I think we should have done something different, we will talk about it and move on. Boom done. It’s that simple.

Your enjoying the #trust30 challenge immensely contributor,

M

The other terror that scares us from self-trust is our consistency; a reverence for our past act or word, because the eyes of others have no other data for computing our orbit than our past acts, and we are loath to disappoint them. – Ralph Waldo Emerson

This reminds me of the saying; The thing you fear most is the thing you should do next. Or, do something everyday that scares the hell out of you.

Public Speaking

I love the multifamily business with a purple passion. It has been the avenue that has paved lots of good fortune for me over the years. And, any chance I get to talk about any aspect of it; I take it.

Last night, I was a guest speaker for a professor at Washington University in St. Louis. I spoke on the topic of marketing and leasing up a re-development project called The Laurel Apartments. It’s an amazing project with amazing potential to change the social landscape of the neighborhood. It has everything a marketer could ever hope for in the way of an assignment.

That said and to the point; public speaking scares the hell out of me. It’s a dream of mine to be an accomplished public speaker over time so I jump at every scary chance to present not in spite of that fear but rather in celebration of it.

What are you afraid to do?

Hey, nice to meet you!

#Trust30 – Day Five

Great questions coming out of the #Trust30 challenge. Today, the prompt is what would you say to the person you were five years ago? And, what would you say to the person you will be five years from now?

There will be an agreement in whatever variety of actions, so they be each honest and natural in their hour. – Ralph Waldo Emerson

Growing up Multifamily

I’m entering year seventeen in the multifamily business and I think it goes without saying that I have met some amazing people and learned a ton about our business. Five years ago marks a point of significance in my life that really defined some things for me. I had become so consumed by my work that I lost touch with those that mattered most to me.

What would I say to that person? It’s time to grow up.

What would I say to the person I will be five years from now? You have a long way to go; take care of your health and welfare so you can take care of those you care about. Keep family front and center to all decisions you make and trust that honesty and forthrightness are your friends even when they feel like they are not.

What about you – what would you say to these respective persons?

Your thinking these questions are not getting any easier contributor,

M